Protecting Privacy in Purchases Act
This bill prohibits payment card networks from using merchant codes that distinguish firearms retailers from general-merchandise retailers or sporting-goods retailers.
The Department of Justice must enforce this bill and report annually on the resulting investigations and cases.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1181 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1181
To prohibit payment card networks and covered entities from requiring
the use of or assigning merchant category codes that distinguish a
firearms retailer from general-merchandise retailer or sporting-goods
retailer, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 11, 2025
Mr. Moore of West Virginia (for himself, Mr. Barr, Mr. Hudson, Mr. Bean
of Florida, Mr. Cline, Mr. Perry, Ms. Van Duyne, Mr. Guthrie, Mr.
Collins, Mr. Finstad, Mr. Moore of Alabama, Mr. Webster of Florida, Mr.
Guest, Mr. Rulli, Mr. Williams of Texas, Mr. Higgins of Louisiana, Mr.
Bost, Ms. Tenney, Mr. Schmidt, Mr. Moore of North Carolina, Mr.
Newhouse, Mr. Comer, Mr. Womack, Mr. Rose, Mr. Yakym, Mr. Gill of
Texas, and Mr. Rutherford) introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To prohibit payment card networks and covered entities from requiring
the use of or assigning merchant category codes that distinguish a
firearms retailer from general-merchandise retailer or sporting-goods
retailer, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Privacy in Purchases
Act''.
SEC. 2. DISTINGUISHING FIREARMS SALES.
(a) Prohibitions Relating to Merchant Category Codes.--
(1) Payment card networks.--A payment card network may not
require a firearms retailer to use, nor require a covered
entity to assign, a merchant category code that distinguishes
such firearms retailer from a general-merchandise retailer or a
sporting-goods retailer.
(2) Covered entities.--A covered entity or its agent may
not assign to a firearms retailer any merchant category code
that distinguishes from a general-merchandise retailer or a
sporting-goods retailer.
(b) Enforcement.--
(1) In general.--The Attorney General shall enforce this
section and shall, not later than 90 days after the date of the
enactment of this section, establish a process for individuals,
including firearms retailers, to submit complaints relating to
alleged violations of this section.
(2) Investigation.--The Attorney General shall investigate
each complaint received through the processes established under
paragraph (1).
(3) Written notice.--If the Attorney General determines
after conducting an investigation that a payment card network
or covered entity has violated this section, the Attorney
General shall send a written notice of such violation to such
payment card network or covered entity that requires the
payment card network or covered entity to remedy the violation
not later than 30 days after the date on which the payment card
network or covered entity receives such notice.
(4) Injunction.--
(A) In general.--If a payment card network or
covered entity does not remedy a violation within 30
days of receiving a written notice under paragraph (3),
the Attorney General may bring an action in Federal
court to enjoin the violating behavior.
(B) No private right of action.--This Act does not
create a private right of action.
(c) Preemption.--Any law of a State or local government regulating
merchant category codes for firearm retailers is hereby preempted.
(d) Report.--The Attorney General shall, each year, submit a report
to the Congress that--
(1) identifies the number of investigations undertaken by
the Attorney General under this section;
(2) includes a summary of such cases and their disposition;
and
(3) provides any available data and analysis regarding the
effectiveness of this Act.
(e) Definitions.--In this Act:
(1) Ammunition.--The term ``ammunition'' has the meaning
given the term in section 921(a)(17)(A) of title 18, United
States Code.
(2) Covered entity.--The term ``covered entity'' means any
entity that--
(A) establishes a relationship with a merchant for
the purposes of processing credit, debit, or prepaid
transactions; or
(B) establishes a relationship with an entity that
establishes a relationship with a merchant for the
purposes of processing credit, debit, or prepaid
transactions.
(3) Firearm.--The term ``firearm'' has the meaning given
the term in section 921(a)(3), (5), (7), (16), (29), (30), of
title 18, United States Code.
(4) Firearms retailer.--The term ``firearms retailer''
means a person or entity engaged in the lawful business of
selling or trading firearms or ammunition to be used in
firearms.
(5) Merchant category code.--The term ``merchant category
code'' means a multi-digit code, issued by the International
Organization for Standardization, for the purposes of enabling
the classification of merchants into specific categories based
on the type of business, trade or services supplied.
(6) Payment card network.--The term ``payment card
network'' means an entity that directly or through a licensed
member, processor, or agent provides proprietary services,
infrastructure, or software, or hardware that route information
used to authorize, clear and settle credit card and debit card
transactions.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 29 - 23.
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