HouseH.R. 1181119th Congress

Protecting Privacy in Purchases Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1181 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 447
119th CONGRESS
  2d Session
                                H. R. 1181

                          [Report No. 119-522]

 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

                           February 25, 2026

Additional sponsors: Ms. Boebert, Mr. Messmer, Mr. McDowell, Mr. Biggs 
    of Arizona, Mr. Issa, Mr. Green of Tennessee, Mr. Bergman, Mr. 
   Arrington, Mr. Huizenga, Mr. Kennedy of Utah, Ms. De La Cruz, Mr. 
 Wilson of South Carolina, Mr. DesJarlais, Mr. Clyde, Mr. LaLota, Mr. 
     Graves, Mr. Rogers of Alabama, Mr. Gooden, Mr. Kustoff, Mrs. 
  Harshbarger, Mr. Langworthy, Mr. Amodei of Nevada, Mr. Murphy, Mr. 
Moolenaar, Mr. Carter of Georgia, Mr. Austin Scott of Georgia, Mr. Van 
 Orden, Mr. Grothman, Mr. Valadao, Mr. Latta, Mr. Weber of Texas, Mr. 
Nehls, Mrs. Hinson, Mr. Walberg, Mr. LaMalfa, Mr. Rouzer, Mr. Sessions, 
 Mr. Harris of Maryland, Mrs. Wagner, Mr. Bilirakis, Mr. Stauber, Mr. 
 Scott Franklin of Florida, Mr. Mann, Mr. Edwards, Mr. Moore of Utah, 
Ms. Letlow, Mr. Estes, Mr. Gosar, Mr. Strong, Mr. Shreve, Mr. Feenstra, 
  Mr. Smith of Nebraska, Mr. Tiffany, Mr. Fleischmann, Mr. Cloud, Mr. 
    Ellzey, Mr. Fitzgerald, Mr. Aderholt, Mr. Hern of Oklahoma, Mr. 
  Pfluger, Mr. Zinke, Mr. Babin, Mr. Ezell, Mr. Bacon, Mr. Miller of 
Ohio, Mr. Harrigan, Mr. McGuire, Mr. Tony Gonzales of Texas, Mr. Kelly 
of Mississippi, Mr. Reschenthaler, Mr. Crenshaw, Mr. Hurd of Colorado, 
Mr. Goldman of Texas, Mr. Evans of Colorado, Mr. Jack, Mr. Loudermilk, 
    Mr. Harris of North Carolina, Mr. Baumgartner, Mr. Fallon, Ms. 
 Stefanik, Mr. Van Drew, Mr. Haridopolos, Mr. Steube, Mr. Meuser, Mrs. 
 Miller of Illinois, Mrs. McClain, Mr. Timmons, Mr. Hunt, Mr. Downing, 
Mr. Wied, Ms. Fedorchak, Mr. Stutzman, Mr. Hamadeh of Arizona, Ms. Lee 
 of Florida, Mr. Begich, Mr. Fry, Mr. Jackson of Texas, Mrs. Biggs of 
 South Carolina, Mr. Taylor, Mr. Moran, Mrs. Fischbach, Mr. Patronis, 
    Mr. Nunn of Iowa, Mr. Davidson, Mr. Owens, and Mr. Joyce of Ohio

                           February 25, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 11, 2025]

_______________________________________________________________________

                                 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 FIREARM RETAILERS PROHIBITED.

    (a) Prohibitions Relating to Merchant Category Codes.--
            (1) For payment card networks.--A payment card network may 
        not require--
                    (A) a firearms retailer to use a merchant category 
                code that--
                            (i) is used only or primarily for firearms 
                        retailers; or
                            (ii) identifies such retailer as engaged in 
                        the business of selling firearms, ammunition, 
                        accessories of firearms, or components of 
                        firearms; or
                    (B) a covered entity to assign a merchant category 
                code that is used only or primarily for firearms 
                retailers or that identifies a firearms retailer as 
                engaged in the business of selling firearms.
            (2) For covered entities.--A covered entity may not assign 
        to a firearms retailer any merchant category code that is used 
        only or primarily for firearms retailers or that identifies 
        such retailer as engaged in the business of selling firearms, 
        ammunition, accessories of firearms, or components of firearms.
    (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 
        any complaint received through the processes established by the 
        Attorney General under paragraph (1).
            (3) Written notice.--If the Attorney General determines, 
        after conducting an investigation under paragraph (2), 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.--
            (1)  In general.--Any law of a State or local government 
        regulating the assignment, use, or disclosure of merchant 
        category codes that are used only or primarily for firearms 
        retailers or that identifies a retailer as engaged in the 
        business of selling firearms, ammunition, accessories of 
        firearms, or components of firearms is hereby preempted.
            (2) Limitation.--Notwithstanding paragraph (1), nothing in 
        this Act may be construed to prevent a payment card network or 
        a covered entity from complying with any Federal, State, or 
        local law or regulations related to dispute processing, fraud, 
        compliance management, or protecting transaction integrity from 
        concerns related to illegal or suspicious activities, data 
        breaches, or cyber risks.
    (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 subsection (b);
            (2) includes a summary of such investigations and their 
        disposition; and
            (3) provides any available data and analysis that relates 
        to 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) has on the date of the enactment of this 
                section, or establishes after the date of the enactment 
                of this section, a relationship with a merchant for the 
                purposes of processing credit, debit, or prepaid 
                transactions; or
                    (B) has on the date of the enactment of this 
                section, or establishes after the date of the enactment 
                of this section, a relationship with an entity that 
                establishes a relationship with a merchant for the 
                purposes of processing credit transactions, debit 
                transactions, or prepaid transactions.
            (3) Firearm.--The term ``firearm'' means--
                    (A) a ``firearm'' as such term is defined in 
                section 921(a)(3) of title 18, United States Code;
                    (B) a ``shotgun'' as such term is defined in 
                section 921(a)(5) of title 18, United States Code;
                    (C) a ``rifle'' as such term is defined in section 
                921(a)(7) of title 18, United States Code;
                    (D) an ``antique firearm'' as such term is defined 
                in section 921(a)(16) of title 18, United States Code;
                    (E) a ``semiautomatic rifle'' as such term is 
                defined in section 921(a)(29) of title 18, United 
                States Code; and
                    (F) a ``handgun'' as such term is defined in 
                section 921(a)(30) of title 18, United States Code.
            (4) Firearms retailer.--The term ``firearms retailer'' 
        means a person, entity, or retail location physically located 
        in the United States that is engaged in the business of selling 
        or trading--
                    (A) firearms;
                    (B) ammunition;
                    (C) accessories of firearms; or
                    (D) components of 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 network 
        participant, processor, or agent provides proprietary services, 
        infrastructure, software, or hardware used to authorize, clear 
        and settle credit, debit, or prepaid transactions.
                                                 Union Calendar No. 447

119th CONGRESS

  2d Session

                               H. R. 1181

                          [Report No. 119-522]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           February 25, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed