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
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.
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.