H.R. 1181

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

<DOC>

119th CONGRESS
2d Session
H. R. 1181

_______________________________________________________________________

AN ACT

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.

Passed the House of Representatives July 14, 2026.

Attest:

Clerk.
119th CONGRESS

2d Session

H. R. 1181

_______________________________________________________________________

AN ACT

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.