What This Bill Does
The Protecting Privacy in Purchases Act would stop payment card networks and other covered entities from forcing firearms retailers to use merchant category codes that specifically identify them as gun sellers. It also bars covered entities from assigning a code used only or primarily for firearms retailers, or one that identifies a merchant as selling firearms, ammunition, accessories, or components. The bill gives enforcement authority to the Attorney General, who must create a complaint process within 90 days, investigate complaints, and can seek court injunctions if violations are not cured within 30 days. It also preempts state and local laws on these specific merchant codes, while preserving compliance with laws on fraud, dispute processing, data breaches, cyber risks, and transaction integrity.
- Bars payment card networks from requiring firearms retailers to use a code used only or primarily for gun sellers.
- Forbids covered entities from assigning firearms retailers a code that identifies them as selling firearms or related items.
- Gives the Attorney General 90 days after enactment to create a complaint process.
- Requires violators to remedy a DOJ notice within 30 days before the Attorney General may seek an injunction.
- Preempts state and local laws regulating these firearms-related merchant category codes, but preserves fraud and cyber-risk compliance.
Who This Bill Affects
For a typical American, this bill has a limited but real effect if you buy firearms, ammunition, accessories, or related components from a retailer that accepts credit, debit, or prepaid cards. It would make it less likely that your merchant category code would be one used only or primarily for firearms retailers, which means card processors could not impose that specific kind of firearms-focused classification. For most other consumers, the bill has little direct day-to-day effect beyond shaping how payment networks classify certain merchants and how state or local governments may regulate those codes.
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- Bill
- HR 1181
- Congress
- 119th Congress
- Official title
- Protecting Privacy in Purchases Act
- Policy area
- Economy & Finance
- Latest action
- Rules Committee Resolution H. Res. 1377 Reported to House. Rule provides for consideration of H.R. 1181, H.R. 9022, H.R. 8595 and H.R. 9237. The resolution provides for consideration of H.R. 1181 and H.R. 9237 under a closed rule and H.R. 9022 and H.R. 8595 under a structured rule. The resolution provides for one hour of general debate and one motion to recommit on each bill. (June 23, 2026)
- Last updated
- June 24, 2026
Who Supports & Opposes This
- Firearms retailers They would argue the bill prevents retailers from being singled out in payment systems through a code that identifies them as gun sellers. That, in their view, protects lawful business activity from special tracking or pressure that other retailers do not face.
- Gun owners and customers concerned about privacy They would likely say the bill reduces the risk that lawful firearm-related purchases are treated as a separate, identifiable category in payment records. The argument is that consumer purchase data should not be sorted into a code that reveals sensitive lawful buying habits.
- Payment-network compliance teams Some may prefer a single national rule because the bill preempts state and local regulation of these specific merchant category codes. A uniform standard can reduce conflicting legal requirements across jurisdictions.
- Financial fraud and risk-management professionals They may argue that merchant category codes can help detect suspicious activity, support dispute processing, and improve transaction monitoring. Limiting specialized codes could make it harder to spot patterns tied to illegal or high-risk transactions.
- State and local policymakers They may oppose the federal preemption clause because it overrides state or local rules on these merchant category codes. That removes a tool local governments might use to regulate payment-data classification within their borders.
- Consumer privacy advocates concerned about transparency in lawful commerce Some could argue the bill goes too far by preventing even neutral classification tools if they distinguish firearms retailers from other merchants. They may worry it reduces visibility into payment flows that can be important for oversight and safety.
Key Implications
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““A payment card network may not require””
This means card networks could not force firearms retailers into a special code regime. The practical effect is to block network-level mandates aimed specifically at identifying gun-related merchants.
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““may not assign to a firearms retailer any merchant category code””
Covered entities themselves are also barred from creating that firearms-specific label. This limits both direct and indirect tagging of gun sellers in payment systems.
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““The Attorney General shall enforce this section””
Enforcement is placed with the Justice Department, not private plaintiffs. Individuals and retailers could file complaints, but only DOJ can pursue federal-court injunctions after notice and a 30-day cure period.
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““This Act does not create a private right of action.””
People who believe a violation occurred could not sue under this law on their own. That narrows enforcement to the Attorney General’s process and removes the threat of private damages litigation.
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““Any law of a State or local government ... is hereby preempted.””
State and local governments would be barred from imposing their own rules on these firearms-related merchant category codes. The bill would create one federal standard across jurisdictions, even where local governments might want different disclosure rules.
Latest Status
June 23, 2026
Rules Committee Resolution H. Res. 1377 Reported to House. Rule provides for consideration of H.R. 1181, H.R. 9022, H.R. 8595 and H.R. 9237. The resolution provides for consideration of H.R. 1181 and H.R. 9237 under a closed rule and H.R. 9022 and H.R. 8595 under a structured rule. The resolution provides for one hour of general debate and one motion to recommit on each bill.
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