H.R. 1181 — Protecting Privacy in Purchases Act

This section establishes the short title of the Act as the “Protecting Privacy in Purchases Act.”

This section prohibits payment card networks and covered entities from requiring or assigning 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, ammunition, accessories of firearms, or components of firearms. It directs the Attorney General to enforce the section, establish a complaint process within 90 days after enactment, investigate complaints, and, if a violation is found, issue written notice requiring the violation to be remedied within 30 days; if the violation is not remedied, the Attorney General may seek an injunction in Federal court. It also specifies that the Act does not create a private right of action. This section preempts State and local laws regulating the assignment, use, or disclosure of merchant category codes used only or primarily for firearms retailers or that identify a retailer as engaged in the business of selling firearms, ammunition, accessories of firearms, or components of firearms. It preserves compliance with Federal, State, or local laws and regulations related to dispute processing, fraud, compliance management, and transaction integrity involving illegal or suspicious activities, data breaches, or cyber risks. This section requires the Attorney General to submit an annual report to Congress identifying the number of investigations undertaken, summarizing their disposition, and providing available data and analysis on the effectiveness of the Act. It defines key terms, including “firearms retailer” as a U.S.-located person, entity, or retail location engaged in selling or trading firearms, ammunition, accessories of firearms, or components of firearms, and “payment card network” as an entity that provides the infrastructure used to authorize, clear, and settle credit, debit, or prepaid transactions.