Federal Legislation
House Passes Privacy Protection for Firearm Purchases
February 25, 2026
The House of Representatives has passed H.R. 1181, the Protecting Privacy in Purchases Act, which prohibits payment card networks and covered entities from requiring or assigning merchant category codes (MCCs) that specifically identify firearms retailers. This legislation preempts state laws mandating such MCC distinctions and empowers the Department of Justice to enforce compliance. The law impacts financial institutions, payment processors, and merchants by restricting the categorization of firearm-related transactions, thereby affecting transaction processing, compliance protocols, and privacy considerations.
- Financial institutions and payment processors must adjust systems to comply with the prohibition on firearm-specific MCCs, affecting transaction categorization and reporting.
- This legislation preempts varying state laws, creating a uniform federal standard that simplifies compliance for multi-state financial entities.
- Procurement professionals in financial services and payment technology sectors should evaluate impacts on vendor contracts and compliance requirements.
- Organizations involved in payment processing should engage with DOJ enforcement guidelines to ensure adherence and mitigate legal risks.
By categorizing firearm and ammunition retailers distinctly, financial institutions have a critical tool to identify and flag dangerous activity, potentially preventing gun trafficking and mass shooting tragedies before they occur.
— Senior official from the Brady Campaign
It is incomprehensible that Congress would choose to deny law enforcement a critical tool to prevent crime and mass violence before it happens, and to undermine state-led efforts to protect their constituents.
— Maxine Waters, Ranking Member
Agencies
Department of Justice, Committee on Financial Services, House of Representatives, Federal banking agencies, Committee on Banking, Housing, and Urban Affairs
Locations
Sources
- H. Rept. 119-522 - PROTECTING PRIVACY IN PURCHASES ACT · congress · Feb 25
- H. Rept. 119-522 - PROTECTING PRIVACY IN PURCHASES ACT · congress · Feb 25