The House has passed a bill that would bar the use of merchant codes specifically for firearm retailers, an effort to pre‑empt state adoption of the tool. The legislation targets the classification system that would otherwise allow retailers to report sales data to federal authorities.

Merchant codes are a part of the broader effort to monitor cash‑less transactions and to enforce background‑check requirements. They would create a new layer of reporting that could be used to create detailed records of gun sales, potentially revealing purchasing patterns that are currently hidden.

By prohibiting the use of these codes, the bill limits the data that can be collected at the point of sale, making it harder for state regulators to track sales trends and enforce compliance. The move also signals a federal push to keep the industry’s sales data opaque until a national standard can be adopted.

This action sets a precedent for future federal oversight of firearms commerce, and it could influence how states approach their own tracking programs. The bill’s passage highlights the tension between transparency and privacy in the gun‑sale market.