1. Short title This Act may be cited as the Protecting Privacy in Purchases Act . 2. Distinguishing firearms sales (a) Definitions In this section: (1) Ammunition The term ammunition has the meaning given the term in section 921(a)(17)(A) of title 18, United States Code, as applied to a firearm, as defined in paragraph (3). (2) Covered entity The term covered entity means any entity that establishes a relationship with— (A) a merchant for the purposes of processing credit, debit, or prepaid transactions; or (B) another entity that establishes a relationship with a merchant for the purposes of processing credit, debit, or prepaid transactions. (3) Firearm The term firearm means an item described in paragraph (3), (5), (7), (16), (29), or (30) of section 921(a) of title 18, United States Code. (4) Firearms retailer The term firearms retailer means a person or entity engaged in the lawful business of selling or trading— (A) firearms