Chicago Mayor Rahm Emanuel has proposed an edict that would bar gun shops from operating in 99.5% of the city and require video of each sale.
The proposal comes in response to a court order overturning the city's ban on handgun sales.
Chicago has some of the strictest gun laws in the US and a gun-related murder rate three times higher than New York's and twice Los Angeles's.
Some city leaders expect this latest plan to be challenged in court.
The package of measures includes:
When asked whether videotaping sales amounted to intimidation, Mr Emanuel said cash withdrawals were also on film.
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