Retail Merchants Oppose the Federal American Innovation and Choice Online Act

by Timothy G. Phelan

Retailers are the backbone of our American economy. They are our neighbors, our employers and our friends who keep our community moving forward.

In Connecticut, retail supports more than 470,000 jobs and contributes more than $34 billion to the state’s economy, and data indicates that Connecticut has roughly 41,900 retail establishments.

Retailers face many a world that is rapidly changing and the pandemic has accelerated many challenging trends that have caused disruption in the state retail community. The fast pace of technological advances along with shifting demographics, and globalization, leave business owners working to navigate a turbulent sea of economic upheaval. Since 1910, the Connecticut Retail Merchants Association has been working on behalf of retailers to help them navigate those choppy waters. We use our voice at every level of government to strengthen Connecticut and American retailing and sometimes that means opposing bills that, no matter how well intentioned, will hurt the retail community.

S.2992, the American Innovation and Choice Online Act, is a bill that we must oppose, and we would encourage our Congressional delegation to do the same. While proponents try to sell this bill as a way to regulate technology companies and increase competition, the reality is that this bill has the potential to disrupt free or low-priced technology services essential for businesses and families to succeed in this increasingly digital and remote world in which we live.

S.2992 would hurt businesses and harm consumers by raising prices, fueling inflation, reducing investment, and damaging innovation. 

The bill would prohibit major platforms from “self-preferencing” their own products. That means services businesses and customers use every day such as Google Maps, Amazon Prime, Google Reviews and more could be put out of reach or put behind a paywall. Since the onset of the COVID-19 pandemic, digital tools and services have served as a lifeline for small businesses. Delivery services and online sales platforms have helped retailers and continue serving their customers, while digital advertising and social media have enabled countless small businesses to reach new audiences. By disrupting these tools, S.2992 would hurt businesses and harm consumers by raising prices, fueling inflation, reducing investment, and damaging innovation. 

Congress must work to reduce, not exacerbate, the lasting damage of the pandemic and the subsequent inflation and supply chain challenges with which we all are grappling with. S,2992 is not the tonic our retailers need and may well serve to make the challenges with which we are dealing with worse. Our members of Congress should stand with retailers and oppose this bill.

Timothy G. Phelan is President of the Connecticut Retail Merchants Association.