Welcome to our platform advocating consumer protection, fair competition, and lower prices for Americans struggling to pay for the basics of life.
"A rebellion against higher prices”
-The Wall Street Journal
The Federal Trade Commission (“FTC”) plays a crucial role in safeguarding consumers' interests and fostering healthy competition. However, recent actions regarding the revival and enforcement of an outdated law, the Robinson-Patman Act of 1936 ("RPA"), have raised concerns about the rising cost to consumers.
Give America a Break was created to give Americans a break at the “checkout line” as rising prices on food, housing, energy and medical care are now exceeding tens of millions of Americans’ ability to pay.
Our Concerns:
The Threat:
The current FTC effort to revive and enforce the RPA raises critical concerns:
Potential Economic Harm: Reviving the RPA without credible economic analysis may result in higher prices for essential products, disproportionately affecting middle and working-class Americans.
Selective Enforcement: Instead of fostering competition, enforcement of the RPA could be used to protect specific competitors in chosen industries.
Lack of Retrospective Studies: Why revive a law without first proving it has had a positive impact in the past? The FTC has still not provided any retrospective studies on the impact of RPA enforcement on consumers from over fifty years ago or during periods of non-enforcement.
Disregard for Consumer Impact: The FTC's actions regarding the RPA overlook the potential negative impact on consumers, jeopardizing the convenience and affordability offered by large retailers.
Financial Burden: Reviving the RPA could lead to expensive taxpayer-funded litigation and additional investigations without a clear understanding of the economic implications.
“7 in 10 Americans are concerned
about rising prices for everyday
purchases”
-Deloitte Financial Well-Being Index
Implications of RPA Revival:
Historical Context: The RPA was passed nearly a century ago, and cases related to it have declined since the 1980s, raising questions about the need for, and motivation behind, its revival in today's marketplace.
Higher Prices: Reviving the RPA may lead to increased prices for consumers, particularly affecting lower and middle-income individuals who rely on large chain retailers for affordable products.
Reduced Competition: RPA enforcement against individual companies may weaken their ability to compete, ultimately reducing competition in targeted product markets.
Equitable Consequences: Middle and working-class consumers disproportionately rely on chain retailers for essential products, and RPA enforcement threatens to hinder their access to affordable goods.
Impact on Jobs: Chain retailers employ millions of people and offer employment advantages such as higher wages and benefits. Increased costs due to RPA enforcement may lead to workforce reductions and increased unemployment.
The Bottom Line
“Consumers are more price sensitive”
- The Economist
After years of rising costs, American consumers need a break. Enforcement of a 97 year law rarely used in the past 50 years could add to that burden, and yet the FTC hasn’t offered any evidence or analysis from past imposition of this law that justifies imposing it on Americans.
Give America A Break is speaking out for consumers, and for policies that foster fair lower prices and open competition in the marketplace. The Robinson-Patman Act does neither, and should be shelved in favor of policies that do.
For questions or to get involved, email joe.sangiorgio@giveamericaabreak.com.