WASHINGTON, D.C – Congressman Josh Riley (NY-19) helped introduce the Fair Prices for Local Businesses Act, legislation that would lower costs for working families and level the playing field for small businesses by cracking down on corporate price discrimination.
“For decades, big box stores and big corporations have rigged the system in their favor, cutting sweetheart deals with suppliers while pushing them to charge small businesses more,” said Rep. Riley. “The Fair Prices Act puts an end to it, so our mom-and-pop shops can actually compete and working people can catch a break at the checkout counter.”
Right now, big corporations use their massive purchasing power to force suppliers to charge small businesses more for the exact same products – costs that then get passed on to consumers at the checkout line when they shop locally. In one case, Walmart allegedly colluded with Pepsi to raise shelf prices at independent and regional retailers, while cutting a deal to keep prices at Walmart locations lower than the rest.
The Fair Prices for Local Businesses Act would strengthen anti-price gouging regulations to ban charging small businesses more than big chains for the same products, while still allowing retailers to get lower prices for things like bulk purchases. It would also expand protections to prevent local shops and restaurants from being charged higher costs for services like delivery apps, point of sale systems, and credit card swipe fees.
The bill also closes loopholes that corporations have exploited to escape accountability, and ensures that small businesses who have been cheated can recover the money they’re owed.
The bill is the House companion to the Fair Prices for Local Businesses Act introduced in the Senate by Senator Chris Murphy and supported by Small Business Majority, Farm Action Fund, Independent Restaurant Coalition and the National Supermarket Association.
Bill text is available here.
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