Rep. Scholten’s Legislation to Maintain Economic Competitiveness for Small Businesses Passes Out of Committee

WASHINGTON, DC – This week, Congresswoman Hillary Scholten (MI-03) and Blaine Luetkemeyer (MO-03), members of the House Small Business Committee, introduced the bipartisan Main Street Competes Act, which passed out of committee unanimously on Thursday. The bill helps small businesses maintain their competition in the marketplace by ensuring competition with larger firms. The Department of Justice (DOJ) and the Federal Trade Commission (FTC) play an important role in ensuring that small businesses are protected from unfair competition. This legislation requires the DOJ and FTC to submit data to the Small Business Administration’s Office of Advocacy, which will use the information to create an annual report on the state of the competitive landscape alongside policy recommendations for Congress.

“Protecting and supporting small businesses is at the heart of what I do in Congress. By fostering a competitive economy we enable small businesses to flourish alongside larger corporations and ensure that consumers can access high-quality products and services at fair market prices,” said Congresswoman Scholten. “By requiring the Small Business Administration to evaluate FTC and DOJ efforts to protect small businesses from unfair competition and provide legislative recommendations for Congress, The Main Street Competes Act enhances federal efforts to build a vibrant economy in which small businesses can thrive.” 

“Small businesses currently face record inflation, supply-chain disruptions, workforce shortages, and other disadvantages crippling their ability to participate in our economy. Although antitrust enforcement intends to promote competition, there is no data on the effectiveness of these laws in supporting small businesses. We cannot assume well-intentioned legislation meets the mark without diligent review and objective proof,” said Congressman Luetkemeyer. “This commonsense bill grants SBA’s Office of Advocacy the authority to oversee whether current antitrust laws and strategies are effective in their purpose, and I am proud to support it.”

"On behalf of America's independent grocers, we applaud Reps. Blaine Luetkemeyer (MO-03) and Hillary Scholten (MI-03) for their forward-thinking leadership in tackling anticompetitive behavior that undermines the vitality of small businesses," said Greg Ferrara, NGA president and CEO. "Antitrust laws, such as the Robinson-Patman Act, have languished without robust enforcement for a generation, exacting a heavy toll on independent community grocers, and felt both upstream and downstream from agricultural producers to consumers. It's only common sense that the Small Business Administration, as the champion of small businesses in the federal arena, critically assesses whether antitrust enforcement is fulfilling its fundamental objective of fostering a competitive landscape where Main Street businesses can thrive."

“Members of the House Small Business Committee recognize that this is an urgent issue that transcends partisan politics, and it reaches out to the small businesses at the heart of Main Street America,” said Chris Jones, head of the Main Street Competition Coalition, and senior vice president and counsel at the National Grocers Association. “This bill will help put government watchdogs back on the job after decades of inactivity that have allowed the biggest businesses to exploit their market power by undercutting their competitors and trading partners. We’re hoping that members of Congress from both sides cast a vote for fairness and competition.”