CCIA’s “Don’t Break What Works” Campaign to Congress, Administration: Don’t Make Inflation Worse
Wayne Brough, R Street Institute
“In fact, AICOA restricts covered platforms’ ability to compete and eliminates many practices that are clearly pro-consumer. For example, self-preferencing is prohibited by the covered platforms. This includes activities such as a covered platform offering its own store-brand or “private label” products to compete with other brands sold on the platform. Under these rules, Amazon Basics would be potentially limited in its ability to compete with its rivals.”
“Yet, private labels exist throughout the world of retail and are not covered by this bill. Target, for example, has 48 private labels, and generates roughly a third of its income through the sale of its private label products. Walmart, Costco and all major grocery stores sell private labels that often provide the low-cost option for consumers. This head-to-head competition is a driving factor in keeping prices low and enhancing consumer welfare. The bill does not explain why “Kirkland” is acceptable, but “Amazon Basics” is not.”
