The US Direct Selling Association (DSA) signed a multi-association letter with roughly ninety other national, state, and local trade associations opposing and requesting the removal of a provision in the “Build Back Better” social spending bill that would vastly expand Federal Trade Commission (FTC) authority without due process.
The language would allow the FTC to seek civil penalties for any unfair or deceptive practice. Current statutory law only allows the FTC to seek penalties for clear violations of rules.
The letter argues that granting the FTC such authority would have a chilling effect on the economy, violate Senate rules, and the fiscal impact of including such a provision was inappropriately calculated.
DSA not only signed the letter but also has reached out to allies in the Senate about this provision and worked closely with the US Chamber of Commerce and other associations to draft the letter and get other associations to sign.
It is looking increasingly likely that the passage of the bill, which only needs fifty votes in the Senate, could be pushed to 2022. DSA will keep members updated on all developments. A copy of the letter can be accessed here.