As the House and Senate move to finalize a conference committee on dueling versions of the United States Innovation and Competition Act and America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education and Science Act, Republican members should beware that both renderings still include political poison that could degrade the backbone of the American economy: our vibrant small-business community.
Ironically, the bill is supposed to boost American competitiveness with China. But unfortunately, Democrats in Congress have hijacked an issue with broad bipartisan support by stuffing it with anti-conservative provisions like the SHOP SAFE Act that could actually put our economy at further disadvantage and risk.
The SHOP SAFE Act is a detrimental blow to the free-market economy.
Proponents of the SHOP SAFE Act claim it will stop the sale of counterfeit goods online, but the bill’s misguided and untargeted regulations and mandates will cement the status of huge retailers and hammer online small businesses and entrepreneurs already struggling to cope with rising inflation and supply chain issues.
Instead of giving law enforcement the proper tools to crack down on crime online, the manner in which the SHOP SAFE Act is crafted could layer on an even more complex and convoluted trademark and copyright system. These new regulations could give big foreign brands — many of whom already call China home — additional leverage over small businesses, instituting a draconian legal labyrinth that could allow them to declare ownership of colors, phrases and even commonly used words.
To make matters worse, the SHOP SAFE Act’s enforcement mechanism gives billion-dollar corporations the ability to bring legal action against any small online sellers who can’t comply with the bill’s Byzantine web of trademark regulations.
That means mom-and-pop shops with limited time, money and expertise could be left to face devastating legal repercussions and go toe to toe with mega-corporations who have legions of lawyers prepared to swat away lawsuits and a war chest worth of funds to adapt to new requirements.
Thankfully, there’s still time for our elected leaders in Congress to stop this bill in its tracks, but that’ll require a unified Republican front. Already, Republicans in Congress have voiced their disapproval of COMPETES and USICA and have called out Democrats for trying to use a bipartisan bill to pass partisan policies. However, some Republicans have signaled they may support USICA and the America COMPETES Act, despite the inclusion of SHOP SAFE language.
As written, the America COMPETES Act and USICA both include a progressive boondoggle masquerading as a consumer safety measure. Right now, small businesses across the country are struggling to contend with increasing costs, and there’s no end in sight to the inflation and supply chain crisis. The SHOP SAFE language embedded in the broader China competitiveness bill won’t help everyday Americans. It goes directly against the legislation’s original intent and could inadvertently further empower China.
Neither America COMPETES nor USICA should warrant Republican support until SHOP SAFE is removed and can no longer endanger our economy.
