Wall Street Reforms Threaten Growth on Main Street
IFA Supports Amendment to Protect Small Businesses
WASHINGTON, May 6, 2010—New regulatory authority intended for banks and depository institutions must not impose costly new burdens on franchised small businesses that are already, and will continue to be, regulated by the Federal Trade Commission, the International Franchise Association said today.
“Reform of the financial services system to restore faith in the institutions on Wall Street is necessary,” said IFA Vice President of Government Relations David French. “However, we are concerned that the tightening of rules for Wall Street firms does not negatively harm small franchised businesses on Main Street. Congress should promote an environment that allows small businesses to grow and create jobs.”
In a letter to the Senate, French urged Senators to support Amendment 3826 offered by Sens. Mitch McConnell (R-Ky.) and Richard Shelby (R-Ala.) to S. 3217, the “Restoring America’s Financial Stability Act.” This amendment will ensure that new financial regulations are appropriately focused on banks and not small franchised businesses on Main Street.
French outlined concerns with the scope of the proposed new Consumer Financial Protection Bureau (CFPB). As drafted, the Bureau would be a duplicative federal regulator with broad jurisdiction over consumer financial products or services. For example, Title X Section 1027 will extend authority to certain retail and franchise small businesses that extend credit or extended payment plans to customers for the purchase of goods and services. The CFPB is granted authority over a vast array of consumer protection laws, which will create overlapping authority with the FTC. The FTC has historically regulated franchising and retailers for nearly 100 years.
“Small franchised businesses on Main Street did not cause the economic collapse and subsequent recession,” French said. “These firms are struggling to grow and provide economic opportunity in communities across the country. We support the Shelby-McConnell amendment that will focus new regulatory scrutiny where it belongs.”
to read the IFA letter to the Senate.
About the International Franchise Association
The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating 50 years of excellence, education and advocacy, IFA protects, enhances and promotes franchising through government relations, public relations and educational programs. Through its awareness campaign highlighting the theme,
Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the 21 million jobs and $2.3 trillion of economic activity generated by franchising. IFA members include franchise companies in over 90 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.