NetChoice Warns that CARE Act Will Harm Internet Commerce

Proposed legislation would undermine the success of online retail

WASHINGTON, Sept. 29 /PRNewswire-USNewswire/ -- On Wednesday, September 29, the House Judiciary Committee will hold a hearing to examine the CARE Act, which would allow states to grant preferential treatment to local alcohol distributors at the expense of out-of-state competitors.

NetChoice joins dozens of consumer advocacy and free market organizations in opposing this legislation, and warns of the chilling effects it would have on online retail, consumer choice and interstate commerce. The legislation, H.R. 5034, would overturn a 2005 Supreme Court ruling against regulations that favored in-state wine sellers over out-of-state competitors. An amicus curiae brief filed by NetChoice and others in that case can be found here.

"The Internet has brought a new era of choice, convenience, and competition that benefits consumers and opens markets to small and mid-sized retailers," said Steve DelBianco, executive director of NetChoice. "It is unconscionable that advocates of the CARE Act would allow similar products to be treated differently if they came from competitors in other states."  

In addition to consumer advocacy and free market champions, the Federal Trade Commission has explored the matter and raised serious questions about what possible benefits consumers and the market could drive from artificial barriers to trade like those found in the CARE act.  

Ultimately, NetChoice asks the House Judiciary Committee to consider whether the CARE Act would encourage states to pass protectionist laws that benefit wholesalers and codify their role as middlemen.

NetChoice is an advocacy organization that fights threats to online commerce and promotes policies that protect Internet innovation and communication on a state, federal and international basis.  The Washington, DC-based group protects Internet commerce-driven competition and battles rules that hinder consumer choice and hurt small businesses. For more information, see www.netchoice.org.

SOURCE NetChoice