IFA's Ironic Twist To New Consumer Legislation
The International Franchise Association (IFA) has once again flexed its muscles influencing legislation affecting franchising on several fronts. While franchisees continue to sit on the sidelines expecting divine intervention to change their plight, franchisors, through the IFA, forged ahead by effectively removing any chance for better oversight and regulation of franchising - leaving franchising's imprint on Americans' financial stability unchecked.
The IFA was instrumental in changing legislation incorporated in the new "Restoring American Financial Stability Act". Two issues, specifically, limiting ""swipe" fees credit card companies and banks charge merchants and retailers," and requiring the CFPB (Consumer Financial Protection Board) to consider the ramifications any new regulations will have on small businesses to "ensure new rules do not unfairly impact this important economic sector" will most likely help franchisees. However, the most important issue "regarding the expansion of regulatory authority for both the Federal Trade Commission and the newly created Bureau of Consumer Financial Protection (CFPB) over franchised businesses" was removed.
IFA President Steven Caldiera said "that the conferees rejection of an attempt to expand the regulatory authority of the Federal Trade Commission was a significant victory for all sectors of the franchise business community." The FTC "would have been granted sweeping new authorities to issue regulations impacting virtually any retail business" under the original House version.
To read more click: IFA Press Release