On July 9, 2021, President Joe Biden issued a sweeping Executive Order that will impact most American businesses. The Executive Order outlines Biden's directives and goals for federal executive agencies - many of which are troubling to the business community. Some actions would require federal agencies to enact regulations, while other actions could begin without any input or action from Congress or the public.
"This Executive Order is clearly a sweeping attempt to increase the federal government's oversight and interference in areas that touch most private businesses," said Ray McCarty, president of Associated Industries of Missouri.
One of the misguided goals of the Administration has been dubbed "right to repair," but is more appropriately described as the "right to modify" farm, construction, electronic and other equipment. This "right to modify" mandate was included in legislation Associated Industries of Missouri helped prevent in the 2021 Legislative Session because it would require manufacturers to disclose trade secrets and devalue the manufacturers' intellectual property, harm the environment, harm consumers and lead to more lawsuits against manufacturers and dealers. Importantly, the right to repair a consumer's own piece of equipment currently exists, but the Order would go much further, allowing tractors and construction equipment to be modified, perhaps in excess of safe operational limits; allowing consumers to defeat federally required emissions equipment; exposing operational software for such equipment to potential hacking or reverse engineering by foreign and domestic opportunists; and more.
The Executive Order seeks to accomplish the following, according to a fact sheet issued by the White House.
Labor Markets
Encourages the FTC to ban or limit non-compete agreements.
Encourages the FTC to ban unnecessary occupational licensing restrictions that impede economic mobility.
Encourages the FTC and DOJ to strengthen antitrust guidance to prevent employers from collaborating to suppress wages or reduce benefits by sharing wage and benefit information with one another.
Healthcare
Directs the Food and Drug Administration to work with states and tribes to safely import prescription drugs from Canada, pursuant to the Medicare Modernization Act of 2003.
Directs the Health and Human Services Administration (HHS) to increase support for generic and biosimilar drugs, which provide low-cost options for patients.
Directs HHS to issue a comprehensive plan within 45 days to combat high prescription drug prices and price gouging.
Encourages the FTC to ban “pay for delay” and similar agreements by rule.
Directs HHS to consider issuing proposed rules within 120 days for allowing hearing aids to be sold over the counter.
Underscores that hospital mergers can be harmful to patients and encourages the Justice Department and FTC to review and revise their merger guidelines to ensure patients are not harmed by such mergers.
Directs HHS to support existing hospital price transparency rules and to finish implementing bipartisan federal legislation to address surprise hospital billing.
Directs HHS to standardize plan options in the National Health Insurance Marketplace so people can comparison shop more easily.
Transportation
Directs the DOT to consider issuing clear rules requiring the refund of fees when baggage is delayed or when service isn’t actually provided—like when the plane’s wifi or in-flight entertainment system is broken.
Directs the DOT to consider issuing rules that require baggage, change, and cancellation fees to be clearly disclosed to the customer.
Encourages the Surface Transportation Board to require railroad track owners to provide rights of way to passenger rail and to strengthen their obligations to treat other freight companies fairly.
Encourages the Federal Maritime Commission to ensure vigorous enforcement against shippers charging American exporters exorbitant charges.
Agriculture
Directs USDA to consider issuing new rules under the Packers and Stockyards Act making it easier for farmers to bring and win claims, stopping chicken processors from exploiting and underpaying chicken farmers, and adopting anti-retaliation protections for farmers who speak out about bad practices.
Directs USDA to consider issuing new rules defining when meat can bear “Product of USA” labels, so that consumers have accurate, transparent labels that enable them to choose products made here.
Directs USDA to develop a plan to increase opportunities for farmers to access markets and receive a fair return, including supporting alternative food distribution systems like farmers markets and developing standards and labels so that consumers can choose to buy products that treat farmers fairly.
Encourages the FTC to limit powerful equipment manufacturers from restricting people’s ability to use independent repair shops or do DIY repairs—such as when tractor companies block farmers from repairing their own tractors.
Internet Service
Encourages the FCC to prevent ISPs from making deals with landlords that limit tenants’ choices.
Encourages the FCC to revive the “Broadband Nutrition Label” and require providers to report prices and subscription rates to the FCC.
Encourages the FCC to restore Net Neutrality rules undone by the prior administration.
Technology
Announces an Administration policy of greater scrutiny of mergers, especially by dominant internet platforms, with particular attention to the acquisition of nascent competitors, serial mergers, the accumulation of data, competition by “free” products, and the effect on user privacy.
Encourages the FTC to establish rules on surveillance and the accumulation of data.
Encourages the FTC to establish rules barring unfair methods of competition on internet marketplaces.
Encourages the FTC to issue rules against anticompetitive restrictions on using independent repair shops or doing DIY repairs of your own devices and equipment.
Banking and Consumer Finance
Encourages DOJ and the agencies responsible for banking (the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency) to update guidelines on banking mergers to provide more robust scrutiny of mergers.
Encourages the Consumer Financial Protection Bureau (CFPB) to issue rules allowing customers to download their banking data and take it with them.
The National Association of Manufacturers issued this statement regarding the Executive Order. The U.S. Chamber of Commerce also issued a statement, characterizing the Executive Order as a "government knows best approach."
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