Name: Legislative Proposals to Strengthen Consumer Protection in a Changing Marketplace.
Uploaded: 2026-07-22T14:15:00+00:00
Duration: 10571 s

13:24 - 15:32

Speaker 1

The committee will come to order. The chairman recognizes himself for five minutes for an opening statement. Good morning, everyone. And welcome to today's legislative hearing. We are here today to consider a dozen bills aimed at strengthening consumer protections and ensuring the FTC and the Consumer Product Safety Commission have the tools they need to address challenges in today's economy.

For decades, the FTC has served as our nation's primary consumer protection agency. Since its creation in 1914, the FTC has worked to combat unfair and deceptive practices and promote competition without unduly burdening legitimate business activity. From the FTC Act itself to the Fair Credit Reporting Act and the more recent Take It Down Act, the FTC has been a driving force in consumer protection issues by keeping Americans safe in nearly every corner of our economy. The Consumer Product Safety Commission, or the CPSC, plays an equally important role by safeguarding the American public from hazardous consumer products through education, strong safety standards, and enforcement. As online marketplaces continue to grow and imported products enter the US in record numbers, it is critical that the CPSC is fully equipped to fight the wave of unsafe Chinese products flooding the American market.

15:33 - 16:56

Speaker 4

Today, we will examine 12 bills that would strengthen these agencies' ability to protect consumers. Several bills including the PAC Act and the Recycled Materials Attribution Act will improve transparency by addressing misleading recyclability claims while allowing for new innovations to improve recycling rates and assist job creators. Others such as the TERMS Act would impose new transparency obligations on online platforms. We will also consider legislation such as the Nitrous Oxide Safety Act and Stop the Fraud Act, which seeks to address unsafe products and strengthen enforcement against foreign companies that violate our consumer protection laws. Together, these proposals represent Congress's continued effort to keep the FTC and the CPSC equipped to protect American consumers.

Thank you and I look forward to listening to the witnesses. So I want to welcome the witnesses and now I'll yield five minutes to the ranking member, Ms. Schakowsky, for her opening statement.

16:56 - 18:19

Speaker 6

Thank you, Mr. Chairman. I appreciate... am I on? Can you hear? I appreciate this opportunity, but I want to tell you that for over a century right now, the Federal Trade Commission has protected consumers and has moved forward. But right now, what we're finding is Trump has actually weakened the ability of consumers to get the best of all they need right now.

And so I wanted to yield at this point to Representative Trahan to talk about what we really need to do.

18:19 - 20:29

Speaker 2

Well, thank you, Ranking Member Schakowsky, and I also want to thank the Chairman. Today, I'm so glad to see H.R. 3209, the bipartisan App Store Freedom Act, on today's agenda, and I'm grateful to my co-lead, Congresswoman Kat Cammack, for her tireless work on this bipartisan legislation. Smartphones are the front door to modern life, but Apple and Google control that door. Together, their operating systems power more than 99% of United States smartphones. Apple controls all native iOS app distribution in this country, while Google controls roughly 90% of Android app distribution.

That's not a competitive market, it's a duopoly. Apple and Google can force developers into their payment systems, charge commissions of up to 30%, block customers from hearing about lower prices, and give their own apps an edge. That means consumers pay more for less choice and less innovation. A new economic analysis published this week quantifies the harm. Americans spend $52.3 billion annually through Apple and Google's app stores.

push down app store fees consumers could save about $8.9 billion each year. The App Store Freedom Act targets only the largest gatekeepers and offers a pro-market fix. It lets consumers choose alternative stores and default apps, install apps outside the dominant stores and remove unwanted preloaded apps. It stops forced payment systems and gag rules and it gives developers fair access to operating system features so they can compete on merit. Opponents say exclusivity is the price of security, it's not.

They argue that opening app distribution and alternative app stores will invite malware, scams and threats to children, and sure, alternative distribution can create risks if poorly managed. But the status quo is already unacceptable. Documented scams and unsafe apps like nudify apps routinely slip through Apple and Google's security reviews. The answer is strong safeguards, not permanent permanent monopoly control. So to be absolutely clear, nothing in this bill forces someone to use an alternative app store.