3 Regulations That Could Hit Retailers
By Steve Holtz on Apr. 27, 2017WASHINGTON -- From vaping to food stamps to swipe fees, major legislation is in the works in Washington as Congress looks to find its footing with a Republican majority.
Here's a look at three issues that could hit convenience-store retailers, for better or worse ...
Return of the swipe fees?
The Financial Choice Act, backed by U.S. Rep. Jeb Hensarling (R-Texas), could mean the repeal of the Durbin Amendment and thus the end of debit-card swipe-fee controls as we know it.
The Durbin Amendment, part of the 2010 Dodd-Frank Wall Street reform package, limits the fees that Visa and MasterCard can fix on behalf of the largest banks. NACS, along with other members of the Merchants Payments Coalition, is advocating for the repeal of the provision ending the Durbin Amendment.
“The proposed repeal would raise costs for and dampen job-creating investment by small businesses and drive up prices for consumers," said Lyle Beckwith, senior vice president of government relations for NACS, "while generating even greater profits for the giant banks who already benefit from the highest swipe fees in the world, even with reform in place."
Opponents, however, say the savings created by the Durbin Amendment have not been passed on to consumers as intended.
Good for c-stores? No.
Save the vape
The vaping industry could be looking at a brighter horizon if a new bill, expected in the U.S. House of Representatives this week, gains momentum.
Rep. Duncan Hunter (R-Calif.) is expected to submit the measure that would pull electronic cigarettes from being categorized as a tobacco product and take them out of the jurisdiction of the U.S. Food and Drug Administration’s "deeming" rule.
As a result, the products would no longer be subject to strict regulations or the new-product approval process that many consider too costly for small manufacturers to comply with.
Good for c-stores? Yes.
SNAPped up
Meanwhile, new requirements will take effect soon for retailers participating in the Supplemental Nutrition Assistance Program (SNAP). The new rules changed several eligibility requirements for retailers, including stocking obligations. They are intended to give SNAP recipients better access to healthy food.
The USDA is also planning a new application for SNAP retailers, parts of which have also brought about pushback from NACS.
Click here for a breakdown of the key changes to SNAP and how they affect c-stores.
Good for c-stores? Depends.
- Donald Trump has formally announced one of the largest tax cuts that a U.S. president has ever made. Click here to read an opinion piece on what the tax cut proposals mean for c-store owners.