In his second term as U.S. President, Donald Trump has lived up to his reputation as a businessman. But it is all for the wrong reasons. He pushed through the tax cuts for big businesses and now wants to allow companies to mistreat Americans without any repercussions.
Greedy Corporations Don’t Care About Consumers
In August, the Department of Justice (DOJ) embarked on a Trump-orchestrated mission to address “State laws that significantly and adversely affect the national economy or interstate economic activity.” As part of those efforts, the DOJ asked the public to submit their comments on the matter. As expected, greedy corporations saw this as an invitation to attack laws they don’t like.
Corporate lobbyists have been active in sending commentary to the DOJ, focusing on complaints about laws regarding consumer protection. For example, the American Bankers Association (ABA) wants to get rid of laws and regulations that set caps on credit swipe fees and interchange fees. ABA would also end protection of consumers from debt collectors and argues that states should have no say in the way banks are regulated. The International Center for Law and Economics would like to see minimum wage or anti-monopoly state laws gone. Technology-focused Cato Institute, Abundance Institute, and Information Technology and Innovation Foundation want to prevent states from regulating Artificial Intelligence (AI) or anything that would prevent big tech from exploiting consumers.
The End of Consumer Protection in the U.S. Already Started
The end of consumer protection in the U.S. started before the DOJ provided corporations a convenient opportunity to try to avoid accountability. In February, the Trump administration started the process of eliminating the Consumer Financial Protection Bureau (CFPB) as part of its Department of Government Efficiency (DOGE) program. CFPB, which was created in 2010, is one of the key agencies responsible for consumer protection from malpractice conducted by companies in the financial sector.
One of Trump’s first moves in the office was to fire CFPB director Rohit Chopra. Secretary Of The Treasury Scott Bessent took over as acting director and immediately stopped all of CFPB activities. Bessent attempted to fire all of the agency’s staff before being stopped by a court order. The employees were sent on administrative leave instead. Since then, CFPB has limited its scope of operation, changed the terms of previous settlements to favor corporations, and walked away from most of its lawsuits.
Americans Will Spend More to Receive Less
The erosion of consumer protection will cause Americans to spend more to receive less. If Trump succeeds in his plan, banks will be able to charge ridiculous fees, and there will be no one to stop them. Tech companies will be able to sell your data and personal information to the highest bidder. Finally, the quality of service will be worse than ever and we won’t be able to do anything about it.
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