Retailers eye defense bill for key priorities

From: POLITICO Influence - Wednesday Oct 05,2022 10:34 pm

Oct 05, 2022

Presented by Philip Morris International

With Daniel Lippman

NDAA COULD INCLUDE GOODIES FOR RETAILERS: The Senate is set to begin deliberations next week on annual defense policy bill, one of the few must-pass pieces of legislation remaining on Congress’ to-do list this year, but a broad coalition that includes trade groups representing retailers are eyeing the NDAA as a potential vehicle for a pair of seemingly unrelated priorities.

— On Tuesday, dozens of trade groups, retailers and e-commerce platforms urged congressional leadership and the lawmakers negotiating the bill to include language aimed at cracking down on the proliferation of counterfeit and stolen goods being sold in online marketplaces in the final version.

— “The INFORM Consumers Act will combat … criminal actors by increasing transparency and accountability by requiring sensible verification and disclosure requirements designed to disrupt their ability to sell illicit goods,” the coalition wrote in letters Tuesday to the leaders of both chambers of Congress as well as the heads of both chambers’ Armed Services committees.

— Sens. Bill Cassidy (R-La.) and Dick Durbin (D-Ill.) last month offered an amendment incorporating language from the INFORM Consumers Act, their second year doing so. If tacked on to the NDAA, it would require online marketplaces to take steps to verify the identity of high-volume sellers and provide some of that information to customers.

— INFORM is the only one of two major anti-counterfeits bills that became the focus of intense lobbying this Congress that was able to secure the backing of tech and industry groups, who pushed back forcefully against the second bill, the SHOP SAFE Act.

— After winning over operators of online marketplaces, who were skeptical of being swept up in antipathy toward e-commerce giant Amazon by brick and mortar retailers, the bill was included in one version of economic competitiveness legislation earlier this summer. But the language was dropped when the package was drastically scaled back to become the CHIPS and Science Act.

— “These criminal transactions compete directly with legitimate businesses, retailers, and emerging entrepreneurs," they wrote. "The sales lost due to these illicit activities mean fewer jobs and wages in states, cities, and towns across the country.”

Good afternoon and welcome to PI. Is a client of yours pushing any outstanding priorities in the NDAA? Let me know: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

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SENATORS TRY TO TACK SWIPE FEES BILL ONTO NDAA: Durbin is also behind a second NDAA offering that would mark a major win for retailers. Last week he and Sen. Roger Marshall (R-Kan.) announced that they would introduce their Credit Card Competition Act as an amendment, along with language requiring a report on surcharge fees for using credit or debit cards at military commissaries to cover the cost of so-called swipe fees.

— Durbin and Marshall’s bill is aimed at diluting the market power of card issuers Visa and Mastercard , which charge merchants fees to run card transactions, by directing the Federal Reserve to issue rules requiring large card-issuing banks or credit unions to offer at least one alternate network that isn’t affiliated with Visa or Mastercard.

— Retailers have argued that the two companies’ dominance of the sector — they combined to account for around 85 percent of general-purpose credit cards last year, per the Federal Reserve — gives them little leverage with which to push back on increases to the fees. Beneficiaries maintain the payments ecosystem has sufficient competition while arguing that interchange fees are used to help prevent fraud and offer perks like cash back or travel points.

— The Electronic Payments Coalition, whose members include the country’s largest banking and credit union trade associations as well as banks and card issuers, ripped Durbin and Marshall for trying to slip their bill into the defense package.

— “This Trojan horse … proves that this bill cannot stand on its own merits,” Jeff Tassey, the group’s board chair, said in a statement, accusing the lawmakers of “using our nation’s veterans as pawns” and calling the provision a “multibillion-dollar corporate welfare scheme.”

— Leon Buck, a lobbyist for the National Retail Federation and a top executive for a rival lobbying group that represents retailers, the Merchants Payments Coalition, on Tuesday said that “these amendments would reveal how much swipe fees are costing our nation’s active duty military and veterans and introduce competition that would bring these fees under control.”

PENCE HUDDLES WITH POTENTIAL 2024 BENEFACTORS: “As he travels the country publicly backing Republican candidates and conservative causes ahead of the midterm elections, former Vice President Mike Pence has also been quietly huddling with donors and building a political operation that could serve as a springboard to a 2024 presidential campaign,” The New York Times’ Ken Vogel reports.

— “Mr. Pence held a retreat with donors and allies at a Utah ski resort over the course of three days late last month that was organized by a nonprofit group he has used to highlight causes animating social conservatives.”

— “Donors were treated to panels featuring high-profile conservative figures discussing some of those hot-button Republican causes” — including former Brownstein Hyatt Farber Schreck-lobbyist-turned-Interior Secretary David Bernhardt — and “an appearance by the Fox News host Sean Hannity and the debut of a slick campaign-style video paid for by Mr. Pence’s group, Advancing American Freedom.”

— “Advancing American Freedom said it had raised more than $10 million to date, and it announced at the retreat that it was planning a $35 million budget for 2023 for the group and a sister organization.”

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Philip Morris International is fully committed to leaving cigarettes behind. We’ve invested over $9 billion developing smoke-free innovations that are scientifically substantiated to be better than continued smoking. We have the ability to end smoking in America, but a new approach is needed. Learn how.

PI BOOK CLUB: “A book released Tuesday — based on tightly held client lists, billing records and nearly 100 interviews with current and former McKinsey employees — tarnishes the influential consultancy's climate credentials,” E&E News’ Corbin Hiar reports.

— “The book, ‘When McKinsey Comes to Town,’ written by New York Times investigative reporters Walt Bogdanich and Michael Forsythe, details the firm's secret efforts to help Exxon Mobil Corp., Gazprom, Saudi Aramco and other fossil fuel giants boost their profits at the expense of the planet.”

— “McKinsey's research on the growing dangers posed by climate change and the economic opportunities associated with decarbonization are frequently cited in the media, including by E&E News. The firm also has a 2030 net-zero emissions pledge and a sustainability consulting practice.”

— “Its alumni pepper the top ranks of environmental groups and the Biden administration, holding key climate posts at the White House, Energy Department and EPA. At the same time, McKinsey has provided Chevron with a ‘digital roadmap’ for its oil and gas drilling efforts and worked on ‘coal processing optimization’ for Teck Resources, according to project descriptions obtained by Bogdanich and Forsythe.”

WARREN GOES AT BROOKINGS AGAIN: Sen. Elizabeth Warren (D-Mass.) is keeping up pressure on the Brookings Institution following the foreign lobbying scandal that resulted in the resignation of Ret. Gen. John Allen as the think tank’s president earlier this year and put such organizations’ acceptance of foreign funding under a microscope.

— In a letter to interim Brookings President Amy Liu , Warren asked how the think tank ensures intellectual independence when it receives foreign or corporate funding. “I remain concerned that these foreign governments — as well as the many private sector corporations and wealthy individuals that are listed as Brookings contributors — can use Brookings and other think tanks to covertly peddle their influence before Congress and the administration,” she wrote.

— Warren has been among the few Democrats in Congress raising concerns over the left-leaning think tank, and when it was revealed this summer that Allen was under investigation by the Justice Department for potentially violating lobbying laws by advocating on behalf of Qatar, whose government has given Brookings millions of dollars, Warren brought her reproval to Liu as well as Defense Secretary Lloyd Austin and Secretary of State Antony Blinken. Allen has not been charged with any violations, and has denied the accusations.

— Warren’s letter comes days after Rep. Jack Bergman (R-Mich.) and Sen. Chuck Grassley (R-Iowa) introduced legislation that would require think tanks and other nonprofits seeking to shape U.S. policy or public opinion to disclose to DOJ when they receive funding from foreign principals . The bill also would make public contracts or agreements they enter into with foreign principals, which Warren has also previously asked Brookings to provide, within 90 days.

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Jobs Report

— Ellen Keast is now an account executive at DCI Group. She most recently was campaign manager for Charles Herbster’s Nebraska gubernatorial campaign and is also a Trump campaign alum.

— DENSO has hired Jared Eichhorn as a senior manager and government affairs lead. He was most recently director of federal affairs at the Alliance for Automotive Innovation.

— Samantha Segall has been promoted to vice president and head of federal and government affairs at Datavant. She was previously an account executive for the public sector and is a CLEAR, Leidos and Ken Calvert alum.

— John Estes is joining Jenner & Block as a partner in the energy practice. He was most recently head of the energy regulatory group at Skadden, Arps, Slate, Meagher & Flom and is a FERC alum.

— The Association of Equipment Manufacturers has added Autumn Lankford as government relations manager and Cristian Lopez as advocacy associate. Lankford was previously public policy manager at the National Association of State Departments of Agriculture. Lopez was a program assistant at the George Mason University school of law’s law and economics center. AEM also promoted Kate Fox Wood to vice president of federal affairs, after having served as senior director of government relations.

— D. Reed Freeman Jr. has joined ArentFox Schiff as a partner in the trademark and copyright practices. He most recently was a partner in Venable’s e-commerce, privacy, and cybersecurity practice and is an FTC alum.

— DLA Piper has added David Horniak as partner in the litigation practice. He was previously counsel at Williams & Connolly.

— Rachel C. Welch is now in charge of the congressional and administration affairs team at Charter following the departure of Vanessa Sinders , Morning Tech reports. Welch will continue to serve as Charter’s senior vice president for policy and external affairs.

— Blake Major is now senior government relations partner at American Equity. He most recently was director of grassroots and communications at MassMutual, and is an AIG alum.

— J.D. Darr is now director for legislative and regulatory affairs at the National Pest Management Association. He most recently was a consultant for government and public services at Deloitte.

A message from Philip Morris International:

New Joint Fundraisers

Trudy Busch Valentine Victory Fund (Trudy Busch Valentine for Senate, Missouri Democratic State Committee (Federal))

New PACs

Colorado United PAC (Super PAC)
COMMON SENSE ANNE ARUNDEL (Super PAC)
Lithuanian Americans and Allies for Democracy, Inc. (Super PAC)
Tax Jubilee PAC (Super PAC)
Villages MAGA Club (PAC)
Winning for America PAC (Leadership PAC: Eric Schmitt)

New Lobbying Registrations

Aaron Read & Associates, LLC: Energysource Minerals LLC
Akin Gump Strauss Hauer & Feld: Lmax Group
American Defense International, Inc.: Eastern Medwaste, LLC
American Defense International, Inc.: Hadrian Automation
Brownstein Hyatt Farber Schreck, LLP: Digital Global Systems
Cavarocchi Ruscio Dennis Associates, L.L.C.: Genentech USa, Inc.
Davidoff Hutcher & Citron, LLP: United Service Workers Union
Dutko Worldwide, LLC: Evolutionary Rail Ltd
Hart Health Strategies: Lifenet Health
Healthequity, Inc.: Healthequity, Inc.
High Street Strategies LLC: The Conservation Alliance
Innovative Federal Strategies, LLC: Avalanche Technology, Inc.
Innovative Federal Strategies, LLC: International Ombuds Association
Ml Strategies, LLC: Tides Advoacy (On Behalf Of The Community Justice Action Fund)
Monument Advocacy: Correct Solutions, LLC.
O'Keeffe Shahmoradi Strategies, LLC: 5G Automotive Association E.V.
Pioneer Public Affairs: Carbon Advocacy Project
Rockies Aria LLC: Spideroak Inc.
Sachem Strategies: Decisive Point LLC
Taft Stettinius & Hollister LLP Dba Taft Advisors LLC Fka (Taft, Stettinius & Hollister, LLP): Colgate - Palmolive
Taft Stettinius & Hollister LLP Dba Taft Advisors LLC Fka (Taft, Stettinius & Hollister, LLP): Fidelity And Guaranty Life
Taft Stettinius & Hollister LLP Dba Taft Advisors LLC Fka (Taft, Stettinius & Hollister, LLP): Jtekt North America
Thomas Hickey: The Judge Rotenberg Educational Center, Inc.

New Lobbying Terminations

American Society Of Radiologic Technologists: American Society Of Radiologic Technologists
Capitol Core Group, Inc.: Fortifi Financial (Formerly, Energy Efficient Equity)
Chesapeake Enterprises: American Innovation: The Ai Project
Covington & Burling LLP: Brown Brothers Harriman
Crestview Strategy US LLC: Antimicrobial Working Group
Crestview Strategy US LLC: Oil Sands Pathways To Net Zero Initiative
Delta Development Group, Inc.: Colonel Drake Cultural Alliance, Inc.
Delta Development Group, Inc.: Tioga County Commissioners
Emmer Consulting, Inc. (Formerly Known As Emmer Consulting, P.C.): Digital Right To Repair Association Dba Right To Repair
Emmer Consulting, Inc. (Formerly Known As Emmer Consulting, P.C.): Hughes Network Systems
Emmer Consulting, Inc. (Formerly Known As Emmer Consulting, P.C.): Montgomery Hospice
Grtyree Consulting LLC: Mescalero Apache Telecom, Inc.
Grtyree Consulting LLC: National Tribal Telecommunications Association
Hart Health Strategies: Beta Bionics

A message from Philip Morris International:

Philip Morris International is fully committed to leaving cigarettes behind. We’ve invested over $9 billion developing smoke-free innovations that are scientifically substantiated to be better than continued smoking. Those in public health and policymaking have the power and responsibility to support the end of smoking, but a new approach is needed. Learn how.