Internet for Growth Calls on Congress to Protect Small Businesses with a Federal Privacy Framework

Small Business Coalition Urges the Congressional Leadership to Enact a National Data Privacy Standard that Safeguards Consumers while Preventing Excessive Regulations that Stifle Economic Growth

WASHINGTON, Feb. 18, 2025 /PRNewswire/ -- Internet for Growth, an initiative of the Interactive Advertising Bureau (IAB) that promotes the crucial role digital advertising plays in the success of America's small businesses, has issued an open letter to congressional leaders urging this administration to champion a federal privacy framework that protects consumers without imposing burdensome regulations on small businesses. The letter highlights the urgent need for a unified national standard to replace the current patchwork of conflicting state laws, which creates compliance challenges, increases costs and limits growth for American entrepreneurs.
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Dear Chairs Cruz and Guthrie, and Ranking Members Cantwell and Pallone:

The digital economy is an American success story, and small businesses are the engine driving it forward. With this new Congress, we have a critical opportunity to establish a clear, consistent national privacy framework—one that protects consumers while empowering small businesses to compete and innovate. But without action, an expanding patchwork of state laws will create costly hurdles, making it harder for entrepreneurs to reach customers, grow their businesses, and keep America at the forefront of economic and technological leadership. 

The Challenge: 

• Small businesses rely on digital ads to grow. Nine out of ten small businesses use digital ads to reach customers, according to the Small Business and Entrepreneurship Council. Millions of jobs depend on their ability to market efficiently and affordably.
• A messy patchwork of state laws is hurting small businesses. Instead of one clear standard, businesses must navigate a web of state regulations, driving up compliance costs. Big corporations can keep up—small businesses can't, putting them at a disadvantage.
• Some congressional proposals could make things worse. Bills like the American Privacy Rights Act would impose broad restrictions on common data practices, treating digital ads as a problem rather than a tool that helps small businesses reach customers.
• Unclear rules create legal risks. Vague language and a "private right of action" could spur frivolous lawsuits. Instead of focusing on growth and hiring, small businesses would have to spend more on legal fees and compliance.
• Consumers will feel the impact too. These proposals could flood the internet with pop-ups and consent forms, frustrating users without meaningfully improving privacy. According to the Interactive Advertising Bureau (IAB), 90% of consumers prefer personalized ads, and 87% are more likely to click on ads relevant to their interests.

Digital advertising isn't about Big Tech—it's a lifeline for small businesses. In Westerville, Ohio, The Hair Chest uses digital marketing to reach new customers, growing locally and internationally. In New York, Macaluso Wealth Management tailors financial solutions using targeted ads. Internet for Growth includes thousands of small businesses and creators using these tools to compete, hire, and thrive. Digital advertising also supports the free, ad-funded content and services millions of Americans rely on daily, from news and entertainment to apps and education.

What Congress Must Do: 

• Pass a single, nationwide privacy law. A federal standard would prevent small businesses from navigating dozens of conflicting state laws and create clarity for consumers.
• Acknowledge the benefits of digital advertising. Smart privacy protections should not come at the expense of digital advertising, creating jobs and economic growth in communities everywhere.
• Protect innovation. Restricting essential data or breaking up ad platforms will increase costs and reduce efficiency, making it harder for small businesses to compete while limiting Americans' access to affordable products and content.

America leads the world in entrepreneurship, innovation, and small business growth. Without strong leadership from Congress, we risk losing our competitive edge, forcing small businesses to navigate unworkable regulations while big corporations consolidate their power. 

You have an opportunity to champion small businesses, protect millions of jobs, and ensure the U.S. remains a global leader in digital innovation. We urge you to enact a common-sense national privacy law that protects consumers while allowing small businesses to thrive. 

Sincerely, 

Brendan Thomas 
Executive Director
Internet for Growth 

CC: Members of the House Energy & Commerce Committee and Senate Committee on Commerce, Science & Transportation.
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Internet for Growth, an initiative of the Interactive Advertising Bureau (IAB), promotes the crucial role digital advertising plays in the success of America's small businesses, helping entrepreneurs bring their ideas to life. With the support of over 700 IAB members including marketers, agencies, publishers, and technology providers, as well as hundreds of small businesses and creators, we highlight the benefits of digital advertising to local economies, expanding opportunities for people of all backgrounds. Our work ensures policymakers in Washington understand the limitless opportunity the ad-supported internet provides for creativity, commerce, fair competition, and community. 

SOURCE Internet for Growth