Mark Kelly: “The LaFalce amendment runs counter to our economy and would subvert the free market. The amendment requires rent-to-own…”

“The LaFalce amendment runs counter to our economy and would subvert the free market. The amendment requires rent-to-own merchants all to offer the same cash price for their products, and these prices would be set by the Federal Reserve Board. I have to wonder why we have to impose such a duty on the Federal Reserve Board. The Federal Reserve is tasked with broad mandates to ensure the overall health of the economy through sound monetary policy. The last thing we need is for the Federal Reserve to become an appraiser and set prices for the rent-to-own industry. Second, the amendment would harm competition in the rent-to-own industry. I do not see anyone advocating that a car lease would have a cash price set by the Federal Reserve. Why? Because we know that a competitive car lease market benefits the consumer. When an industry all has the same base price for a product, that is known as collusion. A merchant not fairly setting a price on their own but being required to set it at their competition's level, that is illegal. When airlines set their ticket prices, it is illegal. When they put such a practice into law on a rent-to-own lease, it is also wrong. I think that my colleagues should join me in support of the free market and oppose the LaFalce amendment.”