America’s small businesses depend on digital advertising

Efforts to Regulate the Online Economy Must Also Protect Local Businesses’ Ability to Reach Customers, Compete, and Grow

Small businesses depend on digital advertising to cost-effectively reach and attract customers from across town or across the globe.

Data-driven digital ad platforms let small businesses carefully target their messages to the customers most likely to find them interesting and relevant – saving money while leveling the playing field against larger competitors.

As Congress considers proposals to regulate the digital economy, thoughtful approaches will protect consumers while also protecting small businesses’ access to the digital advertising tools they need to survive and grow.

• Pass a Clear, National Privacy Standard. Congress should pass a national privacy law that preempts conflicting state rules and protects personalized advertising. A federal standard must avoid multiple layers of enforcement and private rights of action that expose small businesses to costly lawsuits. A unified approach will preserve the benefits of digital advertising and help small businesses compete.
• Defend Responsible Digital Advertising. Lawmakers must reject efforts—such as the FTC’s “commercial surveillance” rules and the “Banning Surveillance Advertising Act”—that mislabel personalized advertising, media, and ad-supported content. These proposals threaten the exchange of information that drives the modern internet. Imitating the EU’s GDPR would stifle innovation, harm small businesses, and confuse users. Responsible digital advertising powers growth and consumer choice.
• Oppose Disruptive Proposals Like the AMERICA Act. The AMERICA Act would create complexity, compliance burdens, and higher costs for small businesses that rely on integrated ad-buying networks. Digital advertising platforms also power the growing creator economy, supporting publishers and content creators. Disrupting these networks would hurt the small businesses and entrepreneurs policymakers should support.
• Reject State Taxes on Digital Advertising. New state taxes on digital advertising revenues would unfairly target online commerce, likely violate federal law, and raise costs for small businesses. These taxes would create compliance burdens, weaken local economies, and threaten the ad-supported internet that sustains free content and local journalism.
• Promote AI Tools that Help Small Businesses Grow. Artificial intelligence is helping small businesses run more effective ad campaigns, improve customer outreach, and streamline operations. AI tools save time, expand reach, and help businesses grow. Policymakers should support AI innovation that boosts efficiency, broadens opportunity, and empowers entrepreneurs in every community.