Written Support of HB 272 - Walgreens, Bryan Lowe (June 9, 2021)

Summary

Written support for HB 272, dated June 9, 2021, addressed to Chairman Stein and members of the House Commerce and Labor Committee, from Bryan Lowe, Regional Director of State and Local Government Relations for Walgreens, who states that Walgreens operates 236 stores in Ohio. The testimony says HB 272 requires online marketplaces to collect and verify basic information of high-volume sellers and to disclose the seller's true name and contact information to the consumer. It cites a Wall Street Journal investigation, from 2019, that found 4,152 items for sale on Amazon Inc.'s website that federal agencies declared unsafe, labeled deceptively or banned. It asks the committee to support the legislation.

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                                                                        Bryan Lowe
                                                                        Walgreen Co.
                                                                        108 Wimot Rd., MS #1844
                                                                        Deerfield, IL 60015
                                                                        P 717-503-2174




June 9, 2021




Chairman Stein and Honorable Members of the House Commerce and Labor Committee,

My name is Bryan Lowe, Regional Director of State and Local Government Relations for Walgreens. We
are proud to operate 236 stores in Ohio and very proud to be an integral part of bringing an end to COVID-
19 with the hard work of our team members currently administering vaccines in Ohio and throughout the
country. Thank you for the opportunity to provide written support of HB 272.

Online retail has reached unprecedented numbers in recent years, but especially during COVID. While we
all appreciate the convenience of on-line shopping, there are bad actors that have emerged to the detriment
of trusting consumers…your constituents. From fraudulent PPE to baby formula, consumers are not being
given full transparency to make informed decisions.

HB 272 requires online marketplaces to know who is selling on their platforms by collecting verifying basic
information of high-volume sellers – name, contact information, bank account and tax ID number – to be
clear – bank account and tax ID information is shared ONLY with the marketplace platform. The bill also
requires marketplaces to disclose the true name and contact information of a high-volume third-party seller
to the consumer is a conspicuous manner, while also protecting the seller’s privacy.

71.6% of third-party sellers1 on Amazon’s marketplace have come from non-United States companies
selling direct to American consumers. Big Tech platforms remain fiercely opposed to strong transparency
and accountability laws despite the link to a large seller population based in counterfeit hubs like China.

 In addition to leveling the playing field for legitimate businesses, it protects consumers. Online
marketplaces have been instrumental during the COVID-19 crisis in helping customers receive essential
goods while sheltering in place or social distancing. As more and more Ohioans are shopping online they
deserve to be protected from counterfeit PPE 2 , expired baby formula 3 , buying exploding
batteries4 and goods stolen from local business5.

A 2019 Wall Street Journal6 investigation found 4,152 items for sale on Amazon Inc.’s website that federal
agencies declared unsafe, were labeled deceptively or were banned by federal regulators. Among those
items, at least 2,000 listings for toys and medications lacked warnings about health risks to children. It is
important to note that Ohio-based retailers’ policies would have barred these items from reaching their
shelves or risk facing penalties, fines and potential closure.



1 https://www.marketplacepulse.com/articles/47-of-top-amazon-sellers-based-in-us-38-based-in-china
2 https://www.wsj.com/articles/u-s-agents-seize-10-million-counterfeit-n95-face-masks-11613603061
3 https://www.cnbc.com/2019/10/20/amazon-is-shipping-expired-baby-formula-and-other-out-of-date-

foods.html
4 https://www.today.com/news/loose-lithium-ion-batteries-cause-fire-hazard-being-sold-major-t208884
5 https://www.businessinsider.com/apnewsbreak-fbi-amazon-drivers-part-of-major-theft-ring-2019-8
6 https://www.wsj.com/articles/amazons-heavy-recruitment-of-chinese-sellers-puts-consumers-at-risk-

11573489075
Member of Walgreens Boots Alliance
HB 272 will ensure consumers have all of the facts when making purchases for their families. The bill simply
requires verification of sellers…a standard that all consumers deserve the right to have. It should also be
noted that in addition to retailers like Walgreens, this measure will also even the playing field for small
businesses who are continually undermined by these sophisticated crime rings selling stolen and counterfeit
merchandise – as they generally do so at a cost lower.

All states have their own consumer protection laws, and this issue is no different. Law enforcement needs
the tools and resources to investigate, track and prosecute organized criminal activity that targets Main
Street stores and unsuspecting consumers. This bill does that. I respectfully ask that you please support
this legislation.




Member of Walgreens Boots Alliance


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