Small businesses have expressed disappointment over the recent U.S. Supreme Court decision in the case of Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited. The court ruled that the funding mechanism for the Consumer Financial Protection Bureau (CFPB) is in compliance with the Constitution’s Appropriations Clause.
"Small businesses will feel the negative impact of this decision," said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. "We are disappointed with the Court’s ruling, which will ultimately leave small businesses with expensive penalties and burdensome inspections at the hands of the CFPB."
The case revolved around whether or not the CFPB's funding structure violates the Appropriations Clause found in Article 1, Section 9 of the Constitution.
The NFIB joined a coalition led by the Chamber of Commerce to file an amicus brief. The brief put forth three main arguments: firstly, that the Bureau's funding mechanism violates the Constitution; secondly, that affirming the judgment would provide targeted and meaningful relief for those subject to CFPB regulations; and thirdly, that potential disruptions in the marketplace could be mitigated by crafting a narrow remedy.
The NFIB Small Business Legal Center is dedicated to protecting small business owners' rights in courts across America. Currently, NFIB is actively involved in more than 40 cases at both federal and state levels, including at the U.S. Supreme Court.
