Restricting Private Labels is Anti-Consumer
Despite the popularity and quality of private label products in stores and online, members of Congress keep trying to restrict their availability. During both the 117th and 118th Congresses, the misnamed American Innovation and Choice Online Act (AICOA) was introduced in the U.S. Senate. The bill was reintroduced on June 11, 2026.
The bill is intended to prevent online platforms from discriminating against products that are not under their own label or name. Proponents of AICOA believe that these large platforms deliberately set a preference for such products rather than basing those decisions on user experiences and preferences.
But they fail to understand that the platforms are retailers, not manufacturers, and many of the private label products are made by small businesses that benefit from the smaller margins and higher volume. The concept of private labels started in the 1880s when the Atlantic and Pacific Tea Company created Eight O’Clock Coffee.
A product sold under a private label is often also available under its own brand at a higher price, which means AICOA would raise costs and reduce choices for consumers. Companies sell dozens of products under their own name, including office supplies, home and garden, household items, toys, pet supplies, and of course, groceries. According to Numerator, which tracks private label sales, Trader Joe’s and Aldi sell the highest percentage of such products at 82 percent and 78 percent respectively. At the bottom of their list of 20 retailers, including Costco, Walmart, Home Depot, Lowe’s, and Target, is Amazon, at 3 percent.
A private label sale is a private label sale regardless of the size of the company or the volume of sales, or whether it is online or in a brick-and-mortar storefront. If members of Congress believe that these products should not be promoted prominently based on company size or location, they could also decide that they should not be sold at all.
AICOA tracks the European Union (EU) Digital Markets Act (DMA), which restricts companies from becoming “digital gatekeepers.” This anticompetitive and restrictive policy is directed at American companies by prohibiting them from providing links to their own products and services on their online platforms.
Consumers should have a choice in how, where, and what types of goods and services they purchase. If they think that a private label product is too expensive or of poor quality, they can either buy something else or return it. AICOA is a Big Brother bill that removes that choice. The Council for Citizens Against Government Waste joined a coalition of 34 organization opposing AICOA for these reasons.
Restricting the promotion and sale of private label products anywhere is anti-competitive and contrary to claims that legislators are making life more “affordable” for consumers. The demand for lower cost and high-quality private brands continues to grow, and members of Congress who support free markets and consumer choice should oppose legislation like AICOA.
