No one in Maine needs a reminder that small businesses are the backbone of our great state. They are a point of pride for us all – not just their prevalence, making up 99% of all businesses in the state, but also their unique contributions to the cultural fabric of our communities. For me, it’s a privilege to work with them every day to reach new customers.

Yet, despite such prevalence across Maine and their essential role in our economy, our small businesses face an increasingly competitive marketplace, often made more difficult by the disproportionate impact that regulations can have on them relative to larger competitors. Amid the rise of e-commerce and a customer base that is increasingly online, one of the most significant threats to this vibrant marketplace is the data privacy legislation up for consideration in Augusta.

As Maine’s small businesses navigate the challenges of 21st-century commerce, digital tools have become an integral part of their business models. No longer can mom-and-pop shops rely on their brick-and-mortar storefronts to supply enough business to compete with larger corporations in the market.

According to a report released last year, 53% of small retail businesses in America said that most of their sales growth came from online or e-commerce platforms. This shift indicates that small-business retail is increasingly moving online, especially in the post-pandemic economy. With that in mind, equitable access to digital marketing tools and advertising is vital to ensure small businesses have what they need to compete.

Unfortunately, proposals out of Augusta during the last session threatened to undermine these invaluable tools.

During the last session, state lawmakers introduced several bills intended to add new data privacy protections. While such legislation might initially seem innocuous to Maine’s small business community, these proposals’ restrictive measures would have made it drastically more difficult for small businesses to effectively wield digital tools.

By regulating mechanisms like selective advertising, Maine’s legislators would have given larger corporations an immediate upper hand – especially considering the much smaller budget entrepreneurs have to market to consumers. For them, the ability to market to select audiences maximizes their limited budgets and ensures they reach customers who are the most likely to engage with their products and services.

Meanwhile, the proposed measures would have dramatically increased the already high compliance costs. For businesses like mine, this would have forced us to divert critical lines of investment in growth and our staff in order to comply. That’s a decision that no business should be forced to make.

With the next legislative session looming, Maine’s small business community stands at a crossroads as policymakers grapple with balancing digital innovation and consumer protection. While legitimate privacy concerns warrant careful consideration, any regulatory framework must preserve the digital infrastructure that has become essential to small businesses ‘ survival and growth across the state.

Rather than pursuing restrictive measures that would disadvantage Maine businesses compared to our regional competitors, lawmakers should focus their attention and state resources on addressing Maine’s pressing priorities: expanding workforce housing, strengthening our education system and building crucial infrastructure.

The path forward requires maintaining the digital advantages that have empowered our small business sector while directing legislative energy toward initiatives that will genuinely strengthen Maine’s economic foundation.