Already established businesses frequently lobby politicians to pass anti-competitive regulations under the guise of “public health and safety” to keep out new competition and raise prices for consumers. Many times these regulations are in the form of high entry fees and extensive exams that only discourage new entrepreneurs from entering the market. Those who manage to overcome these burdensome regulations are still faced with more paperwork and rules.
This means that entrepreneurs and businesses increasingly face the risk of being sued by state agencies for violating rules and statutes that have little to do with protecting the public’s health and safety. This can be a huge financial burden on entrepreneurs and take months to do.
To help individuals and small businesses who may not have the time or money to deal with such administrative headaches, the Institute for Justice has created model legislation that gives entrepreneurs the resources to fight unnecessary administrative hearings or legal battles state agencies might bring without a legitimate reason.
The Occupational and Business Regulation Defense Act sends a strong message to state legislators, regulators and judges: Occupational and business regulations should be enacted and enforced in the least restrictive way in order to adequately protect consumers and not to be an anti-competitive tool for existing providers to fence out new competitors, lower prices and innovation.