Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Ohlhausen addresses “sharing economy” and the role of the FTC, (Jun 9, 2015)

By Michael Menzhuber, J.D., LL.M.

FTC Commissioner Maureen K. Ohlhausen presented opening remarks today at the FTC Workshop on “The ‘Sharing’ Economy: Issues Facing Platforms, Participants, and Regulators.” In her speech, Ohlhausen discussed her thoughts on the “sharing economy” and the role of the FTC.

The agency defined the “sharing economy” as emerging Internet peer-to-peer platforms and the economic activity these platforms facilitate. The FTC workshop was intended to examine competition, consumer protection, and economic issues arising in the sharing economy to promote more informed analysis of its competitive dynamics, as well as its benefits and risks to consumers.

Ohlhausen began by noting that the FTC is more than just an enforcement agency and that its actual mandate is to “protect consumers and competition.” She assured participants that the FTC did not convene the workshop as a “prelude to some planned, big enforcement push” but, rather, as part of its responsibility to advocate for the interests of consumers.

Addressing the industry participants in attendance, Ohlhausen explained that their relationship with the FTC need not be adversarial. Where their interests and the FTC’s broader public mission intersect, the Commission could be a valuable ally. She noted that the agency provides written guidance and commentary to state legislatures and then spoke to the importance of hearing from all sides whenever a contentious issue is evaluated.

Ohlhausen shared her view that the rise of the “sharing economy” is an example of how free markets have the potential to introduce transformative change. She noted that the resulting creation of new business models may ultimately upend existing businesses, but that change has always been a part of free market capitalism and it always will be.

Ohlhausen also shared her view that, just as government should not directly decide how future competition should unfold, it is inappropriate for existing competitors to exercise control over the firms that they compete with. According to Ohlhausen, the evolution of markets should be driven by consumer demand, rather than artificial, regulatory preferences for one business model over another. She further shared her view that regulators should tread carefully, particularly when considering hypothetical rather than demonstrated harm, because misguided government regulation can be the barrier to innovation that never fails.

Ohlhausen concluded her remarks by offering a number of complex and challenging public policy questions. She noted that the questions she presented defied simple answers and would likely not be resolved at the workshop. However, she went on to explain how the workshop’s bringing together panels of a diverse group of stakeholders and academics to jointly discuss these questions would further their necessary understanding.

News: Antitrust ConsumerProtection FederalTradeCommissionNews