[FTC to landlords] Price fixing by algorithm is still price fixing
[FTC to landlords] Price fixing by algorithm is still price fixing
Landlords and property managers can’t collude on rental pricing. Using new technology to do it doesn’t change that antitrust fundamental. Regardless of the industry you’re in, if your business uses an algorithm to determine prices, a brief filed by the FTC and the Department of Justice offers a help...
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Let us look at an example where this sort of regulation was in place, and then went away:
In March 2014, Abbott lobbied to delay implementations of and even remove FDA Regulations on baby formula which would require more frequent inspections (and therefor fines), citing that the company was already morally and monetarily incentivized to control the quality of product without the need of oversight.
Abbott Baby Formula facility in Sturgis, Michigan, was linked to the infection of 5 infants and death of 2 infants, and revealed to have shipped untested batches of formula with falsified reports from management. This lead to the inevitable shutdown of the entire facility and following nationwide shortage of infant formula.
So, yes, fining companies to keep them in line is working when the alternative is that the unchecked corporations do things so catastrophically stupid that they run their own businesses into the ground.
So, yes, fining companies to keep them in line is working when the alternative is that the unchecked corporations do things so catastrophically stupid that they run their own businesses into the ground.
I submit that such circumstances are rare, and that the usual case is that fines are a tiny fraction of the money companies being in by breaking the law.
Sure, I never argued otherwise.
So, as before:
gestures broadly at entire economy
Actually, as before it was:
Does it? Because gestures broadly at the entire economy
And the answer to that was yes. Fines serve a purpose.
Yeah, the purpose they serve is to set a cost for breaking the law that is almost always lower than the profits gained by doing so.
In order to encourage the economy we have.