FTC Workshop To Examine E-Commerce Barriers

A surprising number of states have enacted regulations intended to protect local brick-and-mortar merchants from Internet competitors, the FTC says.

Ever get annoyed when shopping online and finding the prices of the merchandise aren't published on the Web site? Ever wonder why some companies are unable, or unwilling, to list certain types of merchandise on their sites?

The Federal Trade Commission is wondering the same thing. That's why it plans to host a workshop to examine whether certain state regulations and private business practices have created an anti-competitive environment for E-commerce. The FTC says that a surprising number of states have enacted regulations intended to protect local brick-and-mortar merchants from Internet competitors. For example, some states prohibit companies from selling certain products online or require that E-businesses maintain physical locations within their state. The restrictions have affected retail stores, automobile sales, health care, pharmaceuticals, wine and liquor sales, auction services, and many other businesses.


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The policies may be sound or may be attempts to prevent new Internet competitors from coming to market, the FTC says. Private companies have also engaged in similar behavior that could raise antitrust issues. Some dealers won't list the prices for certain items online while others won't sell certain product lines online at all, and the FTC says these companies are encouraging their competitors to do the same. "Reducing the barriers to E-commerce dramatically could increase competition and benefit consumers," FTC Chairman Timothy Muris says.

The workshop, which will be held Oct. 8 to 10 at FTC headquarters in Washington, D.C., will have several panels comprised of industry, academia, state and federal government agencies, and public-policy organizations.


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