Regulation is a tool incumbent businesses use to stifle competition. George Leef has a good story at Forbes:
Among the many cosmetic services Americans enjoy is teeth whitening. Do-it-yourself kits can be purchased for home use, but some people prefer having the whitening done by beauticians. Who do you suppose finds that unacceptable?
Smile and say, “dentists.”
Not all dentists, of course, but the North Carolina Board of Dental Examiners decided to act on behalf of those who do. Since 2003, the Board has been issuing cease and desist orders to beauty shops or any other business that offered teeth whitening services. The legal basis for such orders is that the “practice of dentistry” is restricted to licensed dentists and the Board decided that teeth whitening falls within that practice. Unless you’re a licensed dentist, you must stop.
Complaints against the unlicensed teeth whiteners came, of course, entirely from dentists, not from customers who paid for the “unauthorized” services.
Smile and say, “dentists.”
Not all dentists, of course, but the North Carolina Board of Dental Examiners decided to act on behalf of those who do. Since 2003, the Board has been issuing cease and desist orders to beauty shops or any other business that offered teeth whitening services. The legal basis for such orders is that the “practice of dentistry” is restricted to licensed dentists and the Board decided that teeth whitening falls within that practice. Unless you’re a licensed dentist, you must stop.
Complaints against the unlicensed teeth whiteners came, of course, entirely from dentists, not from customers who paid for the “unauthorized” services.
The happy part of the story: The Federal Trade Commission has intervened in the case, pegging the regulators’ efforts as anti-competitive. In the case of North Carolina Board of Dental Examiners v. FTC, the Pacific Legal Foundation and the libertarian Cato Institute have jointly filed an amicus curiae brief.
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