Can The Government Outlaw Groupon Discounts?

Can the government bar entrepreneurs from offering competitive prices, online discounts and prompt service merely to protect politically powerful insiders from competition?

That is the question the Institute for Justice (IJ) and its clients seek to answer though a federal lawsuit they have filed challenging Portland, Oregon's anticompetitive limousine and sedan regulations.

In 2009, the Portland City Council passed two measures designed to protect the city's taxicab companies from competition at the expense of both consumers and limousine and sedan services.

Not surprisingly, Portland's taxicab companies requested these regulations. What is surprising is that Portland agreed to impose higher transportation costs on Portlanders and put strict limits on limo and sedan entrepreneurs, just to make it easier for the city's taxicab companies to make more money.

Recently, the city's Revenue Bureau clamped down on Groupon.com promotions offered by two Portland limo and sedan companies, Towncar.com and Fiesta Limousine. When the companies offered discounted fares to their customers city enforcers immediately threatened the companies with a combined $895,000 in fines and suspension of their operating permits. In response to the controversy, the city has publicly stated that its job is to protect taxicab companies from competition by enforcing anti-consumer rules.

Portland cannot constitutionally seek to protect taxicab businesses from competition at everyone else's expense.

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[Andrew Spiehler]

Remember when people used to say things like "This is a free country!" with a straight face?

[MrJigssaw1989]

Am I the only when who's blood boils almost everytime when i see video from IJ talking about some absolutely ridicilous and stupid law ?

Damn, thanks god for IJ and good luck fighting those gaping assholes. As you are fighting the good fight.

You have to wait an hour before picking customer up ?! The f*ck. What will they come up next ? You have to wait atleast 15 minutes in a line in a store ?

[LambdaKore]

Yes, people (and politicians) in Portland really are that craven and stupid.

[AquaticCastle]

In order for a bill to pass, a majority of congress must vote for it. No one member of congress makes up a majority.

[Christobanistan]

Well that's nonsensical if I ever heard it. Of course individual members of Congress accomplish things. The get their own legislation passed. It's only Ron Paul that's never accomplished anythings. Lots of members of Congress can and have voted 'no' for big government spending, but they also manage to pass other things that reduced or streamlined government.

If 'educating the youth' was his only goal, he could have done that more effectively outside Congress.

[AquaticCastle]

No individual member of congress can accomplish anything. He is one less vote for big government spending. That's all you can expect from one person. I think He has accomplished a lot by educating the youth.

[Christobanistan]

Well, going by his record, you'd accomplish more by holding your breath than Ron Paul has. Lots of Republicans with a far less extreme world view have accomplished more than Ron Paul has.

Under Ron Paul, don't expect to pass any laws to 'repeal old ones,' either. He's been trying to get those through, too. Not one has come remotely close.

[AquaticCastle]

we don't need new bills unless they are to repeal old ones.

[donald J. kingsbury]

it would depend on whom you'd talk to...ya maybe someone like my grandfather who did well on an associates...but even in his day there were ppl who were restricted where they could eat,drink water, even who could and couldnt go to school...and even in this day places have these restrictions...so "free" for who is my wonder. i am not here to give a history lesson...but we shouldnt look at our history with rose colored glasses...we must see history for what it truly reveals...esp about ourselves!

[Andrew Spiehler]

But a lot of people used to believe it and could be forgiven for doing so.

[donald J. kingsbury]

when? it was never free

[Andrew Spiehler]

Yes, much better to vote for another guy who will successfully pass legislation that you don't want.