Rep. Johnson Urges FTC to Provide “Comprehensive Report” on Promoting Competition, Consumer Protection in Sharing Economy

April 21, 2016

The Honorable Edith Ramirez

Chairwoman

Federal Trade Commission

600 Pennsylvania Avenue, NW

Washington, DC 20530

Dear Chairwoman Ramirez:

It is my understanding that the Federal Trade Commission (FTC) may be in the process of preparing a report on issues relating to the sharing economy following the public workshop that the Commission held on June 9, 2015. I write to request the FTC carefully examine the competition, regulatory, and consumer protection issues relating to the sharing economy, and specifically whether a lack of federal regulation in these markets has resulted in harm to consumers or competition.

Sharing economy platforms have created new channels for competition while removing barriers to entry in existing markets. These platforms have also improved the affordability, convenience, and the environmental impact of goods and services, adding value and new opportunities for consumers. Sharing economy platforms may also promote local economic growth and create additional income for workers.

But while these platforms have opened new markets to competition that were nonexistent only a few years ago, they have also raised novel and complex regulatory issues that were previously unimaginable. Indeed, as you have remarked, the same “creative destruction” that has resulted in consumer benefits by these platforms “may also pose risks that consumers do not face with traditional suppliers, which are often subject to regulation.” As other concerned commentators have noted, some platforms have also grown through their ability to “circumvent or change regulations.”

During the Commission’s public workshop, The “Sharing” Economy: Issues Facing Platforms, Participants, and Regulators, a number of commentators across a broad spectrum of interests called for flexible regulation to ensure an even playing field, innovation, and consumer protection. There was also broad agreement that competition drives growth across both incumbent and emerging industries. Some have also expressed concern that regulatory asymmetry has undermined competition and consumer protection, and that forward-looking rules would do much to create an even playing field for new entrants and incumbents alike.

The sharing economy has provided consumers and innovators alike with ground-breaking opportunities to exchange high-quality goods and services by disrupting traditional business models. However, as with any blossoming market place, the sharing economy must operate within in a framework that promotes competition and protects consumers.

I commend the FTC for its leadership and proactive approach to this emerging issue, and I look forward to a comprehensive report on this matter. If you have any questions, please contact my staff, Slade Bond, at (202) 225-6906.

Sincerely,

Henry C. “Hank” Johnson, Jr.

Ranking Member

Subcommittee on Regulatory Reform,

Commercial and Antitrust Law

House Committee on the Judiciary

cc: The Honorable Bob Goodlatte, Chairman, House Committee on the Judiciary

The Honorable John Conyers, Ranking Member, House Committee on the Judiciary

The Honorable Tom Marino, Chairman, Subcommittee on Regulatory Reform,

Commercial and Antitrust Law, House Committee on the Judiciary

The Honorable Maureen Ohlhausen, Commissioner, Federal Trade Commission

The Honorable Terrell McSweeny, Commissioner, Federal Trade Commission