Government legislation often codifies beliefs already held by individuals, and regulation often standardizes actions already being undertaken by private enterprises. For example, in a previous post I discuss the impending legislation on the volume of television commercials and how networks and companies have already begun efforts to reduce the volume variance between commercials and regular programming. A similar trend-following situation include DC imposing a tax on plastic and paper grocery bags after reusable bags have gained popularity. Even the desire to keep the internet free is currently fueling the FCC’s regulatory agenda.
While it is true that codifying currently held beliefs and actions is less imposing than more restrictive regulations, formalizing trends and current behavior still hinders private innovation and competition. For instance, commercial volume control legislation has stalled and even discouraged private efforts for companies would rather wait for the law than risk falling short of the legal standard. Rules enforcing environmentally friendly habits may also hinder consumers. Prior to the rule, many stores rewarded reusable bag usage – a positive incentive to promote voluntary, not mandated, use.
All in all, strict rules fail to incorporate flexibility when the world in which we live in is complex and ever-changing. Until policy can reflect this, codifying trends may actually endanger the sustainability of the trends instead of solidifying them. And finally, as one may guess, regulation meant to keep the internet free and open will probably do more to restrict users and reduce competition than promote freedom.
Every week we bring you in-depth interviews with leading thinkers and entrepreneurs from the world of technology. The most recent episode features 