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COMPETITIVE ENTERPRISE INSTITUTE VOL. 31, NO.

2 | SPRING 2018

FEATURED ARTICLES

Trump is Cutting Regulations,
but Only Congress Can Make
4
BY MARC SCRIBNER
Reform Last
Cracking Down on Automated
Vehicles Would Mean More BY WAYNE CREWS AND RYAN YOUNG
Death and Destruction

W hen President Trump first took office, he
issued a handful of executive orders
to cut red tape and reduce the ways that
Washington micromanages Americans’ lives.
As the news cycle has shifted to Russia, Syria,
7 and tax reform, the administration has quietly
used tools like Trump’s one-in-two-out process
BY JESSICA MELUGIN to slow the growth of federal regulations that
Consumers Lose if Internet dictate what Americans can buy, sell, and
Sales Tax Goes into Effect even do on a day-to-day basis.
Trump’s regulatory reform efforts saved
the economy about $570 million in 2017.
When compared to the overall cost of federal
regulations, that barely makes a dent, but it’s
a start. The U.S. budget is approximately $4
11 trillion. Though they provide benefits, federal
regulations cost all of us nearly half of that
BY MARLO LEWIS ever year, according to an estimate in the
Cutting Tailpipe Emissions Not that 2018 edition of 10,000 Commandments,
Effective against Global Warming CEI’s annual survey of the federal regulatory
state. With an annual tab of almost $1.9 tril- The answer is: Only if Congress helps
lion, federal regulations cost nearly $15,000 out. Despite a number of executive orders,
per household if you look at the long-term outlook, federal
ALSO IN THIS ISSUE Shining some light on this hidden tax and agencies already have a slew of regulations
reducing the burden of federal rules on U.S. planned that could reverse Trump’s early
Coffee Won’t Kill You, but CAFE Might. . . . . 5 innovators and entrepreneurs is a rare bright progress. To prevent erasing gains made
Tech Companies Should Avoid a Devil’s spot for the Trump administration. In fact, his thus far, Congress needs to give Trump’s
Bargain with Big Government. . . . . . . . . . . . . 6
predecessors set the bar so low that Trump reforms legislative teeth before his affinities
There’s Nothing to Fear About Modest could already be considered one of the most
Banking Reform. . . . . . . . . . . . . . . . . . . . . . . . . 8
for protectionism and antitrust get in the way,
successful deregulatory presidents in 40 and before the next administration reverses
For Some Class-Action Lawyers, Charity
Begins and Ends at Home. . . . . . . . . . . . . . . . 9
years. In 2017, federal regulators issued the course with the stroke of a pen.
lowest number of final rules—3,281—since One promising proposal in Congress is
Don’t Fear Worker Freedom . . . . . . . . . . . . 10
the National Archives began publishing these a regulatory budget. This would build on
The Good, the Bad, and the Ugly. . . . . . . . . 14
numbers in 1976. But the important question Trump’s executive order that only allows
Media Mentions. . . . . . . . . . . . . . . . . . . . . . . 15 is: Will it last? agencies to issue a new rule if its net costs
End Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
(continued on page 3)
Three Branches and Seven Principles
by Kent Lassman

W e spend a lot of time and energy educating
policy makers about the tradeoffs associated
with regulation. Some costs of the regulatory state are
• Withhold appropriations for agency initiatives
that Congress has not approved.
• Require sunset provisions for agency rules.
more easily measured, like the billions of dollars in
compliance costs taken out of the economy. Yet, some • Rein in overregulation via “regulatory dark
other costs go straight to the question of individual matter” by requiring disclosure of all guidance
liberty and our constitutional order. documents issued by federal agencies.
The regulatory state is often thought of as a Lawmakers who are serious about easing the
FROM THE PRESIDENT

fourth branch of government. I think that is too kind. weight of costly regulations from their constituents’
It suggests that the Framers of the Constitution could lives should seriously consider these principles. For
have picked any number of branches, so long as more on CEI’s Principles for Regulatory Reform,
powers were divided and balanced against one please go to www.principles.cei.org.
another. Unfortunately, the balance is lost with the
20th century innovation of the regulatory state.
Today, there are multitudes of federal agen-
cies staffed by tens of thousands of unelected
officials who do the bulk of lawmaking. Last
year, Congress enacted 97 laws while agencies
issued 3,281 rules. And some rules are imposed
via “regulatory dark matter” in the form of guid-
ance documents, memoranda, and other agency
issuances.
With all that in mind, here at CEI we’ve devel-
oped seven simple principles to guide regulatory
reform. We believe that Congress should:
• Reassert its constitutional authority over

SAVE THE DATE
lawmaking by improving regulatory over-
sight and resisting delegation of its legislative
authority to the executive branch.
• Hold agencies accountable for their activi-
ties and improve disclosure by requiring
agencies to present complete data regard-
ing regulation and regulatory activity to
Congress and the American public.

• Survey the existing body of regulations and CEI’s 2018 Annual Dinner and Reception
statutes in order to reduce red tape. Freedom: The Greatest Show on Earth
• Reduce final rules and pages in the Federal June 28, 2018
Register and Code of Federal Regulations as cei.org/ceidinner
these correlate to regulatory burdens.

The CEI Planet is produced by the Competitive Enterprise
Publisher Institute, a pro-market public interest group dedicated to
Kent Lassman free enterprise and limited government.
Editor
CEI is a non-partisan, non-profit organization incorporated in
Ivan Osorio
Ph (202) 331-1010 the District of Columbia and is classified by the IRS as a 501
Fax (202) 331-0640 Associate Editor (c)(3) charity. CEI relies upon contributions from foundations,
info@cei.org Richard Morrison corporations, and individuals for its support. Articles may be
reprinted provided they are attributed to CEI.
ISSN#: 1086-3036

2 CEI.ORG COMPETITIVE ENTERPRISE INSTITUTE
Regulations, continued
are zero. Just as the federal govern-
ment releases an annual spending
budget, an annual regulatory budget Rather than
would allow each federal agency a
certain amount of costs they could spread itself thin,
impose on American businesses and
consumers. This would force agencies government should Help the Competitive
to prioritize rules that are efficient and
effective and ditch rules that are out-
dated, burdensome, or fail to accom-
concentrate on its Enterprise Institute carry
on its work for generations
plish their goals.
As it is now, agencies largely
core responsibilities
by joining the Legacy
police themselves, which allows them
to get away with number fudging and and take steps of Liberty Society
skewed assumptions without adequate
oversight or accountability. To date, to ensure open,
Congress has been unwilling to step
in, preferring to blame unelected competitive markets. Thanks to the generous support of our friends,
the Competitive Enterprise Institute has
agencies when a regulation proves remained a successful advocate for liberty for
unpopular or controversial. A regu- nearly 35 years. The Legacy of Liberty Society
latory budget would restore some than spread itself thin, government
recognizes the faithful support of any donor
accountability to agency behavior, should concentrate on its core respon-
who desires to advance the principles of free
while allowing Congress to set the sibilities and take steps to ensure open, enterprise and limited government through
rules of the road. competitive markets. his or her will, trust, life income gift, retirement
Although a regulatory budget Eventually, politicians will be plan, life insurance dedication, or another
would be a good start, it alone will forced to get spending and defi- planned giving instrument.
not solve our problems. Without clear, cits under control, but regulatory
reforms are just as important to keep Contributions to CEI are tax deductible. We
uniform standards for calculating accept gifts via check, credit card, cash, or
regulatory costs, it is difficult, if not the economy growing and moving
Bitcoin—as well as stock or other securities
impossible, to gauge with precision forward. Cutting red tape and freeing
and assets. CEI also accepts contributions in a
how well agencies are keeping to their entrepreneurs to innovate will enrich
will or trust. Including CEI in your estate plans
allotted budgets. society and give consumers more is easy, and can be altered as needed.
An even more important reform choice and likely more money in their
pockets. And by making the overall Consult your tax professional about the limits
that Congress could pass would
economy healthier, Congress could and conditions regarding charitable deduc-
require lawmakers to vote on costly,
in turn improve the unhealthy federal tions and your tax situation. For contributions
complex, and controversial rules in a will or trust, consult a tax or estate profes-
before they become binding on the budget in the process, making a politi-
sional for language that is appropriate for
public. This would preempt the blame cally difficult job a little easier.
your estate and financial situation.
game between Congress and agen-
cies for undesirable regulations.
Increasing transparency, account- Wayne Crews (wayne.crews@cei.
ability, and disclosure should appeal org) is vice president for policy at CEI If you would like to join the Legacy
to both sides of the political aisle. At and author of CEI’s annual report, Ten of Liberty Society or learn more
a minimum, policy makers and the Thousand Commandments. Ryan Young about the impact you can make
public need to be able to gauge how (ryan.young@cei.org) is a CEI fellow.
A version of this article was originally
through one of CEI’s giving societies,
agencies are doing their jobs.
published in USA Today. please contact CEI’s Philanthropy
A government that tries to do
everything does nothing well. Rather team at (202) 331-1010 for more
information.
Andy Yuan
Philanthropy Department
andy.yuan@cei.org | (202) 331-1010

COMPETITIVE ENTERPRISE INSTITUTE C E I . O R G 3
Cracking Down on Automated Vehicles
Would Mean More Death and Destruction
BY MARC SCRIBNER

I n March, tragedy struck in Tempe,
Arizona, where Elaine Herzberg was
struck and killed by an Uber automated
test vehicle while crossing a darkened
roadway. Clearly, something went
wrong with Uber’s automated driving
system.
Early reports suggest that the vehi-
cle did not apply the brakes prior to the
collision. The test vehicle was equipped
with a Velodyne LiDAR array affixed to
the top of the vehicle that should have
identified Herzberg as a pedestrian Elaine Herzberg’s death was a trag- Dramatic responses to tragic events
and allowed for the vehicle’s software edy, but it should not distract us from rarely yield sound public policy.
to safely respond. But it appears the the lifesaving possibilities of automated Politicians and regulators need to
system didn’t properly detect and clas- vehicle technology. Some 35,000 to understand that rashly enacted, poorly
sify her while crossing. Or perhaps it 40,000 Americans can be expected informed regulation aimed at mitigating
did, but failed to accurately predict her to die at the hands of human drivers one risk could mean amplifying other,
movements and respond accordingly. every year, including around 6,000 often existing risks that claim many
However, it is not clear if a human pedestrians. And according to federal more victims every year.
driver would have made this a sur- estimates, human error or misbehavior Instead of overreacting to tragedy,
vivable event. The Uber test vehicle, is a critical crash factor in around 19 as is their tendency, politicians and
manned by a safety driver who may out of 20 crashes. Advocates of new regulators should continue their largely
have been distracted, was travel- regulations on automated vehicles—for hands-off approach to automated
ing several miles per hour below the which a dearth in technical under- vehicle regulation. Road testing is the
posted speed limit and dashboard standing means the government would best way to continue improving the
video shows Herzberg crossing out largely be flying blind—often fail to performance of automated driving sys-
of the dark into the vehicle’s path just acknowledge this fundamental risk-risk tems, as closed-track testing and virtual
before the fatal collision. tradeoff. simulations cannot substitute for the
State and federal investigators are Uber and government investigators complex messiness of real-life traffic.
on the ground and it will take some should be as transparent as possible in Throughout that process, engineers will
time for their findings to be made conducting their inquiries and report- have the time and information to write
public on exactly what went wrong. ing their findings. Whether Uber is held technical standards to better inform any
The roadway where the crash occurred at fault or not, the company should future regulatory changes. But cutting
also appears to be hostile to pedestrian commit to identifying and rectifying any off or greatly curtailing automated
traffic, implicating street design as a errors in its automated driving system— vehicle road testing would only fore-
contributing crash factor. But beyond and gaps in its test-driver protocols— stall the radical safety improvements
that, we know very little. that may have contributed to this that can help end much of the death
Yet, this lack of knowledge has not crash. If Uber finds that its technology and destruction that occur on America’s
kept proponents of the precautionary and practices are not able to achieve roadways due to driver error.
principle from calling for all sorts of at least a level of safety on the road
government regulatory interventions— equivalent to that of traditional human-
from a requirement that test vehicles driven cars, it should focus on working Marc Scribner (marc.scribner@cei.org)
certify to nonexistent standards to a out these problems in closed-track test- is a senior fellow at CEI. A version of
nationwide prohibition on any public ing and virtual traffic simulations before this article was originally published on
road testing in the near future. resuming public road testing. OpenMarket.org.

4 CEI.ORG COMPETITIVE ENTERPRISE INSTITUTE
Coffee Won’t Kill You, but CAFE Might
“obscured the safety problem” through less significant. But the basic relation-
BY SAM KAZMAN a combination of “fudged analysis,” ship between size and safety has not
“statistical legerdemain,” and “bureau- changed. The Insurance Institute for

F or decades, federal auto fuel
economy standards have posed a
simple problem: They kill people. Worse,
cratic mumbo-jumbo.” In the court’s
view, nothing in the record “appears to
undermine the inference that the 27.5
Highway Safety, which closely moni-
tors crashworthiness, still provides the
same advice it has been giving for
the National Highway Traffic Safety mpg standard kills people.” years: “Bigger, heavier vehicles are
Administration (NHTSA) has covered How many people? A 1989 safer.”
this up. The Environmental Protection Harvard-Brookings study estimated CAFE advocates like Consumer
Agency (EPA), which since 2009 has the death toll at between 2,200 and Reports treat lighter cars as merely a
helped manage the Corporate Average 3,900 a year. Similarly, a 2002 question of comfort, not crashworthi-
Fuel Economy (CAFE) standards, also National Academy of Sciences study ness. Automakers and dealers may
played a role in burying their deleteri- estimated that CAFE had contributed express concerns about safety in the
ous effects. But change finally is coming. to up to 2,600 fatalities in 1993. This abstract, but considerations of politics
On April 2, EPA Administrator Scott was at a relatively lenient CAFE level and marketing make them hesitant to
Pruitt announced his agency is reex- of 27.5 miles per gallon. Under what discuss hard numbers.
amining the stringent standards set by the Obama administration had in store, In his announcement, Pruitt proved
the Obama administration in 2012. CAFE would soon approach levels admirably blunt in characterizing the
This might finally bring some honesty twice as stringent. Obama CAFE standards as based
to the issue of CAFE’s lethal effects and These inconvenient truths should on “politically charged expediency”
push the safety issue to the forefront of have led the government to change and assumptions “that didn’t com-
the debate over government efficiency its approach to CAFE. At least the port with reality.” Let’s hope he’ll be
mandates. Or it might not. standards didn’t get worse for about similarly candid about CAFE’s risks. A
To call it a coverup isn’t hyperbole. a decade throughout the 1990s, lethal program that’s been in effect for
CAFE kills people by causing cars to be despite environmentalist demands for decades deserves one thing above
made smaller and lighter. While these a stricter—and therefore more lethal— all—an accounting.
downsized cars are more fuel efficient, approach. But then CAFE was swept
they are also less crashworthy. In 1992 up in climate change politics.
in Competitive Enterprise Institute v. Advocates of stringent standards Sam Kazman (sam.kazman@cei.org)
NHTSA, a lawsuit CEI brought with claim that automotive technologies is general counsel at CEI. A version of
Consumer Alert, a federal appeals have advanced since that 1992 this article was originally published in
court ruled that the agency had court ruling, making vehicle mass The Wall Street Journal.

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It’s an easy way to expand the
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COMPETITIVE ENTERPRISE INSTITUTE C E I . O R G 5
Tech Companies Should Avoid a Devil’s
Bargain with Big Government
political content on Facebook consists could make it next to impossible for
BY WAYNE CREWS AND RICHARD of opinion, advocacy, and ideological the next generation of companies after
MORRISON signaling rather than content presented Facebook to emerge and grow. Despite
as news coverage. What constitutes a being a large and influential company,

F acebook CEO Mark Zuckerberg’s
recent testimony before a joint
session of the Senate Judiciary and
“true” claim or proposition in politics is
often in the eye of the beholder, as the
complex ecosystem of fact checking and
Facebook is in no way an “essential
facility” or “monopoly,” especially not
in the sense of being a news outlet.
Commerce Committees was troubling counter-fact checking organizations and Fewer than 20 percent of Americans say
in some ways. Zuckerberg’s comments websites around today—and their crit- that they get news “often” from social
suggested that Facebook is prepared ics—amply demonstrate. media—including Facebook, Twitter,
to accept liability for the harmlessness Facebook, of course, is free to pursue Snapchat, Tumblr, YouTube, and Reddit.
and accuracy of all the hundreds of bil- whatever news verification partnerships In a nation with a vibrant, low-cost
lions of pieces of content posted on the it sees fit—as it has since December Internet infrastructure and strong First
platform, which is a terrible precedent 2016—but that may not stop members Amendment protections, it is meaning-
for any tech leader to create—even if of Congress from seeking the ability to less to talk about public discourse being
his company is one of the few that can bully, bribe, and threaten the company “monopolized” by any single company
afford to hire an additional 20,000 full- into cementing in place some set of or tech platform. Government regula-
time content reviewers in a single year. guidelines that a handful of politically tion, on the other hand, could give
He also seemed to go along with powerful individuals want right now, as one company or platform an unfair
the premise that a social media net- opposed to leaving the company free advantage over rivals and newcomers,
work consisting of 2 billion users can to evolve and respond to new develop- truly stifling the free exchange of ideas.
be hijacked to the point of threatening ments going forward. Facebook already Zuckerberg is understandably motivated
the legitimacy of a presidential election has the world’s largest global network to demonstrate to the powers that be
with a $100,000 ad buy. That’s absurd, of users, so giving up the freedom to in Washington that his team is taking
and an insult to the 99.99 percent of set its own procedures for some kind of consumer concerns seriously, but seek-
politically involved Facebook users who qualified or implied legal immunity in the ing to placate the Beltway bigwigs risks
aren’t Russian trolls. Total political cam- future could be very tempting. threatening the culture of free expression
paign ad spending, by the way—across However, any new set of rules that he’s supposedly trying to protect.
all formats—was approximately $9.8 comes with a congressional seal of
billion for the 2016 election cycle. approval can be expected to lead to
He also seemed open to regula- more government-enforced definitions Wayne Crews (wayne.crews@cei.org) is
tion of political ideas and of what of what counts as “fake” and deni- vice president for policy at CEI. A version
constitutes “fake”—which is even more als of the ability of individuals to post of this article was originally published on
troubling, since most of the controversial on social media anonymously. This OpenMarket.org.

6 CEI.ORG COMPETITIVE ENTERPRISE INSTITUTE
Consumers Lose if Internet Sales Tax
Goes into Effect
like a tax albatross when they shop This protection is in line with one of
BY JESSICA MELUGIN online. the most important aspects of competitive
Think about the difference in gas federalism: protecting individuals from

I n April, the U.S. Supreme Court heard
a case that could affect the future of
online commerce, specifically small
taxes between Virginia and Washington,
D.C. That difference leads many people
to drive across the state line into Virginia
overreaching states and states from each
other. The Constitution doesn’t bar state
Internet sales taxes; it permits them so
online sellers and those who purchase to pay less for gas. This keeps at least long as they’re approved by Congress
their products. some downward pressure on tax rates. through federal legislation or through
In South Dakota v. Wayfair, Inc., If we apply the Internet sales tax plan to approval of a multi-state agreement.
the Court will determine whether state gas taxes, a Virginia gas station would If these taxes are really in the
government officials may collect Internet have to charge you D.C. gas taxes if public interest, then there’s no reason
sales tax on purchases coming from a your car had D.C. plates. to think that Congress won’t act. But
seller that is not physically present in a An Internet sales tax would also states should not be able to undo the
consumer’s state. drown small, online businesses and physical presence rule on their own, as
Revenue-hungry state and local entrepreneurs, like those on eBay and South Dakota is attempting to do in its
officials and retail giants have lobbied Etsy, with compliance costs, since they Supreme Court case.
members of Congress for nearly two would have to deal with the costs and There is a better way. Consider
decades to eliminate the physical pres- complications of figuring out approxi- a congressionally enacted—or
ence limit on state taxing powers. These mately 10,000 distinct sales tax jurisdic- approved— origin-based online sales
politicians would love to tax sellers in tions. These independent sellers would tax system. It would assess a tax based
other states, who can’t vote them out of also be subject to audits from up to 46 on the point of purchase—an online
office, while retail giants welcome any states, the current number of states that seller located in South Dakota would be
policy that will squash their competition. impose a sales tax. subject to that state’s tax, just like brick-
But when it comes to protecting con- Big box retail stores, like Target, and-mortar sellers in that state.
sumers and the rule of law, it would be Best Buy, and Walmart, support this Online and main street sellers
better for everyone if the Supreme Court new tax because it’s a way to burden would be treated identically. And most
upholds the physical presence standard small competitors. Even Amazon, which importantly, such an approach would
and relies on Congress to address this used to oppose these tax expansion promote healthy competition among the
issue. efforts, has switched sides now that it states, and keep politicians accountable
It’s a fundamental tenet of federalism owns warehouses across the country to those they tax. A state that imposed a
that a state’s powers are limited to its to improve delivery times, which also very high tax on sellers located within its
own state and residents. States should happens to trigger sales tax compliance borders would risk losing those busi-
not and cannot impose their will on other in many states. nesses to lower-tax states.
states, but instead should compete for Internet sales tax proponents point This approach is vastly superior to
residents and businesses based on the to free government-provided tax- a Supreme Court ruling that took the
wisdom or folly of their political choices. calculating software as a way to reduce decision about the physical presence
Internet sales taxes are anti-competi- these compliance burdens. But there are requirement away from Congress. If that
tive and would likely be experienced as serious concerns with the performance were to happen, it would surely lead
a tax hike on consumers. They also give of that software and there are no allow- to the destruction of many small online
states the opportunity to create a make- ances made for costs associated with businesses and a tax hike on Americans,
shift tax cartel, something prohibited by testing or integrating these systems. leaving us with less money in our pock-
the Constitution. The current, physical presence stan- ets and fewer choices online.
There would be no way for an online dard protects business owners from what
buyer to avoid the tax. That means the amounts to taxation without represen-
long-term effect of this arrangement tation, since a state cannot impose its Jessica Melugin (jessica.melugin@cei.
would be reduced tax competition sales tax on purchases if the seller has org) is associate director of the Center
among states. Consumers would be no store, warehouse, or office located in for Technology and Innovation at CEI.
forced to wear their home jurisdiction the state. A version of this article was originally
published at CNBC.com.

COMPETITIVE ENTERPRISE INSTITUTE C E I . O R G 7
There’s Nothing to Fear About
Modest Banking Reform
Even the legislation’s most sig-
BY DANIEL PRESS nificant reforms are rather modest.
Take Dodd-Frank’s policy of desig-

T he United States financial system
is in desperate need of reform. The
hundreds of new rules and regulations
nating regional banks as “too big to
fail.” Regional banks are larger than
community banks but much smaller
imposed by the Dodd-Frank Act have than their cousins on Wall Street.
devastated the nation’s banks, with Nevertheless, regional banks are
compliance costs nearing 83 million regulated in the same manner as some
paperwork hours and $39 billion. of the largest, most complex institu-
While big banks with armies of lawyers
can absorb these costs and remain
tions. Currently, any bank with over
$50 billion in assets is automatically
Regulating Main
considered a Systemically Important
profitable, smaller banks simply cannot.
Since Dodd-Frank’s passage, more than Financial Institution (SIFI). This places Street like Wall
one in five banks have disappeared Zions Bank in Utah, with $65 billion
across the country, at a rate of nearly in assets, under the same regulatory
apparatus as J.P. Morgan, which has
Street simply does
one per business day.
That’s why a major piece of bank-
ing legislation introduced by Senate
$2.5 trillion in assets. The hypothetical
failure of these two banks would pose
not make sense.
Banking Committee Chairman Mike wildly different risks to the economy,
Crapo (R-Idaho) is an important yet yet they are regulated as if they were
threshold altogether. This is because
modest attempt at reform, loosen- the same.
a bank’s size alone fails to identify
ing certain rules for small banks but Regulating Main Street like Wall
whether or not it is “systemically impor-
leaving Wall Street untouched. It has Street simply does not make sense.
tant.” To improve the bill, the Senate
passed the Senate but still needs to Even the co-author of Dodd-Frank,
should follow the House’s lead and
be reconciled with legislation in the former Massachusetts Rep. Barney
require regulators to look at a range of
House. Frank, thought that Congress should
factors to tailor regulation to a bank’s
So why are progressive groups revisit the asset threshold, as they
particular risk profile.
and their Senate counterparts trying to “never thought $50 billion was a
Sen. Crapo’s banking reform
label the bill as “gutting” Dodd-Frank? forever number.” That’s why the Crapo
legislation is not the bogeyman that
Sen. Elizabeth Warren (D-Mass.), for bill proposes lifting the SIFI thresh-
progressive groups make it out to be.
example, said that Republicans and old from $50 billion to $250 billion,
Indeed, a slim Republican majority in
Democrats are “siding with their big exempting banks that engage in
the Senate makes sweeping legisla-
bank donors instead of working fami- “traditional” banking activities, such as
tion unlikely, yet this bill has enough
lies.” She’s wrong. Whatever the many taking deposits and lending to small
Democratic support to garner 67
merits of dismantling Dodd-Frank, this business, from an unnecessary layer of
votes.
bill doesn’t do that. regulation.
Even in such a polarized environ-
Hyperbole aside, the Crapo bill is a According to one study, such
ment, Republicans and Democrats
moderate, common-sense reform with inappropriate regulation is reducing
agree that community and regional
strong bipartisan support. The bill is regional banks’ capital to lend by $20
banks are in need of regulatory relief.
almost exclusively focused on exempt- billion. Bringing this capital back into
Despite what populist politicians say,
ing community banks—Main Street local economies would be a boon for
there is nothing to fear about such
institutions with less than $10 billion in small businesses and working families.
modest banking reform.
assets—from some of the most burden- If anything, the Crapo bill doesn’t
some Dodd-Frank rules. For better go far enough. A recent report by the
or worse, the legislation provides no Office of Financial Research, a non-
Daniel Press (daniel.press@cei.org) is a
deregulatory measure whatsoever for partisan government agency created
policy analyst at CEI. A version of this ar-
Wall Street—surely more a “tweaking” under Dodd-Frank, recommended
ticle was originally published in The Hill.
of Dodd-Frank than a “gutting.” scrapping the $50 billion asset

8 CEI.ORG COMPETITIVE ENTERPRISE INSTITUTE
For Some Class-Action Lawyers, Charity
Begins and Ends at Home
data could be traced back to the indi-
BY TED FRANK vidual, Google had violated federal
privacy laws that provide statutory

I f an attorney raids a client’s settle-
ment money, he’ll get disbarred and
could go to prison for embezzlement.
damages of $1,000 per violation. If
the plaintiffs had a real case, the dam-
ages would be in the trillions of dollars.
But if the same attorney raids settle- But the lawyers must not have thought
ment money from a class-action suit, much of their claims—they settled for a
charities may laud him and courts paltry $8.5 million.
award him millions of dollars. My col- Because of cy pres, however,
leagues and I are asking the Supreme that number is entirely imaginary.
Court to put an end to the abuse of a Under the settlement, class members
trust-law doctrine known as cy pres, get nothing and Google makes no
under which class-action lawyers have material change to its practices—but
funneled millions of dollars of settle- the attorneys collect more than $2
ment money to select charities. million. The rest of the money is going would be too difficult. But under the
In French, cy pres (pronounced to a variety of charities affiliated with new standard they created, almost any
see-PRAY) means, roughly, “as near as Google and the plaintiffs’ attorneys, class-action lawyer can claim the same
possible.” As a legal doctrine, it typi- essentially allowing the lawyers to thing. When other appellate courts
cally applies to charitable trusts that double dip in the settlement fund. have applied the correct standard and
have outlived the cause or issue they Class counsels Michael Aschenbrener agreed that attorneys shouldn’t get
were originally established to address. and Kassra Powell Nassiri graduated paid unless their clients do, lawyers
Under cy pres, for instance, the March from Chicago-Kent and Harvard Law, have magically discovered ways to
of Dimes could turn its focus to other respectively. Both institutions happened get money to class members, even
childhood diseases once polio was to receive funds in the settlement. when the payment per class member
eradicated. While appropriate in the Tech companies that settle class was as small as it is in our current case.
trust context, cy pres’s application to actions often tacitly collude with Incentives work.
class-action suits enables attorneys to plaintiffs’ attorneys to funnel money to A bipartisan coalition of 16 state
bilk their clients by claiming it would be the defendants’ preferred charities. In attorneys general is also urging the
too difficult to distribute the money to such cases the “relief” to the class can Supreme Court to hear Frank v. Gaos.
class members. be entirely illusory, because the money They agree that the Ninth Circuit has
Right away there is a conflict of would likely have gone to those chari- created a standard that will make it far
interest. Any attorney with a choice ties even without a settlement. Worse, too easy for attorneys to siphon millions
between sending out a million $5 a judge might have designs on what of dollars of consumers’ money into
checks to clients he’s never met or has become essentially a slush fund, their own slush funds. Chief Justice John
being part of a ceremony to hand over and encourage the parties to steer Roberts has previously expressed con-
oversize $1 million novelty checks money to his or her own particular cern about cy pres abuses. We hope
to five of his favorite charities—and favorite charity—as happened in yet the Supreme Court will protect consum-
receiving a full fee either way—will another Google case, in which now- ers who take part in class actions from
have a strong incentive to leave the retired federal district Judge James being preyed upon by their attorneys.
clients with nothing. That’s exactly what Ware rewrote the settlement to direct
happened in the case we’ve asked the $500,000 to Santa Clara Law School,
justices to take up. where he taught. The money went to Ted Frank (ted.frank@cei.org) is direc-
Paloma Gaos filed a class action fund a center for ethics. tor of litigation and director of the
in 2010 in the Northern District of The Ninth U.S. Circuit Court of Center for Class Action Fairness at CEI.
California over Google’s practice of Appeals approved the Google settle- A version of this article was originally
divulging consumers’ search queries to ment my organization challenged published in The Wall Street Journal.
third-party websites. The plaintiffs’ law- because it thought actually distribut- On April 30, the Supreme Court
yers alleged that because this search ing the money to such a large class agreed to hear Frank v. Gaos.

COMPETITIVE ENTERPRISE INSTITUTE C E I . O R G 9
Don’t Fear Worker Freedom
because labor unions act as exclusive they are given a choice. But consistently,
BY TREY KOVACS bargaining agents, meaning they must unions fight tooth and nail to stop “free-
represent all workers in a bargaining riders” from opting out.

P ublic sector unions have some dire
warnings about a U.S. Supreme
Court case that could end forced union
unit whether or not they are full-fledged
dues-paying members. But the fact
is, the majority of workers stay union
Unions shouldn’t be able to have
it both ways. Either free workers from
forced union representation entirely
dues for government employees. members when given the option. or accept that some workers may not
According to some union officials, According to the Bureau of Labor want union representation and allow
giving workers a choice to decline Statistics, unions fare well in right-to- them to opt out of paying dues. No
paying fees to a union, while allow- work states, where private-sector work- worker should be forced by the gov-
ing them to stay in their jobs, is part ers have the right to choose whether ernment to financially support a union
of a strategy to deplete union coffers. to pay union dues. Data compiled or risk losing his or her job.
On February 26, the court heard from by the Mackinac Center for Public The case before the Supreme Court
Mark Janus, a child support specialist Policy show union membership rates in is ultimately about worker freedom, not
in Illinois who argues that forcing public those states are comparable to states defunding unions.
employees to pay these fees violates that require forced union dues. For The only thing unions really have to
their First Amendment rights. example, according to Mackinac, from fear from the court’s forthcoming deci-
Government unions are inherently 2000 to 2014, “the average percent- sion is the possibility that unions will
political. Most items bargained over in age of union-represented, private- be held accountable to their member-
the public sector, such as pay, teacher sector employees who were full union ship. A ruling in favor of Janus will
tenure, and pension funding, involve members was 93 percent in agency- give workers the opportunity to opt out
political choices that determine how tax fee states, 94 percent in mixed-status of paying dues if they do not think a
dollars are spent. states, and 84 percent in right-to-work union is earning its keep. Perhaps that
In 22 states, unions are empowered states.” is what’s really making union bosses
to speak and negotiate on behalf of In Michigan and Wisconsin, where uncomfortable.
workers, whether they like it or not. right-to-work laws were recently
According to Janus, he doesn’t want to enacted, union membership among
pay for a union or activities that don’t public sector employees covered by col- Trey Kovacs (trey.kovacs@cei.org) is a
represent his values and interests, but lective bargaining agreements remains policy analyst at CEI. A version of this
he has no choice in the matter if he above 90 percent. This data should article was originally published in U.S.
wants to keep his job. alleviate union concerns that members News and World Report.
A favorable outcome for Janus will stop paying dues in droves once
would create an environment where
state and local workers, not the
government, will decide if a union is
On February 26, CEI
worthy of their financial support. Justice policy analyst Trey
Sonia Sotomayor questioned whether Kovacs attended the
the lawsuit amounted to an effort to United States Supreme
“do away with unions.” Nothing could Court oral argument
be further from the truth. Unions more in Janus v. American
than likely would see a slight drop in Federation of State,
revenue, but not in the amount that County, and Municipal
would lead to their extinction. Instead, Employees, Council
a ruling in favor of Janus will give state 31. Left to right: CEI
and local government workers some Vice President of
control over where their hard-earned Communications Annie
money is going and who represents Dwyer, Policy Analyst
their interests. Trey Kovacs, and Director
Unions worry that, when given of Communications
the choice, workers will not pay dues Christine Hall.
since they will continue to receive
union representation either way. This is

10 CEI.ORG COMPETITIVE ENTERPRISE INSTITUTE
Cutting Tailpipe Emissions Not that Effective
against Global Warming
unaffordable or simply unavailable. CAFE is also a woefully inefficient
BY MARLO LEWIS Heavier and larger vehicles have more climate change policy. Obama’s EPA
mass to absorb collision forces, while estimated that the 2012–2025 fuel

T he U.S. Environmental Protection
Agency (EPA) announced on April
2 that it will reconsider the federal
providing more space between the
occupant and the point of impact. A
2002 National Academy of Sciences
economy standards would avert less
than two hundredths of a degree
Celsius of warming by 2100—too little
government’s Corporate Average Fuel study concluded that CAFE-related size to discernibly affect weather patterns,
Economy standards for passenger and weight reductions contributed to sea levels, polar bear populations, or
cars for model years 2022–2025. The between 1,300 and 2,600 deaths in a any other climate-related indicator
Obama administration set very strin- single year and 10 times as many seri- people care about. The Reason study
gent standards, peaking at 54.5 miles ous injuries. estimates that automakers and consum-
per gallon in 2025. After the EPA’s mid- Although advanced technologies ers spend about $1,000 for every ton
term review, it found these standards to such as automatic braking improve of carbon dioxide reduced through the
be inappropriate. Automakers warned vehicle safety, adding size and weight CAFE program. That’s more than 20
that the standards are too strict and to a high-tech vehicle would make it times greater than the Obama adminis-
potentially price millions of consumers safer still. tration’s social cost of carbon estimate
out of the market for new cars. Contrary to proponents, CAFE has for 2025.
The EPA’s recent decision could save never been a smart energy security Proponents claim America needs
car buyers thousands of dollars in the policy. People naturally switch to high- the CAFE program so that automakers
showroom, make auto companies more mileage vehicles when oil prices rise. produce the cars consumers want. The
attuned to what consumers—rather than More importantly, expensive oil spurs truth is just the opposite. CAFE impedes
what bureaucrats—want, and increase investment in new technologies such automakers from serving consumers.
autoworkers’ wages. At the same time, as hydraulic fracturing and direc- If high-mileage vehicles are always a
and contrary to what the EPA’s critics tional drilling, which then lowers oil great bargain, why do we need a law
claim, relaxing the standards would prices by increasing supply. A Reason to make us buy them?
have no discernible impact on either Foundation study estimates that when
climate change or energy security. all economic impacts are properly
The case for rolling back the accounted for, CAFE costs about $500 Marlo Lewis (marlo.lewis@cei.org) is
Obama administration standards can for every barrel of oil saved—more a senior fellow at CEI. A version of this
be summed up in three words: cost, than three times the highest oil price in article was originally published in The
choice and safety. history. San Francisco Chronicle.
The National Auto Dealers
Association estimates the CAFE regula-
tions will add $3,000 to the cost of On April 2, CEI General
new motor vehicles by 2025, poten- Counsel Sam Kazman
tially pricing millions of low-income (pictured) and Center for
households out of the market for new Energy and Environment
cars. A Heritage Foundation study Director Myron
estimates the Obama CAFE mandates Ebell attended EPA
have increased new car prices $6,800 Administrator Scott Pruitt’s
above the pre-2009 baseline trend, announcement of his
and that repealing the standards could agency’s reversal of the
save buyers $7,200 per vehicle. Obama administration’s
CAFE prevents consumers from stringent corporate
obtaining all the safety they would average fuel economy
(CAFE) standards.
otherwise be able to buy.
The CAFE program limits consumer
choice by making larger, heavier,
safer but less fuel-efficient vehicles

COMPETITIVE ENTERPRISE INSTITUTE C E I . O R G 11
C E I E V E N T S A ND P UBL IC A P P E A R A NCE S

Jessica Melugin and Ryan Radia Discuss Net Neutrality on Capitol Hill
On April 20, CEI hosted a panel on Capitol Hill addressing the ongoing controversy over net
neutrality—the notion that all data on the Internet should be treated equally. On December
14, 2017, the Federal Communications Commission (FCC) implemented the Restoring Internet
Freedom Order, which overturned the Obama-era net neutrality rules that threatened to stifle
innovation by regulating the Internet like a public utility. Now some members of Congress
are considering various measures to repeal or dilute the order. The panel discussed what
policy makers should do to protect consumers and promote a free and open Internet. Panel-
ists included CEI tech policy experts Jessica Melugin and Ryan Radia, FreedomWorks Chief
Economist and Vice President of Research Dr. Wayne Brough, and American Action Forum
Director of Technology and Innovation Policy Will Rinehart. Also, on March 17, Ryan Radia
spoke to the University of Florida libertarian club on net neutrality and the Restoring Internet
Freedom Order.

Wayne Crews Discusses the Federal Regulatory State at
Economics Conference
Also on April 2, CEI Vice President for Policy Wayne Crews spoke before the Association of
Private Enterprise Education’s 2018 annual meeting in Las Vegas, on the costs of the federal
regulatory state. The session, “Public Sector Economics,” was organized Dwight R. Lee of Southern
Methodist University and chaired by J.R. Clark of the University of Tennessee at Chattanooga.
Other presenters included Michael DeBow of Samford University and Dima Yazji Shamoun of the
University of Texas at Austin.

CEI Hosts Congressional Staffers, Unveils New Regulatory Reform Principles
On March 28, CEI hosted a reception on Capitol Hill to give congressional staff a chance to
meet and mingle with CEI policy experts. Over 60 congressional staffers from both the House
and Senate attended the reception. CEI President Kent Lassman provided welcoming remarks,
an overview of CEI resources, and introduced a few experts. CEI Government Affairs Manager
Taylor Barkley explained how he can be a resource to Hill staff and introduced CEI’s new set of
principles for regulatory reform, “Reducing Regulatory Barriers: Principles to Cut Red Tape.”

CEI President Kent Lassman
welcomes guests at CEI’s
Capitol Hill reception

12 CEI.ORG COMPETITIVE ENTERPRISE INSTITUTE
Richard Morrison Speaks at Leadership Institute Workshop
On March 26, CEI Senior Editor Richard Morrison spoke at the Leadership Institute’s Think
Tank Opportunity Workshop in Arlington, Virginia. Morrison shared advice as part of the
“What Position is Right for You?” session. The workshop provided attendees information on
how think tanks operate and how job seekers can successfully find and build a career in major
research organizations in Washington D.C. and beyond. Other speakers included R Street
Institute Federal Affairs Manager and Coalitions Coordinator Lauren Bouton, Cato Institute
Center for Constitutional Studies Senior Fellow Trevor Burrus, Heritage Foundation Director
of Congressional and Executive Branch Relations Thomas Binion, and Mercatus Center Vice
President for Outreach Karen Czarnecki.

Jessica Melugin Speaks out against Internet Sales Taxes on Capitol Hill
On March 13, Jessica Melugin joined Sen. Steve Daines (R-Mont.) and representatives from
several free market organizations at a Capitol Hill news conference to oppose efforts to include
an Internet sales tax in the March 2018 omnibus spending bill. The Remote Transactions Parity
Act (H.R. 2193) would result in an unprecedented expansion of states’ power to tax entities
outside their borders and a tax hike for consumers. Ultimately, the legislation was not attached
to the omnibus spending bill that was passed. “An Internet sales tax may help politicians and
big box stores, but it will harm every American who shops online,” said Melugin. “It is a de
facto tax hike.”

Marc Scribner Outlines Problems with Vehicle Technology Mandates
On March 16, CEI Senior Fellow Marc Scribner appeared on a panel at New Amer-
ica discussing a stalled Obama administration proposal to mandate “talking car”
technology. In early January 2017, the National Highway Traffic Safety Administration
proposed a rule to require all new vehicles to be equipped with vehicle-to-vehicle
communications technology operating over a protocol known as dedicated short-
range communications. Panelists discussed the technological and economic problems
associated with the proposal, with Scribner describing the proposal’s legal deficien-
cies, which would likely invite costly litigation while failing to significant improve
safety. The panel, moderated by Bloomberg Law tech and telecom reporter Tara Jef-
fries, also featured Cisco Senior Director of Government Affairs Mary Brown; Roger
Lanctot, director of Automotive Connected Mobility at Strategy Analytics; Danielle
Pineres, associate general counsel at NCTA, The Internet and Television Association;
and Michael Calabrese, director of New America’s Wireless Future Project.

Iain Murray Discusses Regulatory Reform at CPAC
At the 2018 Conservative Political Action Conference in February, CEI Vice President for Strat-
egy Iain Murray spoke on a panel assessing the Trump administration’s progress in implement-
ing regulatory reform. Murray outlined the problem of “regulatory dark matter” identified by
CEI’s Wayne Crews and explained in detail the egregious behavior of the Consumer Financial
Protection Bureau under its previous director. The panel, moderated by Matthew Spalding of
Hillsdale College, also included Rep. Barry Loudermilk (R-Ga.) and Dr. Gregory Dolin, co-
director of the Center for Medicine and Law at the University of Baltimore School of Law.

COMPETITIVE ENTERPRISE INSTITUTE C E I . O R G 13
THE THE THE
GOOD BAD UGLY

The Good: Federal Court The Bad: Lawyers in
Rules against Obama- Anthem Privacy Case The Ugly: Trump Tariffs
era “Fiduciary Rule” on Overbill Class Members by Could Spell Doom for
Investment Advice 900 Percent the Economy

On March 16, the Fifth Circuit Court of This class action lawsuit against health On March 8, the Trump administra-
Appeals struck down the Obama Labor insurer Anthem for alleged violation of tion announced tariffs on steel and
Department’s controversial fiduciary customer privacy became more inter- aluminum, while suggesting that more
rule, which would have imposed legal esting when class members realized trade restrictions are possible—a
burdens on a large category of finan- the ridiculous terms of the proposed protectionist shift that could erase the
cial professionals, effectively deterring class action settlement. The plaintiff economic gains from deregulation
those professionals from continuing to attorneys drastically overstated the and tax reform.
offer services to middle class investors. dollar amount of their work hours, with CEI President Kent Lassman said
Proponents of the rule, however, will millions of dollars of work by contract that “unless the president course
be headed back to court. The AARP attorneys being billed at excessive corrects on his trade policy, the path
and the attorneys general of New York, rates and with duplication of effort. toward economic growth ahead will
California, and Oregon are asking the The request for fees by attorneys in be challenging.” CEI Vice President
full Fifth Circuit to rehear the previous the case was “upside-down,” accord- for Strategy Iain Murray observed:
three-judge panel decision. CEI Senior ing to CEI Center for Class Action “This White House is supposed to
Fellow John Berlau lauded the Fifth Fairness Director Ted Frank, because understand business, but if you get rid
Circuit’s decision and urged the Trump the lawyers and settlement administra- of everyone who has a good under-
administration to support it. He said: tor involved were asking for $63.6 mil- standing of free market economics,
“The court rightly labeled as ‘arbitrary lion of a $115 million settlement fund, businesses and jobs will suffer.”
and capricious’ the Labor Department’s leaving $51.4 million for 78 million
issuing of this regulation that goes class members, or less than a dollar
against congressional intent and rede- per person.
fines ‘fiduciary’ in a way that gives the Class member and CCAF attorney
department broad power over a broad Adam Schulman, CEI challenged the
swath of investment professionals ser- excessive fee request.
vicing 401(k)s and individual retirement
accounts.”

14 CEI.ORG COMPETITIVE ENTERPRISE INSTITUTE
MediaMENTIONS
Policy Analyst Daniel Press makes rollback is going to be quite a significant CCAF Director Ted
the case for bipartisan reform of the number,” said Myron Ebell, who led Mr. Frank discusses
CFPB: Trump’s EPA. transition team and directs his role in the case
Only two weeks ago, Rep. Dennis the energy and environment policy at Frank v. Gaos,
Ross (R., Fla.) introduced a bipartisan bill the Competitive Enterprise Institute, a which was recently
to impose accountability by replacing Washington research organization that accepted by the
the single director of the CFPB with a questions the established science of Supreme Court:
bipartisan five-person commission, the human-caused climate change. “It will be Ted Frank, director
standard structure for an independent more than a couple mpg.,” he said. of litigation and the
agency. House Financial Services –March 29, Center for Class Action Fairness at the
Committee Chairman Jeb Hensarling New York Times Competitive Enterprise Institute, said he
and other Republicans sought changes was not surprised by the government’s
to the CFPB in the financial reform bill that Vice President for Policy Wayne insistence the justices not take up the
passed the Senate earlier this month. But Crews argues that consumer choice dispute. The Justice Department, he said,
their Democratic counterparts, including can protect consumer privacy better is “locked in, and the vehicle problems
Sen. Warren, refuse to compromise on than federal regulation: here are so immense.” Frank took issue
changing the bureau’s structure. But Wayne Crews, vice president with the Justice Department’s claim that the
–April 3, for policy at the libertarian think tank government doesn’t need any guidance
The Wall Street Journal Competitive Enterprise Institute, said from the Supreme Court about cy pres
Facebook customers know they’re settlements. “Just because Jeff Sessions
Senior Fellow John Berlau sacrificing privacy every time they log on. implemented a policy in 2017 doesn’t
celebrates the federal court ruling “It’s never been a secret that when you go mean President Oprah’s attorney general
that invalidated the Department online you share information in exchange won’t reverse the policy in 2021,” he said.
of Labor’s “fiduciary rule” on for certain services,” said Crews. –March 5,
investment advisors: –March 27, The National Law Journal
John Berlau, a senior fellow at The Boston Globe
the Competitive Enterprise Institute, a Marc Scribner explains private jet
libertarian think tank, said in the wake Senior Fellow Marc Scribner owners’ opposition to a proposal
of the court ruling that “much of the suggests a better path forward for to reform of the nation’s air traffic
losses from the DOL rule to small savers air travel: control system:
and small businesses will be reversed.” When you deal with competitive The [21st Century AIRR Act]
“Firms will be able to once again offer industries, you generally encounter falling continues to throw money into the Airport
personalized service—not just robo- prices and a pronounced eagerness to Improvement Program, which exists to
advice—to these customers without fear of make the customer happy. When you funnel money into runway and other
massive liability for good-faith suggestions. deal with industries that are protected from updates, especially for rural airports. The
And overall fees will probably come competition, you generally encounter bill also maintains Essential Air Service that
down for these customers as financial firms high prices and a pronounced arrogance pours cash into rural routes that are often
no longer have to absorb the costs of this toward customers. barely patronized. One near certainty:
rule,” he said. As Marc Scribner of the Competitive Congress won’t end these subsidies.
–March 30, Enterprise Institute, quoted by [Reason What’s really going on? The business
Financial Times Editor at Large Matt] Welch, puts it: jet industry pays 0.6 percent of aviation
“If American consumers wish to enjoy user taxes but accounts for 11 percent to
CEI Center for Energy and improved service quality in air travel, they 13 percent of controlled traffic, as Marc
Environment Director Myron Ebell should demand that Congress repeal 90 Scribner of the Competitive Enterprise
comments on the EPA’s decision years of anti-competitive federal law. Less Institute has noted. The industry would like
to reform mileage and emissions regulation of air travel, not more, is the to keep it that way.
standard for new cars: solution.” —February 14,
While Mr. Pruitt’s proposal to open up –March 18, The Wall Street Journal
the Obama rules to review isn’t expected USA Today
to include specific targets, “The proposed

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Nonprofit Org.
U.S. Postage
PAID
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...END NOTES
From the Department of Hand-Cranks and Buggy If Your Pizza Isn’t Delivered in 30 Minutes, You May
Whips Commit Assault
Unions in Wisconsin have been in a foul mood since A pair of New Jersey police officers are in hot water after
Governor Scott Walker’s 2011 labor reform. That frustra- one of them was caught on camera pushing a Domino’s
tion may explain the Wisconsin AFL-CIO’s recent social manager against a wall because their pizza didn’t get
media outreach opposing … self-checkout lanes. A recent delivered on time. Video obtained by the local NBC affili-
Facebook post from the labor group shows a woman at ate shows the two Jersey City police officers storming a
an automated kiosk with the all-caps headline “NEVER Domino’s store and pushing the manager up against a wall.
SELF-CHECKOUT.” The text advises shoppers that checking According to the manager, when the driver arrived at the
out their own groceries is a way “to help corporations fire delivery location, his calls were not answered. A short time
workers so they raise their profits.” Busy Wisconsinites are later, one of the officers called the Domino’s location upset
advised to shun the automated options and simply to wait in over his missing pizza delivery. Cell phone footage shows
long lines until more employees are called upon to deal with the officers storming into the store and grabbing the man-
the backup. ager, eventually escorting him outside out of view of cam-
eras. After the exchange, the two officers were suspended
California Judge Rules Coffee Must Carry Cancer and charged with harassment and disorderly conduct.
Warning
The Golden State’s initiative process, which allows citi- World Outside of Campus Too Risky for Penn State
zens to propose new legislation to be approved by popular Students
vote, has spawned a wide variety of laws and state consti- Today’s college students often endure accusations of
tutional amendments—of varying degrees of wisdom—since being overly sensitive, easily offended, and unwilling to
it was first adopted in 1911. Proposition 65, approved by endure risky, challenging situations. This time, however, it’s
voters in 1986, requires the state to publish a list of chemi- their university guardians who have decided they’re not
cals known to cause cancer and to notify Californians about ready for the real world. Recently, Penn State’s division of
significant amounts of said chemicals in the products they student affairs decided that the activities of the Outing Club,
purchase. But over the years, its requirements have stretched which sponsors trips into the great outdoors for nature-loving
to include chemicals that pose no harm in the tiny amounts students, were too risky for a student-led group. It seems
that consumers encounter them. Recently, Los Angeles many of their outings take place “in high-risk environments
Superior Court Judge Elihu Berle ruled that anyone selling such as unsupervised or lightly-patrolled areas with unreli-
coffee in the state must post signage warning customers able or no cell phone service,” according to PennLive.com.
about the allegedly carcinogenic compound acrylamide, a Also running afoul of the new rules were the Nittany Grotto
chemical created during the roasting process. Caving Club and the Nittany Divers SCUBA Club.

16 CEI.ORG COMPETITIVE ENTERPRISE INSTITUTE

Related Interests