Judge right to reject anti-competitive law

February 5, 2014 

Congratulations to Wildcat Moving and the U.S. Constitution for ending an anti-competitive law in Kentucky.

Monday U.S. District Judge Danny Reeves upheld a challenge of the part of a state law that essentially gives existing moving companies a veto over new competition.

The procedures in the law that allow movers to determine if competitors can enter the market "offend and violate" the 14th Amendment, which protects a person from arbitrary action of the government, Reeves wrote.

Under the provision, a mover that has obtained insurance and appropriate permits from the U.S. Department of Transportation must also get a household goods certificate to operate in Kentucky. However, to get that certificate the applicant must prove there is a need for additional movers.

Existing movers have contested those applications. Since 2007 no certificates have been issued when the application was challenged although, according to Reeves' ruling, movers have offered to sell their permits for $25,000.

The Kentucky Transportation Cabinet, which had defended the law it's charged with enforcing in court, said Monday that no decision had been made about whether to appeal the decision.

Don't appeal.

This law protects a few movers while handicapping new companies and, most importantly, reduces choice and increases cost for consumers.

Appealing Reeves' sound ruling would only be a further waste of taxpayer resources.

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