You're watching...
Institute for Justice Attorney Robert McNamara on a Wisconsin law that forces gas stations in the state to pass on added costs to the consumer.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
He's still a price floor for retail gasoline in Wisconsin and appeals court there is upholding a law that forces gas stations.
To pass on added cost to drivers either 6% more then the price paid or just about 9% above local wholesale prices.
Whichever happens to be higher about half full right well Robert -- and there is an attorney for the Institute for Justice fighting against it welcomes you -- So what do you say eight to people who believe that.
This you know price -- keeps competition alive.
Look.
The people of Wisconsin no more need to government to protect them from gas that's -- inexpensive than anything government to protect them from a -- that are -- softer hot dogs that are too delicious.
This simply as a law that is not necessary.
Competition works it works and every other field.
The only thing this law accomplishes is shoveling more money into the pockets of established businesses who no longer need to worry about competition.
All at the expense of Wisconsin's entrepreneur horse and consumers.
You know -- survived ten constitutional challenges it's really amazing when you look at the history of this locked.
Let's try for a second to think about why this could possibly be good I mean is it that.
You know gas station could make their prices below cost for a long period of time in.
You know maybe drive out of all the cap competition become the only game in town in the Jack the prices way up is -- I mean -- -- A desperate is there any justification in here and -- Well there are other states have laws that make it illegal to sell gas lower than your own costs.
Wisconsin is the only state in the country that makes it illegal to sell gas lower than someone else's cost it just makes it illegal to compete on price.
With anyone even if you happen to have a more efficient business model or you found it cheaper wholesaler.
You're just forbidden from passing those savings on to your customers there's no justification for that whatsoever are perhaps not just me saying that that's the Federal Trade Commission.
That's everyone who has looked at this except the entrenched businesses who benefit from.
Robert this -- been a long slog for review where you go next -- your options -- you set any kind of compromise may be just an even lower price floor.
Well that that compromises for the state of Wisconsin to stop interfering with the way Iraq and -- in my client and other small entrepreneurs run their business.
I think they should be a wake up call to the legislature.
That entrepreneurs and consumers not state bureaucrats are really the people in the best position to decide how much gas should cost in Wisconsin -- it one politician who runs -- only this issue goes out and says it's actually everybody gets every driver out there to go for -- vote for that I mean I'm trying to think of.
How -- in his this is so ridiculous it's surprising that it's still exists what about that.
It it's ridiculous but it's not surprising it's still exists when you consider that there's an entire lobbying organization of petroleum retailers devoted to preserving this exact issue I'm sure they're writing angry letters to the station right now.
But entrenched businesses make a lot of money.
By forbidding others from competing with them I think any business would like it -- others were forbidden from offering -- -- It turn -- around I mean you get out there you go to every gas station you talk to drivers.
You pass out flyers this is my one issue but for me navigate gas prices down here is an easy win to repeal this locked -- -- work.
Absolutely.
Or in the alternative what we could have is real judicial engagement have courts look at this -- and say.
Hey it doesn't make any sense to forbid someone from selling lower than someone else's cost and this is just a rational way of benefiting private industry at the expense of the public.
Which is what we have courts in place to do was to stop legislatures from handing out special favors like that.
Robert -- -- thank you for your time in your outlook I love bizarre stories and that's certainly want I.
