FTC Task Force To Challenge Occupational Licensing Regulations: Does Your Interior Designer Really Need To Be Licensed?

Acting chairwoman of the Federal Trade Commission, Maureen Ohlhausen, announced her first major policy initiative last week: an Economic Liberty Task Force. Ohlhausen targeted occupational licensing regulations as a major barrier to economic opportunities. In particular, Ohlhausen challenges the motive behind licensing requirements for occupations that pose no public health or safety concerns, for example, make-up artists, hair dressers, interior designers and auctioneers. Unnecessary and overly broad licensing requirements prevent individuals from entering new professions, create barriers for small businesses, and can ultimately drive up prices for consumers. The concern is that there is no legitimate justification for these licensing requirements, as is strongly suggested by the radical regulatory differences from state to state. There are not only differences in the requirements for obtaining a license, but states vary as to whether a license is required at all.