FTC Staff Comment to the Honorable Brendan Reilly Concerning Chicago Proposed Ordinance O2014-1367 Regarding Transportation Network Providers

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FTC staff submitted a comment, in response to a request from Alderman Brendan Reilly of the Chicago City Council, regarding a proposed ordinance that would provide for the licensing and operation of transportation network providers (TNPs), particularly software applications that enable consumers to arrange for transportation services via personal vehicles. The comment stated that, if regulation of TNP services are warranted, regulation should focus primarily on ensuring the safety of customers and drivers and other consumer protection issues. The comment noted that some provisions may unnecessarily impede competition, and recommended that the City Council carefully consider the justification for and effects of such provisions. The comment also recommended that the city should more clearly allow for flexibility and experimentation in pricing.