Barriers to entry challenged in Kentucky's moving business
barriers
Well, it looks like moving truck owners could be steering in the same direction.
That’s because the Pacific Legal Foundation recently took on a case on behalf of Wild Cat Moving company, a homegrown business started by Kentuckians. Unfortunately, it’s also the Kentucky government that is prohibiting the new business from serving clients – at least until its owners gain permission to start up shop from existing competitors in the moving business.
Why? Current Kentucky law stipulates that in order to establish a moving business, one must deal with “Certificate of Necessity (CON)” Laws. According to the Pacific Legal Foundation, such CON laws stipulate that:
to operate a moving company, a person must first apply for a Certificate. But whenever anyone applies for a Certificate, the Kentucky Transportation Cabinet Division of Motor Carriers must notify everyone who already has a Certificate, and give them the opportunity to file “protests” against any new moving company being allowed to compete. A protest need not prove, or even claim, that the person applying for a Certificate would be incompetent, or a threat to the public, or would operate a criminal enterprise. Existing companies can protest simply because customers would choose to hire the newcomer instead. And once a protest is filed, the applicant is required to attend a hearing, where he must prove that existing moving services in the area are “inadequate,” that a new moving company “is or will be required by the present or future public convenience and necessity,” and that a new moving company would be “consistent with the public interest.”
In yet another case of crony capitalism in the commonwealth, Kentucky has already attempted to get the case against it dismissed, presumably in an effort to cater to existing moving companies. The request was thankfully denied.
We’ll have more on this story as it develops.