Regulations Can Be 'Landmines' for New Companies, Says Former British Trade Official
Across the United States the Tesla electric car company is crashing into a wall of regulation designed to protect car dealerships. It's a cautionary tale says John Fingleton, former director of the Office of Fair Trading (OFT).
"In Texas [Tesla showrooms] employees are not allowed to tell consumers the price, tell them the website, offer test drives, or sell cars," said Fingleton, speaking at Wired Money. "This is how regulation can get in the way."
But this targeted blocking is not the only way that startups, particularly in the finance sector, can get entangled in regulation. Anachronistic and low-profile laws and regulations can act like "landmines" that catch startups unaware. "Nobody, when they wrote that legislation, [could have] thought about the business model that you have".