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DOT Rule Doesn’t Address Market Failure: An Analysis of EO 12866 Requirements Open Access

Executive Order 12866 outlines some fundamental tenets of U.S. regulatory policy, instructing regulatory agencies to identify the problems that they are attempting to solve through new rules and to promulgate rules that are cost-effective. These instructions are intended to make sure that rules actually address specific problems, and that these problems are worth addressing through the rulemaking process rather than through private action. Despite these guidelines, the Department of Transportation recently issued a proposed rule that would increase the prices of over 1 million domestically sold cars, without first showing the existence of a public problem that would require a regulation.

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