From rent caps to “price-gouging” laws, a new wave of so-called consumer-protection laws is sweeping state capitols. These measures are marketed as compassion in a crisis — or “fairness” in housing — but their substance is the same: command-and-control price fixing that violates the Constitution, tramples private-property rights, and sabotages the free market’s ability to allocate goods and services when people need them most.
Three recent bills illustrate the trend. Alabama’s House Bill 528 (HB528) and Virginia’s House Bill 1301 (HB1301) expand anti-gouging controls to more transactions and longer periods after emergencies. New Jersey’s Assembly Bill 3361 (A3361) imposes rent control on manufactured-home sites. Nebraska’s Legislative Bill 266 (LB266), however, is a rare bright spot, preempting local rent control and affirming property rights. Together, these bills spotlight the central question: Will states defend a constitutional, republican system rooted in liberty and voluntary exchange, or drift toward administrative despotism under the banner of “consumer protection”?
Protecting Property and Contract Rights
America’s Founders understood what modern lawmakers too often forget: Price controls are a form of compelled exchange that violates liberty. The U.S. Constitution safeguards that liberty in multiple places:
- Fifth Amendment: “Nor shall private property be taken for public use, without just compensation.” Price ceilings that force owners to sell below market value are regulatory takings in substance, if not in name.
- Article I, Section 10: “No State shall … pass any … Law impairing the Obligation of Contracts.” When a legislature dictates the permissible price, term, or escalation of a private lease or service, it impairs the parties’ agreed-upon obligations.
- Ninth and 10th Amendments: The people retain unenumerated rights, and powers not delegated to the federal government are reserved to the states or the people. These clauses limit government; they do not license it to control every transaction.
- 14th Amendment (due process and equal protection): Arbitrary economic edicts that single out owners for special burdens invite due-process and equal-protection concerns.
Consumer-protection statutes also collide with first principles. The Declaration of Independence identifies unalienable rights — life, liberty, and property — and charges government to secure them. Free exchange is a peaceful exercise of those rights, and upholds one’s pursuit of happiness. Substituting bureaucratic fiat for voluntary exchange undermines the moral basis of self-government.
Hellbound and Down 