Consumer Welfare Implications of Regulating Rent-to-Own Transactions
George Washington University - School of Business
Jeffrey A. Eisenach
American Enterprise Institute; George Mason University School of Law
Robert E. Litan
Ewing Marion Kauffman Foundation; AEI-Brookings Joint Center for Regulatory Studies
May 16, 2012
In this study, we analyze the consumer welfare implications of regulating Rent-to-Own (RTO) transactions. We conclude that the benefits and costs of mandatory disclosure and labeling regulations currently imposed by most states are likely small, and that the effects of imposing a Federal baseline for such regulations would also be relatively small. On the other hand, we conclude that regulations imposed by a handful of states which treat RTO agreements as credit sales, or directly regulate RTO prices, substantially reduce consumer welfare, and should be repealed.
Number of Pages in PDF File: 52working papers series
Date posted: May 18, 2012
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