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October 27, 2022

Thomas W. Hazlett: The FTC’s Rendition of the “Cellophane Fallacy”

In the pending case of FTC v. Facebook, the Government alleges price increases for the “free” service. In this zero-price offering, the FTC argues that effective prices have been increased by Facebook by relaxing rules that protect against the use of personal information. These instances have not led to observed declines in quantities demanded (for...
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