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What Is Interstate Commerce Commission? Simplified

What Is Interstate Commerce Commission? Simplified
What Is Interstate Commerce Commission? Simplified

The Interstate Commerce Commission (ICC) was a federal regulatory agency in the United States that played a crucial role in regulating and overseeing various aspects of interstate commerce from 1887 to 1995. The primary goal of the ICC was to ensure fair competition, prevent monopolies, and protect consumers by regulating industries that operated across state lines.

History and Establishment

The ICC was established on February 4, 1887, with the signing of the Interstate Commerce Act by President Grover Cleveland. This act was a response to the growing concerns about the power of railroads and their potential to engage in unfair practices, such as price gouging and discrimination. The ICC was given the authority to regulate railroad rates, services, and practices, as well as to investigate complaints and enforce compliance with federal laws and regulations.

Regulatory Powers and Responsibilities

The ICC had broad regulatory powers, which included the authority to:

  • Set and approve railroad rates and tariffs
  • Regulate railroad services, including passenger and freight transportation
  • Investigate complaints and enforce compliance with federal laws and regulations
  • Approve railroad mergers and acquisitions
  • Regulate other industries that operated in interstate commerce, such as trucking, buses, and pipelines

The ICC also had the power to hold hearings, issue subpoenas, and impose fines and penalties on companies that failed to comply with federal regulations.

Impact and Legacy

The ICC played a significant role in shaping the development of interstate commerce in the United States. Its regulatory efforts helped to promote fair competition, prevent monopolies, and protect consumers. The ICC also helped to standardize railroad rates and practices, which facilitated the growth of interstate trade and commerce.

However, the ICC's regulatory powers were not without controversy. Some critics argued that the agency's rules and regulations were overly burdensome and stifled innovation and competition. Others argued that the ICC was too lenient and failed to adequately regulate industries that operated in interstate commerce.

Dissolution and Replacement

In 1995, the ICC was abolished, and its regulatory powers were transferred to other federal agencies, such as the Surface Transportation Board (STB) and the Federal Motor Carrier Safety Administration (FMCSA). The STB is responsible for regulating railroad rates, services, and practices, while the FMCSA is responsible for regulating the safety of commercial motor vehicles and drivers.

AgencyRegulatory Powers
Surface Transportation Board (STB)Railroad rates, services, and practices
Federal Motor Carrier Safety Administration (FMCSA)Commercial motor vehicle safety and driver safety
💡 The ICC's legacy continues to shape the regulation of interstate commerce in the United States. Its emphasis on promoting fair competition, preventing monopolies, and protecting consumers remains a cornerstone of federal regulatory policy.




What was the primary goal of the Interstate Commerce Commission?


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The primary goal of the ICC was to ensure fair competition, prevent monopolies, and protect consumers by regulating industries that operated across state lines.






What regulatory powers did the ICC have?


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The ICC had broad regulatory powers, including the authority to set and approve railroad rates and tariffs, regulate railroad services, and investigate complaints and enforce compliance with federal laws and regulations.






What happened to the ICC’s regulatory powers after it was abolished?


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The ICC’s regulatory powers were transferred to other federal agencies, such as the Surface Transportation Board (STB) and the Federal Motor Carrier Safety Administration (FMCSA).





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