Detariffing

DEFINITION of 'Detariffing'

The act of removing the pricing regulations of an industry, set forth by tariffs created by a regulatory body. Detariffing allows an industry to price its goods or services at market value, as regulation is discontinued to promote market equilibrium.

BREAKING DOWN 'Detariffing'

When an industry is tariffed, goods and services have fixated prices. Companies must file forms with a regulatory body, such as the Federal Communications Commission, stating its rates, terms and other conditions associated with its products and services, all of which must conform to standards set forth by the regulator. Detariffing removes the obligation to file these forms, and allows companies to choose what to charge for their goods.

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