Utah threatened Zenefits with fines for offering free software to businesses
Parker Conrad · a16z Podcast | How One Startup Went from Being Banned by Regulators to Being Open for Business · Jan 2, 2019 · at 1:13
Parker Conrad, co-founder and CEO of Zenefits, describes the enforcement threat made against Zenefits by Utah insurance regulators regarding its free business model.
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“In Utah, the insurance commissioner in Utah decided to take action, said that, listen, one of their missions as a DOI was to make sure that there was fair competition between all brokers in the state, and everyone was on a level playing field, and they said that Zenefits' technology actually gave us an unfair advantage in competing for these clients because we made it so easy for companies to get up and running with insurance and That it was unfair to other brokers. And so they said that we had to start charging for our service or they were going to start levying some really big fines on, on benefits.”
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