Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

As a businessperson, I’ve always thought it was a good idea to belong to a trade association. But if competitors talking to each other is collusion, aren’t trade associations illegal?

0
Posted

As a businessperson, I’ve always thought it was a good idea to belong to a trade association. But if competitors talking to each other is collusion, aren’t trade associations illegal?

0

No. The antitrust laws do not require business people to avoid each other. They can join trade associations, they can participate in industry wide programs, they can socialize with each other. However, they cross the line when the subject of these interactions becomes price, territorial division, merchants with whom they will or will not deal, product quality or the like. In short, a good rule of thumb is: a firm may meet with its competitors, but may not collaborate with them on issues on which they should be competing.

Related Questions

Thanksgiving questions

*Sadly, we had to bring back ads too. Hopefully more targeted.