A lawyer, antitrust trained, can be of great assistance to any company, big or small. There is no substitute for highly experienced attorneys, antitrust experience that is, can make or break a company. Don’t scrimp when it comes to lawyers. Antitrust law can be complicated and should not be taken lightly. Take the advice from the experts quoted in this website.
Antitrust laws depend a great deal on the facts of each case and only a qualified antitrust attorney can give you legal advice. There is no way to offer businesses the assurance of a list of “to dos and do nots” when it comes to antitrust issues. In fact in our litigious society it is very foolhardy. We count on the intelligence of the reader and their good sense to be use a lawyer that specializes in antitrust law to determine their exact needs. Here a few guidelines are offered. You will want to discuss these issues with your antitrust attorney.
· Don’t discuss prices with your competitors. You can count on a criminal prosecution if the authorities learn that you have met with your competitors to fix prices or any other terms of sale. Jail time has become much more common.
· Don’t make an agreement with your competitors to stay out of each other’s markets. It may be tempting to say you stay there and I’ll stay here but avoid that temptation. The consequences of such behavior, when and if discovered by the enforcement authorities, are likely to be the same as the above mentioned price-fixing conspiracy.
· Join trade associations and participate in activities that do not affect the nature of your competition with your fellow association members. Things such as safety standards, industry-led promotion of generic products (“drink milk”; “eat beef”; “recycle”), and other activities that do not interfere with doing business or with the healthy competition with other members in the industry are perfectly acceptable.
Exchanges of information that do not affect prices in future endeavors fall in this category as well. Beware of any meetings with competitors that might result in discussions of business practices and tactics, customers, costs, and prices. Be especially on guard at all times at trade association functions. Don’t be a party to discussions that even remotely look like they are about price-fixing or market sharing.
· Don’t even think about joining forces with some of your competitors to the disadvantage of a select few. Of course there are some forms of cooperation, such as joint research and development activities, whose purpose could be considered permissible if their main purpose is to improve efficiency; all others, that deny the excluded competitor the same privileges as others, could be more questionable.
· Compete actively for all the business you can get. There is nothing in the antitrust laws that would penalize success achieved by any and all lawful methods. Adopt any new marketing or pricing strategies for which you feel you are making sound business decisions. If you are successful enough to offer something —because it is either cheaper or better, or both—don’t worry. This is a good thing and part of free enterprise.
· Don’t purposely set prices below a measurable amount with the intention of bankrolling a mission to drive out a competitor or discourage a new entrant. Once again, some below-cost pricing is acceptable (for example, specials and introductory offers) and what business is all about. If the courts haven’t clearly defined the measure of cost to be used then set it responsively. If you have a large market share watch this carefully.
· If you have some particular market power, consider your effect on competitors of any action plan you implement. You know if you have market power or not and if not you should know. Consider your share of the market and your freedom in setting prices and that should add it up for you.
· Feel free to suggest retail prices to dealers but never coerce them to accept those prices. You should be sending them suggested price lists and promotional literature mentioning price. But do not ask for or accept an agreement from them to charge that price or threaten cancellation of dealerships if they chose an independent pricing strategy.
· Impose such warranted restrictions on your distributors and dealers that would contribute to your ability to compete with rival brands. Of course you can still hire and fire at will but you had better keep records of why you chose to do so with any particular non-performing dealer. Any business should keep good records to document the performance of all employees, dealers and distributors in case a dispute arises about the circumstances in which they were let go.
· Do not tie the sale of one product to another. Such arrangements might be allowed in a few rare instances. But they generally fall on the erring side of the law.
· Use exclusive dealing arrangements if they are justified and necessary for your business. The higher your market share and the longer the term of the agreement, the more important and compelling your business justification.
· Charge all customers the same price, unless the cost of serving them is different. Of course you can cut prices to any customer to meet the lower price of a competitor.
· Institute and support an antitrust compliance program. If upper management doesn’t subscribe to this you are eventually doomed Get the support of an antitrust attorney, who can provide exactly what you need to prevent the authorities and private plaintiffs from making you pay heavily with jail terms, fines, and large claims of damage.
Consult with lawyers who specialize in antitrust
law when specific problems or questionable activities occur. While this
has given you a general overview of the law and the issues, antitrust
law is very fact-specific. There is no substitute for a lawyer who knows
antitrust and works based on the detailed facts unique to your situation.
Lawyer Locator Links
Divorce Lawyers
Do you need a divorce lawyer or divorce attorney? Info about divorce lawyers.
Family Lawyers
Are you searching for qualified family attorneys or family lawyers? Info about family lawyers.
Tax Lawyers
A tax attorney that specializes in your case will be indispensable
in saving you hundreds of dollars. Info about tax lawyers.