Associations and Anti-Trust Perils
The FTC’s action against a major trade association serves as a reminder of the perils of exchanges of information among members of associations. The FTC announced a consent order regarding the National Association of Music Merchants (NAMM) due to discussions of pricing policies that took place at NAMM meetings. In its announcement, the FTC noticed that associations “may find it appropriate to update and bolster their antitrust compliance practices and, in particular, ensure that any meetings at which sensitive discussions are discussed are properly planned and monitored.” Since the FTC and the Justice Department have issued detailed guidelines about the conducting of salary surveys because of the potential for exchange of competitive information, the FTC’s concerns about the exchange of pricing information at association meetings should apply equally strongly to compensation information.
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