Antitrust Law Daily Wrap Up, ANTITRUST NEWS: National Association of Animal Breeders settles FTC’s trade restraint claims, (Sep 25, 2015)

By Greg Hammond, J.D.

The National Association of Animal Breeders (NAAB) has settled FTC claims that the association unreasonably restrained competition and engaged in unfair methods of competition by imposing restrictions through its Code of Ethics prohibiting members to disclose truthful and non-deceptive information. Under its agreement with the FTC, NAAB will remove the unlawfully restrictive provisions (In the Matter of National Association of Animal Breeders, Inc., File No. 141 0215).

The Commission identified two provisions in NAAB’s Code of Ethics that allegedly restrained competition: (1) “Member competitors will not be named in printed material comparing averages between members”; and (2) “The purchase price of sires, purchased at private treaty, by NAAB members shall not be disclosed by the Buyer, and the Seller shall be requested not to quote the selling price. Also, prices of bulls purchased at public auction by AI organizations shall not be quoted in their printed statements, advertising, and/or publicity material.”

Under the terms of the Agreement Containing Consent Order and Decision and Order, NAAB would be prohibited from adopting or maintaining any principle, rule, guideline, or policy that restricts any member from: (1) Naming members or other competitors when making statements comparing the products and services of a member with the products and services of any other member or competitor; and (2) publicizing or disclosing price information concerning the purchase or sale of animals, whether an animal was purchased or sold at private treaty, public auction, or in any other context.

The agreement is subject to public comment for 30 days, continuing through October 26, 2015. Comments may be submitted electronically here.

Attorneys: Gregory J. Commins, Jr. (BakerHostetler) for National Association of Animal Breeders, Inc. Armando Irizarry, FTC.

Companies: National Association of Animal Breeders, Inc.

News: Antitrust FederalTradeCommissionNews