Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Two more trade associations settle FTC allegations over restrictive rules, (Dec 23, 2014)

By Jeffrey May, J.D.

The Professional Skaters Association and the Professional Lighting and Sign Management Company of America have agreed to settle FTC charges that they restrained competition among their members through restrictive rules. Both trade associations will eliminate challenged provisions in their bylaws and maintain antitrust compliance programs under proposed FTC consent orders. The settlements are the latest in a series of actions taken by the FTC, challenging trade and professional association rules that allegedly violate the antitrust laws (In the Matter of the Professional Skaters Association, Inc., FTC File No. 131 0168; In the Matter of Professional Lighting and Sign Management Companies of America, Inc., FTC File No. 141 0088).

Restrictions on skating coaches. The Professional Skaters Association (PSA) is a professional association for coaches of ice skating. Its membership includes approximately 6,400 coaches worldwide, as well as judges, skaters, families, patrons, and fans of the sport, according to the FTC.

The FTC alleged that the PSA, in agreement with at least some of those members, restrained competition by restricting the ability of its members to solicit the customers of competing teachers and coaches of skating. In addition to a no-solicitation provision in its Code of Ethics, the group disseminated supplemental guidelines to the Code of Ethics that discouraged solicitation of ice skating teaching work in situations specific to team teaching (primary coaches, secondary coaches, specialty coaches), pairs and dance, synchronized skating, and social media, the FTC alleged. According to the FTC complaint, since 2006, the PSA has sanctioned at least eight coaches for soliciting pupils of other members in violation of the Code of Ethics no-solicitation provision.

The proposed FTC consent order would require the PSA to stop restraining its members from soliciting work and competing on the basis of price. It also would require the group to change its code of ethics, publicize its settlement with the FTC, and implement an antitrust compliance program.

Electrician association rules. The Professional Lighting and Sign Management Companies of America (PLASMA) is an association of licensed electricians, with approximately 25 members specializing in commercial lighting and electrical sign installation and maintenance. The FTC alleged that PLASMA, through its Member Bylaws and Standard Operating Procedures, restricted the ability of its members to compete in the designated territory of another member; to compete on price; and to solicit or compete for the customers of other members. The proposed consent order would require PLASMA to refrain from engaging in the challenged conduct.

Other recent FTC enforcement actions against trade, professional associations. These two settlements follow recent FTC consent orders resolving similar allegations against the National Association of Residential Property Managers, Inc. and the National Association of Teachers of Singing, Inc. In August, these groups agreed to eliminate provisions in their respective codes of ethics and to implement compliance programs. In late 2013, the FTC entered into similar settlements with the Music Teachers National Association, Inc. and the California Association of Legal Support Professionals.

Companies: Professional Lighting and Sign Management Companies of America, Inc.; Professional Lighting and Sign Management Company of America, Inc.; National Assn. of Residential Property Managers, Inc.; National Assn. of Teachers of Singing, Inc.; California Assn. of Legal Support Professionals; Music Teachers National Assn., Inc.

News: Antitrust FederalTradeCommissionNews