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U.S. Antitrust Laws and Your Business

Antitrust Law: In The Spirit of Competition
By Trina L.C. Schiller

I have been a member of iCop for a long time now. One of my favorite benefits of membership is reading jl. Scott's "Internet Marketing Trade Journal." She really puts out a great ezine.

Anywho... The reason I mention the Trade Journal is because of an article I recently read there. This article was about antitrust laws, and I learned a thing or two from it. Furthermore, it prompted me to do some investigating on my own, and I'd like to share that information with you.

Antitrust laws were created to promote competition in business. Competition is a very positive thing for the consumer. Competiton in business, allows for the consumer to shop around for the best product at the best price. Without competition in business, we, as consumers would be at the mercy of manufacturers, and would stuck paying top dollar for everything.

Remember when AT&T was the only telephone service? The government stepped in and broke up their monopoly on communication services, to allow other companies to offer services at a competitive rate. Now we have more communication options, and can shop for the best one based our needs and budget.

However, antitrust laws are not just applicable to big corporations. These laws apply to anyone selling anything, including Internet marketers.

The application of these laws covers quite a few areas, here are just a few:
Price fixing
Restricting Output
Market division
Boycotts
Restricted advertising
Tie-in sales

Price Fixing - Agreements made between competitors to maintain a specific price, or credit terms, on a product or service. Blatant price fixing is subject to criminal prosecution.

What this means is that if I am selling a product and offer resale rights to it, I cannot dictate to the reseller at what price they can sell it for. The best I can do is to list a MSRP (manufacturer suggested retail price). I have to allow the reseller to compete with my price. If the reseller wants to sell the product for 2 cents less than what I am selling it for, they have the right to do that.

Market division - This refers to competitors lining out market territories. They agree to split the


market and each work a predetermined share of it, locking out others not participating in the agreement. This type of joint venture is illegal.

Boycotts - This situation occurs when competitors agree not to do business with specific other persons or businesses, forcing another to pay an inflated price.

For example: Let's say that I manufacture lawn mowers. I work a deal with my engine supplier to get a discount on engines for my mowers, which is less than his competitor sells them for. Then I get my engine supplier to boycott my competitor, forcing him [my competition] to buy his engines at a higher price, resulting in my competitor's mowers costing the consumer more to buy than mine.

Restricted advertising - "Restrictions on price advertising can be illegal if they deprive consumers of important information. Restrictions on non-price advertising also may be illegal if the evidence shows the restrictions have anticompetitive effects and lack reasonable business justification. The FTC recently charged a group of auto dealers with restricting comparative and discount advertising to the detriment of consumers." http://www.ftc.gov/bc/compguide/illegal.htm

Tie-in sales - This is when the condition of sale for one product, or service requires the purchase of another, which may, or may not be desirable to the consumer, or which can be purchased elsewhere for less.

These are just a few examples of antitrust law applications. I picked these to share with you for a specific reason. That reason being; many Internet marketing gurus are in violation of these laws on a regular basis. They refer to it as joint venturing.

Whether or not they knowingly violate these laws is a matter of speculation. Perhaps gurus don't know everything. Perhaps they don't know that limiting the supply of a product, to drive up the price, is illegal. (How many gurus can you think of that have been doing that lately?)

At least now you know these things.

For more information on U.S Antitrust Law
http://www.ftc.gov/bc/compguide

Copyright © 2005
The Trii-Zine Ezine
http://www.ezines1.com

About the Author

Trina L.C. Schiller
About the Author : Publisher/ Home Business Owner
http://www.trinaschiller.ws

 

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  • how to profit when your product isnt selling

  • how to promote your business a 10 step guide for beginners

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  • how to properly use ezine advertising conclusion

  • how to properly use ezine advertising part one

  • how to properly use ezine advertising part three

  • how to properly use ezine advertising part two

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  • how to use your google api key as your secret weapon part two

  • how to write and craft your online classified ads

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  • hunting for niches

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  • importance of marketing offline

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  • industry pro interview insider secrets to building your pr campaign

  • industry pro interview marketing beyond the basics

  • inner directed marketing a new way to prosper in tough times

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  • insurance and financial services sales tactics

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  • internet 101 hitch your wagon to a star for internet success

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  • internet marketing in the future

  • internet marketing is confusing isnt it

  • internet marketing i dont know everything neither do you

  • internet marketing or whats that you say

  • internet marketing requires lots of patience

  • internet marketing strategy the advertising co op

  • internet marketing success requires a business plan part ii

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  • internet promotion ezines

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  • interviews one of the easiest products to create

  • interviews with successful ezine publishers david geer

  • interviews with successful ezine publishers eva browne paterson

  • interviews with successful ezine publishers james mcewen

  • interviews with successful ezine publishers jan tallent dandridge

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  • interviews with successful ezine publishers renee kennedy

  • interviews with successful ezine publishers thomas olin

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  • interview with an ezine marketing pro alexandria k brown

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  • interview with michael murray autoresponder basics

  • introduce to pluginnetproefit com marketing strategies that empower success course

  • introduction to autoresponders

  • is a home business right for you

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  • i want to do an ezine part 1 what is an ezine

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  • i want to do an ezine part 3 what is content

  • i want to do an ezine part 4 how do i promote

  • i want to do an ezine part 5 more promoting

  • johnny appleseed a lesson in sowing and reaping

  • joint ventures your path to success

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  • mini persuaders six steps to successful classified ads

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  • most commonly asked questions about ezine publishing

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  • my cybernet life story the life and trials of an internet junkie

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  • nine power words to punch up your ads

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  • offline promotion 45 places your url should be seen or heard

  • offline promotion matters too

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  • on your honor 3 steps to building the e trust factor

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  • opt in email and ezine advertising still more effective than rss blogs and ppc

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  • payment processing basics

  • pay per click fraud exposed

  • pay per click search engines get the most bang for your buck

  • personalizing your emails an amazing technique that doubles your click throughs and profits

  • personal profile of the week bob osgoodby

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  • politicians are like car sales people

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  • postcards with an edge 7 ways to use postcards in your marketing campaign

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