Introduction
This how-to guide outlines how to identify and manage the potential legal risks of antitrust and unfair competition within your organization. It incorporates practical tips, examples, and government guidance to aid compliance with legislation. It is aimed at in-house lawyers and compliance professionals in organizations of all sizes and sectors across the United States.
The guide covers:
- Antitrust and unfair competition law basics
- Carrying out a risk assessment
- Managing risk
For further guidance, see the How-to guides: How to build a culture of antitrust law compliance, How to draft an antitrust–unfair practice compliance program, and Understanding antitrust and unfair trade practices law and your organization’s compliance obligations.
Section 1 – Antitrust and unfair competition law basics
1.1 Antitrust law basics
Antitrust laws protect competition. The United States government and many states have enacted antitrust laws to protect and promote competition in the marketplace. There are three principal federal antitrust laws: the Sherman Antitrust Act of 1890 (15 USC section 1, et seq.), the Clayton Antitrust Act of 1914 (15 USC section 12, et seq., 29 USC sections 52-53), and the Federal Trade Commission Act of 1914 (15 USC section 41, et seq.). State laws tend to mirror federal law.
The Sherman Act prohibits contracts, conspiracies, or combinations thereof that restrain trade or attempt monopolization. The Act imposes both civil and criminal penalties. It carries a maximum criminal fine of $100 million for corporations, and a maximum criminal fine of $1 million and up to 10 years in prison for individuals.
The Clayton Antitrust Act added restrictions on mergers and interlocking directorates, meaning situations where the same individuals make decisions for multiple competing businesses. The Federal Trade Commission Act outlawed unfair methods of competition and unfair acts or practices that affect commerce, and also provided protection for consumers.
There are also state antitrust laws. They may be conceptually similar to these federal statutes, but may vary significantly from state to state. For example, while some state antitrust laws substantially track the language of their federal counterparts, other states may only incorporate select sections of federal antitrust laws.
For further information, see the How-to guide: Understanding antitrust and unfair trade practices law and your organization’s compliance obligations.
1.2 Unfair trade practice law basics
Most laws relating to unfair or deceptive acts and practices broadly prohibit any conduct that can be viewed as ‘unfair’ or ‘deceptive.’ Federal law defines ‘unfair’ practices as those that ‘cause or [are] likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition’. (See 15 U.S.C. 45(n))
The Lanham Act of 1946 (15 USC section 1051, et seq.) is the major federal unfair competition law in the United States. It prohibits trademark infringement, trademark dilution, and false advertising. The Lanham Act also created a private right of action for false advertising, unfair competition, and unfair trade practices, allowing one company to sue another for any ‘word, term, name, symbol, or device, or any combination thereof, or any false designation of origin, false or misleading description of fact, or false or misleading representation of fact’ which is likely to cause confusion, mistake or deception of consumers in commerce.
Congress also addressed unfair trade practices in section 5(a) of the Federal Trade Commission Act. That statute prohibits ‘unfair or deceptive acts or practices in or affecting commerce.’ Section 5(a) applies to all individuals engaged in commerce, and sets the legal standard for determining what trade practices are unfair. The Federal Trade Commission Act is enforced by the FTC, not private parties.
States also have their own acts and enforcement mechanisms relating to deceptive trade practices. This includes departments of consumer affairs or similar entities that fill a role that is much the same as the Federal Trade Commission. Additionally, many states have enacted the Uniform Deceptive Trade Practices Act or enacted their own almost identical legislation creating a private right of action for any false or misleading trade practices. In instances where the conduct occurs in multiple jurisdictions, the Attorneys General from each of the affected states will often collaborate with federal authorities to bring charges against the offender. See, eg, United States v. Google LLC, 687 F. Supp. 3d 48 (D.D.C. 2023) for an example of cross-jurisdictional collaboration involving almost every state in the United States.
For further information, see the How-to guide: Understanding antitrust and unfair trade practices law and your organization’s compliance obligations.
Section 2 – Carrying out a risk assessment
The first step in identifying antitrust and unfair trade practices risk areas is to understand what types of business practices that risk violating antitrust and unfair trade practice laws concern your organization.
2.1 Antitrust risk
The compliance program should reflect how the company’s operations might violate antitrust law at every level. You must conduct a risk assessment to understand how well the company’s current policies and controls keep those risks at acceptable levels.
The general areas of greatest risk for antitrust non-compliance are the following:
- monopolization;
- franchise agreements;
- agreements with competitors;
- mergers and acquisitions;
- competitive bidding; and
- trade association participation.
2.1.1 Monopolization
One of the key purposes of antitrust law is preventing monopoly or attempts at monopoly power, which centers around market concentration. Courts do not generally find that a monopoly exists when a firm or collection of firms covers less than half of a given market, and some look for higher numbers.
If monopolization might be a concern for your organization, compliance programs should incorporate examples of different types of predatory or exclusionary practices that might raise antitrust scrutiny. For example, pricing products below a company’s actual costs may be viewed as a predatory attempt to drive competitors out of business. An example of an exclusionary method can be seen in the Microsoft litigation. The United States and numerous states within the United States alleged that Microsoft used its dominant position in the operating systems market to exclude software developers and prevent computer makers from installing non-Microsoft web browsers. Practices that may limit a consumer’s purchasing options or that may have an adverse affect on competition should be thoroughly reviewed for potential antitrust liability. Practices that may be regarded as monopolistic include exclusive dealing, price discrimination, refusing to supply an essential facility, and predatory pricing.
2.1.2 Franchise agreements
The act of offering and selling franchises is governed by FTC regulations and state laws governing franchises and business opportunities. Franchises may enter into a no-poach agreement in which companies agree not to compete for one another’s employees, which adversely impacts the market as an antitrust violation due to each company agreeing not to recruit employees from each other.
The FTC provides a compliance guide intended to assist franchisors in complying with trade laws in the United States. Additionally, federal and state laws generally require that certain disclosures be made to potential purchasers of a franchise. These disclosures must be accurate, or have a reasonable basis in fact, and must be consistent throughout the offering process. The penalties for failure to comply can be substantial. In January of 2024, for example, the FTC charged that BurgerIM Group USA, Inc., had defrauded some 1,500 potential franchisees by making false promises regarding the franchises and not providing the required disclosures. This resulted in a resulting in a judgment against BurgerIM Group of over $55 million.
2.1.3 Agreements with competitors
Any agreement with a competitor should be reviewed by legal counsel to ensure that the company does not violate any potential antitrust rules.
Antitrust violations may result from both horizontal and vertical agreements. A horizontal agreement is an agreement between competing businesses to manipulate competition amongst all the competitors in the marketplace. A vertical agreement, on the other hand, is made between a seller and a buyer. Agreements with competitors are more likely to result in horizontal agreements that pose the greater antitrust risk.
Products and homogeneity
The homogeneity of products in the field is important because, when different sellers sell products that are largely interchangeable, it is easier to see whether they compete solely on price and price-fixing becomes a greater possibility. On the other hand, if firms in the industry offer different products or services, or if the industry is one of personal services where the consumer is likely to prefer a particular provider for personal reasons, it is less likely that price fixing will occur or will significantly impact the market.
Joint Ventures
Joint operations (eg joint ventures, jointly operated assets, joint purchasing, operated by others (OBO) properties, and research and development collaborations) may raise antitrust concerns because they involve collaboration between two or more companies, often competitors, in carrying out activities that each company might have carried out separately. Joint operations may offer business advantages to the parties by allowing them to share the risks and cost, economies of scale, or the efficiencies of integrated operations. No joint venture should be undertaken without a careful analysis of the arrangement for antitrust compliance.
2.1.4 Mergers and acquisitions
Mergers and acquisitions pose two challenges for antitrust compliance:
- a parent company could inherit any antitrust abuses that happen at an acquired subsidiary; and
- a merger can be an antitrust risk by itself, if the deal would concentrate too much market power in one firm. ‘Market power’ is not strictly defined but ‘[t]he existence of such power ordinarily is inferred from the seller's possession of a predominant share of the market’ and ‘the ability of a single seller to raise price and restrict output.’ See Eastman Kodak Co. v. Image Tech. Servs., Inc., 504 US 451 (1992).
Both the Justice Department and the Federal Trade Commission have the authority to review proposed mergers and insist on changes. On December 18, 2023 the DOJ and the FTC jointly released their Merger Guidelines, designed to identify the procedures and enforcement practices that the agencies most often use to investigate whether mergers violate the antitrust laws. In the worst-case scenario, regulators can file litigation to block or undo a merger. Such proceedings are extremely costly, lengthy to resolve, and can be strategically disastrous.
It may be necessary to make pre-merger notification filings and seek government approval in a number of affected jurisdictions before moving forward with the transaction. The FTC published amendments to the rules related to mergers that became effective on February 10, 2025. The new rules significantly expanded mandatory disclosure requirements and implemented new rules related to filings. The changes to the rules may require a significant amount of additional time to prepare filings. It is important to perform a legal analysis early in the discussion about contemplated mergers, acquisitions, and divestitures to avoid potential pitfalls and the loss of time and costs devoted to a potentially unlawful transaction. This analysis should be used to develop a workplan for addressing antitrust concerns as they are encountered throughout the acquisition process.
2.1.5 Competitive bidding
Whenever business contracts are awarded by means of soliciting competitive bids, coordination among bidders undermines the bidding process and can be illegal. One example of ‘bid-rigging’ is when competitors agree in advance which firm will win the bid. This may occur when competitors agree to take turns being the lowest bidder, sit out of a bidding round, or provide unacceptable bids to cover up a bid-rigging scheme. Other bid-rigging agreements may involve subcontracting part of the main contract to the losing bidders or forming a joint venture to submit a single bid, although there may be valid business reasons for these types of arrangements.
In order to avoid potential antitrust issues, the bidding process should include appropriate approvals, including legal review prior to submission.
2.1.6 Trade association participation
Trade association involvement is another key area of concern in risk assessment because of the ease with which anticompetitive agreements can be made in a context where sales staff from different firms regularly interact. As a result, an organization should have robust procedures and policies in place to train and advise participants on antitrust risks. Employees should be directed to report on their contacts at such conferences and know what to do if a discussion begins to touch on prohibited conduct. (The commonly given advice is for the employee to leave the room and to spill a glass of water on the way out, so that other participants remember the person who left and when they left.)
Note
Many trade associations engage in lobbying activities. The Noerr-Pennington doctrine states that joint efforts to influence the passage or enforcement of laws, to petition the government, or to influence public officials, do not violate the antitrust laws even though those efforts may be intended to eliminate competition. For further information, see California Motor Transport Co v. Trucking Unlimited, 404 US 508 (1972). While such joint efforts do not violate antitrust law, organizations involved in them must still abide by federal and state lobbying and election campaign laws. For additional guidance, see Checklists: Antitrust compliance, Meeting with a competitor, and Trade association participation.
In addition to the conduct of company participants, due diligence should be performed on the conduct of the trade association. Such review should include a determination of any antitrust violations the association may have been involved in. The FTC has issued the Spotlight on Trade Associations that provides guidance on trade associations. For more information on trade association participation, see Checklist: Trade association participation.
2.2 Unfair trade practices risk
Unfair trade practices law presents areas of risk that are, in many ways, broader than antitrust law. While many state statutes are drafted with great specificity, and set out in detail the proscribed conduct, federal laws and the laws of many states are much more open-ended. For example, the Federal Trade Commission Act makes it unlawful to engage in ‘[u]nfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce’ (15 USC section 45). Virtually any business-related activity could pose a risk of an unfair trade practice; however, most of the enforcement activity under the ‘catch-all’ type of law is directed at advertising and marketing.
Note
While unfair trade practices laws and litigation often are framed as being done to protect consumers, unfair trade practice and advertising litigation is not unusual between competitors. For example, in 2020 a preliminary injunction was imposed on a pharmaceutical company to stop it from making marketing claims of clinical superiority that did not match up with the study results purportedly supporting them. For more information, see GSK LLC v. Boehringer Ingelheim Pharm., Inc., 484 F. Supp. 3d 207 (E.D. Pa 2020).
The areas that pose the greatest risk for non-compliance with regards to unfair trade practices are the following:
- marketing;
- advertising;
- branding; and
- product/packaging design.
2.2.1 Marketing
Marketing compliance standards ensure that consumers are not lied to, tricked, or misled by advertising or marketing practices. A marketing compliance strategy will involve using traceable oversight of actions, decisions, and changes throughout the process of producing a marketing campaign.
Certain types of marketing campaigns are the focus of special attention from regulators. For example, ecological and environmental claims (so-called ‘green marketing’) have prompted the FTC to issue special guidance for such claims, to ensure their accuracy. Marketing directed at ‘vulnerable populations,’ such as children or the elderly, is also subject to additional scrutiny.
Advertising
The FTC has the authority to pursue advertisers who make deceptive or unfair advertisements. An advertisement is deceptive if it contains a misrepresentation or omission that is likely to mislead consumers acting reasonably under the circumstances to their detriment.
An advertisement or trade practice is unfair if it causes or is likely to cause substantial consumer injury which is not reasonably avoidable by consumers themselves and which is not outweighed by countervailing benefits to consumers or competition. Unfair advertising claims may be brought by a regulatory agency or a consumer directly, but they are also often brought by competitors.
Example
The FTC brought an action for deceptive advertising against advertisers who claimed that their vitamin D and zinc nutritional supplements could prevent or treat COVID-19. The advertisers had no competent or reliable scientific evidence to support their claims.
Branding
Brand compliance is meant to ensure that brand elements, such as the brand name, logo, slogan, etc., are consistent and used in accordance with the policies of the organization. If properly done, brand compliance will help protect an organization’s copyrights and trademarks, by providing a process for enforcing the organization’s rights. Brand reputation is one of the top corporate high-risk areas due to inaccurate claims in advertising causing large fines and legal repercussions. Advertising and branding must be accurate, especially in regulated industries, where there is a fine line between selling a service and providing advice. Compliance programs need to pay particular attention to advertising, pricing, or product benefits before any product or service is launched. Even general branding communications need scrutiny before launch.
One of the major risk areas for branding is a brand that is deceptively similar to another existing brand. A proposed brand should be investigated as soon as it is conceived, and before it is attached to a product or service. Finding out that a proposed brand element is too similar to another after the brand is in the market can result in expensive, protracted litigation, as well as substantial costs incurred in remedying the violation – in addition to rebranding the product.
Product/packaging design
The Fair Packaging and Labeling Act (FPLA) requires the labelling of all ‘consumer commodities’ to disclose net contents, identity of commodity, and name and place of business of the product’s manufacturer, packer, or distributor. Each package of household ‘consumer commodities’ that is covered by the FPLA must bear a label with:
- a statement identifying the commodity (detergent, brushes, etc.);
- the name and place of business of the manufacturer, packer or distributor; and
- the net quantity of the contents of the package in terms of weight, measure, or numerical count (weight and measurement must be in both metric and inch/pound units).
2.2.2 State laws
An organization that does business in a state with an unfair trade practices law that sets out specific conduct as an unfair trade practice should, of course, be aware of its own activities in areas relating to the conduct listed in the statute in question.
See further How-to guide: Understanding antitrust and unfair trade practices law and your organization’s compliance obligations.
2.3 Conduct an audit of business activities
Once risks relevant to your organization have been identified, risk management should start with a thorough audit of your organization’s business activities and relationships. This audit will show the areas of operation where your organization’s risk management and compliance efforts should be directed.
Audits should be designed to locate and address both general and specific areas of risk. There is no universal template for an audit. In fact, it is likely that different parts of an organization will merit different types or timing of audits than other parts.
2.3.1 General questions for the audit
An audit should seek answers to the following questions:
- Is business being conducted in a manner that is compliant with antitrust and unfair trade practices law?
- Do employees properly understand the activities or practices that pose risk?
- Is the activity or practice that is the subject of the audit described properly in the organization’s compliance manual?
- Does the compliance training material address the activity or practice adequately?
- Are channels for reporting suspected violations being adequately used by employees?
- Is there adequate investigation, discipline, and follow up of matters or incidents reported?
2.3.2 Specific questions for the audit - Antitrust
Antitrust law can be complex and implicate business activities that many stakeholders may not see as objectionable. The best indicators of unlawful antitrust activity are the sometimes subtle signs that may not initially seem harmful, but that could be reason to believe unlawful conduct is going on. As a general matter, antitrust violations tend to arise through certain types of practices.
Cartels
A cartel (ie, a group effort to fix prices, allocate markets, rig bids, restrain output, etc.) is the most serious form of antitrust violation. A participant in a cartel could be subject to criminal penalties, including large fines for the company and fines and imprisonment for the individual. Red flags that the organization may be operating as part of a cartel include the following:
- unusual stability in market shares;
- stable price levels in the midst of changing market conditions;
- significant transactions with competitors; and
- increase in price complaints by customer.
Trade association meetings
Participation in a trade or commercial association can be beneficial to a business but can also pose a risk for antitrust liability. Participation in a trade association should be monitored and subject to regular audits.
For more information, see Checklist: Trade association participation.
Pricing decisions
Pricing decisions often consider the prices that competitors charge. While it is certainly lawful to be mindful of a competitor’s pricing – indeed, pricing is an important part of competition, so such decisions are rarely made in a vacuum – it is not lawful to agree with a competitor on pricing decisions. The appearance of price fixing could also lead to an investigation, if not a lawsuit.
Consider these questions when auditing pricing decisions:
- What is considered when deciding when to change prices?
- What is considered in determining the extent of a price change?
- What is the process involved in a price change, including announcements (method and time)?
- Is there a pattern of price leadership in the market?
- How is information about a competitor’s price changes obtained? Privately obtained information about a competitor’s prices raises antitrust concerns and the likelihood of government intervention or investigation.
- Are rebates or discounts offered to potential customers?
Information exchanges
Informal exchanges of information with other organizations can be a useful way of developing new ideas for your organization and assessing your organization’s performance. As with trade association participation, however, exchanging information with another organization can pose antitrust risks.
Consider these questions when auditing an exchange of information:
- Who is exchanging the information? What is their role in the organization?
- What are the circumstances of the exchange?
- Does the exchange involve any communication (either direct or indirect) with competitors?
- Does the exchange involve future sales and marketing plans? Such an exchange could lead to an inference of an agreement on those plans.
- Does the exchange involve pricing or any other competitively sensitive information?
2.3.3 Specific questions for the audit - unfair trade practices
Unfair trade practices laws are often broad, implicating many activities as potentially ‘unfair.’ There are, however, signals that your organization may be at risk for the most common types of trade practice violations.
Note
State laws often overlap with, or even duplicate, federal law relating to unfair trade practices. In some instances, state laws may provide an explicit ‘safe harbor’ provision that provides that compliance with the corresponding federal law will provide a defense to an action brought under the state law. The safe harbor must be spelled out in the statute, and will seldom, if ever, be found to be implied in a statute.
Advertising
Advertising is perhaps the most common area of liability for unfair trade practice violations. The natural interest in presenting your organization, and the goods or services offered by your organization, in the most favorable light possible must be tempered against the need to comply with the laws regulating trade practices.
The laws and regulations regarding advertising can rely on subtle distinctions. There are, however, a few guiding questions that should be kept in mind when evaluating advertisements.
- Is the advertisement truthful? Is there a factual basis behind the claims made?
- What is the potential for harm if a claim in an advertisement is not true?
- What would a reasonable consumer in the target audience for the advertisement believe after seeing the advertisement?
- Are potentially misleading terms used? Such terms include ‘up to,’ as much as,’ and ‘in some cases’.
Subjective terms (eg, ‘the finest’) will not ordinarily be a problem provided that it is clear that an opinion is being expressed, and not a potentially false assertion stated as fact (eg, ‘customer surveys show . . .’, when there was no real survey or the claim in the advertisement does not accurately reflect the results of the survey). Unfair trade practice concerns are also often raised in regard to bait-and-switch advertisements (i.e., advertising one product but selling another) and those involving false endorsements or guarantees (eg, ‘lose 10 pounds in 10 days guaranteed’ or ‘recommended by the American Heart Association’ without there actually being an endorsement from that Association).
2.3.4 Assess business activities and relationships
In addition to auditing those areas determined to be of high risk to your organization, there are several types of business activity that are not necessarily unlawful on their own or in every context, but that pose a clear risk of violations of antitrust or unfair trade practices law. There are also business and personal relationships that could raise these issues, especially when those relationships involve management-level employees or directors.
Questions that should be asked about activities or relationships that could potentially raise antitrust or unfair trade practice concerns include:
- Do board members or senior executives serve on the board of other companies, especially companies in a related industry (eg, the member of the board of directors of a retail grocery company serving on the board of a grocery wholesaler) that could raise conflict of interest issues? Do any of these other companies compete with the organization or any of its affiliate companies?
- Does the company refuse to sell a product unless the customer agrees to purchase a different product or service?
- Does the company refuse to sell a product unless the customer agrees to sell back a different product or service?
- Are there exclusivity terms on sales or distribution contracts?
- Does the organization’s advertising compare the goods or services offered by the organization with those of a competitor, and if so, is the comparison accurate?
- Are rebates or discounts offered to certain potential customers, but not to all potential customers?
It should be stressed that most of these activities are not necessarily unlawful. As well as identifying these activities or relationships, the audit should provide enough information to determine whether there is an actual or potential violation.
For further guidance, see Checklist: Conducting an antitrust audit.
Section 3 – Managing risk
An audit is just one part of a strategy for managing risk. The information discovered during the audit must be analyzed with an eye first towards locating the areas of greatest risk, either in terms of potential violations occurring or in terms of the greatest monetary exposure for penalties or damages. The second focus of the audit should be putting in place mitigating policies and procedures. Policies and procedures to mitigate and manage risk should include the following considerations.
3.1 Ensure there is an effective compliance program
The best tool an organization has for managing risk on an ongoing basis is an effective compliance program. There is no universal template for an effective compliance program. However, such a program should be:
- well designed
- implemented in good faith and
- actually functioning with assigned personnel, preferably those whose sole job duty is ensuring regulatory compliance.
An effective compliance program should have the following elements:
- be tailored to the needs and risks of the organization
- have the support of senior management
- ensure oversight over the entire organization, which typically means the compliance department shall report only to the owner or CEO and not fall under another department on the company’s internal organizational chart
- include a system of risk assessment
- keep thorough records of audits, risk assessments, and trainings separate and secure from other business records
- allow for proactive monitoring and auditing of activities that pose the greatest antitrust risks
- be continually evaluated for effectiveness
- provide training opportunities for all employees
- establish channels of communication for complaints or concerns, including whistle-blower protection and
- create incentives for compliance.
For further information, see How-to guides: Understanding antitrust and unfair trade practices law and your organization’s compliance obligations, How to draft an antitrust–unfair practice compliance program, and How to build a culture of antitrust law compliance.
3.2 Training
Your employees should be reminded of their obligation not only to comply with antitrust and unfair trade practices laws, but to bring violations to the attention of the compliance staff.
Personnel working in sales, marketing, and pricing should be reminded that they must not agree with another company to enact a common plan or action of any kind, unless it relates to a constitutionally protected activity, such as a lobbying campaign. There should be no knowing exchange of sensitive information with competitors. Discussing general business practices or market conditions is not a problem, but revealing too much about the internal workings of an organization could easily lead to charges of an anticompetitive agreement. Staff members should also be reminded not to act or communicate with anyone in a way that implies that your organization’s decision arises out of cooperation rather than competition with industry rivals.
Advertising and marketing personnel should be reminded of their legal obligations to be truthful and accurate. It is best to err on the side of caution when designing an advertising or marketing campaign. If there is any doubt as to whether an advertisement or marketing practice is lawful, counsel or compliance staff should be consulted.
When managing risk, keep in mind that it is important that a business or organization remain competitive, and not cut itself off from possible areas of growth without good reason.
3.3 Ensure there is an effective procedure for identifying potential violations
Unlawful conduct can often be identified based on internal reports by employees. A system or procedure for reporting violations should be a part of any effective compliance program (see How-to guide: How to draft an antitrust–unfair practice compliance program).
Internal reporting is valuable, as it may be the organization’s best opportunity to correct unlawful behavior before the potential liability gets too severe. Internal reports should be addressed in three steps: investigation, remediation, and a voluntary report, if appropriate.
3.3.1 Investigations
Voluntary audits and investigations, carried out either by in-house counsel or special counsel, can be useful in preventing or limiting formal investigations by government enforcement agencies. They are also less time consuming and damaging to employee morale or customer relations than an outside investigation. Such an audit will be more effective if it:
- is unannounced
- includes a review of documents and emails
- includes interviews with employees
- is conducted by counsel in a manner that preserves attorney-client privilege, and
- considers any relevant privacy or data protection laws.
3.3.2 Consumer complaints
While any business that deals with the public will receive complaints, a pattern of complaints about similar conduct or similar products or services should be taken as a signal to review or investigate a particular area. The complaints may be inherent in the type of business activity engaged in, or they may show potential violations that must be remedied.
3.3.3 Media reports
Reports in the news media about certain business practices are a reason to examine your organization’s similar activities. Similarly, if there are reports of litigation or enforcement actions against your competitors or similar businesses, this may be a sign that routinely accepted practices in your industry are suspect, if not actually unlawful. Investigation into competitors or similar businesses may be a signal that your company is being considered for investigation of potential violations.
3.3.4 Request a business review letter
If there is proposed conduct that causes concern, the business may request a Business Review Letter. Per the DOJ, this provides ‘an important opportunity to receive guidance from the Department with respect to the scope, interpretation, and application of the antitrust laws to particular proposed conduct’. This could be an important way for the company to manage risk, provided the conduct has not already been engaged in, nor will it be prior to the resolution of the review process which could be sixty to ninety days, or more in cases where insufficient information is provided in the request thus causing delays.
Additional resources
FTC Guide to Antitrust Laws
Department of Justice Evaluation of Corporate Compliance Programs in Criminal Antitrust Investigations (2024)
Department of Justice Evaluation of Corporate Compliance Programs (2024)
Department of Justice, Compliance is a Culture, Not Just a Policy
Federal Trade Commission, Advertising FAQs: A Guide for Small Business (April 2001)
Related Lexology Pro content
How-to guides:
Understanding antitrust and unfair trade practices law and your organization’s compliance obligations
How to draft an antitrust-unfair trade practices compliance program
How to build a culture of antitrust law compliance
Checklists:
Antitrust compliance
Meeting with a competitor
Trade association participation
Conducting an antitrust audit
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