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ARTICLE · 07 JANUARY 2015

Antitrust Alert: U.S. FTC Challenges Professional Associations' Codes Of Ethics And Bylaws

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The U.S. Federal Trade Commission ("FTC") has settled two, unrelated cases alleging that the ethical codes of professional associations violated the antitrust laws.

United StatesAntitrust/Competition Law

The U.S. Federal Trade Commission ("FTC") has settled two, unrelated cases alleging that the ethical codes of professional associations violated the antitrust laws. These settlements are a reminder that the antitrust agencies and private plaintiffs are active in reviewing the activities of professional associations and will challenge agreements among members that may restrict competition among the members to recruit or provide services to customers. The trade associations involved are the Professional Lighting and Sign Management Companies of America, Inc. ("PLASMA") and the Professional Skaters Association ("PSA").

Background

PLASMA is a non-profit professional association of licensed electricians with approximately 25 member firms located across the country. PLASMA member firms specialize in commercial lighting and electrical installation and maintenance. The FTC alleged that PLASMA's Member Bylaws violated antitrust laws by (1) prohibiting members from

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