If a trade association rule restricts competition, it must be
reasonably necessary and tailored to achieve the procompetitive
goals of the association.
In December 2019, the Department of Justice Antitrust Division
("DOJ") settled charges that certain National Association
for College Admission Counseling ("NACAC") rules
governing college admissions were anticompetitive under Section 1
of the Sherman Act. NACAC is a trade association for college
admissions, whose members include nonprofit colleges and
universities and their admissions staff, as well as high schools
and their counselors.
DOJ alleged that the following rules limited competition among
member colleges for applicants or transfer students:
