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ARTICLE · 03 MARCH 2020

NACAC's Code Of Ethics And Professional Practice Challenged: Does It Limit Recruitment Competition?

In December 2019, following a two-year investigation, the U.S. Department of Justice's Antitrust Division (DOJ) sued the National Association for College Admission Counseling (NACAC)...

United StatesAntitrust/Competition Law

In December 2019, following a two-year investigation, the U.S. Department of Justice's Antitrust Division (DOJ) sued the National Association for College Admission Counseling (NACAC), alleging that certain rules in NACAC's Code of Ethics and Professional Practice violated federal antitrust law by limiting competition among member colleges for student applicants.

The provisions at issue were:

  • A rule that prohibited members from offering incentives (e.g. enhanced financial aid, special scholarships or housing) to applicants admitted through the early decision process;
  • Two provisions that restricted members from recruiting and offering enrollment incentives to students who were already enrolled, registered, declared their intent, or submitted contractual deposits to other institutions. One of these provisions also established May 1st as the date that commitments become final, and restricted members from recruiting committed students after this date.

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