Texas Attorney General Settles Alleged Boycott Case

The Texas Attorney General has settled its challenge to an agreement among sellers of dental supplies that, in the State's view, prevented competition by a new entrant in Texas. This case is a reminder that even local activities may be the subject of antitrust enforcement by state attorneys general, if not by the U.S. antitrust agencies—the Department of Justice and Federal Trade Commission.

The defendant was Benco Dental Supply Company, which sells and distributes consumable dental supplies throughout Texas. Traditional dental supplies distributors like Benco usually employ sales representatives who deal directly with dentists and participate in trade shows, such as the annual meeting of the Texas Dental Association ("TDA"). In 2013, TDA launched "TDA Perks Supplies," an online sales platform, in a partnership with SourceOne Dental. TDA Perks Supplies sells dental supplies online—and at a discount—to TDA member dentists, bypassing traditional distributors like Benco.