The Federal Trade Commission (FTC) announced consent orders on
December 23, 2014 requiring the Professional Lighting and Sign
Management Companies of America (PLASMA) and the Professional
Skaters Association (PSA) to eliminate from their bylaws provisions
that limited competition among each association's members.
These orders, along with two
similar actions earlier this year, are important reminders that
trade and professional association codes of ethics and membership
restrictions can present significant antitrust risk if not
structured properly.
Although association codes of ethics are generally viewed as
procompetitive, the FTC and the U.S. Department of Justice (the
primary federal antitrust enforcement agencies) will scrutinize any
restriction that directly or indirectly prevents members from
competing against each other – no matter the size of the
association. For example, take the action against PLASMA, an
association representing approximately 25 member
