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ARTICLE · 04 MARCH 2015

U.S. Supreme Court Rules "State Action Doctrine" Does Not Protect State Licensing Boards

In a 6-3 ruling and opinion written by Justice Anthony Kennedy, the Court upheld the U.S. Court of Appeals for the Fourth Circuit.

United StatesAntitrust/Competition Law

On Feb. 25, the U.S. Supreme Court ruled that state professional licensing boards comprised of professionals, which long had presumed they enjoyed immunity to claims under the antitrust laws, are in fact not protected by the "state action doctrine" of Parker v. Brown. The decision should be considered by all professionals who serve as members of state licensing and professional regulatory boards.

In a 6-3 ruling and opinion written by Justice Anthony Kennedy, the Court upheld the U.S. Court of Appeals for the Fourth Circuit. That court had affirmed an administrative law judge who sided with the Federal Trade Commission against the North Carolina State Board of Dental Examiners after the board issued cease and desist letters to non-dentists who provided teeth whitening services. The case raised the issue of whether such boards, which are actual state agencies, are wholly exempt from the antitrust laws under the Parker doctrine, which was established in 1943, or

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