Reality of Industry Associations

In the United States price collusion and predatory pricing are illegal. Yet if you look out to industry associations you often see groups of businesses beginning together and discussing pricing, sales strategies and method of operations. One could say this is price-fixing. Worse off agencies like the Federal Trade Commission often side with businesses in industry associations to work with them in self policing policies. One would suppose that this helps the Federal Trade Commission watch over an industry without spending much time or costs in enforcement.

Unfortunately, for the consumer these industry associations often attack their own; that is to say the industry association and its members will go after the newcomer entrepreneur who comes into the industry gangbusters with low prices. Such a competitive upstart company will make waves in the industry and thus be a target of the association. The association working along with the government agency such as the Federal Trade Commission simply has to have its lawyers who generally are working pro bono as they are already on staff at one of the industry associations members companies turn the Company in on trumped up charges of some rule or regulation.

About the only thing that the Federal Trade Commission is good for use to use to attack your competing companies. You see if the government attacks them, then they are out of the way for you to charge higher prices and continue the collusion with those in the industry association. It's all perfectly legal, except for one thing the Federal Trade Commission who was sworn to uphold truth, justice in the American way is enjoined whether knowingly or not in the price collusion scheme. If the Federal Trade Commission does so unknowingly then they are stupid. If they do it knowingly they're breaking the law. Either way this is not a good thing for consumers, the taxpayer or the American public. Consider this in 2006.

Lance Winslow - EzineArticles Expert Author

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/