Anti-Trust Laws Made Simple
For over 100 years, three sources have formed the basis for U.S. anti-trust law, the Sherman Act, the Clayton Act, and the FTC Act. The Department of Justice and the Federal Trade Commission use these laws to police anti-competitive business practices that harm consumers. Parties committing anti-trust violations face stiff penalties, including imprisonment and fines as high as 100 million dollars or more. So, how do these laws define an anti-trust violation? Put simply, anti-trust refers to business practices which restrain trade. This course explains anti-trust violations and provides a number of scenarios to demonstrate what is and is not legal.
When determining whether an action would violate anti-trust laws, there are two important factors to consider: 1) whether the practice has a legitimate business interest, and 2) whether it harms the consumer. There are numerous ways harm can befall the consumer, whether through one corporation monopolizing the marketplace, multiple corporations agreeing not to compete with one another, and more. You are shown additional examples here, including whether certain conduct is proper when dealing with suppliers, mergers, and trade associations. You are also provided definitions for key anti-trust concepts such as price fixing, bid rigging, and illegal market divisions.
At first glance, “anti-trust” may seem like an abstract and esoteric subject. However, its core concepts are quite easy to understand. After all, at the heart of anti-trust considerations is the consumer. If businesses act in such a way that will harm the consumer, anti-trust laws may be violated. Utilize the information presented in this training video to better understand anti-trust laws and identify where violations may occur.