FOUR TIPS FOR MEMBERSHIP ORGANIZATIONS
TO AVOID ANTITRUST VIOLATIONSIndividuals and companies generally join an association for the benefits…including gaining a commercial advantage in the marketplace. The greater the commercial advantage gained from membership in an association, the greater the risk of violating antitrust laws if competitors are excluded or terminated from membership. If non-members have access to most of the association’s resources and benefits, albeit at a higher cost, the less the antitrust risk and the more discretion may be exercised when setting membership requirements.
Based on these basic antitrust principles, following are a few guidelines for membership organizations:Return To:
Membership restrictions should be reasonably related to the mission and goals of the organization. Membership restrictions should not have the effect of restricting competitors or competition.
Membership may be restricted along functional or geographic lines as long as the reasons for the restrictions are reasonable and not arbitrary.
Qualifications for membership should be reasonable, objective, narrowly drawn, non-discriminatory, and serve a legitimate purpose. Qualifications should be applied uniformly to all applicants.
Membership fees should be reasonable and access to the economic services and benefits of the organization that convey a competitive advantage should also be available to non-members upon reasonable terms.
Antitrust Audits: Do you need one? How to get started