I was just reading an FAQ (http://www.hwg.org/resources/faqs/priceFAQ.html#illegal) , I couldn't find a previous post on the subject, so i've started one.

As quoted from the FAQ..

"Is it illegal to discuss pricing?

The short answer: YES (at least in the U.S. where many of our members are).

The U.S. law specifically makes discussion of pricing between competitors (all or some) a federal offense. According to either Marshall Kragen or Lewis Rose (both practicing lawyers), several brokers in DC were successfully prosecuted for simply discussing an increase of fees at a dinner meeting.

When, where, or how doesn't matter. Any discussion of pricing by a group of people within the same industry is illegal in the U.S. The feds call it price fixing."


Just wondering what people think about this and figured it would make for an interesting discussion. Personally, I find it upsetting and I was suprised that such a discussion could be considered a Federal Offense. The way it sounds, it would impact even WHT?

IANAL, blah blah blah.

However, I think that FAQ is spouting nonsense. This (http://www.usdoj.gov/atr/public/guidelines/pfbrprimer.pdf) document fom the DoJ states that "Prive fixing is an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold. [... examples include agreements to charge the same prices,] establish or adhere to price discounts, hold prices firm, eliminate or reduce discounts, adopt a standard formula for computing prices, maintain certain price differentials between different type, sizes, or quantities of products, adhere to a minimum fee or price schedule, fix credit terms, or not advertise prices".

I can't see any of these applying: While discussion does occur here it usually results in arguments (my pricing is better than yours, etc.) rather than agreement of any sort.

Not a lawyer but I agree with the price fixing part. If a group of companies agree to try to control the price that's one thing. But just discussing pricing structure isn't wrong. In fact, it's pretty common in most industries.

Originally posted by Seer
The U.S. law specifically makes discussion of pricing between competitors (all or some) a federal offense. According to either Marshall Kragen or Lewis Rose (both practicing lawyers), several brokers in DC were successfully prosecuted for simply discussing an increase of fees at a dinner meeting.

When, where, or how doesn't matter. Any discussion of pricing by a group of people within the same industry is illegal in the U.S. The feds call it price fixing."

This seems insane. There is a breakdown when laws, people, etc., *don't* consider the when, where, how of a situation and ignore common sense!!!

Originally posted by Chicken
ignore common sense!!!

Uuuuh, laws and common sense, what a topic.
(BTW: very nice way to quote :) )