What Is Antitrust Compliance Training?

Antitrust compliance training is a key element of success for any business. Antitrust laws are complicated, and without the proper training, employees may unintentionally violate the law. Needless to say, it is best to stop that issue before it can occur, and training is the best way to do so. Here is everything you need to know about antitrust compliance training, what it entails, and how it can help your company.

The Importance of Antitrust Compliance Training

Antitrust compliance training protects your company from the penalties of noncompliance. When it comes to antitrust violations, retribution is swift, severe, and almost guaranteed. It can result in massive fines for your company, prison time for any known offenders or conspirators, and a damaged public image for your company. Antitrust compliance training ensures that everyone in your company knows how to keep things above boar and follow regulations.

What Is an Antitrust Compliance Program?

An antitrust compliance program is a training program designed to educate employees and business owners on the nature and details of antitrust legislation. A good program will go into detail on the main antitrust laws to be aware of, what they entail, and each employee’s role in maintaining compliance. 

By arming your employees with knowledge of antitrust best practices and legal guidelines, you vastly decrease the likelihood of noncompliance and the consequences that are sure to follow. It is important to note that missing even a very small detail can result in significant consequences.

Who Should Get Antitrust Training?

Anyone at your company who could potentially breach antitrust laws should receive antitrust compliance training. This includes HR professionals who are responsible for setting wages, sales employees who are responsible for pricing and closing deals, and higher-ups who are responsible for business agreements, large-scale sales, and mergers.

If these employees don’t know what antitrust laws require of them, they may inadvertently break those laws. This can open your company up to heavy litigation and severe punishment, so it is important to ensure that everyone gets the training they need.

What Are the 3 Core Antitrust Laws?

At the time of writing, there are three core antitrust laws still in effect: the Sherman Act, the Clayton Act, and the Federal Trade Commission Act. It is important to understand what each of these laws require, and how those requirements impact your business. Any antitrust compliance training you arrange should place heavy emphasis on these laws.

The Sherman Act of 1890

The Sherman Act of 1890 was passed to protect fair trade and the free market. It’s designed to keep large companies from collaborating to push smaller competitors out of the market. It also prevents businesses from forming monopolies or conspiring to do so. This allows for a more diverse market, rather than a market dominated by one or two major players. Prohibited actions include:

• Working with other businesses to fix prices. (i.e., agreeing to keep prices artificially high to increase profits, or artificially low to undercut competitors.)
• Working with other businesses to allocate customers, market shares, etc. 
• Willfully forming a monopoly or attempting to do so. It iss legal to hold a monopoly if, for example, you are the only one selling a particular good or service in the industry. However, if a competitor started selling the same good or service, it would be a violation of the Sherman Act to drive them out of the market.

The Clayton Act of 1914

The Clayton Act was passed to expand the powers provided to the federal government by the Sherman Act. It stops companies from attempting to restrict industry dealings or to establish a monopoly through repeated business acquisitions. Prohibited actions include:

• Forming business agreements in which either party is restricted from doing business with industry competitors.
• Charging different prices to different entities in an attempt to drive others out of the market.
• Merging companies in a way that would create a monopoly, or owning two companies that would create a monopoly if merged.

The Federal Trade Commission Act of 1914

The Federal Trade Commission Act is the last of the main three antitrust laws still in effect today. It was passed with two goals in mind: protecting the free market by encouraging competition, and protecting consumers from corrupt business practices. The act established the Federal Trade Commission, and gave it the power to prevent businesses from:

• Deceiving consumers as to the nature of a good or service.
• Failing to warn customers of potential hazards associated with a good or service, or exposing them to dangers that they could not reasonably prevent. For example, you would not be liable if a client was injured through improperly using a power tool you sold them. You would, however, be liable if the client was injured because the tool caught fire due to a manufacturing defect.

The FTC has the power to fine or even shut down businesses that violate this act. In addition, it can advise Congress on further actions to be taken against offenders.

What Is the Difference Between Regulation and Antitrust?

To put it simply, the main difference between regulation and antitrust is that the former focuses on specific industries, while the latter addresses the market as a whole. 

Regulations largely dictate what companies in specific industries can and cannot do, and have very little impact outside of those industries. Antitrust laws, on the other hand, apply to every company, regardless of industry, and work to promote competition without giving particular interest to any one company. The two are typically used together, and create a fairer, safer market for businesses and consumers alike.

Antitrust Compliance Training With Compyl

Of course, putting together an antitrust compliance training program on your own is a herculean task. Instead of trying to do so yourself, reach out to our team at Compyl. We’re a group of forward-thinking experts with a passion for workplace safety and compliance. If you would like to learn more about our antitrust compliance training solutions, feel free to get in touch with us today!