Archive for October, 2010
Friday, October 29th, 2010
On October 28, 2010, the American Bar Association’s Antitrust Section Corporate Counseling Committee announced the publication of Antitrust Compliance: Perspectives and Resources for Corporate Counselors, 2nd Edition. This new book and CD-ROM can be purchased on the ABA website.
Susie L. Hoeller contributed Chapter Five titled “Incorporating Lessons Learned and New Developments” into a company’s antitrust compliance program. Ms. Hoeller has counseled Fortune 100 companies on antitrust compliance and is a recognized expert in developing legal training programs for company managers and executives on a wide variety of legal subjects in addition to antitrust law.
Tuesday, October 5th, 2010
On October 4, 2010, the U.S. Department of Justice (“DOJ”), along with seven state attorneys general, filed a civil antitrust lawsuit in New York challenging Visa, MasterCard and American Express rules that prevent retail merchants and airlines from providing discounts to consumers who pay using these credit cards.
Every time a consumer uses one of these credit cards to buy something from a merchant, that merchant pays a fee – a fee that is often passed on to consumers in marked up prices. Visa, MasterCard and American Express don’t just impose fees; they also prevent merchants from offering consumers any cost saving options such as discounts or rewards for using less expensive forms of payment, such as bank debit cards. The companies put merchants and consumers in a no-win situation: accept our card, pay our fees, and no discounts allowed.
According to the DOJ, these anti-competitive rules prevent price competition among credit card networks, which means merchants face increased business costs and consumers pay higher prices.
On the same day as the lawsuit was filed, the DOJ announced a settlement with Visa and Mastercard, that if approved by the court, will enable merchants and airlines to offer discounts and rebates to consumers when they use these credit cards. American Express has not settled as of October 4, 2010.
Anticompetitive practices hurt consumers and other businesses. The antitrust laws are designed to protect fair competition for goods and services. If you have any questions about whether or not your business practices are compliant or if your business is being injured by the anti-competitive practices of another firm, please contact us at the Hoeller Law Firm for advice.
Monday, October 4th, 2010
In sporting contests, partisan fans often boo when the umpire or referee blows the whistle and penalizes their teams. But in reality, true sports fans do not want to see the rules of the game being broken and teams cheating to win.
The same should hold true in the business world. Business people and consumers, instead of being at odds, should be united in their mutual interest in creating a level playing field for companies to fairly compete against each other.
After many years of inaction, the federal agencies which are supposed to protect consumers from false product labeling claims are enforcing laws and regulations which have been on the books for decades.
In the fall of 2010, the Federal Trade Commission filed an administrative complaint alleging that the makers of POM Wonderful 100% Pomegranate Juice and POMx supplements made false and unsubstantiated claims that their products will prevent or treat heart disease, prostate cancer, and other medical problems.
At the same time, the Food and Drug Administration (“FDA”) warned three companies that market mouthwash products to stop making unsubstantiated claims that these products remove plaque and promote healthy gums
On Capitol Hill, executives at Johnson & Johnson, once America’s most admired company admitted that J&J “let the public down” with numerous recalls of drugs, hip implants and contact lenses for children and adults in the past year.