Appendix 2: Sample Association Antitrust Compliance Policy

• Pages: 237-245

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APPENDIX 2

SAMPLE ASSOCIATION ANTITRUST

COMPLIANCE POLICY

1.0 Antitrust Compliance Policy

Our policy is to comply with all federal, state and local laws,

including the antitrust laws. It is expected that all company member

representatives involved in association activities and association staff

will be sensitive to the unique legal issues involving trade associations

and accordingly, will take all measures necessary to comply with U.S.

antitrust laws and similar foreign competition laws. The association

recognizes the potentiall y severe consequences of failing to comply with

these laws.

Our association brings significant, procompetitive benefits to

industry participants, suppliers, and customers. It must not, however, be

a vehicle for firms to reach unlawful agreements regarding prices or

other aspects of competition, or to boycott or exclude firms from the

market.

2.0 Antitrust Violations Can Have Severe Consequences

Violations of the antitrust laws can have very serious consequences

for the association, its members and their employees.

2.1 Criminal Penalties

Antitrust violations may be prosecuted as felonies and are

punishable by steep fines and imprisonment. For offenses committed

after June 2004, individual violators can be fined up to $1 million and

sentenced to up to 10 years in federal prison for each offense, and

corporations can be fined up to $100 million for each offense. Under

some circumstances, the maximum fines can go even higher than the

Sherman Act maximums to twice the gain or loss involved. The events

that give rise to an antitrust violation often provide the basis for other

charges, such as wire fraud, mail fraud, and making false statements to

the government. Those charges, if proven, carry additional penalties.