What Services Must a Trade Association Render to Non-Members?

• Author: Steven John Fellman
• Published date: 01 June 1973
• Date: 01 June 1973
• DOI: http://doi.org/10.1177/0003603X7301800201
• Subject Matter: Article

WHAT

SERVICES

MUST A

TRADE

ASSOCIATION

RENDER

TO NON-MEMBERS?

by

STEVEN JOHN FELLMAN-

A

trade

association is a group of. competitors who gather

together and nnite in an attempt to

further

their entire in-

dustry

and

thus enhance their ability to compete in the free

enterprise system. As

trade

associations educate industry

members in areas which relate to how the industry will act

as a competitive entity, the

trade

association by definition,

is

antitrust

dynamite capable of exploding

at

any minute.

If

the force of such an explosion is used destructively, the as-

sociation may find itself burdened with such

antitrust

liabil-

ity,

that

bv tho time

that

the dnst has cleared, nothing is left

to salvage.

Alternatively, if the association uses

its

power within the

framework of the

antitrust

laws, the association can serve

as a means of creating

greater

competition, better products,

newer services

and

abroadening horizon

for

the

industry

that

it

serves. The power of the association can be used con-

structively

rather

than destructively.

The subject

"What

services should be provided to non-

members?" becomes relevant in

that

attempts

by associations

to limit access to association benefits

are

restraints on com-

petition.

If

through

an

association agroup of industry mem-

bers

attempt

to

restrict

economically valuable information

from other industry members, such action can only lead to

antitrust

liability.

It

is difficult to determine

just

how open

an association must be

for

there is

not

much precedent to go

on.

- Counihan, Casey &Loomis,Washington, D. C.

AUTHOR'S

NOTE:

The author gratefully acknowledges the valuable

assistance of Stephen Prendergast in the preparation of this article.

167