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Q.: I've been hearing about different types of antitrust suits brought by the government recently. What is the purpose of the antitrust laws? A.: The antitrust laws protect competition in our society. In a fully competitive market, each competing business generally tries to attract customers by cutting prices and increasing the quality of its products. Customers benefit from this competition through lower prices, better products and better services.
When competitors fix prices, rig bids, or divide up customers, consumers lose the benefits of competition. Prices become higher than they should be because they do not accurately reflect the cost to produce a particular product. Therefore, the government acts promptly against such practices to protect the interests of Americans. The antitrust laws are also designed to prevent one company from achieving an illegal monopoly by merging with or buying its large competitors or by engaging in conduct that illegally allows it to control market prices.
Q.: How are the antitrust laws enforced? A.: The antitrust laws are enforced through: 1) criminal and civil enforcement actions brought by the Antitrust Division of the U.S. Department of Justice; 2) civil enforcement actions brought by the Federal Trade Commission; 3) criminal and civil enforcement actions brought by the states' attorney generals, including the Attorney General of Ohio; and 4) lawsuits brought by private parties.
A number of tools are used in investigating and prosecuting criminal antitrust violations. U.S. Department of Justice attorneys often work with FBI agents to obtain evidence. In recent years, the government has started to use court-authorized searches of business, as well as consensual taping of telephone calls, and informants equipped with secret listening devices.
The antitrust laws also allow private citizens and business injured by an antitrust violation to sue in court for three times their actual damages plus court costs and attorneys' fees. States' attorney generals also bring civil suits on behalf of customers in their states who have been harmed by antitrust violations. Groups of consumers often join forces to bring "class action" suits.
Q.: As a consumer, how am I affected by violations of the antitrust laws? A.: You might be affected by offenses such as price fixing and bid rigging. Price fixing occurs when two or more sellers agree to increase prices a certain amount, or agree that they won't sell below a certain price. Bid rigging more commonly occurs when two or more firms agree (generally in secret) not to bid against each other to supply products or services to local, state or federal government agencies, or when they agree on the amount of their individual bids. Price fixing and bid rigging agreements provide no benefits to consumers, and they cause consumers to be misled and cheated by companies claiming to be competitors despite secret agreements not to compete fairly.
Q.: What should I do if I believe the antitrust laws are being violated? A.: Effective antitrust enforcement needs public support. Because many antitrust violations are agreed to secretly, they are often difficult to detect. For this reason, a very large percentage of antitrust investigations start with complaints by consumers, competitors, and company employees. You may communicate antitrust complaints to law enforcement officials by telephone, mail, or in person.
To register an antitrust complaint in Ohio you can write or call your government antitrust enforcement agencies at the following locations: Antitrust Division, United States Department of Justice, Carl B. Stokes United States Courthouse, 801 W. Superior Ave., 14th Floor, Cleveland, OH 44113. Phone: 216-687-8400 Federal Trade Commission, Eaton Center, Suite 200, 1111 Superior Ave., Cleveland, OH 44114. Phone: 216-263-3410 Ohio Attorney General, Antitrust Section, State Office Tower, 30 E. Broad St., Columbus, OH 43215-3428. Phone: 877-244-6446
Law You Can Use is a weekly consumer legal information column provided by the Ohio State Bar Association. This article was prepared by Donald S. Scherzer, a partner in the Cleveland office of Roetzel & Andress, a firm with offices throughout Ohio and Florida. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.
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