Antitrust

Price fixing

Competing firms agreeing on what to charge

Two brokerages agreeing over lunch to charge the same commission rate is price fixing, and so is a local association publishing a "standard" rate. Each firm must arrive at its own pricing independently.

The safest habit in conversation is to describe rates as set by your own firm and negotiable with the client — never to say what is "standard" or "customary" in the area.

How the exam asks about it

Disclosure does not cure it and matching the local average is not a defense. The offense is the agreement, not the number.

Related terms

Sherman Antitrust ActMarket allocationGroup boycott

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