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What is the reasoning?

I'm curious as to what the reasoning is behind not being allowed to discuss pricing. I understand that it is against the forum policy but why not discuss one of the most important parts of our industry?

Thanks

Re: What is the reasoning?

Why we can't discuss pricing: the Details.

The short answer:
It's illegal. The law in question is the Sherman Antitrust Act


The long answer (and some links):

It carries a pretty hefty price tag. I think that it's safe to say that none of us here can afford it.
From the US Department of Justice:

Enacted in 1890, the Sherman Act is among our country's most important and enduring pieces of economic legislation. The Sherman Act prohibits any agreement among competitors to fix prices, rig bids, or engage in other anticompetitive activity. Criminal prosecution of Sherman Act violations is the responsibility of the Antitrust Division of the United States Department of Justice.

Violation of the Sherman Act is a felony punishable by a fine of up to $10 million for corporations, and a fine of up to $350,000 or 3 years imprisonment (or both) for individuals, if the offense was committed before June 22, 2004. If the offense was committed on or after June 22, 2004, the maximum Sherman Act fine is $100 million for corporations and $1 million for individuals, and the maximum Sherman Act jail sentence is 10 years. Under some circumstances, the maximum potential fine may be increased above the Sherman Act maximums to twice the gain or loss involved. In addition, collusion among competitors may constitute violations of the mail or wire fraud statute, the false statements statute, or other federal felony statutes, all of which the Antitrust Division prosecutes.

In addition to receiving a criminal sentence, a corporation or individual convicted of a Sherman Act violation may be ordered to make restitution to the victims for all overcharges. Victims of bid-rigging and price-fixing conspiracies also may seek civil recovery of up to three times the amount of damages suffered.

http://www.usdoj.gov/atr/public/guidelines/211578.htm

Re: What is the reasoning?

I appreciate the information. I'm still confused though. I understand that price fixing is illegal, as it should be. What I don't understand is why we can't discuss the methods of billing including pricing territories. We're not colluding to do anything illegal, we just want to find out how to bill certain ways and do it correctly. According to your post a group of landscapers, spread throughout the country, cannot even discuss with each other their methods of charging customers without facing criminal charges? If we can't discuss this information, where can we learn about it? Where are the resources? I just want to know how to get fair rates from the TPAs.

Re: What is the reasoning?

You just cant do it, good way to get sued, and Deb is not about to take that chance. I do not blame her.

Re: What is the reasoning?

Ok, I understand that no one wants to get sued. Why would someone get sued however? The vagueness of this industry is frustrating. If what you are all saying is "figure it out on your own", then please be upfront. All I'm saying is if the industry revolves around dealing with TPAs and they have us each in different territories, then why not discuss what this means and how to deal with it. If we can't, then what is the point of a forum devoted to people who work in the industry?

Are there other forums where people are discussing these things? If so, which ones are they?

Re: What is the reasoning?

If it's illegal, why do they compare pricing in the AGRR mag?

Re: What is the reasoning?

Lee
If it's illegal, why do they compare pricing in the AGRR mag?

B cause ur mamma says so.

Re: What is the reasoning?

This is just too funny.

Good point Lee.

I'll add another.

The networks and insurers discuss pricing amongst themselves on a daily basis.

Yet, none of them are contracting for the repairs to property they discuss pricing about.

Now, someone tell me that insurers are exempt. Please read the McCarran Fergusson Act first though.

LOL

The short answer, Jeff, is the webhost isn't going to take the risk. In that the illusion that insurers are exempt from the Anti-trust laws exist, and that insurers use the threat of Anti-trust against shops that just don't understand the laws, it keeps people scared to discuss what gas stations, grocery stores, discount stores, home centers, ect ect, do every day from happening in our industry.

Discussing pricing is the very heart of competiton. Agreeing to fix pricing is the very heart of Anti-trust. Distinct difference between the two.

JMHNLO

Re: What is the reasoning?

I wonder how this meeting will take place without any pricing discussions?

Especially with main topics being "Who's getting paid, and why?" and "Why some shops get paid and others do not?"

Perhaps, instead of just inviting an attorney to give the standard anti Anti-trust speech at the beginning of the meeting, they should also invite the state regulators and insist they take notes from the witnesses that speak of the practices that are occuring.

LOL

JMHNLO

http://www.bodyshopbusiness.com/Article/117428/choice_autobody_repair_association_to_host_state_of_the_industry_meeting.aspx?categoryId=

Re: What is the reasoning?

If the TPAs will only issue a check to a shop for what is a fair & customary price only, how is this not price fixing?? Who were involved in these discussions as to decide this amount in the first place, isn't this colusion?

Re: What is the reasoning?

The law is the law i think that the agrr staff legal counsel
has a higher degree of legal sense

The legal team is a step above saul

Re: What is the reasoning?

Lee
If it's illegal, why do they compare pricing in the AGRR mag?


Lee we just keep asking they never answer!

Re: What is the reasoning?

The cost of the piper ???

Re: What is the reasoning?

Otto Glass
Why we can't discuss pricing: the Details.

The short answer:
It's illegal. The law in question is the Sherman Antitrust Act


The long answer (and some links):

It carries a pretty hefty price tag. I think that it's safe to say that none of us here can afford it.
From the US Department of Justice:

Enacted in 1890, the Sherman Act is among our country's most important and enduring pieces of economic legislation. The Sherman Act prohibits any agreement among competitors to fix prices, rig bids, or engage in other anticompetitive activity. Criminal prosecution of Sherman Act violations is the responsibility of the Antitrust Division of the United States Department of Justice.

Violation of the Sherman Act is a felony punishable by a fine of up to $10 million for corporations, and a fine of up to $350,000 or 3 years imprisonment (or both) for individuals, if the offense was committed before June 22, 2004. If the offense was committed on or after June 22, 2004, the maximum Sherman Act fine is $100 million for corporations and $1 million for individuals, and the maximum Sherman Act jail sentence is 10 years. Under some circumstances, the maximum potential fine may be increased above the Sherman Act maximums to twice the gain or loss involved. In addition, collusion among competitors may constitute violations of the mail or wire fraud statute, the false statements statute, or other federal felony statutes, all of which the Antitrust Division prosecutes.

In addition to receiving a criminal sentence, a corporation or individual convicted of a Sherman Act violation may be ordered to make restitution to the victims for all overcharges. Victims of bid-rigging and price-fixing conspiracies also may seek civil recovery of up to three times the amount of damages suffered.

http://www.usdoj.gov/atr/public/guidelines/211578.htm


Currently, insurance companies are forcing independent shops to sign agreements that include (discuss) prices so that they can be on a list of "approved" providers. Accordingly, any shop that signs the agreement is guilty of violating the Sherman Anti-Trust Act.

Why isn't the law being enforced?

Worse is that the shop owners that sign the agreements don't even get to negotiate prices.

Worse yet, some shop owners are forced to endorse and "affiliate" with a direct competitor thereby advancing the competitors brand and putting their own brands and reputations in second place in order to get on the "approved" list.

Why isn't the law being enforced?

Re: What is the reasoning?

Yea, so is steering !!!

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