Anti-Trust Laws & Trade Regulation Laws

U.S. anti-trust laws consist of rules and regulations enforced to curtail monopolistic behavior in businesses. Such monopolistic behavior could be an accumulation of wealth or economic resources, controlled by a small group of people, resulting in a negative impact on both individuals and the marketplace. Anti-trust laws and trade regulations help ensure normal conditions for marketplace competition, protecting consumers as well as businesses owners.

In 1890, the first act to prevent 'business trusts' from putting restraints on trade was introduced by Congress. The Sherman Anti-trust Act authorized the federal government to regulate interstate commerce, giving federal authorities the power to dissolve businesses that restrained interstate and foreign trade. As time passed, other acts were introduced to supplement the Sherman act. The Clayton Anti-trust Act was passed in 1914, prohibiting price-fixing, bid rigging, and exclusive sales contracts for companies competing in the same field. Most importantly, the Clayton act forbade acquisitions and mergers that decreased competition. In addition, the Clayton act legalized peaceful boycotts and strikes, declaring that human labor was not a commodity that could be suppressed by injunctions or otherwise controlled unfairly. In 1915, the Federal Trade Commission Act set up the Federal Trade Commission (FTC), to function as an independent agency of the U.S. government. The FTC’s primary mission has been to oversee and promote consumer protection along with the promotion of free and fair business competition. There are five members of the FTC, known as commissioners, that are selected by the president and confirmed by the Senate.

The three acts mentioned above, form the basis for modern day anti-trust and trade regulations at the federal level, with most states adopting similar acts at the local/state level. Over the past years, the FTC has also introduced many statutes and regulations, while continuing to enforce the Sherman and Clayton acts.

The Department of Justice, through their Antitrust Division, is also responsible for enforcing antitrust laws through prosecution and civil proceedings. The division comprises four attorneys and five professional staff, responsible for enforcing both state and federal antitrust laws. The Antitrust division, like the FTC, also protects consumers and businesses from monopolization, price-fixing, bid rigging and other unfair competitive practices.

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