An Anti-Trust Case

Paper Summary:

This paper explains the role of the Federal Trade Commission (FTC) in protecting consumers against anti-competitive or anti-trust behavior especially in fields, such as health care and health insurance. The paper presents a case study of the Wisconsin Chiropractic Association (WCA), which was penalized by the FTC for creating a conspiracy amongst WCA members to increase prices for chiropractic services and to boycott third-party payers for the purpose of obtaining higher reimbursement rates from health insurance companies. The paper considers the actions of the FTC to be justified.

Table of Contents:
The Role of the Federal Trade Commission
Conduct of the WCA: Anti-competitive behavior
Penalty: Fair or unfair?

From the Paper:

"The misconduct did not simply end there: the WCA also circulated fee surveys to facilitate coordinated pricing by its members, thus demonstrating when certain members were 'undercharging' customers, which meant they would be contacted and encouraged to charge more. It aggressively pursued all its members and encouraged them to charge more money, urging chiropractors not only to squeeze more money from client's pockets but also to negotiate higher fees with health insurance companies."

Sample of Sources Used:

• "Welcome to the bureau of competition." (2008). Federal Trade Commission (FTC) Website. Retrieved 26 Aug 2008 at http://www.ftc.gov/bc/index.shtml
• "Wisconsin Chiropractic Association and its director agree to settle FTC charges of price-fixing." (7 Mar 2008). Retrieved 26 Aug 2008 at http://www.ftc.gov/opa/2000/03/wischiro.shtm

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