FUNCTIONS OF TRADE ASSOCIATIONS The functions of trade associations are as follows: 1. They disseminate information to members. 2. They fix prices for their services or products.
Are trade groups legal?
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What are the special features of trade association?
The main functions of a trade association are: Educating members so as to improve efficiency. Preventing cut-throat or unfair competition. Promoting and extending trade through ‘legislative work’.
What are the largest trade associations?
PROFESSIONAL AND TRADE ORGANIZATIONS
| Largest U.S. Professional Associations | |
|---|---|
| Association | Members |
| National Association of Realtors | 720,000 |
| American Bar Association | 380,000 |
| American Institute of Certified Public Accountants | 330,000 |
Can trade associations be profitable?
Under Section 501(c)(6), trade associations are required to advance a “line of business” through the common business interests of its members. They are not allowed to operate for a profit or for the private benefit of members.
What is the definition of a trade association?
Trade association. A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific industry.
Is it illegal to form a trade association?
But forming a trade association does not shield joint activities from antitrust scrutiny: Dealings among competitors that violate the law would still violate the law even if they were done through a trade association. For instance, it is illegal to use a trade association to control or suggest prices of members.
What should trade association staff know about competition law?
Assuming not, the trade association staff should be well trained on competition law issues and beginning each meeting with an antitrust ground rules reminder is a good idea. Further, any meeting where the agenda contemplates discussing competitively sensitive information should have counsel at the meeting or on the phone.
What should be included on a trade association website?
The association’s corporate website typically explains the association’s aims and objectives, promotes the association’s products and services, explains the benefits of membership to prospective members, and promotes members’ businesses (for example, by means of an online listing of members and description of their businesses).
