Thursday, May 28, 2009

Antitrust info

The recent and well attended, well received MTE seminars that were hosted by the NAPDRT were opened with an antitrust statement that included price fixing. A few questions were raised about why we didn't discuss prices during the estimation seminars. Let's take a look at and examine the antitrust issues that we face.

What are the antitrust laws we face? There are three that are primarily relate to the PDR and the collision industries.

1. The Sherman Act: This act outlaws all contracts, combination and conspiracies that unreasonably restrain interstate trade. The types of activities it prohibits include competitors fixing prices,dividing
markets, limiting production and bid rigging.

2. The Clayton Act: This act prohibits mergers and acquisitions that limit competition and prohibit "tying agreements" by which the goods and services is conditioned upon the purchase of other goods and services.

3. The FTC Act: This act prohibits unfair methods of competition. This act is consumer oriented. The act of getting express approval prior to any work preformed stems from this act.
Additionally, many states impose their own laws regarding this act applying "within" for their state laws.

The U.S. Supreme Court has determined that there are certain activities so inherently harmful to the competition that a thorough analysis of the arrangement is unnecessary and those activities are automatic violations of the antitrust laws. these are categorized as:

1) Price Fixing
2) Division of Markets
3) Group Boycotts; and
4) Tying Agreements.

Basically if two or more Direct or Indirect competitors get together and decide they will charge a certain price or for a good or service, that would be price fixing. Some say that just discussing prices may not constitute an agreement, and they may be right. However we have to remember that the supreme court ruled that it doesn't have to have thorough analysis of the activities to be ruled an automatic violation. The division of markets by competitors and the boycotting of persons or companies for the purpose of obtaining concessions or to exact punishment in business dealings touch the PDR industry as well.

Though there are some exclusionary arrangements that involve trade associations, we at the NAPDRT tend to take the conservative course when it comes to these. These often designate a minimum standard for members relating to safety. One affiliate of a national trade association commissioned a pricing survey. An insurance company heard about this and contacted a government agency. The conclusion was the
survey had the APPEARANCE of price fixing. Participates were fined from the tens of thousands of dollars to upwards of one hundred thousand dollars. Another exclusion relating to trade associations relates to influencing or promoting legislative, judicial or administrative action. An example of this is a bill is to repeal the McCarran-Ferguson Act. This act grants insurance companies exemptions to the antitrust laws.

Many associations are encouraging members to contact there representatives to repeal this act. More can be found on this at www.takingthehill.com

The NAPDRT has made arrangements to attend, exhibit, conduct and display a booth at the NACE expo this year. To register for this event got to www.naceexpo.org and use the registration code 21. Please use the registration code so the NAPDRT gets credit for attendees.

We have also made arrangements to attend and exhibit as well as conduct seminars and hold our annual meetings at the Mobile Tech Expo next year. When making arrangements please use the host hotel and Identify yourselves as Mobile Tech Expo attendees.

Tuesday, March 3, 2009

Who Are We?

The NAPDRT is a Not-for-Profit organization that was started by quality PDR Technicians who are concerned about the future of our trade, the lack of consumer awareness about quality paintless dent repair, and its many advantages over conventional body shop repairs.

Over the past several years, we have seen many insurance companies--and several unscrupulous PDR companies--lower the standards for Paintless Dent Repair to an unacceptable level. The founding members of NAPDRT decided it was time to get quality PDR technicians across the country together and set standards for PDR where none exist, and to inform the general public about the differences between quality PDR work, and production-oriented work.

The NAPDRT site tells the whole truth about the companies and laws that make it possible to defraud you as a consumer and more importantly WHAT YOU CAN DO TO PROTECT YOURSELF.
http://www.napdrt.org

Saturday, February 21, 2009

OUR MISSION STATEMENT

NAPDRT

The mission of the National Alliance of Paintless Dent Repair Technicians is to unite independent PDR technicians, and to educate both technicians and consumers about the accountability, quality service, and value provided by our members.