Research On The Legal Regulation Of Price Cartels Of Trade Association

Trade associations formed voluntarily by a particular trade operators, they are nonprofit corporate social groups which gather information and provide services to safeguard the interests of the industry. Price cartel is the behavior conducted by operators who compete in the same industry, which aim at obtaining monopoly profits, to fix, change and control the price of goods or services by agreement, resolution or concerted behavior. Trade association price cartel is reached after consulting with members in association. Trade associations have the function of organizing information exchange, which is an important way to form price convergence, thus, association members under the coordination is very easy to reach the price alliance.Self-interest nature of trade association members is the origin of the price cartel behavior, meanwhile, self-regulation of trade associations and related industry management functions provided favorable conditions for the formation of price cartel. Price cartel is the most serious one in all behavior of industry association, which damages the free of market and undermines market functioning. Trade association price cartel has solid performance, more subtle behavior and more serious harm than general price cartel. In the United States, trade association price cartel is suited for the per se rule to determine illegality, while in other civil law countries, trade association price cartel is clearly defined as illegality. Many foreign countries provide a more detailed legal responsibility of trade association price cartel, not only administrative and civil, but also criminal.In our country, due to the lack of understanding to trade associations, there are many deficiencies in the regulation of trade association cartel behavior. Therefore, we should make clear the concept and scope of the antitrust laws on trade associations, and punish trade associations and members, as well as some of the responsible person. In the mean time, criminal responsibility should be added and the amount of punitive damages should be three times of the damage itself learning from the experience of the United States. In addition, to improve the forgiveness system and establish the pre-control system will be good for regulating trade association price cartel behavior.