Fair Trade Law Q&A - Concerted ActionsFair Trade Law Q&A - Concerted Actions| An economic downturn is not entirely the same as a recession for a certain industry. If the overall economic conditions remain strong but a particular industry is experiencing a downturn, may enterprises within that industry apply for approval of concerted actions? |
The term "economic downturn" as used in Article 15, Paragraph 1, Subparagraph 6 of the Fair Trade Act encompasses both: downturns affecting particular industries as a result of a broader economic downturn; and downturns affecting only a specific industry independently of overall economic conditions.When the Fair Trade Commission reviews applications for approval of concerted actions based on industry downturn conditions, the Commission will consider the specific circumstances of the industry involved. Nevertheless, the principal basis for approving or denying such application remains whether the proposed concerted action would be beneficial to the overall economy.
Relevant Provision: Article 15 of the Fair Trade Act