The Importance of Being Alert for Price Fixing and Bid Rigging

Because they are by their nature secret, price-fixing, bid-rigging and similar conspiracies are difficult to detect and prove. Law enforcement officials rely on complaints and information from government procurement officers and business customers, as well as competitors. A large percentage of all government investigations results from complaints received from consumers or people in business.

On the federal level, you can contact the US Department of Justice, Antitrust Division, or the Federal Trade Commission, both of which have headquarters in Washington, DC. In the District government, you can contact the Office of the Attorney General (OAG). Each agency can handle a wide range of complaints; complaints of mainly local significance are more likely to be of interest only to OAG.

Price-Fixing, Bid-Rigging, Monopolization, Labor, and Other Antitrust Violations

Antitrust Violations in DC

The Office of the Attorney General (OAG) enforces the District of Columbia’s antitrust laws to protect consumers and businesses from anticompetitive behavior and ensure commerce in the District is conducted in a fair manner.

Though anticompetitive behavior can take many forms, two of the most common seen in the District are price fixing and bid-rigging, instances in which competitors agree to set prices for goods or services. When this occurs, competitors can charge more than they would if they competed against one another, and higher prices can be passed down to consumers. For more information on price fixing and bid-rigging, please scroll down.

Other potentially anticompetitive practices that raise competition concerns include:

  • exclusive dealing—when a dominant seller requires that a buyer not do business with other suppliers;
  • tying and bundling—when a dominant seller requires a buyer to purchase a product they may not want in order to obtain other products they need, or otherwise sells products together in a way that limits competition in one of the products;
  • mergers, acquisitions, and related combinations—when competing companies or potentially competing companies combine, or even form a joint venture, that reduces their incentives to compete against each other.

OAG also protects workers’ rights to be free of anticompetitive non-compete agreements, which limit workers’ ability to work for their employer’s competitor, and “no poach” agreements between employers not to recruit or employ each other’s employees.

OAG routinely investigates and brings court actions to stop these and other types of anticompetitive conduct. However, because these practices are often agreed to behind closed doors, or buried in contracts, the first line of defense against them are DC residents and businesses who are harmed by such practices.

To report a potential violation of state or federal antitrust law in the District of Columbia, please complete this form.

Questions can be emailed to: antitrust@dc.gov

Antitrust and Other Laws Relating to Competition

Act Code Citation
District of Columbia Antitrust Act DC Code §§ 28-4501 to 28-4518
District of Columbia Non-Compete Ban DC Code §§ 32-581.01 to 32-581.05
Sherman Act 15 US Code §§ 1 - 2
Clayton Act 15 US Code § 18
Robinson Patman Act 15 US Code § 13
Cigarette Sales Below Cost Act DC Code §§ 28-4521 to 28-4527
Retail Services Station Act DC Code §§ 36-301.01 to 36-305.02
Uniform Trade Secrets Act DC Code §§ 36-401 to 36-410

Price Fixing or Bid Rigging Determination

Price-fixing, bid-rigging and similar conspiracies usually occur where there are relatively few sellers who have to agree. The larger the group of sellers, the more difficult it usually is to come to an agreement and enforce it.

Because they are secret by nature, conspiracies are difficult to detect and prove. If you suspect any anticompetitive behavior by competitors in pricing or bidding, keep an eye out for the following telltale signs: 

  • any evidence that two or more competing sellers of similar products have agreed to price their products a certain way, to sell only a certain amount of their product or to sell only in certain areas or to certain customers;
  • large price changes involving more than one seller of very similar products of different brands, particularly if the price changes are of an equal amount and occur at about the same time;
  • suspicious statements from a seller suggesting that only one firm can sell to a particular customer or type of customer;
  • fewer competitors than normal submit bids on a project;
  • identical bids submitted by competitors;
  • the same company repeatedly has been the low bidder on contracts for a certain product or service or in a particular area, or bidders seem to win bids on a fixed rotation;
  • an unusual and unexplainable large dollar difference between the winning bid and all other bids; or
  • the same bidder bids substantially higher on some bids than on others, and there is no logical cost reason to explain the difference.

These signs are by no means conclusive evidence of price fixing or bid rigging. More investigation by trained lawyers and investigators would be required to determine that. But they may be an indication of collusion, and the people who enforce the competition laws want to hear about them.

PL Definition of “Person” and Purpose of Chapter

Wednesday, September 24, 2014

District of Columbia Official Code
Division V. Local Business Affairs.
Title 28. Commercial Instruments and Transactions.
Subtitle II. Other Commercial Transactions.
Chapter 45. Restraints of Trade
D.C. Code § 28-4501 (2014)

PL Criminal Penalty for False Representation

Wednesday, September 24, 2014

District of Columbia Official Code
Division I. Government of District.
Title 2. Government Administration.
Chapter 3B. Other Procurement Matters.
Subchapter I. Procurement Related Claims.
D.C. Code § 2-381.09 (2014)

Community Dispute Resolution Program

This fact sheet is also available in Amharic, Chinese, French, Korean, Vietnamese and Spanish.

The Civil Litigation Division in The Office of the Attorney General (OAG) operates a Community Dispute Resolution Program. The Program provides for mediation or alternative dispute resolution of certain monetary claims for property damage or personal injury asserted against the District of Columbia. The program provides a quick, fair, and informal way of resolving claims while saving all parties money and time. In this program, the parties will initially attempt to informally mediate a settlement of the case directly with each other. If informal mediation directly between the parties is unsuccessful, the parties may elect to appear before a neutral mediator to present the claim. The neutral mediator, who may be a retired judge or attorney, will hear claims and conduct binding or non-binding mediation.

If the parties agree to binding mediation, the neutral mediator’s decision is final, and is not appealable or subject to judicial review. If the parties agree to non-binding mediation, the parties may agree to accept the award, or they may reject it and proceed with the court case. The ceiling on all awards is $50,000—the Program will not accept claims exceeding $50,000.

Download more information about the mediation program. If you have any questions, please contact Tonia Robinson at (202) 724-6507.

Program Requirements and Procedure:

Program Eligibility

  • Only cases seeking monetary damages are eligible for inclusion in the program. Cases seeking other types of relief, such as injunctive or declaratory relief, are not eligible for the Program.
  • Cases in which the question whether the conduct was within the employee’s duties or “scope of employment” is at issue or in which there is an individually named employee as defendant are not eligible for this program unless all named defendants agree to participate in this program.
  • The maximum amount of money damages that can be sought or awarded is $50,000.
  • No attorney’s fees or costs can be awarded.

Procedure

  • A plaintiff will initially agree to participate in an informal mediation directly with the District. If the case is not resolved in that mediation, the parties may agree to binding or non-binding dispute resolution or mediation before a neutral mediator.
  • The informal mediation will occur first and will be handled directly by counsel for the plaintiff and for the District of Columbia. The informal mediation will be convened by either the Deputy or Assistant Deputy of the Civil Litigation Division.
  • If the informal mediation results in a settlement, the parties will confirm the settlement in writing, and thereafter execute a written release and all necessary documents.
  • If the informal mediation is unsuccessful, the parties may discontinue their mediation effort and continue with the case in court. Alternatively, the parties may elect to have the matter heard and decided by a neutral mediator. Under this approach, each side will present their case to the neutral mediator, who will decide what amount, if any, should be awarded. Following each side’s presentation of their case and their evidence, but before the neutral mediator issues a decision, the parties will decide whether the neutral mediator’s decision will be binding or non-binding. Both parties must agree that the decision will be binding. If both parties do not agree that the neutral mediator’s decision will be binding, the mediator’s decision will be non-binding.
  • If the parties agree to a binding decision by the neutral mediator, the parties will also agree in writing that the neutral mediator’s decision is a full resolution of the claim and that the parties are foregoing any further litigation or consideration of the claim under any theory of liability in court or in any other forum or proceeding.
  • This agreement to binding mediation will not create any right, entitlement or benefit to any person not a party to the agreement. The only benefit the plaintiff has under the agreement for binding mediation is for the payment of an award if binding mediation is agreed to and there is a final decision with an award in favor of the plaintiff.
  • Each side will agree to a “non-disparagement” restriction under which neither side may make derogatory remarks or negative comments about the other side, the underlying incident or the mediation.
  • The mediation decision shall not be admissible (or relied upon by the party or any third party) in any other litigation or court or proceeding other than in a proceeding to enforce any agreement reached to resolve the matter.
  • There is no right to subpoena witnesses or to compel the attendance of a witness or production of document(s) to the mediation proceeding.
  • There is no right to discovery.
  • There is no motions practice.
  • Either party may appear pro se or with counsel.
  • The mediation proceeding is limited to the mediator and the parties – it is not a public proceeding.
  • The rules of evidence as applicable to an agency or administrative proceeding shall apply.
  • All decisions of the mediator and all agreements reached are not subject to any appeal or judicial review of any kind.

The Office of the Attorney General seeks to ensure that our services and programs are fully accessible to all. In accordance with the D.C. Human Rights Act of 1977, as amended, D.C. Official Code, Section 2-1401.01 et. seq., (Act) the Office of the Attorney General and the District of Columbia does not discriminate on the basis of actual or perceived race, color, religion, national origin, sex, age, marital status, personal appearance, sexual orientation, familial status, family responsibilities, matriculation, political affiliation, disability, genetic information, source of income, or place of residence or business. Sexual harassment is a form of sex discrimination which is also prohibited by the Act. In addition, harassment based on any of the above protected categories is prohibited by the Act. Discrimination in violation of the Act will not be tolerated. Violators will be subject to disciplinary action.

In addition, if you do you require any accommodation due to a disability or impairment to participate in this or other Office of Attorney General service or program, please contact Tonia Robinson at (202) 724-6516.

Please see attachment for the downloadable forms and more information.

 

PL Child Support Services Division's Biennial Report for Fiscal Years 2015-2016

Child Support Services Division Report Cover

The Child Support Services Division (CSSD) provides critical services to the families of the District of Columbia. CSSD helps establish paternity for children, so they know who their parents are and can turn to them for support. Attorneys go to court on a daily basis to establish child support orders so that children can be provided for financially and they work with parents to help them find jobs that allow them to be the financial backbone of their families.

We invite you to browse our Biennial Report for Fiscal Years 2015-2016 to learn more about CSSD's background, our year in review, success stories, and what our goals are looking ahead.