NYC Cartel Attorney
What is a Cartel?
A cartel is an illegal agreement amongst competing firms to work together instead of against each other. It is not a term that applies solely to the illegal drug trade. Section 30 of the Commerce Act along with other antitrust laws forbids cartels. Firms involved in a cartel agreement, agree to fix prices, market shares, and production.
Price fixing is defined as an agreement between two or more competitors to control and maintain a fixed price for a good or service. Big rigging is also common in most cartel agreements. Cartels are most common in oligopolistic industries.
Overall, the goal of a cartel agreement is to reduce competition and increase profits for all the involved members, which puts them at an unfair advantage. Consumers face significant consequences due to cartel agreements, such as, fewer but more expensive choices along with products and services of poor quality.
If a firm is found guilty by the courts of cartel/price fixing, the firms and individuals involved will face severe penalties. For instance, an individual alone can face a fine up to $500,000 and firms can face a fine up to $10 million or three times the commercial gain, or, 10% of the turnover.