Antitrust — Protecting Competition
The Sherman Antitrust Act prohibits agreements that restrain trade or competition. Real estate agents must understand what is illegal.
Illegal antitrust activities:
Price fixing — brokers agreeing to charge the same commission rate. ILLEGAL even if it benefits consumers.
Market allocation — brokers agreeing to divide territories or client types among themselves
Group boycotts — brokers agreeing not to work with a specific company
Tie-in arrangements — requiring purchase of one service to get another
What you should say: Commission is always negotiable. Never imply there's a "standard" commission. Never discuss what you charge with competing agents.
Penalties: Criminal prosecution, fines up to $1 million for individuals, $100 million for corporations, imprisonment up to 10 years.
Common exam trap: A broker says "The standard commission in our area is 6%." This statement itself can imply price fixing. Always say commissions are negotiable and set independently by each brokerage.
Reference:
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