After a six year battle between the California Dental Association (CDA) and the Federal Trade Commission (FTC), the U.S. Supreme Court unanimously ruled for the first time that the FTC has regulatory authority over non-profit professional associations which provide economic benefits to their members. This ruling which will limit the control these associations have over their memberships and was a blow not only to CDA, but to the American Medical Association and the other associations which supported CDA's position. There were two issues in this case. The first was the matter of FTC authority which was resolved in favor of the FTC. The second was whether CDA had violated the FTC Act by limiting advertising by its members. This matter, although decided by a 5-4 majority in favor of CDA, is still pending. The Court ruled that the lower court had erred in the process it followed in determining that CDA's policies restricting advertising had restrained trade, and therefore sent the case back to the lower court for reconsideration. Thus, this ruling should not yet be portrayed as a victory for CDA since the Supreme Court did not rule on CDAs culpability, but only on the test used to determine it. The lower court has opened a new judicial review of this matter. This paper will discuss and analyze the decision of the Supreme Court, the lower court's current proceedings, the effect on professional organizations and the public policy implications of the case.
Learning Objectives: At the conclusion of the session the participant (learner) in this session will be able to: 1. Describe how the case, CDA vs. FTC, affects the regulatory authority of the FTC with respect to professional organizations. 2. Indicate what affect the Supreme Court's decision in this case has had on the current advertising restrictions of the CDA on its membership. 3. Explain the charges made by the FTC aginst CDA. 4. Describe areas of public policy in which professional organizations are active that might be affected as a result of the Court's decision
Keywords: Public Policy, Service Delivery
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.