Community Chat

[Rainbows and Roses]

Did anyone just see this on Stossel. FTC?

[sfnative]

I didn't see it. Did it have to do with ASCAP?

[insomniac]

I don't know. Why DO they?

[KYToby]

Google is your friend.

[Yuban3]

Stossel is a blowhard.

What he says is NOT gospel.

Don't believe everything that he says.

[stilltamn8r]

I give up..why DOES they need this?

[brii]

I can't even pretend to know the answer.

[terrier3]

On 3/30/2014 Yuban3 said:

Stossel is a blowhard.

What he says is NOT gospel.

Don't believe everything that he says.

Whatever he says, you're pretty safe to assume the OPPOSITE is true.

[deepwaterdotter]

I didn't see this show. What did Mr. Stossel have to say?

[monalisa1452]

MTNA Member Advisory from mtna dot org

A recent editorial in the Wall Street Journal took aim at the Federal Trade Commission (“FTC”) for its investigation into the code of ethics of MTNA and its affiliated state and local music teacher associations. At issue is the FTC’s claim against MTNA and the affiliates that provisions in their codes of ethics against teachers soliciting students from another studio somehow restrains trade and drives up the price of music lessons.

Although MTNA demonstrated to the FTC that its code of ethics is voluntary and that the Association has never enforced the solicitation provision, the FTC offered MTNA the unappetizing choice of entering into a settlement or spending hundreds of thousands of membership dues dollars fighting the federal government. Moreover, the fight would have included affiliated state and local music teachers associations, which have neither the manpower nor the financial resources to take on the FTC.

Given the alternatives, MTNA and its attorneys negotiated a consent decree with the FTC under which MTNA and its affiliated associations agree to purge their code of ethics and other policies of any solicitation requirements or other trade restraints. Other provisions of the settlement require MTNA to notify members of the settlement, conduct antitrust compliance training for national and state leaders, and disassociate itself from affiliated music teacher associations that engage in anti-competitive practices. While the consent decree, which still must be approved by the FTC, imposes these time-consuming recordkeeping and training obligations on MTNA, it was the only viable alternative for MTNA to pursue.

The Wall Street Journal portrayed the proposed consent decree as a clear example of the federal government’s abusive practices against small businesses. The Wall Street Journal editorial labeled the FTC investigation and enforcement as “patently absurd” and “ludicrous.”

Regardless of the relative merits of the FTC’s investigation, MTNA’s leadership, after consulting at length with MTNA attorneys, strongly believes that the settlement by consent decree was the best option for MTNA and its members. Once the consent decree is approved by the FTC, MTNA members will receive additional information about the terms of the settlement.