The Federal Trade Commission (FTC) has formally abandoned its appeals in Ryan, LLC v. FTC (5th Cir.) and Properties of the Villages v. FTC (11th Cir.), effectively conceding the vacatur of its proposed nationwide ban on noncompete agreements. While this decision confirms that the FTC’s sweeping noncompete rule will not take effect, employers should not interpret the move as a retreat from scrutiny of post-employment restrictive covenants. On the contrary, recent enforcement actions and policy initiatives suggest that the FTC will continue to pursue noncompetes and similar labor market restrictive covenants through alternative strategies. Read the full Alert on the Duane Morris website.
Mitigating the Risk of AI Pricing Tool Noncompliance with FTC Act
Duane Morris special counsel Justin Donoho authored the Journal of Robotics, Artificial Intelligence & Law article, “Ten Design Guidelines to Mitigate the Risk of AI Pricing Tool Noncompliance with the Federal Trade Commission Act, Sherman Act, and Colorado AI Act.” The article is available here and is a must-read for corporate counsel involved with development or deployment of AI pricing tools.
DOJ Antitrust Division Offers New Incentives for Reporting Antitrust Violations
The Department of Justice’s Antitrust Division has officially launched its first-ever Whistleblower Rewards Program through a memorandum of understanding with the United States Postal Service and the U.S. Postal Service Office of Inspector General. This new program offers monetary rewards of up to 30 percent of criminal fines recovered for individuals who provide information leading to successful antitrust prosecutions of at least $1 million in fines. Read the full Alert on the Duane Morris LLP website.
Chambers USA Recognizes Duane Morris Antitrust Division and Attorneys
Duane Morris LLP is pleased to announced that Chambers USA has recognized Duane Morris Antitrust division and attorneys.
Pennsylvania
Edward G. Biester III, Antitrust
Sean P. McConnell, Antitrust
Washington, D.C.
Brian H. Pandya, Antitrust
Presidential Administration Begins to Focus Its View of Antitrust Enforcement
Recent actions by both the Department of Justice Antitrust Division (DOJ) and Federal Trade Commission (FTC) indicate that the enforcement agencies are continuing with policies similar to the prior administration, albeit with slightly different objectives and focus. Businesses should monitor public statements and recent enforcement activity to evaluate how antitrust enforcement priorities at the agencies are taking shape. Read the full Alert on the Duane Morris website.
Environmental Initiatives Are Not Exempt from Antitrust Enforcement, FTC Says
At the American Bar Association’s recent antitrust meeting in Washington, D.C., the Federal Trade Commission (FTC) Office of Policy and Coordination’s Deputy Assistant Director Synda Mark cautioned companies seeking to collaborate on environmental initiatives that they are not exempt from antitrust enforcement. Mark commented during a panel discussion that antitrust officials will not “turn a blind eye” to anticompetitive conduct, despite corporate promises of the environmental benefits of collaborative conduct, noting that the FTC works only to prevent economic harms and that environmental justice goals do not “seep into the antitrust analysis.” Read the full Alert on the Duane Morris website.
FTC Announces Crackdown on Deceptive AI Claims and Schemes
As part of its ongoing enforcement efforts against allegedly deceptive and misleading uses of artificial intelligence, the Federal Trade Commission (FTC) disclosed five new enforcement actions on September 25, 2024, against companies across various industries that either allegedly made fraudulent claims about their AI resources or offered AI services that could be used in misleading or deceptive ways. Read the full Alert on the Duane Morris website.
Federal Court Stops the FTC Noncompete Rule from Being Enforced or Taking Effect
On August 20, 2024, the United States District Court for the Northern District of Texas, in the Ryan lawsuit, struck down a final Federal Trade Commission (FTC) rule―which was set to go into effect on September 4, 2024, and ban noncompetition agreements for virtually all U.S. workers―holding that the rule shall not be enforced by the FTC or take effect as to any workers or employers. Read the full Alert on the Duane Morris website.
NCAA Student-Athlete Settlement Proposal Takes Its Best Shot at Resolving Three Antitrust Cases
On July 26, 2024, attorneys for the NCAA, the Power Five conferences and classes of college athletes filed a motion for preliminary approval of a settlement agreement to resolve three antitrust litigations: House v. NCAA, Hubbard v. NCAA and Carter v. NCAA. Read the full Alert on the Duane Morris website.
Billion-Dollar Settlement to Resolve Antitrust Litigation Will Impact Student-Athletes and NCAA Enforcement
On May 23, 2024, the NCAA reached a historic $2.8 billion settlement with former college athletes who had filed an antitrust class action demanding billions in potential compensation allegedly denied to them for decades. This represents a major turning point in college athletics. Read the full Alert on the Duane Morris website.