Moneyzine
Contents
/Careers Guides/Group Boycott

Group Boycott

Moneyzine Editor
Author: 
Moneyzine Editor
2 mins
September 26th, 2023
Advertiser Disclosure

Definition

The term boycott refers to the act of abstaining from buying, using, or trading with a person, company, or country. When used in context of anticompetitive law, it refers to joint agreements between competitors to not do business with certain competitors, trade partners, or customers.

Boycotts are oftentimes instituted to raise awareness of a product's safety, quality, or environmental impact. When a group boycott agreement is made between competitors, it may be considered a criminal offense in the United States under antitrust laws.

Explanation

When two or more competitors in a given market refuse to do business with an individual or company, the result is a group boycott. Companies always have a right to not do business with another, but when this action involves an agreement between competitors, it's a violation of antitrust law.

Competitors will engage in boycotts to prevent new competitors from entering a market or as part of a price fixing scheme. For example, if a number of medical doctors band together and refuse to accept payment from an insurer due to low prices, this boycott of the insurer is illegal in the United States.

In addition to boycotts, anti-competitive practices may include dividing markets, bid rigging, disparagement, dumping, exclusive dealing, price fixing, tying, as well as the unethical collection of business intelligence.

Anti-competitive laws in the United States were passed to promote fair competition for the benefit of consumers. This includes a collection of both federal and state laws that are an extension of antitrust laws such as the Sherman Antitrust Act of 1890, the Clayton Act of 1914, and the Federal Trade Commission Act of 1914.

Related Terms

Related Content

  • Is It Worth Pursuing a Master's Degree?
    In an era where education is synonymous with opportunity, many consider pursuing a Master's degree a surefire way to advance their careers. However, is it really the golden ticket to success we've been led to believe?
    November 18th, 2024
  • The gender pay gap, the persistent disparity in average earnings between men and women throughout their careers, serves as a critical measure of wage inequality. This gap underscores the ongoing issue of income disparity, despite the ideal of equal pay for equal work.
    March 14th, 2024
  • 7 Essential Financial Moves After Losing Your Job
    Navigating the stormy seas of job loss? You're not alone.
    November 18th, 2024
  • The Most In-Demand Skills to Get Hired in 2024
    Every job requires a combination of vital skills, but what skillset is valued most in 2024? As the job market evolves, staying ahead means it’s key to understand and acquire the skills that employers value most.
    April 12th, 2024
  • Key Productivity in the Workplace Statistics for 2024
    In 2023, global employee engagement saw a slight uptick, with 23% of employees engaged, up by two percentage points. However, a sizable 59% are categorized as disengaged, while actively disengaged employees, known as "loud quitting," declined to 18%. These figures highlight the persistent challenge for organizations to cultivate happiness and productivity in the workplace.
    January 31st, 2024

Contributors

Moneyzine Editor
The Moneyzine editorial team consists of writers and content specialists with diverse backgrounds.
Moneyzine 2024. All Rights Reserved.