Use of words "National" and "Association" in name of proposed trade association The Commission was recently…

No. 130. Use of words "National" and "Association" in name of proposed trade association The Commission was recently requested to render an advisory opinjon concerning the legality of the use of words n hltional" and Association in the name of an association in the process of formation.

The Commission was advised that a group of members of the industry had cooperated in the founding of the association, an

. Cj. The Precious Ounce of Preventlon " an au'hess by Hononlb1e Paul Rand Dixon , before the Advertising Association of the V;'est, Spokane, Washington , June 2H , J06S , pp 11- 12.' The fluestion then arises fiS to whether all industry is privileged to crack the whip on the i1leg l! few within it. \\'hat kind of discipline is acceptable? Who is to be the judge find jury What a urance is there that the "-ssessme11t of the facts will la' impartial'. And will thc aceused have a fair chance to defend himself? These r,n serious CIuestions. We are no longer Jiving in the days of the Olrl \Vest when punishment was dealt out with more speed thall acclHacy. VI' are living- insteall , thank Heaven. under R government of law fa" which many generations of free men have fought. Althuugh legal process ometimes may be frustratingly slow , it is the safeguard of our liberty. Thus, should any industry interpret self policing a!\ ccJnveying the privi:ege to mete out jl1stice to offenders without due IJIoc""sS of law , far mOl'e would l,e iost than g-dned. That is why I say that self policing must be reinforced by govel-nmental .authority. Fur the fidvertising industrY to set up high ethicai stanrlards, as you Rlready have done. is all to the Rood, and to adhe!' e to the sUtndards is even better. Indeed , suph self restraint serves to foc'ls attention on tho e few who are out of step. They may even IJPcome so uncomfortably cOnspicuous that tlleY wii! mend their WRYS. But if they don , and perSUR ion fails, it i not your privileg", to riiscip1ine them. Such is the wi responsibility of govCJ"nmpnwl Ruthority- Iocal state or national."

Cf. also Donald F. Turnp." Cooperation Among Competitors " Northwestern -eniv , L. Rev, 8G5, 870-71 (1967):

In discussing c011aboration Ilmong competitors which reguiates or limits theil' competition in particuiar ways, I have hee11 considering only (Julltnt(u,! adherpnce by the l'ompetitoJ's themselves to ag-rCl'ments of one sort or anotller. I h.ave not b en discussing the questiun of ganciion that might be impused within the group for failure to eomp y with the agreement: the more so, I have not been rlisel)ssing sanctions etfect d thmugh pressure on out,ide panips \Viti, whom the group dcals. Fa!' good rellson , the law has alwnys been suspicious of the IJotentiai abuse in privatI' govetnmpnt of economic activity enforced by s8nction , Therefore, the use uf sanctions within and without the group raises quite separate ((uestior.s, . , . In short. the impusition of sanctions is indeed Rn assumlJtion of Ipgisl tive power by H private group which is likely to he intolera'uiP under a11 but the most extreTIe circumstances,

unincorporated group. These members were active in several different states. They are now soliciting memberships from every industry member known in the United States , which exceed twenty-five hundred in number. The purpose of the association wil be to foster the wen-being and growth of the industry, as is common with trade associations. Within a short time, the group expects to achieve substantial and widespread representation. The opinion advised that the Commission had considered the facts presented and the steps which the group planned to take and that it had no objection to the use of either word in the name of the proposed association. (File :-0. 673 7089, released June 13 1967.