Can contractors in the USA publicly encourage each other to charge more? I've been in a few niche online forums and chat rooms that specifically forbid their members from discussing anything about the rates they offer as contractors. Some claim it's price fixing and outright illegal, others that it's too gray of an area they just don't want to be anywhere near. I can see where they're coming from: various descriptions of price fixing I can find on google seem to use broad strokes, suggesting any coordination intended to affect market value of a service amounts to the crime. But then I also see professionals talking about it on bigger social media platforms like Twitter, encouraging their peers to price themselves higher (apparently it's common for newer software contractors in particular to undervalue their services and underestimate their costs). These comments, often turning into extended conversations mentioning specific numbers, don't seem to have any problems. Where between explicit market manipulation and well-meaning mentorship is the line drawn?
Under Section 1 of the Sherman Act, there has to be an agreement for there to be price fixing. If the parties do not agree to engage in price-fixing or other anti-competitive behavior, there is no violation. There does not needed to be a written, explicit contract memorializing the agreement, but there does need to be more than just encouragement to change prices. Telling one person to charge more isn't price-fixing, because the person making the suggestion could then just leave his own prices in place and enjoy the competitive advantage. But if that person were to say, "We should raise our prices," and then they both did, you'd probably have a pretty good Sherman Act case.
According to the FTC which is the main U.S. federal government agency charged with administering federal anti-trust laws: Can prices ever be &quot;too low?&quot; The short answer is yes, but not very often. Generally, low prices benefit consumers. Consumers are harmed only if below-cost pricing allows a dominant competitor to knock its rivals out of the market and then raise prices to above-market levels for a substantial time. A firm's independent decision to reduce prices to a level below its own costs does not necessarily injure competition, and, in fact, may simply reflect particularly vigorous competition. Instances of a large firm using low prices to drive smaller competitors out of the market in hopes of raising prices after they leave are rare. This strategy can only be successful if the short-run losses from pricing below cost will be made up for by much higher prices over a longer period of time after competitors leave the market. Although the FTC examines claims of predatory pricing carefully, courts, including the Supreme Court, have been skeptical of such claims. Q: The gas station down the street offers a discount program that gives members cents off every gallon purchased. I can't match those prices because they are below my costs. If I try to compete at those prices, I will go out of business. Isn't this illegal? A: Pricing below a competitor's costs occurs in many competitive markets and generally does not violate the antitrust laws. Sometimes the low-pricing firm is simply more efficient. Pricing below your own costs is also not a violation of the law unless it is part of a strategy to eliminate competitors, and when that strategy has a dangerous probability of creating a monopoly for the discounting firm so that it can raise prices far into the future and recoup its losses. In markets with a large number of sellers, such as gasoline retailing, it is unlikely that one company could price below cost long enough to drive out a significant number of rivals and attain a dominant position. Most (if not all) states also have parallel state anti-trust laws which sometimes prohibit conduct that is not prohibited by federal anti-trust laws, although the overlap between the two is substantial.
Is the question just whether a company can contact its customers to ensure that they're happy with the company's services? If so, the answer is generally yes. I can think of no reason why this would change based on the fact that someone saw her using the services of a competitor. Your mother seems to be treating the phone call as an accusation, but it appears to be standard customer-relationship maintenance. If she chooses to approach it differently, she can use it to improve her bargaining power with Gym 1.
Generally speaking, there's nothing wrong with setting up shop to compete with someone, even if you hate them, and even if you hope to bring them to financial ruin. But there are laws surrounding what is and is not fair competition, and the behavior you're describing -- relying on greater resources to cut prices until a competitor folds up shop -- is known as &quot;predatory pricing.&quot; In the United States, it's illegal under the Clayton Act, 15 U.S.C. § 2, assuming that Bob is cutting prices below cost, and that Alice's exit from the market could lead to a monopoly for Bob. I don't know the limits on predatory pricing anywhere else, but my understanding is that it's illegal throughout the E.U., including in Germany, where Wal-Mart has struggled mightily to adapt to local competition law.
This doesn't sound like fraud (against you, at least), but it does sound like an unfair or deceptive trade practice, which is outlawed by Section 5 of the Federal Trade Commission Act and perhaps the Pennsylvania Unfair Trade Practices and Consumer Protection Law, both of which prohibit unfair and deceptive trade practices. I don't know about Pennsylvania, but the FTC has on many occasions taken action against companies for engaging in just this kind of behavior. To find out whether you would be able to take action against the other company, you'd want to find a good competition lawyer in Pennsylvania. For some more basic background on the FTC's rules, check out this primer.
In general you can dispute and negotiate any bill from a professional. The stronger your arguments for disputing it, and the more coherent your demands for adjustment, the more successful you will tend to be. This is like any business negotiation. One partner at a very large U.S. law firm once admitted to me that their corporate clients almost always ask for &ndash; and receive &ndash; billing adjustments. Of course, when push comes to shove, unless you're accusing the lawyer of fraudulent billing, then typically by contract you are liable for the bills. However, non-lawyers often assume that they will lose any dispute with their lawyers because it seems like lawyers have free access to the legal system. The reality is that there is a significant threshold that must be met before a law firm will sue a client for payment. That threshold will depend on the firm's opportunity costs, the costs of litigation, their assessment of reputational risks, how much they expect to actually collect, and sometimes just how ticked off they are.
Unless you were operating under a non-disclosure agreement he (and you) can use any information that he learned unless it violates IP law. It sound like what you told him is generic (if expert) views on high-level approaches to software design. That is, you didn't give him slabs of code that you own the copyright for or disclose trade secrets that you own. That sort of advice is freely usable by him. There is a reason that consultants in every field don't give away their advice before signing the contract. Now you know what it is.
You mean like this? Of course, a website can charge you to access its pages; many do. And yes, clicking on an "I agree" button can form a valid contract (just visiting the website can't). Historically, the law has adopted the position that if you sign it (including by clicking "I agree") you read it, you understood it and you agreed to it. It's hard to imaging how it could be otherwise because allowing people to get out of contracts by saying "I never read it" is problematical as well. However, there are two things that mitigate against the type of term you suggest; one practical and one legal. Practical: How do they get your money? They can ask for your credits card details and, if they do and you give them a court will probably come to the conclusion that you knowingly and willingly agreed to pay for the service. However, if they don't have any method of getting money from you, they would have to take you to court to do so. There are a number of practical problems with this like: who are you? where are you? Which court can they sue you in etc. Legal: At common law, there exists the doctrine of unconscionability that describes terms that are so extremely unjust, or overwhelmingly one-sided in favour of the party who has the superior bargaining power, that they are contrary to good conscience. Such terms are legally unenforcable. Further, in many jurisdictions, consumer protection law often give additional protections up to and including not enforcing terms that are merely unfair not just unconscionable.