Group Boycotts or Concerted Refusals to Deal

Summary

This practice note discusses group boycotts, often called concerted refusals to deal, which are horizontal restraints in which two or more entities agree with each other not to deal, or deal only on certain terms, with other economic actors. Group boycotts are a type of unreasonable restraint of trade that may be illegal under Section 1 of the Sherman Act or Section 5 of the Federal Trade Commission Act under either a per se or rule of reason analysis. 15 U.S.C. § 1; 15 U.S.C. § 41. Both the federal government and private plaintiffs often bring cases challenging group boycotts. After a short overview of group boycotts, this practice note lays out whether a per se or rule of reason analysis will apply. The practice note also includes a chart of significant group boycott cases. Finally, the practice note provides tips for counseling clients who are considering these types of restraints, who may have a group boycott claim, or who are or may become a defendant in a group boycott case.