Antitrust is a body of law consisting of the Sherman Act, the Clayton Act, and the Federal Trade Commission Act. Every state has similar laws. The purpose of antitrust law is to promote and maintain competitive markets, in order to provide consumers with prices that are reasonably related to the costs of production, with choice, and with innovation. Antitrust is sometimes referred to as the Magna Charta of the American economy. Antitrust law deals with such issues as monopolization, collusion, and merger controls.

Why Should Consumers Care about Antitrust?

Consumers benefit when companies have to compete vigorously for their business. Such competition leads to lower prices, better service, more innovative offerings, and a wider range of choices. In the absence of choice, the consumer must deal with one seller or one buyer (for example, if selling a home) and thus lacking bargaining power has to accept whatever is put forward by the other party.

What Can Consumers Do?

Consumers can educate themselves as to their rights in the marketplace so that they will recognize and avoid anticompetitive practices that might harm them. If they believe that they are aware of such practices, they can report them to the Office of the Attorney General in their state or to the Federal Trade Commission or the US Department of Justice. Private enforcement of the antitrust laws is also a possibility and indeed is encouraged by the availability of "treble" (triple) damages. Thus in addition to the state and two federal agencies, consumers have the option of speaking to a private attorney who might act in their behalf.