A Guide to the Illinois Antitrust Act
Illinois Attorney General Lisa Madigan

FOREWORD

Antitrust laws exist to prohibit trade restraints that decrease competition among persons engaged in commerce and trade. Competition is a vital part of our free enterprise system. It rewards the industrious and encourages innovation and efficiency. When businesses compete, consumers benefit from goods or services of higher quality at lower prices than would be available in the absence of competition.

The Illinois Antitrust Act was enacted in 1965. It is designed to supplement the federal antitrust laws in securing the benefit of free and open competition to Illinois businesses and consumers. The mission of the Antitrust Bureau of the Illinois Attorney General's Office is to enforce both state and federal antitrust laws for the benefit of Illinois consumers, businesses, and governmental entities.

This pamphlet is a part of the Bureau's effort to educate the public about antitrust laws. Through it, we hope to assist the business community, consumer organizations, purchasing agents, and state, county and local officials in recognizing and reporting illegal anticompetitive practices. The violation of antitrust laws not only penalizes the consuming public, but also hurts the vast majority of honest businessmen and businesswomen who comply with the law. Public assistance in the enforcement of our antitrust laws is vital to the preservation of a healthy competitive climate in Illinois.


Lisa Madigan
Attorney General

TABLE OF CONTENTS

The Antitrust Laws 1
   Federal Statutes 1
   Illinois Statutes 2

Examples of Antitrust Violations 2
   Price Fixing 3
   Bid Rigging. 4
   Limitation of Output 5
   Division of Markets, Customers or Products 6
   Resale Price Maintenance 7
   Tying Arrangements 8
   Group Boycotts 8
   Monopolization 9
   Exclusivity Arrangements 10
   Predatory Pricing 11

Antitrust Enforcement 11
   Illinois Antitrust Bureau 11
   Criminal Actions 12
   Civil Penalty Actions 12
   Other Civil Remedies 13
   Indirect Purchaser Actions 13
   Parens Patriae Actions 14
   Consent Decrees 14
   Federal Antitrust Enforcement 15
   Private Enforcement Actions 15
    Role of the Public 16

APPENDIX i
   Illinois Antitrust Act i

THE ANTITRUST LAWS

Antitrust statutes have been enacted on both the federal and state levels. Federal antitrust laws pertain to illegal activities which affect interstate commerce. Interstate commerce consists of those activities which are in the "flow" of trade across state lines or which have a significant effect on the flow of trade. Illinois antitrust laws cover both interstate activities which have an impact in Illinois and illegal practices of a purely local nature which affect only the State, its political subdivisions, businesses or consumers.

FEDERAL STATUTES

The SHERMAN ANTITRUST ACT of 1890 is the cornerstone of all antitrust law in this nation. It prohibits agreements, contracts, combinations and conspiracies in restraint of interstate trade, including monopolization and attempts to monopolize. The CLAYTON ACT supplements the Sherman Act and prohibits price discrimination, tying and exclusive dealing arrangements, and mergers where the effect of these activities may be substantially to lessen competition or tend to create a monopoly. The HART-SCOTT-RODINO ANTITRUST IMPROVEMENTS ACT supplements the Clayton Act by authorizing state attorneys general, acting in their parens patriae capacity, to recover treble damages on behalf of citizens who suffer monetary loss as a result of antitrust violations. The FEDERAL TRADE COMMISSION ACT prohibits "unfair methods of competition" and "unfair or deceptive acts or practices" and provides a broader scope than the Sherman or Clayton Acts.

ILLINOIS STATUTES

The ILLINOIS ANTITRUST ACT (740 ILCS 10/1 et seq.) ("the Act") expressly prohibits those anticompetitive practices that are most detrimental to competition and consumers, including price fixing and allocations or divisions of markets, customers, territories, sales or supplies. It also prohibits other unreasonable restraints of trade, which may include exclusive dealing arrangements the establishment or use of monopoly power to exclude competition or fix prices, and tying arrangements. The Act provides for public enforcement by civil and criminal proceedings with centralization of enforcement authority in the Illinois Attorney General. The Act also allows suits by injured private parties for damages or injunction, or both.

EXAMPLES OF ANTITRUST VIOLATIONS

INTRODUCTION

Antitrust laws proscribe certain offenses as "per se" violations which are commonly deemed to constitute the most serious restraints upon competition. In general, these practices include the conspiratorial offenses of price fixing, bid rigging, limitations on production, and allocation of customers or markets. Agreements or practices that are condemned as per se unlawful virtually always raise price and/or reduce output without creating any procompetitive benefits. Because per se violations are inherently anti-competitive, these acts are conclusively illegal and few or no defenses or justifications are permitted.

In addition, a number of illegal trade restraints are not specifically prohibited as per se offenses but are violative of the antitrust laws if they unreasonably restrain trade or commerce. These restraints are not "per se" illegal but are subject to the so-called "rule of reason." Under this test, a court must examine the economic circumstances and the impact of the restraint before finding it illegal.

In a booklet of this size is it impossible to discuss all aspects of antitrust violations. Included here are simple examples of more common practices which no business or consumer should tolerate. The illustrations provide a general overview of trade restraints and are not intended to address specific points of law.

1. PRICE FIXING

Agreement between competitors to control the price of a product or service.

Any agreement, contract, or conspiracy between or among competitors is an antitrust violation where the agreement is made for the purpose or with the effect of controlling the prices or rates charged for the product or service. Price fixing among competitors is often termed "horizontal" price fixing. The agreement need not be express; a tacit understanding that certain pricing or pricing practices will be followed is illegal. As a general rule, price fixing is unlawful even if the prices fixed are "reasonable" or necessary to produce a fair profit. It includes not only agreements to charge a particular price but also agreements to set minimum prices or price ranges, to manipulate bid prices, to agree when prices will change, to agree which competitor will raise prices first, to implement uniform price discounts, to agree on standard credit terms, or to otherwise limit price competition.

Example

Alpha Co. and Beta, Inc. manufacture widgets. The presidents of the two companies often meet for lunch. They discuss business and compare the prices they are charging. They agree that there is no reason for them to engage in price competition and therefore set a minimum price below which neither will charge. Under these circumstances, the two companies have engaged in an illegal price fixing agreement.

2. BID RIGGING

Agreement between bidders to predetermine the winner of a contract.

Any agreement among competitors in bidding on contracts to designate one of them to submit the lowest bid is another form of price fixing. It is also unlawful for competitors to agree to refrain from bidding against each other or to agree to submit complementary bids in order to falsely create the appearance of competition. Bid rigging appears in many forms. The following are some examples:

1. Bid Suppression - In bid suppression or bid limiting schemes, one or more competitors who otherwise would bid, or who have previously bid, agree to refrain from bidding or withdraw a previously submitted bid so that the designated winner's bid will be accepted.

2. Complementary Bidding - Complementary bidding (also called protective or shadow bidding) occurs when one or more competitors submit bids that they know will be rejected because they are too high or do not otherwise comport with the requirements of the bid specifications. Complementary bidding permits the participants to designate a winner while maintaining the appearance of competition.

3. Bid Rotation - In bid rotation schemes, all conspirators submit bids, but take turns being the winning low bidder. The terms of rotation may vary. For example, competitors may take turns on contracts according to the size of the contract, trying to equalize the value of contracts won by each conspirator over time.

4. Bogus Joint Ventures - Bogus joint ventures are used by conspirators to rid the process of competition and at the same time assure themselves business. In a bogus joint venture scheme, at least two competitors who are capable of doing the whole job independently form a joint venture and bid as one.

3. LIMITATION OF OUTPUT

Agreement among competitors to limit the quantity of a product or service marketed.

Any agreement among competitors to limit or control the sale or supply of any commodity or service is illegal where the agreement is made for the purpose or with the effect of controlling the prices or rates charged for such product or service. When competitors agree to limit production or reduce services, an artificial scarcity may be created and prices can be expected to rise. Such agreements are the equivalent of price fixing and achieve the same result by indirect means.

Example

Alpha Co. and Beta, Inc. supply all demand for widgets in southern Illinois. If they produce their widgets at full capacity, there would be an excess on the market, and in order to sell their widgets, prices would have to go down. Alpha and Beta agree with each other to limit widget production to 50% of capacity, and to sell widgets at premium prices because they are now in short supply. This agreement constitutes an unlawful output limitation.

4. DIVISION OF MARKETS, CUSTOMERS OR PRODUCTS

Agreements between competitors to allocate territories, customers or products.

Any agreement, contract or conspiracy among competitors to allocate or divide customers, territories, sales, or markets for any product or service is forbidden by the antitrust laws. Such agreements constitute trade restraints with no purpose except to stifle competition. They are as anti-competitive as price fixing.

Example

Alpha Co. and Beta, Inc., manufacture widgets. The presidents of the two companies occassionally play golf together. On such occassions, they agree that their profits could rise if each company sold widgets only in its own end of the county. They decide not to advertise or sell to customers in the other's territory. Alpha Co. and Beta, Inc., have unlawfully divided the business between themselves and eliminated competition within the county. Their agreement is per se illegal.

5. RESALE PRICE MAINTENANCE

Agreement between a supplier and its customer/retailer that the customer/retailer maintain a set price for the resale of a product.

A manufacturer can decide how it wants to distribute its product, and can unilaterally impose restrictions on its distributors or retailers. This includes the right to unilaterally refuse to sell to discounters. However, price fixing agreements between a manufacturer or supplier and those below them in the chain of distribution, e.g., wholesalers or retailers, are illegal. Such arrangements occur when a supplier reaches an agreement with its customer/retailer to resell its product at a specified price. These agreements take away the freedom of indpendent businessmen to determine their own resale price. Arrangements setting minimum prices are illegal, and even arrangements setting maximum prices are sometimes illegal. These combinations are sometimes called "vertical price fixing agreements."

Example

Gamma Enterprises manufactures the new improved Widget II. It believes that the price of Widget II should be no less than $50.00 to insure the image of the company as a quality widget manufacturer. Discount Store prefers to sell the Widget II for less and make a greater profit on the larger volume of sales. Gamma's sales representative threatens to cut off Discount's supply unless Discount agrees to retail the product at the $50.00 price. Discount agrees to maintain the resale price at $50.00. Gamma has imposed an illegal resale price maintenance scheme.

6. TYING ARRANGEMENTS

Refusal to sell a product or service unless another product or service is also purchased.

Tying arrangements exist when a seller of a product that a buyer wants (the tying product) conditions that purchase on the purchase of another product (the tied product). The tied product is sold not on the basis of quality or price, but on the purchaser's desire for the tying product. This practice burdens the purchaser who does not want the tied product (or does not want it at the seller's high price), and also distorts competition for the tied item. To be illegal, the seller must generally have sufficient economic power in the tying product to restrain commerce in the tied product.

Example

Theta desires to purchase a widget from Alpha Co., the only widget manufacturer in the geographical area where Theta does business. Alpha replies that the widget may only be bought on the condition that a widget wrench be purchased as well. Alpha Co. has unlawfully tied the sale of wrenches to widgets.

7. GROUP BOYCOTTS

Agreed action by competitors to refuse to deal with competitors, customers or suppliers.

A refusal by competitors to deal with another constitutes an illegal primary boycott. Another type of boycott, called a secondary boycott, is aimed at influencing the trading policies of third parties rather than the boycott's immediate victim. In a secondary boycott, the competitors threaten to stop dealing with the third parties (e.g., suppliers) unless the third parties stop dealing with the target of the boycott. The result is that the boycotters' primary victim will find it more difficult to compete against the boycotters.

Example

Alpha Co. and Beta, Inc. manufacture high-grade widgets. Omega Industries copies their widget designs and through mass production and low overhead, is able to sell its product at lower prices. Alpha, Beta and Omega all purchase raw materials from Zeta Corp. Alpha and Beta together advise Zeta that they will cut off their purchases of raw materials from Zeta unless Zeta stops selling to Omega. Alpha and Beta have engaged in an illegal boycott.

8. MONOPOLIZATION

The establishment, maintenance, use or attempt to acquire monopoly power is unlawful when it is done for the purpose of excluding competition or raising prices. Monopoly power exists when a single firm has an overwhelming share of a particular line of business in a particular geographical area such that the firm has effective market control. If the firm has achieved or maintained its dominant market share by exclusionary tactics, apart from superior product, skill or accident, it is monopolizing. In the presence of monopolization, competition is absent and customers are left without real choices.

Example

Alpha Co. is the sole manufacturer of gadgets in Zeta, Illinois. Alpha also manufactures widgets, a closely related product in competition with several other companies in the the Zeta area. To avoid this competi- tion from other widget manufacturers, Zeta requires its gadget customers to purchase all of the widgets they need from Zeta. As a result, the competing widget manufacturers are driven out of business and Zeta is then able to raise the prices it charges for widgets. Zeta has illegally monopolized the market for widgets.

9. EXCLUSIVITY ARRANGEMENTS

A sale by a seller on condition that the buyer will not deal in the goods of the seller's competitors.

When a seller sells to a buyer only after the buyer agrees not to purchase and resell the goods of the seller's competitors, the arrangement is known as exclusive dealing. In order for the arrangement to be illegal, a court must find that it substantially lessens competition or tends to create a monopoly.

Example

Alpha Co., a widget manufacturer, requires that each of its distributors enter into an agreement with it that they will carry only Alpha widgets. Because of these exclusivity agreements, Beta, Inc., a competing widget manufacturer, cannot find anyone to distribute its widgets and goes out of business, leaving Alpha as the sole manufacturer of widgets. The exclusivity agreements are illegal.

10. PREDATORY PRICING

Predatory pricing, or pricing below one's cost in order to obtain or maintain a monopoly, can also be unlawful. To prove illegality, however, the complaining party must show not only that the predator's price is below a relevant measure of its costs, but also that, after the competition is driven out of business, the predator will be able to raise its prices above what the prices would have been in the presence of competition, and recoup its predatory pricing losses.

Example

Alpha Co. is the sole manufacturer of widgets in Zeta, Illinois. Until recently, Beta, Inc. also operated a widget plant there. Following a period of below cost selling by Alpha, Beta closed its doors and sold its plant and equipment. Alpha outbid all other widget companies for the purchase of Beta's operation for the purpose of dismantling the Beta plant and equipment and keeping them out of the hands of other widget companies. Thereafter, Alpha maintained 100% of the market for widgets in Zeta, Illinois. Alpha Co. has used predatory pricing to establish its monopoly position.

ANTITRUST ENFORCEMENT

1. THE ILLINOIS ANTITRUST BUREAU

The Illinois Antitrust Act provides for state antitrust enforcement by criminal and civil proceedings with exclusive enforcement authority conferred upon the Illinois Attorney General's Office. The Illinois Antitrust Act gives the Attorney General all the powers and duties vested by law in State's Attorneys with respect to criminal prosecutions. In addition, the Act provides the Attorney General with civil subpoena powers to require parties to appear or produce documentation before the Attorney General, prior to the filing of a civil suit. The assistance and participation of State's Attorneys is sought and encouraged to facilitate effective antitrust enforcement.

A. CRIMINAL ACTIONS

The Attorney General is empowered to petition the circuit courts of Illinois to convene a grand jury to investigate possible criminal violations of the Illinois Antitrust Act. Only certain restraints are subject to criminal penalties including price fixing, limitations on production, allocation of markets, customers and products, and exclusive dealing arrangements. These activities are Class Four felonies and punishable by fine of $1,000,000 for corporations and $100,000 for individuals. (740 ILCS 10/6.)

B. CIVIL PENALTY ACTIONS

The Attorney General is also empowered by law to seek civil penalties for violations of the Illinois Antitrust Act. In lieu of any penalty otherwise prescribed for a violation of the Act, and in addition to civil damage actions, the Attorney General may recover a maximum penalty of $50,000 from every individual who violates the Act and $100,000 from each corporation. (740 ILCS 10/7(4).)

C. OTHER CIVIL REMEDIES

The Attorney General also is authorized to institute civil proceedings to prevent and restrain any violations of the Illinois Antitrust Act. (740 ILCS 10/7.) The Attorney General may seek damages sustained by the State of Illinois as a result of violations of the Illinois or federal antitrust acts and may seek broad equitable relief, including injunctions, divestiture of property, and dissolution of business.

In addition, the Attorney General may bring a civil action to recover damages on behalf of counties, municipalities, townships and other subdivisions. If its damage action is successful, the State, as well as other private plaintiffs, shall recover treble damages for per se violations.

D. INDIRECT PURCHASER ACTIONS

In 1977, the United States Supreme Court decided that private parties, including state governments, do not have the authority to sue price fixers for damages under the federal antitrust laws if the parties were indirect purchasers of the price fixed goods. Unless the affected consumers were the direct purchasers of the price fixed goods from the price fixers, they have no right to sue for damages under the federal antitrust laws. If, for example, a group of manufacturers agree to fix the prices at which goods are sold to retailers, a consumer who purchases from a retailer and not from the manufacturers has no cause of action for price fixing.

At the state level, the Illinois Antitrust Act has been amended to include indirect purchaser suits by any indirect purchaser damaged by a price fixing violation under the Act. Additionally, the Illinois Attorney General is authorized to main-tain a class action suit on behalf of indirect purchasers asserting claims under the Act. (740 ILCS 10/7(2).)

E. PARENS PATRIAE ACTIONS

The Hart-Scott-Rodino Antitrust Improvements Act of 1976 amended the Clayton Act by authorizing state attorneys general to recover treble damages in a civil action on behalf of citizens of the state who suffer monetary losses as a result of federal antitrust violations. The parens patriae procedure allows actions to be brought by attorneys general on behalf of consumers where the impact on each individual is too small to warrant separate complaints. (15 U.S.C. Sec. 15(c-f)).

The Illinois Attorney General may also proceed parens patriae to recover damages for Illinois citizens harmed by a violation of the Illinois Antitrust Act.

F. CONSENT DECREES

Civil actions may be concluded by consent decrees entered into between the government and suspected antitrust violators. The decree is approved by the court and essentially provides that antitrust violators have not admitted any wrongdoing, but will be enjoined from committing the suspected practice. Illinois law, as its federal counterpart, provides that consent decrees, which are entered into before the taking of any testimony, cannot be used in private actions as prima facie evidence against the consenting defendants. (740 ILCS 10/8).

2. FEDERAL ANTITRUST ENFORCEMENT

The Antitrust Division of the United States Department of Justice is authorized to enforce the provisions of the Sherman Act by criminal and civil proceedings. It shares Clayton Act enforcement duties with the Federal Trade Commission and represents the United States in actions to recover damages incurred by the federal government as a result of antitrust violations. The Department of Justice shares its civil enforcement powers with other parties, including state governments.

The Federal Trade Commission is authorized to investigate and proceed against businesses which commit unfair or deceptive acts or practices or engage in unfair methods of competition in violation of the Federal Trade Commission Act. The Commission also enforces several consumer protection laws, as well as laws which promote competition.

3. PRIVATE ENFORCEMENT ACTIONS

Suits by private parties are a valuable supplement to state and federal antitrust enforcement. The Illinois and federal antitrust acts authorize persons who are injured in their business or property by antitrust violations to bring suit and recover treble damages, court costs and reasonable attorney's fees. The triple damage provision is expressly designed to provide an incentive for these types of actions. Private parties are also authorized to bring suit for injunctive relief to halt present or future antitrust violations.

4. ROLE OF THE PUBLIC

Effective antitrust enforcement requires business, consumer, and public support. Assistance is vital to the preservation of a healthy competitive climate. If you have information or questions about a possible antitrust violation, please write or phone the Antitrust Bureau of the Illinois Attorney General's Office.

LISA MADIGAN
ATTORNEY GENERAL
STATE OF ILLINOIS
ANTITRUST BUREAU
100 WEST RANDOLPH STREET
CHICAGO, ILLINOIS 60601
312-814-2582
1-800-964-3013 (TTY)

APPENDIX

ILLINOIS ANTITRUST ACT

Section

10/1 Short title.
10/2 Purpose.
10/3 Violations-Enumerations.
10/4 Definitions.
10/5 Exceptions.
10/6 Violations-Punishments-Prosecutions
10/7 Civil actions and remedies.
10/7.1 Personal service.
10/7.2 Investigation by Attorney General
10/7.3 Service of subpoena.
10/7.4 Examination of witnesses.
10/7.5 Fees and mileage.
10/7.6 Failure or refusal to obey subpoena.
10/7.7 Incriminating testimony.
10/7.8 Action by state, counties, municipalities, etc. for damages.
10/7.9 Action not barred as affecting or involving interstate or foreign commerce.
10/8 Judgment or order as prima facie evidence in action for damages.
10/9 Violation as conspiracy at common law.
10/10 Repealed.
10/11 Construction of federal anti-trust law.

740 ILCS 10/1. [Short title]

Sec. 1. This Act shall be known and may be cited as the Illinois Antitrust Act.

740 ILCS 10/2. [Purpose]
Sec. 2. The purpose of this Act is to promote the unhampered growth of commerce and industry throughout the State by prohibiting restraints of trade which are secured through monopolistic or oligarchic practices and which act or tend to act to decrease competition between and among persons engaged in commerce and trade, whether in manufacturing, distribution, financing, and service industries or in related for-profit pursuits.

740 ILCS 10/3. [Violations]
Sec. 3. Every person shall be deemed to have committed a violation of this Act who shall:

  1. Make any contract with, or engage in any combination or conspiracy with, any other person who is, or but for a prior agreement would be, a competitor of such person:

    1. for the purpose or with the effect of fixing, controlling, or maintaining the price or rate charged for any commodity sold or bought by the parties thereto, or the fee charged or paid for any service performed or received by the parties thereto;
    2. fixing, controlling, maintaining, limiting, or discontinuing the production, manufacture, mining, sale or supply of any commodity, or the sale or supply of any service, for the purpose or with the effect stated in paragraph a. of subsection (1);
    3. allocating or dividing customers, territories, supplies, sales, or markets, functional or geographical, for any commodity or service; or
  2. By contract, combination, or conspiracy with one or more other persons unreasonably restrain trade or commerce; or
  3. Establish, maintain, use, or attempt to acquire monopoly power over any substantial part of trade or commerce of this State for the purpose of excluding competition or of controlling, fixing, or maintaining prices in such trade or commerce; or
  4. Lease or make a sale or contract for sale of goods, wares, merchandise, machinery, supplies, or other commodities, or services (including master antenna television service), whether patented or unpatented, for use, consumption, enjoyment, or resale, or fix a price charged thereof, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or purchaser thereof shall not use or deal in the goods, wares, merchandise, machinery, supplies, or other commodity or service (including cable television service or cable television relay service), of a competitor or competitors of the lessor or seller, where the effect of such lease, sale or contract for such sale or such condition, agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce; or
  5. Being an employee, officer or agent of any foreign government, or an employee, officer or agent of a corporation or other entity which does business with or seeks to do business with any foreign government or instrumentality thereof; enforce, attempt to enforce, agree to or take action to forward the aims of, any discriminatory practice by the foreign government which is based on race, color, creed, national ancestry or sex or on ethnic or religious grounds, where such conduct, course of conduct, or agreement takes place in whole or in part within the United States and affects business in this State.

740 ILCS 10/4. [Definitions]
Sec. 4. As used in this Act, unless the context otherwise requires: "Trade or commerce" includes all economic activity involving or relating to any commodity or service.
"Commodity" shall mean any kind of real or personal property.
"Service" shall mean any activity, not covered by the definition of "commodity," which is performed in whole or in part for the purpose of financial gain.
"Service" shall not be deemed to include labor which is performed by natural persons as employees of others.
"Person" shall mean any natural person, or any corporation, partnership, or association of persons.

740 ILCS 10/5. [Legal acts]
Sec. 5. No provisions of this Act shall be construed to make illegal:

  1. the activities of any labor organization or of individual members thereof which are directed solely to labor objectives which are legitimate under the laws of either the State of Illinois or the United States;
  2. the activities of any agricultural or horticultural cooperative organization, whether incorporated or unincorporated, or of individual members thereof, which are directed solely to objectives of such cooperative organizations which are legitimate under the laws of either the State of Illinois or the United States;
  3. the activities of any public utility, as defined in Section 3-105 of the Public Utilities Act [220 ILCS 5/3-105] to the extent that such activities are subject to the jurisdiction of the Illinois Commerce Commission;
  4. The activities of a telecommunications carrier, as defined in Section 13-202 of the Public Utilities Act [220 ILCS 5/13-202], to the extent those activities relate to the provision of noncompetitive telecommunications services under the Public Utilities Act and are subject to the jurisdiction of the Illinois Commerce Commission or to the activities of telephone mutual concerns referred to in Section 13-202 of the Public Utilities Act [220 ILCS 5/13-202] to the extent those activities relate to the provision and maintenance of telephone service to owners and customers;
  5. the activities (including, but not limited to, the making of or participating in joint underwriting or joint reinsurance arrangement) of any insurer, insurance agent, insurance broker, independent insurance adjuster or rating organization to the extent that such activities are subject to regulation by the Director of Insurance of this State under, or are permitted or are authorized by, the Insurance Code [215 ILCS 5/1 et seq.] or any other law of this State;
  6. the religious and charitable activities of any not-for-profit corporation, trust or organization established exclusively for religious or charitable purposes, or for both purposes;
  7. the activities of any not-for-profit corporation organized to provide telephone service on a mutual or co-operative basis or electrification on a co-operative basis, to the extent such activities relate to the marketing and distribution of telephone or electrical service to owners and customers;
  8. the activities engaged in by securities dealers who are (i) licensed by the State of Illinois or (ii) members of the National Association of Securities Dealers or (iii) members of any National Securities Exchange registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended [15 U.S.C. § 78a et seq.], in the course of their business of offering, selling, buying and selling, or otherwise trading in or underwriting securities, as agent, broker, or principal, and activities of any National Securities Exchange so registered, including the establishment of commission rates and schedules of charges;
  9. the activities of any board of trade designated as a "contract market" by the Secretary of Agriculture of the United States pursuant to Section 5 of the Commodity Exchange Act, as amended [7 U.S.C. § 7];
  10. the activities of any motor carrier, rail carrier, or Common Carrier by Pipeline, as defined in the Common Carrier by Pipeline Law of the Public Utilities Act [220 ILCS 5/1-101 et seq.], to the extent that such activities are permitted or authorized by the Act or are subject to regulation by the Illinois Commerce Commission;
  11. the activities of any state or national bank to the extent that such activities are regulated or supervised by officers of the state or federal government under the banking laws of this State or the United States;
  12. the activities of any state or federal savings and loan association to the extent that such activities are regulated or supervised by officers of the state or federal government under the savings and loan laws of this State or the United States;
  13. the activities of any bona fide not-for-profit association, society or board, of attorneys, practitioners of medicine, architects, engineers, land surveyors or real estate brokers licensed and regulated by an agency of the State of Illinois, in recommending schedules of suggested fees, rates or commissions for use solely as guidelines in determining charges for professional and technical services;
  14. Conduct involving trade or commerce (other than import trade or import commerce) with foreign nations unless:
    1. such conduct has a direct, substantial, and reasonably foreseeable effect:
      1. on trade or commerce which is not trade or commerce with foreign nations, or on import trade or import commerce with foreign nations; or
      2. on export trade or export commerce with foreign nations of a person engaged in such trade or commerce in the United States; and
    2. such effect gives rise to a claim under the provisions of this Act, other than this subsection (14).
    3. If this Act applies to conduct referred to in this subsection (14) only because of the provisions of paragraph (a)(ii), then this Act shall apply to such conduct only for injury to export business in the United States which affects this State; or
  15. the activities of a unit of local government or school district and the activities of the employees, agents and officers of a unit of local government or school district.

740 ILCS 10/6. [Penalty; investigation]
Sec. 6. Every person who shall knowingly do any of the acts prohibited by subsections (1) and (4) of Section 3 of this Act [740 ILCS 5/3] commits a Class 4 felony and shall be punished by a fine not to exceed $1,000,000 if a corporation, or, if any other person, $100,000.

  1. The Attorney General, with such assistance as he may from time to time require of the State's Attorneys in the several counties, shall investigate suspected criminal violations of this Act and shall commence and try all prosecutions under this Act. Prosecutions under this Act may be commenced by complaint, information, or indictment. With respect to the commencement and trial of such prosecutions, the Attorney General shall have all of the powers and duties vested by law in State's Attorneys with respect to criminal prosecutions generally.
  2. A prosecution for any offense in violation of Section 6 of this Act must be commenced within 4 years after the commission thereof.
  3. The Attorney General shall not commence prosecutions under this Act against any defendant who, at the time, is a defendant with regard to any current pending complaint, information or indictment filed by the United States for violation, or alleged violation, of the Federal Anti-Trust Statutes (including but not being limited, Act of July 2, 1890, Ch. 647, 26 U.S. Stat. 209, 15 U.S.C.A., Secs. 1-7; Act of Oct. 15, 1914, Ch. 323, 38 U.S.Stat. 730, 15 U.S.C.A. Secs. 12-27, 44; Act of August 17, 1937, Ch. 690, Title VIII, 50 U.S.Stat. 693, 15 U.S.C.A. Sec. 1; Act of July 7, 1955, Ch. 281, 69 U.S.Stat. 282, 15 U.S.C.A. Secs. 1-3; Act of May 26, 1938, Ch. 283, 52 U.S.Stat. 446, 15 U.S.C.A. Sec. 13-C; and any similar Acts passed in the future) involving substantially the same subject matter.

740 ILCS 10/7. [Civil actions and remedies]
Sec. 7. The following civil actions and remedies are authorized under this Act:

  1. The Attorney General, with such assistance as he may from time to time require of the State's Attorneys in the several counties, shall bring suit in the Circuit Court to prevent and restrain violations of Section 3 of this Act [740 ILCS 10/3]. In such a proceeding, the court shall determine whether a violation has been committed, and shall enter such judgment as it considers necessary to remove the effects of any violation which it finds, and to prevent such violation from continuing or from being renewed in the future. The court, in its discretion, may exercise all powers necessary for this purpose, including, but not limited to, injunction, divestiture of property, divorcement of business units, dissolution of domestic corporations or associations, and suspension or termination of the right of foreign corporations or associations to do business in the State of Illinois.
  2. Any person who has been injured in his business or property, or is threatened with such injury, by a violation of Section 3 of this Act [740 ILCS 10/3] may maintain an action in the Circuit Court for damages, or for an injunction, or both, against any person who has committed such violation. If, in an action for an injunction, the court issues an injunction, the plaintiff shall be awarded costs and reasonable attorney's fees. In an action for damages, if injury is found to be due to a violation of subsections (1) or (4) of Section 3 of this Act [740 ILCS 10/3], the person injured shall be awarded 3 times the amount of actual damages resulting from that violation, together with costs and reasonable attorney's fees. If injury is found to be due to a violation of subsections (2) or (3) of Section 3 of this Act [740 ILCS 10/3], the person injured shall recover the actual damages caused by the violation, together with costs and reasonable attorney's fees, and if it is shown that such violation was willful, the court may, in its discretion, increase the amount recovered as damages up to a total of 3 times the amount of actual damages. This State, counties, municipalities, townships and any political subdivision organized under the authority of this State, and the United States, are considered a person having standing to bring an action under this subsection. The Attorney General may bring an action on behalf of this State, counties, municipalities, townships and other political subdivisions organized under the authority of this State to recover the damages under this subsection or by any comparable Federal law.
    No provision of this Act shall deny any person who is an indirect purchaser the right to sue for damages. Provided, however, that in any case in which claims are asserted against a defendant by both direct and indirect purchasers, the court shall take all steps necessary to avoid duplicate liability for the same injury including transfer and consolidation of all actions. Provided further that no person other than the Attorney General of this State shall be authorized to maintain a class action in any court of this State for indirect purchasers asserting claims under this Act.
    Beginning January 1, 1970, a file setting out the names of all special assistant attorneys general retained to prosecute antitrust matters and containing all terms and conditions of any arrangement or agreement regarding fees or compensation made between any such special assistant attorney general and the office of the Attorney General shall be maintained in the office of the Attorney General, open during all business hours to public inspection.
    Any action for damages under this subsection is forever barred unless commenced within 4 years after the cause of action accrued, except that, whenever any action is brought by the Attorney General for a violation of this Act, the running of the foregoing statute of limitations, with respect to every private right of action for damages under the subsection which is based in whole or in part on any matter complained of in the action by the Attorney General, shall be suspended during the pendency thereof, and for one year thereafter. No cause of action barred under existing law on July 21, 1965 shall be revived by this Act. In any action for damages under this subsection the court may, in its discretion, award reasonable fees to the prevailing defendant upon a finding that the plaintiff acted in bad faith, vexatiously, wantonly or for oppressive reasons.
  3. Upon a finding that any domestic or foreign corporation organized or operating under the laws of this State has been engaged in conduct prohibited by Section 3 of this Act [740 ILCS 10/3], or the terms of any injunction issued under this Act, a circuit court may, upon petition of the Attorney General, order the revocation, forfeiture or suspension of the charter, franchise, certificate of authority or privileges of any corporation operating under the laws of this State, or the dissolution of any such corporation.
  4. In lieu of any criminal penalty otherwise prescribed for a violation of this Act, and in addition to any action under this Act or any Federal antitrust law, the Attorney General may bring an action in the name and on behalf of the people of the State against any person, trustee, director, manager or other officer or agent of a corporation, or against a corporation, domestic or foreign, to recover a penalty not to exceed $100,000 from every corporation or $50,000 from every other person for any act herein declared illegal. The action must be brought within 4 years after the commission of the act upon which it is based. Nothing in this subsection shall impair the right of any person to bring an action under subsection (2) of this Section.

740 ILCS 10/7.1. [Personal service of process]
Sec. 7.1. Personal service of any process in an action under this Act may be made upon any person outside the state if such person has engaged in conduct in violation of this Act in this State. Such persons shall be deemed to have thereby submitted themselves to the jurisdiction of the courts of this state within the meaning of this section.

740 ILCS 10/7.2. [Investigation by Attorney General]
Sec. 7.2. Whenever it appears to the Attorney General that any person has engaged in, is engaging in, or is about to engage in any act or practice prohibited by this Act, or that any person has assisted or participated in any agreement or combination of the nature described herein, he may, in his discretion, conduct an investigation as he deems necessary in connection with the matter and has the authority prior to the commencement of any civil or criminal action as provided for in the Act to subpoena witnesses, compel their attendance, examine them under oath, or require the production of any books, documents, records, writings or tangible things hereafter referred to as "documentary material" which the Attorney General deems relevant or material to his investigation, for inspection, reproducing or copying under such terms and conditions as hereafter set forth. Any subpoena issued by the Attorney General shall contain the following information:

  1. The statute and section thereof, the alleged violation of which is under investigation and the general subject matter of the investigation.
  2. The date and place at which time the person is required to appear or produce documentary material in his possession, custody or control in the office of the Attorney General located in Springfield or Chicago. Said date shall not be less than 10 days from date of service of the subpoena.
  3. Where documentary material is required to be produced, the same shall be described by class so as to clearly indicate the material demanded.
    The Attorney General is hereby authorized, and may so elect, to require the production, pursuant to this section, of documentary material prior to the taking of any testimony of the person subpoenaed, in which event, said documentary material shall be made available for inspection and copying during normal business hours at the principal place of business of the person served, or at such other time and place, as may be agreed upon by the person served and the Attorney General. When documentary material is demanded by subpoena, said subpoena shall not:
    1. Contain any requirement which would be unreasonable or improper if contained in a subpoena duces tecum issued by a court of this State; or
    2. Require the disclosure of any documentary material which would be privileged, or which for any other reason would not be required by a subpoena duces tecum issued by a court of this State.
  4. The production of documentary material in response to a subpoena served pursuant to this Section shall be made under a sworn certificate, in such form as the subpoena designates, by the person, if a natural person, to whom the demand is directed or, if not a natural person, by a person or persons having knowledge of the facts and circumstances relating to such production, to the effect that all of the documentary material required by the demand and in the possession, custody, or control of the person to whom the demand is directed has been produced and made available to the custodian.
    While in the possession of the Attorney General and under such reasonable terms and conditions as the Attorney General shall prescribe:
    1. documentary material shall be available for examination by the person who produced such material or by any duly authorized representative of such person, and
    2. transcript of oral testimony shall be available for examination by the person who produced such testimony, or his counsel. Except as otherwise provided in this Section, no documentary material or transcripts of oral testimony, or copies thereof, in the possession of the Attorney General shall be available for examination by any individual other than an authorized employee of the Attorney General or other law enforcement officials without the consent of the person who produced such material or transcripts.
  5. No person shall, with intent to avoid, evade, prevent, or obstruct compliance in whole or in part by any person with any duly served subpoena of the Attorney General under this Act, knowingly remove from any place, conceal, withhold, destroy, mutilate, alter, or by any other means falsify any documentary material that is the subject of such subpoena. A violation of this subsection is a Class A misdemeanor. The Attorney General, with such assistance as he may from time to time require of the State's Attorneys in the several counties, shall investigate suspected violations of this subsection and shall commence and try all prosecutions under this subsection.

740 ILCS 10/7.3. [Service of subpoena]
Sec. 7.3. Service of a subpoena of the Attorney General as provided herein may be made by

  1. Delivery of a duly executed copy thereof to the person served, or if a person is not a natural person, to the principal place of business of the person to be served, or
  2. Mailing by certified mail, return receipt requested, a duly executed copy thereof addressed to the person to be served at his principal place of business in this State, or, if said person has no place of business in the State, to his principal office.

740 ILCS 10/7.4. [Examination of witnesses; record of testimony]
Sec. 7.4. The examination of all witnesses under this section shall be conducted by the Attorney General or by an assistant attorney general designated by him before an officer authorized to administer oaths in this State. The testimony shall be taken stenographically or by a sound recording device and shall be transcribed.
The Attorney General or his designated assistant conducting the examination shall exclude from the place where the examination is held all persons except the person being examined, his counsel, the officer before whom the testimony is to be taken, and any stenographer taking such testimony. Any person compelled to appear under a demand for oral testimony pursuant to this Act may be accompanied, represented, and advised by counsel. The examination shall be conducted in a manner consistent with the Illinois Civil Practice Law [735 ILCS 5/1-201 et seq.] and Illinois Supreme Court Rules. If such person refuses to answer any question, the Attorney General or his designated assistant conducting the examination may petition the Circuit Court pursuant to Section 7.6 of this Act [740 ILCS 10/7.6] for an order compelling such person to answer such question.

740 ILCS 10/7.5. [Fees for those served]
Sec. 7.5. All persons served with a subpoena by the Attorney General under this Act shall be paid the same fees and mileage as paid witnesses in the courts of this State.

740 ILCS 10/7.6. [Failure or refusal to obey Attorney General subpoena]
Sec. 7.6. In the event a witness served with a subpoena by the Attorney General under this Act fails or refuses to obey same or produce documentary material as provided herein, or to give testimony, relevant or material, to the investigation being conducted, the Attorney General may petition the Circuit Court of Sangamon or Cook County, or the county wherein the witness resides for an order requiring said witness to attend and testify or produce the documentary material demanded; thereafter, any failure or refusal on the part of the witness to obey such order of court may be punishable by the court as a contempt thereof.

740 ILCS 10/7.7. [No excuse from investigation; criminal prosecution]
Sec. 7.7. In any investigation brought by the Attorney General pursuant to this Act, no individual shall be excused from attending, testifying or producing documentary material, objects or tangible things in obedience to a subpoena or under order of the court on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to any penalty. No individual shall be criminally prosecuted or subjected to any criminal penalty for or on account of any testimony given by him in any investigation brought by the Attorney General pursuant to this Act; provided no individual so testifying shall be exempt from prosecution or punishment for perjury committed in so testifying.

740 ILCS 10/7.8. [Action by Attorney General on behalf of others]
Sec. 7.8. The Attorney General may bring an action on behalf of this State, counties, municipalities, townships and other political subdivisions organized under the authority of this State in Federal Court to recover damages provided for under any comparable provision of Federal law; provided, however, this shall not impair the authority of any such county, municipality, township or political subdivision to bring such action on its own behalf nor impair its authority to engage its own counsel in connection therewith.

740 ILCS 10/7.9. [Conduct involving interstate or foreign commerce]
Sec. 7.9. No action under this Act shall be barred on the grounds that the activities or conduct complained of in any way affects or involves interstate or foreign commerce.

740 ILCS 10/8. [Prima facie evidence in damages action]
Sec. 8. A final judgment or order rendered in any civil or criminal proceeding brought by the Attorney General under this Act to the effect that a defendant has violated this Act shall be prima facie evidence against such defendant in any action for damages brought by any other party against such defendant under subsection (2) of Section 7 of this Act [740 ILCS 10/7], as to all matters respecting which said judgment or order would be an estoppel as between the parties thereto: Provided, that this Section shall not apply to civil consent judgments or orders entered before any testimony has been taken.

740 ILCS 10/9. [Conspiracy]
Sec. 9. No contract, combination, conspiracy, or other act which violates this Act shall constitute or be deemed a conspiracy at common law.

740 ILCS 10/11. [Federal antitrust law]
Sec. 11. When the wording of this Act is identical or similar to that of a federal antitrust law, the courts of this State shall use the construction of the federal law by the federal courts as a guide in construing this Act. However, this Act shall not be construed to restrict the exercise by units of local government or school districts of powers granted, either expressly or by necessary implication, by Illinois statute or the Illinois Constitution.

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