American Society of Interpreters; and The American Association of Language Specialists; Proposed Consent Agreements With Analysis To Aid Public Comment
Federal RegisterFeb 23, 1994
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FEDERAL TRADE COMMISSION
[Docket No. 911 0022]
American Society of Interpreters; and The American Association of
Language Specialists; Proposed Consent Agreements With Analysis To Aid
Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreements.
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SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair acts and practices and unfair methods of competition, the two
consent agreements, accepted subject to final Commission approval,
would prohibit, among other things, two professional associations of
interpreters, based in Washington, DC, from fixing or otherwise
interfering with any form of price or fee competition among language
specialists in the future.
DATES: Comments must be received on or before April 25, 1994.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
room 159, 6th Street and Pennsylvania Avenue NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Michael McNeely, FTC/S-3308, Washington, DC 20580, (202) 326-2904.
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 2.34 of the
Commission's Rules of Practice (16 CFR 2.34), notice is hereby given
that the following two consent agreements containing consent orders to
cease and desist, having been filed with and accepted, subject to final
approval, by the Commission, have been placed on the public record for
a period of sixty (60) days. Public comment is invited. Such comments
or views will be considered by the Commission and will be available for
inspection and copying at its principal office in accordance with
Sec. 4.9(b)(6)(ii) of the Commission's Rules of Practice (16 CFR
4.9(b)(6)(ii)).
Agreement Containing Consent Order To Cease and Desist
In the matter of American Society of Interpreters, a
corporation.
The Federal Trade Commission having initiated an investigation of
certain acts and practices of the American Society of Interpreters, a
corporation, and it now appearing that the American Society of
Interpreters, hereinafter sometimes referred to as ``ASI'' or
``proposed respondent,'' is willing to enter into an agreement
containing an order to cease and desist from engaging in certain acts
and practices being investigated,
It is hereby agreed by and between ASI, by its duly authorized
officer, and its attorney, and counsel for the Federal Trade Commission
that:
1. ASI is a corporation organized, existing and doing business
under and by virtue of the laws of the District of Columbia, with its
offices and principal place of business located at Washington, DC.
2. ASI admits all the jurisdictional facts set forth in the draft
of complaint here attached.
3. ASI waives:
(a) Any further procedural steps;
(b) The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law;
(c) All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this agreement;
and
(d) Any claim under the Equal Access to Justice Act.
4. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission, it, together with the draft of
complaint contemplated thereby, will be placed on the public record for
a period of sixty (60) days and information in respect thereto publicly
released. The Commission thereafter may either withdraw its acceptance
of this agreement and so notify proposed respondent, in which event it
will take such action as it may consider appropriate, or issue and
serve its complaint (in such form as the circumstances may require) and
decision in disposition of the proceeding.
5. This agreement is for settlement purposes only and does not
constitute an admission by ASI that the law has been violated as
alleged in the draft of complaint here attached.
6. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Sec. 2.34 of the Commission's
Rules, the Commission may, without further notice to proposed
respondent, (1) issue its complaint corresponding in form and substance
with the draft of complaint here attached and its decision containing
the following order to cease and desist in disposition of the
proceeding, and (2) make information public in respect thereto. When so
entered, the order to cease and desist shall have the same force and
effect and may be altered, modified or set aside in the same manner and
within the same time provided by statute for other orders. The order
shall become final upon service. Delivery by the U.S. Postal Service of
the complaint and decision containing the agreed-to order to proposed
respondent's address as stated in this agreement shall constitute
service. Proposed respondent waives any right it may have to any other
manner of service. The complaint may be used in construing the terms of
the order, and no agreement, understanding, representation, or
interpretation not contained in the order or the agreement may be used
to vary or contradict the terms of the order.
7. Proposed respondent has read the proposed complaint and order
contemplated hereby. It understands that once the order has been
issued, it will be required to file one or more compliance reports
showing that it has fully complied with the order. Proposed respondent
further understands that it may be liable for civil penalties in the
amount provided by law for each violation of the order after the order
becomes final.
Order
I
It is ordered, That for purposes of this order, the following
definitions shall apply:
``Respondent'' or ``ASI'' mean American Society of Interpreters,
its directors, trustees, general assemblies, councils, committees,
working groups, boards, divisions, chapters, officers, representatives,
delegates, agents, employees, successors, and assigns.
``Fees'' means any cash or non-cash charges, rates, prices,
benefits or other compensation received or intended to be received for
the rendering of interpretation, translation, or other language
services, including but not limited to, salaries, wages,
transportation, lodging, meals, allowances, reimbursements for
expenses, compensation for time not worked, compensation for travel
time and preparation and study time, cancellation fees, and payments in
kind.
``Interpretation'' means the act of expressing, in oral form, ideas
in a language different from an original spoken statement.
``Translation'' means the act of expressing, in written form, ideas
in a language different from an original writing.
``Other language service'' means any service that has as an element
the conversion of any form of expression from one language into another
or any service incident to or related to interpretation and translation
including briefing or conference preparation, equipment rental,
conferences organizing, teleconferencing, precis writing, supervision
or coordination of interpreters, reviewing or revising translations, or
providing recordings of interpretations.
``Interpreter'' means one who practices interpretation.
``Translator'' means one who practices translation.
``Language specialist'' means one who practices interpretation,
translation, or any other language service.
``Unbiased'' means lacking any systematic errors that would result
from the selection or encouragement of one outcome or answer over
others.
``Person'' means any individual, partnership, association, company,
or corporation, and includes any trustee, receiver, assignee, lessee,
or personal representative of any person herein defined.
II
It is further ordered, That respondent, directly or indirectly, or
through any person, corporation, or other device, in or in connection
with its activities in or affecting commerce, as ``commerce'' is
defined in the Federal Trade Commission Act, cease and desist from:
A. Creating, formulating, compiling, distributing, publishing,
recommending, suggesting, encouraging adherence to, endorsing,
publishing letters or articles supporting, or authorizing any list or
schedule of fees for interpretation, translation, or any other language
service, including but not limited to fee reports, fee guidelines,
suggested fees, proposed fees, fee sheets, standards fees, or
recommended fees;
B. Entering into, adhering to, or maintaining any contract,
agreement, understanding, plan, program, combination, or conspiracy to
construct, fix, stabilize, raise, maintain, or otherwise interfere with
or restrict the fees for interpretation, translation, or other language
services;
C. Suggesting urging, encouraging, recommending, or attempting to
persuade in any way interpreters, translators, or other language
specialists to charge, pay, file, or adhere to any existing or proposed
fee, or otherwise to charge or refrain from charging any particular
fee;
D. For a period of ten (10) years after the date this order becomes
final, continuing a meeting of interpreters, translators, or other
language specialists, after (1) any person makes a statement, addressed
to or audible to the body of the meeting, concerning the fees charged
or proposed to be charged for interpretation, translation, or any other
language service and ASI fails to declare such statement to be out of
order, (2) any person makes two such statements and ASI fails to eject
him or her from the meeting, or (3) two people make such statements;
E. Prohibiting, restricting, regulating, impeding, declaring
unethical, interfering with, or advising against any form of price
competition, including but not limited to offering to do work for less
remuneration that a specific competitor, undercutting a competitor's
actual fee, offering to work for less than a customer's announced fee,
advertising discounted rates, or accepting any particular lodging or
travel arrangements;
F. Discouraging, restricting, or prohibiting interpreters,
translators, or other language specialists from accepting hourly fees,
half-day fees, weekly fees, or fees calculated on other than a full-day
basis; and
G. Discouraging, restricting, or prohibiting interpreters,
translators, or other language specialists from performing services
free of charge or at a discount, or from paying their own travel,
lodging, meals, or other expenses.
Provided That, nothing contained in this Paragraph II shall
prohibit respondent from:
1. Compliance or distributing accurate aggregate historical market
information concerning past fees actually charged in transactions
completed no earlier than three (3) years after the date this order
becomes final, provided that such information is complied and presented
in an unbiased and nondeceptive manner that maintains the anonymity of
the parties to the transactions;
2. Collecting or publishing accurate and otherwise publicly
available fees paid by governmental and intergovernmental agencies, if
such publication states the qualifications and requirements to be
eligible to receive such fees; or
3. Continuing a meeting following statements concerning historical,
governmental, or intergovernmental fees that are made in order to
undertake the activities permitted in Paragraph II.1 and II.2. of this
order.
III
It is further ordered That, respondent shall clearly and
conspicuously state the following in any publication of fees made
pursuant to Paragraphs II.1 and II.2 of this order:
By order of the Federal Trade Commission, ASI is prohibited from
recommending, suggesting, or enforcing fees. Under United States
Law, interpreters and other language specialists must unilaterally
and independently determine their own fees.
IV
It is further ordered, That respondent, directly or indirectly, or
through any person, corporation, or other device, in or in connection
with its activities in or affecting commerce, as ``commerce'' is
defined in the Federal Trade Commission Act, cease and desist from
entering into, adhering to, or maintaining any contract, agreement,
understanding, plan, program, combination, or conspiracy to:
A. Limit, restrict, or mandate the length of time that
interpreters, translators, or other language specialists work in a
given period, or for which they are paid for preparation or study; or
B. Limit, restrict, or mandate the number of interpreters,
translators, or other language specialists used for a given job or type
of job.
Provided That, nothing contained in Paragraph IV of this order
shall prohibit respondent from providing information or its nonbinding
and non-coercive views concerning the hours of work or preparation or
the number of language specialists used for types of jobs.
V
It is further ordered, That respondent shall, within thirty (30)
days after the date this order becomes final, amend its Code of
Professional Standards and all Professional Guidelines, including those
found in the annual Membership List of ASI, and all appendices to
conform to the requirements of Paragraphs II and IV of this order and
amend its bylaws to require each member, chapter, or other subdivision,
to observe the provisions of Paragraphs II and IV of this order.
VI
It is further ordered, That respondent shall:
A. Within thirty (30) days after the date this order becomes final,
distribute to each ASI member, affiliate, chapter, organizational
subdivision, or other entity associated directly or indirectly with
ASI, copies of: (1) This order, (2) the accompanying complaint, (3)
appendix A to this order, (4) and any document that ASI revises
pursuant to this order, with the exception of the annual Membership
List; and
B. Within one-hundred eighty (180) days after the date this order
becomes final, distribute copies of the annual Membership List as
revised pursuant to this order; and
C. For a period of five (5) years after the date this order becomes
final, distribute to all new ASI officers, directors, and members, and
any newly created affiliates, chapters, or other organizational
subdivisions, within thirty days of their admission, election,
appointment, or creation, a copy of: (1) This order, (2) the
accompanying complaint, (3) appendix A to this order, and (4) any
document that ASI revises pursuant to this order.
VII
It is further ordered, That respondent shall:
A. Within ninety (90) days after the date this order becomes final,
and annually for three (3) years thereafter on the anniversary of the
date this order becomes final, file with the Secretary of the Federal
Trade Commission a verified written report setting forth in detail the
manner and form in which respondent has complied and is complying with
this order, and any instances in which respondent has taken any action
within the scope of the provisos in Paragraphs II.1 or II.2 or II.3 of
this order:
B. For a period of five (5) years after the date this order becomes
final, notify and provide copies to the Federal Trade Commission staff,
within thirty (30) days, of any fee reports, fee lists, fee schedules,
fee guidelines or similar materials produced by or for any association
that come into respondent's possession;
C. For a period of five (5) years after the date this order becomes
final, collect, maintain and make available to the Federal Trade
Commission staff for inspection and copying: records adequate to
describe in detail any action taken in connection with the activities
covered in this order; all minutes, records, reports or tape recordings
of meetings of the Board General Assembly, and all chapters,
committees, subcommittees, working groups, or any other organizational
subdivisions of ASI; and all ASI mailings to the ASI Board or general
membership;
D. For a period of three (3) years after the date this order
becomes final, provide copies to the Federal Trade Commission, within
thirty (30) days of its adoption, of the text of any amendment to the
ASI Bylaws, ASI Professional Guidelines, ASI Code of Professional
Standards, ASI Yearbook Professional Guidelines, and any new rules,
regulations or guidelines of respondent; and
E. Notify the Federal Trade Commission at least thirty (30) days
prior to any proposed change in respondent, such as dissolution or
reorganization of itself or any chapter, division, or of any proposed
change resulting in the emergence of a successor corporation or
association, or any other change in the corporation or association that
may affect compliance obligations arising out of this order.
Appendix A
[Date]
Announcement
The American Society of Interpreters (``ASI'') has entered into a
consent agreement with the Federal Trade Commission. Pursuant to this
consent agreement, the Commission issued an order on [Date] that
prohibits ASI, including its chapters, committees, or organizational
subdivisions, from:
(1) Creating, distributing, authorizing, or endorsing any list or
schedule of fees or other charges for interpretation, translation, or
other language services;
(2) Entering into, or maintaining any agreement, plan, or program,
to construct, fix, stabilize, raise, maintain, or otherwise interfere
with the fees or other charges for interpretation, translation, or
other language services;
(3) Suggesting, recommending, or encouraging, in any way,
interpreters, translators, or other language specialists that charge,
adhere to, or refrain from charging any existing or proposed fee;
(4) For a period of ten (10) years after the date this order
becomes final, continuing a meeting after (a) Any person makes a
statement to the body of the meeting, concerning the fees charged or
proposed to be charged for interpretation, translation, or any other
language service and ASI fails to declare such statement to be out of
order, (b) any person makes two such statements and ASI fails to eject
him or her from the meeting, or (c) two people make such statements;
(5) Prohibiting, restricting, regulating, or advising against any
form of price competition among its members or other interpreters,
translators, or other language specialists, including undercutting a
competitor's actual fee or a customer's announced fee, advertising
discounted rates or accepting any particular lodging or travel
arrangements;
(6) Discouraging, restricting, or prohibiting interpreters,
translators, or other language specialists from accepting hourly fees,
weekly fees, or fees calculated on other than a full-day basis; and
(7) Discouraging, restricting, or prohibiting interpreters,
translators, or other language specialists from performing services
free of charge or from paying their own travel, lodging, meals, or
other expenses.
In addition, the order prohibits ASI from maintaining any
agreement, understanding, plan or program to:
(1) Limit, restrict, or mandate the length of time that
interpreters, translators, or other language specialists work in a
given period, or for which they are paid for preparation or study; or
(2) Limit, restrict, or mandate the number of interpreters,
translators, or other language specialists hired for a job or type of
job.
Under the order, ``fees'' are defined to include all cash or non-
cash charges, rates, benefits, or other compensation for
interpretation, translation or other language services, including but
not limited to, lodging, meals, subsistence and travel allowances,
reimbursements for expenses, cancellation fees, and compensation for
time not worked, travel time or briefing time. ``Language specialist''
means one who performs ``other language services,'' which are defined
to refer to any services that involve the conversion of any form of
expression from one language into another or any services incident to
or related to interpretation and translation. Consequently, when the
order mentions ``language specialists,'' it includes anyone who rents
equipment, organizes conferences, performs teleconferencing or precis
writing, supervises or coordinates interpreters, reviews or revises
translations, or provides recordings of interpretations.
Further, under the order, ASI must amend its Code of Professional
Standards, Professional Guidelines, and Yearbook Professional
Guidelines to conform to the requirements of Paragraphs II and IV of
the attached order, which are summarized above. ASI must also amend its
bylaws to require each member, chapter, and organizational subdivision
to observe the requirements of the order. In addition, the order
requires ASI to provide to its members and affiliates and to the
Federal Trade Commission the text of each amendment to the ASI Bylaws,
the ASI Code of Professional Standards, and all ASI Professional
Guidelines, including those found in the ASI Membership Lists, and the
texts of any new rules, regulations or guidelines. The order also
requires that, within thirty days after obtaining them, ASI must
provide to the Federal Trade Commission copies of all lists of fees
that have been produced by any associations and come into ASI's
possession.
We note, however, that ASI will be permitted to compile and
distribute accurate aggregate historical market information concerning
past fees that were actually charged no earlier than three years after
this order becomes final, if presented in an unbiased and nondeceptive
manner that maintains the anonymity of the parties to the transactions
underlying such reports. Similarly, the order does not prohibit ASI
from collecting and publishing accurate publicly available information
on fees paid by governmental and intergovernmental agencies if such
publication states the qualifications and requirements for such fees.
With any publication of fees permitted by the order, ASI must include a
statement that it is prohibited from recommending fees and that
interpreters must independently determine their own fees. In addition,
the order states that it does not prohibit ASI from providing
information or its nonbinding and non-coercive views concerning the
hours of work or preparation or the number of language specialists used
for a type of job.
For more specific information, members should refer to the FTC
order itself, which is enclosed.
Counsel,
American Society of Interpreters.
Agreement Containing Consent Order To Cease and Desist
In the Matter of the American Association of Language
Specialists, a corporation.
The Federal Trade Commission having initiated an investigation of
certain acts and practices of The American Association of Language
Specialists, a corporation, and it now appearing that The American
Association of Language Specialists, hereinafter sometimes referred to
as ``TAALS'' or ``proposed respondent,'' is willing to enter into an
agreement containing an order to cease and desist from engaging in
certain acts and practices being investigated,
It is hereby agreed by and between TAALS, by its duly authorized
officer, and its attorney, and counsel for the Federal Trade Commission
that:
1. TAALS is a corporation organized, existing and doing business
under and by virtue of the laws of the District of Columbia, with its
offices and principal place of business located at 1000 Connecticut
Avenue NW., Washington, DC 20036.
2. TAALS admits all the jurisdictional facts set forth in the draft
of complaint here attached.
3. TAALS waives:
(a) Any further procedural steps;
(b) The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law;
(c) All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this agreement;
and
(d) Any claim under the Equal Access to Justice Act.
4. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission, it, together with the draft of
complaint contemplated thereby, will be placed on the public record for
a period of sixty (60) days and information in respect thereto publicly
released. The Commission thereafter may either withdraw its acceptance
of this agreement and so notify proposed respondent, in which event it
will take such action as it may consider appropriate, or issue and
serve its complaint (in such form as the circumstances may require) and
decision in disposition of the proceeding.
5. This agreement is for settlement purposes only and does not
constitute an admission by TAALS that the law has been violated as
alleged in the draft of complaint here attached.
6. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Sec. 2.34 of the Commission's
Rules, the Commission may, without further notice to proposed
respondent, (1) issue its complaint corresponding in form and substance
with the draft of complaint here attached and its decision containing
the following order to cease and desist in disposition of the
proceeding, and (2) make information public in respect thereto. When so
entered, the order to cease and desist shall have the same force and
effect and may be altered, modified or set aside in the same manner and
within the same time provided by statute for other orders. The order
shall become final upon service. Delivery by the U.S. Postal Service of
the complaint and decision containing the agreed-to order to proposed
respondent's address as stated in this agreement shall constitute
service. Proposed respondent waives any right it may have to any other
manner of service. The complaint may be used in construing the terms of
the order, and no agreement, understanding, representation, or
interpretation not contained in the order or the agreement may be used
to vary or contradict the terms of the order.
7. Proposed respondent has read the proposed complaint and order
contemplated hereby. It understands that once the order has been
issued, it will be required to file one or more compliance reports
showing that it has fully complied with the order. Proposed respondent
further understands that it may be liable for civil penalties in the
amount provided by law for each violation of the order after the order
becomes final.
Order
I
It is ordered, That for purposes of this order, the following
definitions shall apply:
``Respondent'' or ``TAALS'' mean The American Association of
Language Specialists, its directors, trustees, general assemblies,
councils, committees, working groups, boards, divisions, chapters,
officers, representatives, delegates, agents, employees, successors,
and assigns.
``Fees'' means any cash or non-cash charges, rates, prices,
benefits or other compensation received or intended to be received for
the rendering of interpretation, translation, or other language
services, including but not limited to, salaries, wages,
transportation, lodging, meals, allowances (including subsistence and
travel allowances), reimbursements for expenses, cancellation fees,
compensation for time not worked, compensation for travel time and
preparation or study time, cancellation fees, and payments in kind.
``Cancellation fee'' means any fee intended to compensate for the
termination, cancellation or revocation of an understanding, contract,
agreement, offer, pledge, assurance, opportunity, or expectation of a
job.
``Interpretation'' means the act of expressing, in oral form, ideas
in a language different from the language used in an original spoken
statement.
``Translation'' means the act of expressing, in written form, ideas
in a language different from the language used in an original writing.
``Other language service'' means any service that has as an element
the conversion of any form of expression from one language into another
or any service incident to or related to interpretation or translation,
including briefing or conference preparation, equipment rental,
conference organizing, teleconferencing, precis writing, supervision or
coordination of interpreters, reviewing or revising translations, or
providing recordings of interpretations.
``Interpreter'' means one who practices interpretation.
``Translator'' means one who practices translation.
``Language specialist'' means one who practices interpretation,
translation, or any other language service.
``Unbiased'' means lacking any systematic errors that would result
from the selection or encouragement of one outcome or answer over
others.
``Person'' means any individual, partnership, association, company,
or corporation, and includes any trustee, receiver, assignee, lessee,
or personal representative of any person herein defined.
II
It is further ordered, That respondent, directly or indirectly, or
through any person, corporation, or other device, in or in connection
with its activities in or affecting commerce, as ``commerce'' is
defined in the Federal Trade Commission Act, cease and desist from:
A. Creating, formulating, compiling, distributing, publishing,
recommending, suggesting, encouraging adherence to, endorsing, or
authorizing any list or schedule of fees for interpretation,
translation, or any other language service, including but not limited
to fee guidelines, suggested fees, proposed fees, fee sheets, standard
fees, or recommended fees;
B. Entering into, adhering to, or maintaining any contract,
agreement, understanding, plan, program, combination, or conspiracy to
construct, fix, stabilize, standardize, raise, maintain, or otherwise
interfere with or restrict fees for interpretation, translation, or
other language services;
C. Suggesting, urging, encouraging, recommending, or attempting to
persuade in any way interpreters, translators, or other language
specialists to charge, pay, offer, or adhere to any existing or
proposed fee, or otherwise to charge or refrain from charging any
particular fee;
D. For a period of ten (10) years after the date this order becomes
final, continuing a meeting of interpreters, translators, or other
language specialists, after (1) any person makes a statement, addressed
to or audible to the body of the meeting, concerning the fees charged
or proposed to be charged for interpretation, translation, or any other
language service and TAALS fails to declare such statement to be out of
order, (2) any person makes two such statements and TAALS fails to
eject him or her from the meeting, or (3) two people make such
statements;
E. Prohibiting, restricting, regulating, impeding, declaring
unethical, interfering with, or advising against any form of price
competition, including but not limited to offering to do work for less
remuneration than a specific competitor, undercutting a competitor's
actual fee, offering to work for less than a customer's announced fee,
advertising discounted rates, or accepting any particular lodging or
travel arrangements;
F. Advising against, restricting, or prohibiting interpreters,
translators, or other language specialists from accepting hourly fees,
half-day fees, weekly fees, or fees calculated or payable on other than
a full-day basis;
G. Advising against, restricting, or prohibiting interpreters,
translators, or other language specialists from performing services
free of charge or at a discount, or from paying their own travel,
lodging, meals, or other expenses; and
H. Prohibiting, restricting, regulating, impeding, declaring
unethical, interfering with, or advising against any forms of personal
publicity, including but not limited to advertising by interpreters,
translators, or other language specialists.
Provided that, nothing contained in this Paragraph II shall
prohibit respondent from:
1. Compiling or distributing accurate aggregate historical market
information concerning past fees actually charged in transactions
completed no earlier than three (3) years after the date this order
becomes final, provided that such information is compiled and presented
in an unbiased and nondeceptive manner that maintains the anonymity of
the parties to the transactions;
2. Collecting or publishing accurate and otherwise publicly
available fees paid by governmental and intergovernmental agencies, if
such publication states the qualifications and requirements to be
eligible to receive such fees;
3. Continuing a meeting following statements concerning historical,
governmental, or intergovernmental fees that are made in order to
undertake the activities permitted in Paragraphs II.1 and II.2 of this
order; or
4. Formulating, adopting, disseminating to its organizational
subdivisions and to its members, and enforcing reasonable ethical
guidelines governing the conduct of its members with respect to
advertising, including unsubstantiated representations, that respondent
reasonably believes would be false or deceptive within the meaning of
section 5 of the Federal Trade Commission Act.
III
It is further ordered That, respondent shall clearly and
conspicuously state the following in any publication of fees made
pursuant to Paragraphs II.1 and II.2 of this order:
By order of the Federal Trade Commission, TAALS is prohibited
from recommending, suggesting, or enforcing fees applicable in the
United States. Under United States law, interpreters and other
language specialists must unilaterally and independently determine
their own fees.
IV
It is further ordered, That respondent, directly or indirectly, or
through any person, corporation, or other device, in or in connection
with its activities in or affecting commerce, as ``commerce'' is
defined in the Federal Trade Commission Act, cease and disist from
entering into, adhering to, or maintaining any contract, agreement,
understanding, plan, program, combination, or conspiracy to:
A. Limit, restrict, or mandate the length of time that
interpreters, translators, or other language specialists work in a
given period, or for which they are paid for preparation or study;
B. Limit, restrict, or mandate the number of interpreters,
translators, or other language specialists used for a given job or type
of job;
C. Limit, restrict, or mandate the reimbursement of or payment to
interpreters, translators, or other language specialists for travel
expenses or time spent traveling, or otherwise prevent consumers from
receiving any advantages, based on interpreters', translators', or
other language specialists' actual travel arrangements or geographic
location, by restricting, requiring declarations of, or regulating the
number or duration of residences or domiciles of members or by other
means; or
D. Limit, restrict, or mandate the equipment used in performing
interpretation, translation, or other language services.
Provided that, nothing contained in Paragraph IV of this order
shall prohibit respondent from providing information or its nonbinding
and noncoercive views concerning interpretation equipment, the hours of
work or preparation, or the number of language specialists used for
types of jobs.
V
It is further ordered, That respondent shall, within thirty (30)
days after the date this order becomes final, amend its Professional
Code For Language Specialists and all appendices to conform to the
requirements of Paragraphs II and IV of this order and amend its bylaws
to require each member, chapter, or other organizational subdivision,
to observe the provisions of Paragraphs II and IV of this order.
VI
It is further ordered, That respondent shall:
A. Within thirty (30) days after the date this order becomes final,
distribute to each TAALS member, affiliate, chapter, organizational
subdivision, or other entity associated directly or indirectly with
TAALS, copies of: (1) This order, (2) the accompanying complaint, (3)
appendix A to this order, (4) and any document that TAALS revises
pursuant to this order; and
B. For a period of ten years after the date this order becomes
final, distribute to all new TAALS officers, directors, and members,
and any newly created affiliates, chapters, or other organizational
subdivisions, within thirty days of their admission, election,
appointment, or creation, a copy of: (1) This order, (2) the
accompanying complaint, (3) appendix A to this order, and (4) any
document that TAALS revises pursuant to this order.
VII
It is further ordered, That respondent shall:
A. Within ninety (90) days after the date this order becomes final,
and annually for five (5) years thereafter on the anniversary of the
date this order becomes final, file with the Secretary of the Federal
Trade Commission a verified written report setting forth in detail the
manner and form in which respondent has complied and is complying with
this order, and any instances in which respondent has taken any action
within the scope of the provisos in Paragraphs II.1, II.2, II.3, or
II.4 of this order;
B. For a period of five (5) years after the date this order becomes
final, collect, maintain and make available to the Federal Trade
Commission for inspection and copying: Records adequate to describe in
detail any action taken in connection with the activities covered in
this order; all minutes, records, reports or tape recordings of
meetings of the Council, General Assembly, and all committees,
subcommittees, working groups, or any other organizational subdivisions
of TAALS; and all TAALS mailings to the TAALS Council or general
membership;
C. For a period of five (5) years after the date this order becomes
final, provide copies to the Federal Trade Commission, within thirty
(30) days of its adoption, of the text of any amendment to the TAALS
Bylaws, TAALS Professional Code for Language Specialists or Appendix
thereto, Working Conditions for Interpreters, Working Conditions for
Translators, Working Conditions for Precis-Writers, and any new rules,
regulations or guidelines of respondent; and
D. Notify the Federal Trade Commission at least thirty (30) days
prior to any proposed change in respondent, such as dissolution or
reorganization of itself or any chapter, division, or of any proposed
change resulting in the emergence of a successor corporation or
association, or any other change in the corporation or association that
may affect compliance obligations arising out of this order.
Appendix A
[Date]
Announcement
The American Association of Language Specialists (``TAALS'') has
entered into a consent agreement with the Federal Trade Commission.
Pursuant to this consent agreement, the Commission issued an order on
[Date] that prohibits TAALS, including its chapters, committees, or
organizational subdivisions, from:
(1) Creating, distributing, authorizing, or endorsing any list or
schedule of fees or other charges for interpretation, translation, or
other language services;
(2) Entering into, or maintaining any agreement, plan, or program,
to construct, fix, stabilize, raise, maintain, or otherwise interfere
with fees or other charges for interpretation, translation, or other
language services;
(3) Suggesting, recommending, or encouraging, in any way, that
interpreters, translators, or other language specialists charge, adhere
to, or refrain from charging any existing or proposed fee;
(4) For a period of ten (10) years after this order becomes final,
continuing a meeting after (1) Any person makes any statement to the
body of the meeting concerning the fees charged or proposed to be
charged for interpretation, translation, or any other language service
and TAALS fails to declare such statement to be out of order, (2) any
person makes two such statements and TAALS fails to eject him or her
from the meeting, or (3) two people make such statements;
(5) Prohibiting, restricting, regulating, or advising against any
form of price competition among its members or other interpreters,
translators, or other language specialists, including undercutting a
competitor's actual fee or a customer's announced fee, advertising
discounted rates, or accepting any particular lodging or travel
arrangements;
(6) Advising against, restricting, or prohibiting interpreters,
translators, or other language specialists from accepting hourly fees,
weekly fees, or fees calculated or payable on other than a full-day
basis;
(7) Advising against, restricting, or prohibiting interpreters,
translators, or other language specialists from performing services
free of charge or from paying their own travel, lodging, meals, or
other expenses; or
(8) Prohibiting, restricting, impeding, declaring unethical, or
advising against any forms of personal publicity, including but not
limited to advertising by interpreters, translators, or other language
specialists.
In addition, the order prohibits TAALS from maintaining any
agreement, understanding, plan or program to:
(1) Limit, restrict, or mandate the length of time that
interpreters, translators, or other language specialists work in a
given period, or for which they are paid for preparation or study;
(2) Limit, restrict, or mandate the number of interpreters,
translators, or other language specialists used for a job or type of
job;
(3) Limit, restrict, or mandate the payment or reimbursement for
travel or the travel time of interpreters, translators, or other
language specialists, or otherwise prevent consumers from receiving any
advantages, based on travel arrangements or geographic location, by
regulating domiciles of members or by other means; or
(4) Limit, restrict, or mandate the equipment used in performing
interpretation, translation, or other language services.
Under the order, ``fees'' are defined to include all cash or non-
cash charges, rates, benefits, or other compensation for
interpretation, translation or other language services, including but
not limited to, lodging, meals, subsistence and travel allowances,
reimbursements for expenses, cancellation fees, and compensation for
time not worked, travel time or briefing time. ``Language specialist''
means one who performs ``other language services,'' which are defined
to refer to any services that involve the conversion of any form of
expression from one language into another or any services incident to
or related to interpretation and translation. Consequently, when the
order mentions ``language specialists,'' it includes anyone who rents
equipment, organizes conferences, performs teleconferencing or precis
writing, supervises or coordinates interpreters, reviews or revises
translations, or provides recordings of interpretations.
Further, under the order, TAALS must amend its professional code to
conform to the requirements of paragraphs II and IV of the attached
order, which are summarized above. TAALS must also amend its bylaws to
require each member, chapter, and organizational subdivision to observe
the requirements of the order. In addition, the order requires TAALS to
provide to the Federal Trade Commission the text of each amendment to
the TAALS Bylaws, Professional Code or Working Conditions, and the text
of any new rules, regulations or guidelines.
We note, however, that the order does not prevent TAALS from
adopting and enforcing reasonable ethical guidelines prohibiting
advertising that would be false or deceptive within the meaning of
Section 5 of the Federal Trade Commission Act. In addition, TAALS will
be permitted to compile and distribute accurate aggregate historical
market information concerning past fees that were actually charged no
earlier than three years after this order becomes final, if presented
in an unbiased and nondeceptive manner that maintains the anonymity of
the parties to the transactions underlying such reports. Similarly, the
order does not profit TAALS from collecting and publishing accurate
publicly available information on fees paid by governmental and
intergovernmental agencies if such publication states the
qualifications and requirements for such fees. With any publication of
fees permitted by the order, TAALS must include a statement that it is
prohibited from recommending fees applicable in the United States and
that interpreters must independently determine their own fees. In
addition, the order states that it does not prohibit TAALS from
providing information or its nonbinding and noncoercive views
concerning interpretation equipment, the hours of work or preparation,
or the number of language specialists used for a type of job.
For some specific information, members should refer to the order
itself, which is enclosed.
Counsel,
American Association of Language Specialists.
Analysis of Proposed Consent Orders To Aid Public Comment
The Federal Trade Commission has accepted separate agreements to
proposed consent orders from the American Society of Interpreters (ASI)
and The American Association of Language Specialists (TAALS).
The proposed consent orders have been placed on the public record
for sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreements and comments received and will decide whether it should
withdraw from the agreements or make final the agreements' proposed
orders.
ASI and TAALS are professional associations of conference
interpreters. The accompanying complaints allege that both TAALS and
ASI have been and are acting as combinations or conspiracies of their
members to restrain price and other forms of competition in the sale of
interpretation services. In particular, the complaint against ASI
charges that from as early as 1967, that association annually created
and distributed a list of minimum daily fees that members were required
to charge. The complaint against TAALS alleges that since 1973, TAALS
required its members to refrain from accepting private sector fees
below those adopted by vote of the association and then specified in
the Fee Reports sent to members. In addition, the complaints allege
that both ASI and TAALS have maintained a set of work rules binding on
all of their members requiring, among other things, that all
interpreters on a team be paid the same rate; that fees be paid in day-
long increments; and that members charge for travel, rest, and study
days. The complaints further allege that the binding work rules
required, among other things, that interpreters work no more than six
hours per day and that teams be staffed with a specified number of
interpreters. The TAALS complaint also alleges that TAALS established
rules limiting its members' use of portable electronic simultaneous
interpretation equipment and prohibited its members from engaging in
all forms of personal publicity and advertising. The TAALS complaint
further alleges that TAALS required members to declare a single
professional domicile and charge for travel expenses from that location
even if no travel was actually involved. The complaints allege that
TAALS' and ASI's lists of fees and work rules restrained competition in
violation of section 5 of the FTC Act, and that absent the proposed
consent orders, injury to the public will continue.
The proposed consent orders prohibit ASI and TAALS, including their
chapters, committees, and any other subdivision, from creating,
distributing, or endorsing any list of fees for interpretation,
translation, or other language services. They also forbid each of the
associations from entering into or maintaining any agreement, plan, or
program, to fix or otherwise interfere with fees. In addition, TAALS
and ASI are barred from recommending or encouraging, in any way,
interpreters, translators, or other language specialists to charge,
adhere to, or refrain from charging any existing or proposed fee.
Under the orders, for a period of ten years ASI and TAALS are
required to declare out-of-order any person who makes a statement at a
meeting concerning fees to be charged. If any person makes two such
statements, the association must eject him or her from the meeting. If
two people make statements concerning fees, TAALS or ASI must end the
meeting.
Under the orders, ASI and TAALS are further barred from
prohibiting, regulating, or advising against any form of price
competition, including undercutting a competitor's actual fee,
advertising discounted fees, or accepting any particular lodging or
travel arrangements. The orders also bar TAALS and ASI from advising
against or prohibiting hourly fees, weekly fees, or fees calculated on
other than a full-day basis. Furthermore, under the orders, the
associations cannot prohibit interpreters, translators, or other
language specialists from performing services free of charge or from
paying their own travel, lodging, meals, or other expenses.
In addition, the orders prohibit both ASI and TAALS from
maintaining any agreement, understanding, plan or program to limit,
restrict, or mandate the length of time that interpreters, translators,
or other language specialists work in a given period, or for which they
are paid for preparation or study. Further, under the orders the
associations cannot maintain any agreement, understanding, or program
to limit, restrict, or mandate the number of interpreters, translators,
or other language specialists hired for a job or type of job.
In addition to the restrictions they both share, the TAALS order
prohibits further activities not addressed in the ASI order. TAALS may
not limit or mandate the equipment used for performing interpretation,
translation, or other language services. TAALS is also barred from
restricting, regulating, or declaring unethical any form of personal
publicity, including advertising. Finally, TAALS may not deprive
consumers of any advantages, based on travel arrangements or geographic
location, by regulating domiciles of members or by other means.
Under both orders, ``fees'' are defined to include all cash or non-
cash charges, rates, benefits, or other compensation. Thus, the term
``fees'' includes (but is not limited to): Lodging, meals, subsistence
and travel allowances, reimbursements for expenses, cancellation
charges, and compensation for time not worked, travel time or briefing
time. ``Language specialist'' means one who performs ``other language
services,'' which are defined as any services that involve the
conversion of any form of expression from one language into another or
any services incident to or related to interpretation and translation.
Consequently, when the orders mention ``language specialists,'' they
include, among others, anyone who rents equipment, organizes
conferences, performs teleconferencing or precis writing, supervises or
coordinates interpreters, reviews or revises translations, or provides
recordings of interpretations.
Further, ASI must amend its Code of Professional Standards,
Professional Guidelines, and Yearbook Professional Guidelines to
conform to the requirements of the order, which are summarized above.
TAALS must amend its Professional Code for Language Specialists and all
appendices to conform to the requirements of its order. Both
associations must also amend their bylaws to require each member,
chapter, and organizational subdivision to observe the requirements of
the respective orders. In addition, the orders require the associations
to provide to their members and affiliates and to the Federal Trade
Commission the text of each amendment to their bylaws, and the taxes of
any new or amended rules, regulations or guidelines. The ASI order also
requires that, within thirty days after obtaining them, ASI must
provide to the Federal Trade Commission copies of all lists of fees
produced by any association that come into ASI's possession.
We note, however, that TAALS and ASI will be permitted to compile
and distribute accurate aggregate historical market information
concerning past fees that were actually charged in transactions
completed no earlier than three years after the orders become final.
Such information must be presented in an unbiased and nondeceptive
manner that maintains the anonymity of the parties to the transactions.
Similarly, the orders permit the associations to collect and publish
accurate publicly available information on fees paid by governmental
and intergovernmental agencies, if the publication states the
qualifications and requirements to receive such fees. Whenever they
publish the fees that are permitted by the orders, ASI and TAALS must
include a statement that they are prohibited from recommending fees and
that interpreters must independently determine their own fees. In
addition, the orders authorize the associations to provide information
or their nonbinding and noncoercive views concerning the hours of work
or preparation or the number of language specialists used for a type of
job.
The purpose of this analysis is to facilitate public comment on the
proposed orders, and it is not intended to constitute an official
interpretation of the agreements and proposed orders or to modify in
any way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 94-4042 Filed 2-23-94; 8:45 am]
BILLING CODE 6750-01-M
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