Rates

[Country Kids]

Another post on confidentiality reminded me of something I have never understood or been able to find. Thought I would ask here and see if anyone can answer it for me. When asking other providers what their rates are I'm always told "Oh, we can't discuss that-it's against the law or we aren't allowed to discuss rates". Where is it written that we can't talk rates? I have looked in my handbook from the state, asked liscensing, CC&R and no one can give a clear answer about it. All they can say is "It means price fixing". I can go on Craigslist and easily find peoples rates because most of them list them or ask CC&R and they will give them to you or check out websites. There was actually a worker that was encouring everyone to raise their rates to what the state paid and I was told she was let go because it was against the law to do that.

So is it an actual physical written law that you aren't allowed to discuss rates or just a way of people protecting how much they charge?

[TomCopeland]

Price fixing

Competitors can't discuss rates with each other. This is against federal Anti-Trust laws. If you are posting your rates on the Internet for everyone to see (not just providers) then you are okay. If you are sharing rates with providers from another state (who aren't your competitors) then this is okay as well. Posting your rates on Craigslist is okay because it's public information and not just shared with providers.

[Country Kids]

What are Anti-Trust laws? I've never heard of these and wondering how many providers know this as all they ever say is it's against the law. If you have parents with you though when discussing rates is that against the law?

[Former Teacher]

Also.....what about a provider who calls another provider and pretends to be a parent and asking for rates over the phone? Even going as far as having a bogus email and emailing the provider?

[TomCopeland]

Price fixing

Here's more information on anti-trust laws: http://en.wikipedia.org/wiki/United_..._antitrust_law

Most providers probably aren't aware of these laws. You can discuss rates with parents, but not when other providers are present. Having a parent in the room when you talk about rates with another provider doesn't make this a public meeting. You can discuss rates if the meeting is public (but not an association meeting).

You can call another provider and pretend to be a parent. As long as one of the two people discussing rates doesn't know that the other person is a competitor, then it's okay.

I've written about this on my blog: http://www.tomcopelandblog.com/2011/...are-rates.html