When a licensee is in a conversation about commission rates, what is the correct action if they suspect price-fixing?

In situations where a licensee suspects that a conversation is veering into price-fixing regarding commission rates, the most appropriate action is to disavow themselves from the conversation and leave. This response is essential because participation in discussions that may imply collusion on pricing can lead to serious legal implications, including violations of antitrust laws.

By removing themselves from the dialogue, the licensee demonstrates compliance with legal standards and a commitment to ethical business practices. It shows a clear intention to avoid any actions that could be interpreted as an agreement on price-fixing, which is illegal and can have devastating consequences for both individuals and firms involved.

This approach protects the licensee from potential liability and ensures that they adhere to the regulations that govern fair competition. In contrast, simply pointing out the risk of price-fixing or remaining silent does not adequately address the potential legal ramifications. Explicitly stating a refusal to discuss commissions may be less effective than taking immediate action to exit the conversation entirely. Therefore, disavowing oneself from the conversation is the most prudent course of action in this scenario.