Blog

Banner icon
Slideshow image

Blog

Banner icon

The Beauty of Trade Associations

In a world where we are being legislated and regulated into ignorance on a daily basis, and globally, a good trade association can be an inexpensive and reliable way of keeping up with a rapidly changing landscape. It can also be a great source of advanced knowledge of impending problems; you will be forewarned and can prepare yourself accordingly.

Sadly, I have heard a member of the Competition Bureau say that she could not think of a single reason why a trade association would exist other than for anti-competitive reasons. I trust this opinion is not shared by the Federal Trade Commission in the U.S. overseeing anti-trust matters. A position such as this shows a startling lack of knowledge of the benefits a proper trade association can provide. Fortunately the Bureau’s position is somewhat mollified as can be seen in their 2015 pamphlet “Trade Associations and the Competition Act”.

In complete contrast to the position taken by the Competition Bureau representative, trade associations provide a tremendous resource for small and medium businesses. Since the title of this blog is “The Beauty of Trade Associations,” I will use cosmetic trade associations as an example.

Industry data, trends, regulatory actions, scientific research, global information, international interaction, webinars, advocacy, trade shows, networking, mentoring and the availability of a multitude of group benefits are but some of the assistance provided to trade association members.

In the cosmetic industry where special interest groups seem to have the ear of the media, where every cosmetic ingredient is being touted as toxic and where it is easier for a journalist to be alarmist than to be investigative, a good trade association may be the only buffer a company has between itself and unfounded, unscientific and often illogical accusations.

When members trust their trade association, they are more willing to share scientific and proprietary data in an anonymous manner, which the association can collate into a sound, scientific and coherent response to the hysteria which arises from an unsubstantiated news article or an alleged hazard accusation based solely on junk science. A trade association can also be of incredible assistance in representing the industry in discussions with government, regulators and reputable interest groups who are prepared to listen to sound science and consider risk management. In short, the trade association can provide members with the knowledge and expertise to be their eyes, ears and voice for industry information, for advocacy with governments and regulators and as the industry spokesperson in a multitude of public situations.

The beauty of trade associations, as shown in the cosmetics industry, is that they provide an effective way of collecting industry expertise, sharing knowledge, unifying representation of common interests and voicing a credible position in a professional manner. This is done, not only at a cost that allows participation by small and medium sized businesses, but also in a manner which is compliant with the rules of fair competition and does not breach anti-trust provisions.

By way of information, we invite you to investigate the following:

For the professional industry and cosmetologists:

In Canada Allied Beauty Association

In the USA Professional Beauty Association

For retail and professional cosmetic manufacturers and distributors:

In Canada The Canadian Cosmetic Toiletry and Fragrance Association

In the USA Independent Cosmetic Manufacturers and Distributors

Personal Care Products Council

Print

 

The materials on the Maclaren Corlett LLP web site (the “Site”) have been developed as an electronic resource respecting our organization.

Any information sent to Maclaren Corlett LLP through this Site is not a confidential lawyer-client communication. No lawyer-client relationship is created by such correspondence or by you accessing the materials on this Site.

Any information sent or received over the Internet is generally not secure. Maclaren Corlett LLP cannot guarantee the security of any communication to or from the Site, nor does it assume any responsibility or risk for your use of the Internet.

The Site and Content is provided on an “as is” and “as available” basis, without any warranty or condition of any kind, either express or implied. YOU ACKNOWLEDGE AND AGREE THAT YOU ARE USING THE SITE AND THE CONTENT, IF APPLICABLE, ENTIRELY AT YOUR OWN RISK AND LIABILITY.

By accessing or using the Site, you agree that all matters relating to your access or use of the Site and Content or to these Terms shall be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein excluding any conflict of laws principles.

All material on this site is copyright by Maclaren Corlett LLP and may not be reproduced in any form for commercial purposes without its express written consent.

Print

Please contact us for a copy of our Privacy policy.