[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4042]


[[Page Unknown]]

[Federal Register: February 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