A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific
industry. An industry trade association participates in
public relations activities such as
advertising, education, publishing,
lobbying, and
political donations
Campaign finance, also known as election finance or political donations, refers to the funds raised to promote candidates, political parties, or policy initiatives and referendums. Political parties, charitable organizations, and political ac ...
, but its focus is collaboration between companies. Associations may offer other services, such as producing conferences, holding networking or charitable events, or offering classes or educational materials. Many associations are
non-profit organizations governed by
bylaws and directed by officers who are also members.
In countries with a
social market economy, the role of trade associations is often taken by
employers' organizations, which also take a role in
social dialogue Social dialogue (or social concertation) is the process whereby social partners (trade unions and employer organisations) negotiate, often in collaboration with the government, to influence the arrangement and development of work-related issues, la ...
.
Political influence
One of the primary purposes of trade groups, particularly in the United States, is to attempt to influence
public policy in a direction favorable to the group's members. It can take the form of contributions to the campaigns of political candidates and parties through
political action committees (PACs); contributions to "issue" campaigns not tied to a candidate or party; and
lobbying legislators to support or oppose particular legislation. In addition, trade groups attempt to influence the activities of
regulatory bodies.
In the United States, direct contributions by PACs to candidates are required to be disclosed to the
Federal Election Commission or state and local election overseers; are considered public information; and have registration requirements for lobbyists. Even so, it can sometimes be difficult to trace the funding for issue and non-electoral campaigns.
Publishing
Almost all trade associations are heavily involved in publishing activities in print and online. The main media published by trade associations are as follows:
* Association website. The association's corporate website typically explains the association's aims and objectives, promotes the association's products and services, explains the benefits of membership to prospective members, and promotes members' businesses (for example, by means of an online listing of members and description of their businesses).
* Members newsletters or magazines. Whether produced in print or online, association newsletters and magazines contain news about the activities of the association, industry news and editorial features on topical issues. Some are exclusively distributed to members, while others are used to lobby lawmakers and regulators, and some are used to promote members' businesses to potential new customers.
* Printed membership directories and yearbooks. Larger trade associations publish membership directories and yearbooks to promote their association to opinion formers, lawmakers, regulators and other stakeholders. Such publications also help to promote members' businesses both to each other and to a wider audience. A typical membership directory contains profiles of each association member, a products and services guide, advertising from members, and editorial articles about the aims, objectives and activities of the association. The emphasis of association yearbooks on the other hand is on editorial features about the association itself and the association's industry.
The opportunity to be promoted in such media (whether by editorial or advertising) is often an important reason why companies join a trade association in the first place.
Examples of larger trade associations that publish a comprehensive range of media include
European Wind Energy Association (EWEA),
Association of British Travel Agents (ABTA) and the
Confederation of British Industry (CBI).
Generic advertising
Industry trade groups sometimes produce advertisements, just as normal corporations do. However, whereas typical advertisements are for a specific corporate product, such as a specific brand of cheese or toilet paper, industry trade groups advertisements generally are targeted to promote the views of an entire industry.
Ads to improve industry image
These ads mention only the industry's products as a whole, painting them in a positive light in order to have the public form positive associations with that industry and its products. For example, in the USA the advertising campaign "Beef. It's what's for dinner" is used by the
National Cattlemen's Beef Association
National Cattlemen's Beef Association (NCBA) is an American trade association and lobbying group working for American beef producers.
Advertising campaign
National Cattlemen's Beef Association is a contractor to the Beef Checkoff, which is the gro ...
to promote a positive image of beef in the public consciousness.
Ads to shape opinion on a specific issue
These are adverts targeted at specific issues. For example, in the US in the early 2000s the
Motion Picture Association of America (MPAA) began running advertisements before films that advocate against movie piracy over the Internet.
Controversy
A frequent criticism of trade associations is that, they are not per se "profit-making" organizations, but they are in reality fronts for
cartels engaged in
price-fixing
Price fixing is an anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given ...
, creating and maintaining barriers to entry of industry, and other subtle self-serving
anti-competitive activities not in the public interest.
Anti-competitive activity
Jon Leibowitz, a commissioner at the
Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
in the United States, outlined the potentially anti-competitive nature of some trade association activity in a speech to the
American Bar Association in
Washington, DC, in March 2005 called "The Good, the Bad and the Ugly: Trade Associations and
Antitrust
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
". For instance, he said that under the guise of "standard setting," trade associations representing the established players in an industry can set rules that make it harder for new companies to enter a market.
Cartels
In September 2007, the German trade association for Fachverband Verbindungs- und Befestigungstechnik (VBT) and five fastener companies were fined 303 million euros by the
European Commission for operating cartels in the markets for fasteners and attaching machines in Europe and worldwide. In one of the cartels, the
YKK Group
The is a Japanese group of manufacturing companies. As the world's largest zipper manufacturer, YKK Group is most known for making zippers. It also manufactures other fastening products, architectural products, plastic hardware and industria ...
,
Coats plc, the
Prym group, the Scovill group, A. Raymond, and Berning & Söhne "agreed
..on coordinated price increases in annual 'price rounds' with respect to 'other fasteners' and their attaching machines, in the framework of work circles organised by VBT".
Copyright trade groups
*
IFPI, the International Federation of Phonogram and Videogram Producers, represents the recording industry worldwide, with over 1450 members in 75 countries and affiliated industry associations in 48 countries. The IFPI works in partnership with similar national organizations:
**
Recording Industry Association of America
The Recording Industry Association of America (RIAA) is a trade organization that represents the music recording industry in the United States. Its members consist of record labels and distributors that the RIAA says "create, manufacture, and/o ...
(RIAA) represents the recording industry in the United States
**
ASINCOL, the Colombian Association of Phonograph Producers, Colombian music industry association
**
Music Canada
Music Canada (formerly Canadian Recording Industry Association (CRIA)) is a non-profit trade organization that was founded 9 April 1963 to represent the interests of companies that record, manufacture, produce, and distribute music in Canada. It a ...
, formerly known as the Canadian Recording Industry Association is the non-profit trade organization representing the largest Canadian companies that create, manufacture and market sound recordings
**
Recording Industry Association of New Zealand
Recorded Music NZ (formerly the Recording Industry Association of New Zealand (RIANZ)) is a non-profit trade association of record producers, distributors and recording artists who sell recorded music in New Zealand. Membership of Recorded Mus ...
(RIANZ), non-profit trade association of producers and artists in New Zealand
**
Mexican Association of Producers of Phonograms and Videograms
Mexican may refer to:
Mexico and its culture
*Being related to, from, or connected to the country of Mexico, in North America
** People
*** Mexicans, inhabitants of the country Mexico and their descendants
*** Mexica, ancient indigenous people ...
(AMPROFON)
*
Motion Picture Association
The Motion Picture Association (MPA) is an American trade association representing the five major film studios of the United States, as well as the video streaming service Netflix. Founded in 1922 as the Motion Picture Producers and Distribu ...
(MPA) represents the film industry in the United States
*
The Association of Japanese Animations (AJA), a group consisting of small to medium-sized intellectual property companies
*
Business Software Alliance (BSA) promotes the intellectual property of software developers
*
Entertainment Software Association (ESA) promotes the intellectual property of game developers in the United States
*
British Phonographic Industry (BPI), UK music industry association. Founded the
BRIT Awards, and give Gold, Silver and Platinum disks for UK-based sales
*
Federation Against Copyright Theft
The Federation Against Copyright Theft (FACT) is an organisation established in 1983 to protect and represent the interests of its members' intellectual property (IP). FACT also investigates fraud and cybercrime, and provides global due diligenc ...
(FACT) is the main UK anti-copyright infringement organization, mainly for films
*
Australian Recording Industry Association (ARIA), oversees the collection, administration and distribution of music licenses and royalties in Australia
*
Japanese Society for Rights of Authors, Composers and Publishers (JASRAC)
*
Recording Industry Association of Japan (RIAJ)
*
Russian Organization for Multimedia and Digital Systems
Russian Organization for Multimedia and Digital Systems (ROMS, Russian: РОМС), also known as Russian Multimedia and Internet Society is a Russian collective rights management organization. ROMS is a body designated by Russian law for collect ...
(ROMS) organization on collective management of rights of authors and other rightholders in multimedia, digital networks and visual arts
*
Anti Video Piracy Association of Singapore
Anti Video Piracy Association of Singapore (AVPAS) is a copy protection consortium with other anime producers founded by Odex on 30 July 2003. The association lists over 400 titles (as of 25 May 2007) and is supported by at least one governmenta ...
(AVPAS) for anime
*
GEMA society for musical performing and mechanical reproduction rights in Germany
See also
*
China Council for the Promotion of International Trade
*
Commodity checkoff program
In the United States, a commodity checkoff program promotes and provides research and information for a particular agricultural commodity without reference to specific producers or brands. It collects funds through a checkoff mechanism that is ...
*
Guild
*
Inter-professional association
*
List of food industry trade associations
This is a list of food industry trade associations. A trade association is an organization founded and funded by businesses that operate in a specific industry. An industry trade association participates in public relations activities such as adv ...
*
Professional association
*
Trust (business)
References
Further reading
* This provides a comprehensive contemporaneous overview of trade associations and associated government activity, as of the early 20th century.
* Garrelts, Frank: ''Märkte im Umbruch – Kooperationen als Chance im Handel'' (''Markets on the move – trade associations as a business opportunity''), München: Beck 1998,
abstract in English available her
*
*
Gerard Swope#Swope Plan, The Swope Plan (Federal Trade Commission) – responsible for supervising trade associations established for each industry
{{Authority control
Types of organization
zh:协会