Justice Sues

Justice Sues

The Antitrust Division of the Department of Justice recently sued and simultaneously settled with the National Association of College Admissions Counseling (NACAC) over alleged practices of collusion.  NACAC is an association whose members represent most of the colleges and universities in the United States. 

The action came after a nearly two-year investigation into admission practices of member colleges.  NACAC cooperated with the DOJ and ultimately voted 211-3 to strip the contested provisions from its Code of Ethics and Professional Practice.

The changes, now in effect, are:

  1.  Colleges may offer incentives for Early Decision candidates
  2. A college may continue to recruit a candidate even after the candidate has committed to another college.
  3. A college may continue to recruit a candidate after the May 1st deadline.
  4. Colleges may continue to recruit a student from last year’s candidate pool.

“While trade associations and standards-setting organizations can and often do promote rules and standards that benefit the market as a whole, they cannot do so at the cost of competition,” said a statement from Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement is a victory for all college applicants and students across the United States who will benefit from vigorous competition among colleges for their enrollment.