FTC Attacks Toothless Regulation of Dentists

Faegre Drinker Biddle & Reath LLP
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Yesterday the United States Supreme Court heard argument in a case of national importance to health professions and the state boards that regulate them.  The case, North Carolina Board of Dental Examiners v. FTC, addresses the question whether a state dental board can be guilty of antitrust violation.

Remember Parker v. Brown from Antitrust 101?  That Supreme Court decision basically said that a state is exempt from federal antitrust liability for regulating commercial activity even though that regulation may restrain trade.  For example, when a state requires a medical degree for the practice of medicine, that requirement restrains trade but it is exempt because it is state regulatory activity.

The North Carolina case presents an interesting twist on the issue.  In that state, dentistry is regulated by the Board of Dental Examiners.  That board sent letters to nondentists all over the state ordering them to stop offering teeth-whitening services.  Needless to say, this was a real benefit to dentists, who provide teeth-whitening services and generally charge more than nondentists.

The FTC sued the board for antitrust violation, noting among other things that the board is made up entirely of dentists.  So, in the FTC’s view, actions by the board don’t constitute active regulation as contemplated by Parker v. Brown.  They’re not entitled to recognition as state regulation or to immunity.

Dozens of state and national professional organizations have filed briefs in support of the North Carolina board.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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