Joe’s company is exhibiting at a major trade show for the first time. The company’s pre-show checklist includes booth fixtures, display graphics, sales collateral and giveaways. Joe’s sales team is ready for anything—except inadvertent legal issues.

Trade shows are an opportunity to interact with prospects who are motivated and often purchase-ready. They are also a setting in which competitors have direct contact with one another. A new industry entrant like Joe’s company can unintentionally trigger antitrust issues in its drive to make industry connections and close deals on the spot. Here are two examples of how this can happen:

• Joe offers a lower price to one attendee, and that offer is overheard by another attendee who is not offered the lower price.

• One of Joe’s salespeople strikes up a conversation with a competitor’s salesperson. The discussion turns to product pricing and sales territories.

I asked business attorneys Bob Marsh and Sheryl Nelson, partners at Corporate Counsel Group in Westport, to comment on potential antitrust issues at trade shows. Both consider a briefing on antitrust laws an essential component of trade show preparation for companies of all sizes.

“Be sure your salespeople are familiar with antitrust laws, especially regarding conversations with competitors,” Marsh advises. Nelson emphasizes that expectations about legal compliance starts with the company owner and must be communicated to the sales team. Adding the following steps to your trade show preparation can help to ensure compliance.

Document your pricing and the terms of sale // “Depending upon the situation, verbal comments can become binding agreements,” cautions Marsh. Under the Robinson-Patman Act, companies are often required to sell the same product to comparable customers for comparable prices, and verbal deals made on the fly can potentially lead to issues. Require your trade show team to use a standard document, including agreed-upon pricing, to negotiate all sales.

Brief your sales team // Antitrust statutes include the Sherman Act, the Clayton Act, the Federal Trade Commission Act and the Robinson-Patman Act. Marsh and Nelson agree that the nuances of antitrust are complex, but the most important aspect of antitrust law is straightforward: don’t discuss pricing, other terms of sale, territories or customers with a competitor.

In addition to a pre-show briefing on antitrust laws, situations and consequences, consider easy ways to keep antitrust guidelines top of mind. Corporate Counsel Group provides its clients with a laminated, wallet-sized card with dos and don’ts for dealing with competitors in a trade show setting.

The first line of defense against antitrust activity is knowledgeable employees. Make sure your team really is ready for anything before your next trade show.