19th January 2018

Louisiana Real Estate Appraisers Board Seeks Dismissal of FTC Complaint

posted in Dodd-Frank C&R Topics |

The Federal Trade Commission announced Jan. 10 that it will hear oral arguments next month on motions filed by the FTC and the Louisiana Real Estate Appraisers Board. The LREAB in November filed a motion to dismiss the complaint filed against it by the FTC, while the FTC filed motions for partial summary judgment and for opposition to the LREAB’s motion to dismiss.

The FTC alleged that the LREAB through its Rule 31101 was unreasonably restraining price competition for appraisal services in violation of federal antitrust law. The LREAB unanimously voted to initiate the process to replace Rule 31101 on July 31. After approval by the Louisiana Commissioner of Administration and the Louisiana Senate and House Commerce Committees, the Replacement Rule of 31101 took effect Nov. 20, thus rescinding the Prior Rule of 31101.

In its motion to dismiss, the LREAB stated, “The state’s active supervision over promulgation and enforcement of Rule 31101 advances clearly articulated state policies under the AMC Act to displace competition in the market for residential real estate appraisal fees, and therefore immunizes the Board’s actions from further federal antitrust scrutiny. Accordingly, there is no further conduct for the Commission to prevent, or from which the Board must cease and desist, under the Complaint.”

Oral arguments are set for Feb. 22. The deadline for ruling on the motions is April 9.

Find more information on the case on the FTC website.

reposted from: https://www.appraisalinstitute.org/ano/louisiana-real-estate-appraisers-board-seeks-dismissal-of-ftc-complaint/

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