WASHINGTON, D.C. — Texas-based Your Therapy Source has settled charges by the Federal Trade Commission (FTC) that the company colluded with its competitors to fix prices on physical therapy pay rates.
According to the FTC, Your Therapy Source made agreements with several other staffing companies to lower rates for therapists in the Dallas and Fort Worth area pay rates to the same level while inviting their competitors to lower their rates to keep therapists from switching staffing companies.
“Just as it is illegal for competitors to agree to fix prices on the products they sell in order to drive prices up, it is illegal for competitors to agree to fix wages or fees paid to workers in order to drive wages down,” Bureau of Competition director Bruce Hoffman said in a statement.
The FTC alleges that through its collusion, the company violated Section V of the Federal Trade Commission Act.
The proposed consent order settling the FTC charges calls for prohibiting the companies from colluding with competitors on compensation to employees or independent contractors. The consent order also includes barring the parties from agreeing with each other to lower, fix, maintain or stabilize compensation for therapists and other types of employees, FTC said.