For many years the accounting profession, as well as other
professional service organizations, had prohibitions against
advertising, claiming it was unethical. But many accountants,
especially younger accountants and accountants with smaller
accounting firms believed the prohibition was enacted to
protect the large, established firms from encroachment by
smaller firms. This belief increased substantially by 2004
indicating an increasing suspicion by accountants concerning
the true reason for enacting the advertising prohibition.
Evidently, the FTC’s consent agreement was seen by
accountants as a signal by the federal government and legal
system that professional organizations’ prohibition of
advertising by their members constituted an unfair level of
competition and, thus, protected the larger, established firms
from more agile and competitive smaller firms.
For many years the accounting profession, as well as otherprofessional service organizations, had prohibitions againstadvertising, claiming it was unethical. But many accountants,especially younger accountants and accountants with smalleraccounting firms believed the prohibition was enacted toprotect the large, established firms from encroachment bysmaller firms. This belief increased substantially by 2004indicating an increasing suspicion by accountants concerningthe true reason for enacting the advertising prohibition.Evidently, the FTC’s consent agreement was seen byaccountants as a signal by the federal government and legalsystem that professional organizations’ prohibition ofadvertising by their members constituted an unfair level ofcompetition and, thus, protected the larger, established firmsfrom more agile and competitive smaller firms.
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