Trade association

A trade association, also known as an industry trade group, business association, sector association, industry consortium or industry body, is an organization founded and funded by businesses that operate in a specific industry. Through collaboration between companies within a sector, a trade association coordinates public relations activities such as advertising, education, publishing and, especially, lobbying and political action. Associations may offer other services, such as producing conferences, setting industry standards, industry self-regulation, holding networking or charitable events, or offering classes or educational materials. Many associations are non-profit organizations governed by bylaws and directed by officers who are also members.

Trade associations and other industry groups are politically influential in the United States, United Kingdom, and other countries, lobbying elected officials, regulators, and other policymakers. They also invest heavily in publishing, advertising, and other forms of issue advocacy.

Political influence

One of the primary purposes of trade groups, particularly in the United States, is to attempt to influence public policy in a direction favorable to the group's members. It can take the form of contributions to the campaigns of political candidates and parties through political action committees (PACs); contributions to "issue" campaigns not tied to a candidate or party; and lobbying legislators to support or oppose particular legislation. In addition, trade groups attempt to influence the activities of regulatory bodies.

In the U.S., direct contributions by PACs to candidates are required to be disclosed to the Federal Election Commission or state and local election overseers; are considered public information; and have registration requirements for lobbyists (lobbyist for the FEC).