Can Associations Legally Require Membership for Certification?

In 2018, the American Osteopathic Association (AOA) paid over $35 million to settle an antitrust lawsuit. Their mistake? Requiring membership to maintain board certification. Is your association making the same costly error?

Association Certification Requirements: Why Tying Membership Could Cost You Millions

Four physicians challenged AOA's requirement that board-certified doctors purchase and maintain association membership to keep their certification. The case never reached judgment. AOA settled in 2018 rather than risk an even costlier verdict. This precedent-setting case should have sent shockwaves through the association world, yet many organizations still haven’t heard about it. Some associations still tie certification to membership, unaware they're sitting on a legal time bomb.

🏛️ What are the legal implications of tying membership to certification?

AOA made the mistake of requiring physicians to buy one product (membership) to access another (certification). In this tying arrangement, the association had control over something physicians needed (certification) to force them to buy something they might not have wanted (membership).

‘Forcing’ is what triggers Sherman Act violations. Certificants had no choice. They had to buy membership or lose access to certification and the resulting professional credibility. Courts don't care if other certifications exist. What matters is whether your association’s certification carries enough weight (or market power) that professionals feel compelled to acquire and maintain it.

Market power isn't only about size. Your association has market power if:

• Your certification is preferred by employers in your industry or region
• Your certification is the only one recognized by regulators
• Your certification is the established standard in a specialty or niche

If losing your certification could harm someone's career prospects, they might believe your association has enough market power for them to trigger antitrust scrutiny.

💸 What’s the real cost of tying arrangements?

Antitrust scrutiny gets expensive fast. Based on the AOA settlement, you might be looking at costs like:

• $35+ million settlement and plaintiff legal fees—and that’s in 2018 dollars
• Defense costs, even if you win
• Spike in E&O insurance premiums or loss of coverage
• Staff time for litigation

The intangible costs add up too:

• IRS scrutiny and potential loss of 501(c) tax-exempt status
• Damage to trustworthiness and reputation
• Competitive disadvantage as existing and potential certificants choose other programs
• Personal liability exposure for board directors

It gets worse. Antitrust violations can trigger class actions where every certificant becomes a potential plaintiff. The case might start with four members but imagine if many more decide to join.

🚨 Is your certification program violating antitrust law?

Don’t panic unless you spot one of these seven red flags in your certification program.

          🚩 Red flag 1: Membership required for certification

 Never require—explicitly or implicitly—candidates to join or be a member “in good standing” before applying for a credential or taking a credentialing exam.

          🚩 Red flag 2: Membership required for renewal

Even if initial certification is open to all, requiring membership to maintain credentials violates antitrust law—that’s what triggered the AOA lawsuit.

          🚩 Red flag 3: Excessive non-member pricing differential

Non-member fees exceeding 30% above member rates approach the pricing danger zone. Document the rationale for any excessive pricing differential.

          🚩 Red flag 4: Membership walls for certificate and  microcredentialing programs

If there's tying, there's risk, regardless of the type of credentialing program.

          🚩 Red flag 5: Barriers created by bundled benefits

Requiring membership to access study materials, prep courses, or renewal credits creates indirect forcing. People shouldn't have to join to enjoy certification success.

          🚩 Red flag 6: Geographic or employer restrictions

Beware restrictions like “Available only to members in this region” or “Must be employed by a member organization.” These provisions could be seen as restraining trade and, therefore, invite legal challenges.

          🚩 Red flag 7: Grandfathering advantages

Don’t offer current members easier certification renewal terms than non-members. This favoritism creates discriminatory maintenance requirements—exactly what triggered the AOA lawsuit.

🎖️ What about certificate, microcredential, and recognition programs?

The tying arrangement is the legal issue, not the credential type. If your certificate, microcredentialing, or digital badge program requires membership, you’re in the same dangerous legal waters as certification programs.

But here’s a possible safe harbor, although consult with an attorney to be sure. A recognition program, like ASAE’s Fellow (FASAE) designation offers a compliant alternative because it recognizes voluntary achievement and service, not professional competence. Members earn recognition for their contributions to the association and industry, so it’s legal to require membership for honors that celebrate membership participation. Granted, a recognition program serves an entirely different purpose than credentialing programs, but that’s the point.

☑️ What are the best alternatives to membership requirements?

Consider these strategies when building a compliant revenue model for your credentialing programs.

• Differential pricing

  Set non-member rates 20-30% higher than member rates—a defensible and standard policy. Document your rationale: members subsidize program development through their dues. Promote the savings for members without forcing the choice.

• Learning subscriptions

  Instead of pushing membership, promote learning subscriptions. Subscriptions are especially valued by professionals whose employers pay for training but not memberships.

  Subscriptions provide unlimited online access to credit-bearing programs and course bundles—the products certificants actually want. Offer tiers: basic (10 credits/year), professional (unlimited), and enterprise (team access).

• Content marketing

Certificants are engaged prospects. They've already invested time and money with you. Stay connected by segmenting them for targeted marketing campaigns that encourage membership or participation in other paid education programs. Build loyalty by providing valuable free resources.

🔹  Exam prep tips for candidates

🔹  Monthly webinars on trending topics for current certificants

🔹  Regulatory updates and practice change alerts for renewals

🔹  Career resources for professionals at every level

Credentialing programs are a gateway to your association. Non-member certificants often become members once they experience your value proposition—no forcing required. But even if they never join, they’ll remain loyal customers if you keep offering the education and credentialing programs they need to advance in their careers.

To manage compliant certification programs effectively, you need the right technology. When researching your next learning management system (LMS) keep our Guide to LMS Selection and Implementation handy.