[Federal Register Volume 63, Number 141 (Thursday, July 23, 1998)]
[Notices]
[Pages 39571-39572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19678]
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FEDERAL TRADE COMMISSION
[File No. 971-0110]
South Lake Tahoe Lodging Association; Analysis To Aid Public
Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. The attached Analysis to
Aid Public Comment describes both the allegations in the draft
complaint that accompanies the consent agreement and the terms of the
consent order--embodied in the consent agreement--that would settle
these allegations.
DATES: Comments must be received on or before September 21, 1998.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
William Baer, FTC/H-374, Washington, DC 20580. (202) 326-2932.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby
given that the above-captioned consent agreement containing a consent
order to cease and desist, having been filed with and accepted, subject
to final approval, by the Commission, has been placed on the public
record for a period of sixty (60) days. The following Analysis to Aid
Public Comment describes the terms of the consent agreement, and the
allegations in the complaint. An electronic copy of the full text of
the consent agreement package can be obtained from the FTC Home Page
(for July 20, 1998), on the World Wide Web, at ``http://www.ftc.gov/os/
actions97.htm.'' A paper copy can be obtained from the FTC Public
Reference Room, Room H-130, Sixth Street and Pennsylvania Avenue, NW.,
Washington, DC 20580, either in person or by calling (202) 326-3627.
Public comment is invited. Such comments or views will be considered by
the Commission and will be available for inspection and copying at its
principal office in accordance with Section 4.9(b)(6)(ii) of the
Commission's Rules of Practice (16 CFR 4.9(b)(6)(ii)).
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission (``Commission'') has accepted, subject
to final approval, an Agreement Containing Consent Order (``Order'')
from South Lake Tahoe Lodging Association (``SLTLA'' or ``Proposed
Respondent''). The proposed Order is designed to prevent the recurrence
of anticompetitive practices engaged in by SLTLA and its members in
connection with an effort by the Proposed Respondent and its members to
eliminate or restrict the use of signs advertising the prices at which
its members provided lodging services in the South Lake Tahoe,
California, area.
The Agreement Containing Consent Order, if finally accepted by the
Commission, would settle charges that Proposed Respondent's conduct
violated Section 5 of the Federal Trade Commission Act by eliminating
one form of competition between lodging establishments in the South
Lake Tahoe area and by making it more difficult for consumers to get
accurate information about the prices for lodging in that area. The
proposed complaint, described below, relates the basis for this relief.
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
The Proposed Complaint
According to the Commission's proposed complaint, SLTLA is a
nonprofit corporation whose members are operators of lodging
establishments in the South Lake Tahoe, California, area. SLTLA's
associate members include operators of lodging establishments and
related businesses in the South Lake Tahoe, California, area and the
adjacent areas of Nevada. According to the proposed complaint, SLTLA's
members and associate
[[Page 39572]]
members constitute approximately 70 percent of the available lodging in
the South Lake Tahoe area. The Commission's complaint alleges that
SLTLA and its members entered into an agreement to suspend the use of
signs advertising prices for lodging. The evidence also shows that the
primary purpose of the agreement was to increase the room rates charged
for lodging in the South Lake Tahoe area of Northern California and
Nevada and to end what members saw as a ``destructive'' price war on
motel rooms in the South Lake Tahoe area by eliminating the posting of
signs advertising the prices at which its individual members offer such
lodging.
According to the proposed complaint, the effects of the agreement
are that price competition among providers of lodging in the South Lake
Tahoe area has been reduced, and consumers have been deprived of the
benefits of readily available information about the price for lodging.
The Proposed Order
The proposed Order contains provisions designed to remedy the
violations charged and to prevent the respondent from engaging in
similar acts and practices in the future. Part II of the proposed order
would prohibit SLTLA from carrying out, participating in, inducing,
suggesting, urging, encouraging, or assisting any agreement,
combination or conspiracy with its members, or agreement, combination
or conspiracy with some of its members, to restrict the posting of
signs advertising the prices at which its individual members offer
lodging. Part II would not bar SLTLA from exercising rights protected
under the First Amendment to the United States Constitution to petition
any federal, state or local government executive agency or legislative
body concerning legislation, rules, programs, or procedures, or to
participate in any federal, state or local administrative or judicial
proceeding.
The proposed order also requires the respondent to amend its
corporate by-laws to incorporate by reference Paragraph II of this
Order; to distribute a copy of the amended by-laws to each of its
members; to provide a copy of the consent agreement and complaint to
all of its current members and to any new members for a period of five
(5) years; and to file one or more reports detailing compliance with
the order.
The purpose of this analysis is to invite public comment on the
proposed order. This analysis is not intended to constitute an official
interpretation of the agreement and proposed order or to modify their
terms in any way.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-19678 Filed 7-22-98; 8:45 am]
BILLING CODE 6750-01-M
