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[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
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