FOR IMMEDIATE RELEASE: January 10, 1991 FTC CHARGES FLORIDA MANUFACTURER WITH ENGAGING IN RESALE PRICE MAINTENANCE; CONSENT AGREEMENT SETTLES CHARGES The Federal Trade Commission has charged Kreepy Krauly, U.S.A., Inc. ("Kreepy Krauly"), a manufacturer of automatic swimming pool cleaning devices, with illegally entering into written agreements with dealers to maintain resale prices. Under the consent agreement announced today for public comment, Kreepy Krauly is prohibited from engaging in resale price maintenance in the future. Under long-standing Supreme Court precedent, it is illegal for a manufacturer to reach agreements with its dealers as to the retail prices at which products are sold. According to a complaint accompanying the consent agreement, Kreepy Krauly entered into written agreements with dealers in which the dealers agreed to maintain suggested retail prices. Under the order, Kreepy Krauly is prohibited from entering into, attempting to enter into, maintaining, or attempting to enforce agreements with dealers concerning resale price maintenance. The order also requires Kreepy Krauly to notify its officers and sales personnel, current dealers, and its distributors, that dealers are free to make their own determination as to the prices at which the products are sold. Kreepy Krauly, U.S.A., Inc., is located in Sunrise, Florida. The consent agreement is scheduled to appear in the Federal Register shortly, and will be subject to public comment for 60 days, after which the Commission will decide whether to make it final. A consent agreement is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions of the respondent. Each violation of such an order may result in a civil penalty of up to $10,000. Comments should be addressed to the Office of the Secretary, Federal Trade Commission, 6th St. and Pennsylvania Ave., N.W., Washington, D.C. 20580. Copies of the complaint, consent agreement and analysis are available from the FTC's Public Reference Branch, 6th & Pennsylvania Ave., N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-2506. # # # MEDIA CONTACT: Sheila Smaw, Office of Public Affairs, 202-326-2180 STAFF CONTACT: Karen Mills, Bureau of Competition, 202-326-2052 (FTC File No. 901-0089) (KK-USA) €