UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION

In the Matter of

SOUTH LAKE TAHOE LODGING ASSOCIATION, a corporation.

File Number: 971-0110

AGREEMENT CONTAINING CONSENT ORDER TO CEASE AND DESIST


The Federal Trade Commission, having initiated an investigation of certain acts and practices of the South Lake Tahoe Lodging Association, a corporation, and it now appearing that the South Lake Tahoe Lodging Association, hereinafter sometimes referred to as "SLTLA" or "proposed respondent," is willing to enter into an agreement containing an order to cease and desist from the acts being investigated,

IT IS HEREBY AGREED by and between SLTLA, by its duly authorized officers, and its attorney, and counsel for the Federal Trade Commission that:

1. SLTLA is a corporation, organized, existing and doing business under and by virtue of the laws of the State of California, with its office and principal place of business at P.O. Box 5746, South Lake Tahoe, California 96157.

2. SLTLA admits all the jurisdictional facts set forth in the draft of Complaint here attached.

3. SLTLA waives:

(a) Any further procedural steps;

(b) The requirement that the Commission's decision contain a statement of findings of fact and conclusions of law;

(c) All rights to seek judicial review or otherwise to challenge or contest the validity of the Order entered pursuant to this agreement; and

(d) All claims under the Equal Access to Justice Act, 5 U.S.C.  504.

4. This agreement shall not become part of the public record of the proceeding unless and until it is accepted by the Commission. If this agreement is accepted by the Commission, it, together with the attached draft of Complaint contemplated thereby, shall be placed on the public record for a period of sixty (60) days and information in respect thereto publicly released. The Commission thereafter may either withdraw its acceptance of this agreement and so notify the proposed respondent, in which event it will take such action as it may consider appropriate, or issue and serve its Complaint (in such form as the circumstances may require) and decision, in disposition of the proceeding.

5. This agreement is for settlement purposes only and does not constitute an admission by proposed respondent that the law has been violated as alleged in the draft of Complaint here attached, or that the facts as alleged in the draft of Complaint, other than the jurisdictional facts, are true.

6. This agreement contemplates that, if it is accepted by the Commission, and if such acceptance is not subsequently withdrawn by the Commission pursuant to the provisions of 2.34 of the Commission's Rules, the Commission may, without further notice to proposed respondent, (1) issue its complaint corresponding in form and substance with the draft of complaint here attached and its decision containing the following order to cease and desist in disposition of the proceeding and (2) make information public in respect thereto. When so entered, the order to cease and desist shall have the same force and effect and may be altered, modified or set aside in the same manner and within the same time provided by statute for other orders. The order shall become final upon service. Delivery by the U.S. Postal Service of the complaint and decision containing the agreed-to order to proposed respondent's address as stated in this agreement containing the agreed-to order shall constitute service. Proposed respondent waives any right it may have to any other manner of service. The complaint may be used in construing the terms of the order, and no agreement, understanding, representation or interpretation not contained in the order or the agreement may be used to vary or contradict the terms of the order.

7. Proposed respondent has read the proposed complaint and order contemplated hereby. It understands that once the order has been issued, it may be required to file one or more compliance reports showing that it has fully complied with the order. Proposed respondent further understands that it may be liable for civil penalties in the amount provided by law for each violation of the order after it becomes final.

ORDER

I.

IT IS ORDERED that for the purposes of this Order, "respondent" or "SLTLA" shall mean the South Lake Tahoe Lodging Association, its predecessors, successors and assigns, and its directors, committees, officers, delegates, representatives, agents and employees.

II.

IT IS FURTHER ORDERED that SLTLA, directly or indirectly, or through any person or any corporate or other device, in or in connection with its activities as a trade association, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, shall forthwith cease and desist 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;

Provided, however, that nothing in this order shall be construed to prevent respondent or its members 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.

III.

IT IS FURTHER ORDERED that SLTLA shall:

A. Within sixty (60) days after the date this Order becomes final, amend its by-laws to incorporate by reference Paragraph II of this Order, and distribute by first-class mail a copy of the amended by-laws to each of its members;

B. Within thirty (30) days after the date this Order becomes final, distribute by first-class mail a copy of this Order and the Complaint to each of its members;

C. For a period of five (5) years after the date this Order becomes final, provide each new member with a copy of this Order, the Complaint, and the amended by-laws within thirty (30) days of the new member's admission to SLTLA; and

D. Within seventy-five (75) days after the date this Order becomes final, and annually thereafter for a period of five (5) years on the anniversary of the date this Order becomes final, file with the Secretary of the Commission a verified written report setting forth in detail the manner and form in which SLTLA has complied with and is complying with this Order.

IV.

IT IS FURTHER ORDERED that SLTLA shall notify the Commission at least thirty (30) days prior to any change in SLTLA, such as dissolution or reorganization resulting in the emergence of a successor corporation or association, or any other change in the corporation that may affect compliance obligations arising out of this Order.

V.

IT IS FURTHER ORDERED that for the purposes of determining or securing compliance with this Order, respondent shall permit any duly authorized representative of the Commission:

A. Upon seven (7) days notice to respondent, to have access, during office hours and in the presence of counsel, to inspect and copy all books, ledgers, accounts, correspondence, memoranda and other records and documents in the possession or under the control of respondent relating to any matters contained in this Order; and

B. Upon seven (7) days notice to respondent and without restraint or interference from it, to interview directors, committees, officers, delegates, representatives, agents and employees.

VI.

IT IS FURTHER ORDERED that this Order shall terminate twenty (20) years from the date this Order becomes final.

Signed this __________ day of ________________, 199__.

SOUTH LAKE TAHOE LODGING
ASSOCIATION, a mutual
benefit corporation

By: __________________________
Ed McCarthy, President
P.O. Box 5746
South Lake Tahoe, California 96157

______________________________
J. Dennis Crabb
Rollston, Henderson, Rasmussen & Crabb
591 Tahoe Keys Blvd., Suite D-8
South Lake Tahoe, CA 96150
(916) 544-1785
Attorney for Respondent

______________________________
David M. Newman
Counsel for the Federal Trade Commission

APPROVED:

______________________________
Jeffrey Klurfeld, Regional Director
San Francisco Regional Office

______________________________
Willard K. Tom, Deputy Director
Bureau of Competition

______________________________
William J. Baer, Director
Bureau of Competition