Price Fixing - Fed Trad Commish complaint

[cpayne]

There was a great post on the Princess boards re: how we as cruise consumers should respond to the new pricing "strategies" of some of the cruise lines. I felt it warranted being repeated on the other boards for all to see:

 

 

"If you are troubled by these developments, I respectfully suggest that the time to take action against it is RIGHT NOW! You can file an online complaint with the Federal Trade Commission by sending it to antitrust@ftc.gov I would suggest a Subject line of "Vertical Price Fixing in the Cruise Industry." Ask them to launch an investigation into these new policies and practices and determine whether they violate applicable antitrust laws."

 

 

I encourage each of you to take action as the above Princess poster (The Monk) suggests! I've already sent my email. Can you say the same?!

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[CRB#33]

Here is the link to the Princess Forum thread: http://boards.cruisecritic.com/showthread.php?t=68239

 

TA's that book RCI cruises may not advertise rebates OR SELL cruises under the dictated price structure set up by the cruiseline.

 

All in the name of what should result as better personal service for their customers.

 

So if you don't need personal service, you will pay for it anyway.

[NiniB]

that post is very long on the Princess thread and it seems to have been going on for some time..,, I guess they have been "On the Ball" for some time ,,,, GOOD FOR THEM........ :D

[Mark_K]

The courts have consistently ruled that airlines have the right to control the prices travel agents sell tickets for, why would you think they would rule differently for cruiselines?

[CRB#33]

Yes, those airlines are doing so well now aren't they?

 

But, you may be right.

[jrm9999]

I don't think there is any legal ground to do anything as I do not think RCCL did anything wrong. Price fixing laws would apply if competing companies conspire to charge certain prices. That has not happened here. TA's are only selling agents of the RCCL product. They are not competitiors. RCCL does have a right to dictate to a selling agent what the product sells for.

 

Whether you like that this situation or not is another story. The most powerful defense consumers have against companies they are not happy with is to not buy from them. So if you don't like what RCCL did, there are many other great companies out there who want your business and will work for it.

 

Below is a link from the DOJ website to an article about what to look for in price fixing. While some things listed may seem on the surface like they apply, keep in mind this is designed for agreement to fix prices among competitors and does not apply to the cruiseline/agent relationship

 

http://www.usdoj.gov/atr/public/div_stats/9142.htm

http://www.usdoj.gov/atr/public/guidelines/primer-ncu.htm

[MattInFLL]

Mark, very true.. and eventually airlines got rid of travel agents... which is exactly what I have been saying on this issue. Their end game is to eliminate travel agents.

 

I am still not convinced about the wording of the policy. Many are very vocal about the word "advertise" being changed to "sell" when the policy has been reprinted here, so as to contribute to the confusion.. and also make it easier for TA's to stop offering discounts... that this confusion may be self serving for certain parties...

 

One of the beautiful things about the law is that it is never black and white, and is always a redefined interpretation of the letter of law mixed with precedent and societal changes. While technically what they are doing is probably not illegal... it sure as heck is anti-competitive and manipulative.. and maybe it could be reviewed.