Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, October 26, 1994 TAG: 9410270062
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
The agreement by the Association of Retail Travel Agents came in a settlement with the Justice Department's antitrust division.
The government filed suit in U.S. District Court against the Arlington, Va.-based association, which represents 2,000 travel agents. A proposed consent decree that would settle the suit if approved by the court was filed simultaneously.
The settlement would bar future boycotts of travel providers and require the association to review antitrust law periodically with its officers and directors.
The trade association, which is dwarfed by the American Society of Travel Agents, is composed of travel agents who sell transportation and accommodations on behalf of airlines, hotels, rental-car companies, cruise lines and other providers of travel services.
Travel agents sold more than $90 billion of such services last year. The ticket prices paid by consumers include the cost of commissions paid by travel companies to travel agents.
The complaint said that in October 1993 the association adopted specific minimum commissions that it wanted paid to travel agents as well as distribution and commission payment policy changes it wanted travel companies to adopt. Some association directors announced they would stop doing business with travel companies at odds with these policies, the department said.
``Trade associations of competitors can and do serve many useful, pro-competitive purposes, but they may not act as joint bargaining agents for their members to coerce suppliers and customers,'' said Assistant Attorney General Anne K. Bingaman.
The public has 60 days in which to comment on the settlement before the court issues a final decree.
by CNB