The Los Angeles District Attorney’s office has settled the case of two SCUBA diving business owners that ganged up on a competitor. Two Avalon SCUBA outfits attempted to drive competitor Ron Moore of Dive Catalina out of business by fixing prices for diving tours. According to the D.A.’s office the textbook collusion resulted in unfair competition against Dive Catalina and Ron Moore.
As part of the settlement, Robert S. Kennedy, owner of Scuba Luv on Catalina Island, agreed to pay penalties and legal and investigative costs, but admits no liability. The agreement also bars Kennedy from engaging in any future unlawful competition or restraint of trade in the SCUBA diving business in violation of California’s Unfair Competition Law.
The co-defendant, John W. Mello, former owner of Catalina Divers Supply, reached a similar settlement with the Los Angeles D.A.’s Office last February.
“Cases like this serve as a reminder to businesses in general that laws against restraint of trade must be taken seriously and will be vigorously enforced,” Deputy District Attorney Kathleen Tuttle said. Unfair competition drives up prices and harms consumers and honest business owners.
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