The Aqualung Discussion [ Moved ]

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This is a copy of the FTC complaint I filed:

Aqua Lung America Inc. (a subsidiary of the French company Air Liquide) appears to be fixing the prices of its products in the US through a pricing policy mandating that authorized dealers sell at no less than 10% under MSRP. They also void their warranty if the product is purchased via mail order, telephone or the Internet, thus thwarting competition and forcing collusion among dealers. In other countries, they do not have these restrictions.

Furthermore, online stores such as LeisurePro.com sell Aqua Lung products in the US at 50% below MSRP. They directly or indirectly procure their Aqua Lung products from Aqua Lung and are not bound by Aqua Lung price policies. So Aqua Lung indirectly or directly allows some stores to compete but not others. This is discriminatory.

Dive Sports, Inc (www.divesports.com), an Authorized Aqua Lung dealer located in Decatur, Alabama had to discount Aqua Lung products by more than 10% to compete with online resellers. Aqua Lung terminated their relationship with Dive Sports because their attempt to compete was in violation of Aqua Lung policies. I am a customer of Dive Sports who bought Aqua Lung products but cannot get warranty service from Dive Sport because Aqua Lung cancelled their dealer’s agreement. Aqua Lung’s action has directly interfered in the consumer-vendor relationship I have with Dive Sports and thus they cannot fulfill the provisions of their lifetime warranty. As their product is life support equipment, my life has been put in jeopardy by Aqua Lung. Dive Sport is the only store that I have access to that can service my equipment.

As a lay-person I am also concerned that Aqua Lung’s price fixing is violating the Sherman Act and that their warranty is inconsistent with the Mason Act.
I respectfully request that you investigate the matter.
 
Received this from the FTC today:


May 18, 2006

Brandon Hunter
PO BOX *******
Fairbanks, AK 99775

Re: FTC Ref. No. 8232000

Dear Brandon Hunter:

Thank you for recent correspondence. The Federal Trade Commission acts in the public interest to stop business practices that violate the laws it enforces. Letters from consumers and businesses are very important to the work of the Commission. They are often the first indication of a problem in the marketplace and may provide the initial evidence to begin an investigation. The Commission does not resolve individual complaints. The Commission can, however, act when it sees a pattern of possible violations developing.

The information you have provided will be recorded in our complaint retention system. This computerized system enables us to identify questionable business practices that are generating numerous complaints and may be in violation of the law.

Thank you for providing information that may be used to develop or support Commission enforcement initiatives.

Sincerely yours,

Consumer Response Center​

Keep those complaints rolling in.... anyone who feels these business practices are questionable should be submitting a complaint!

-Brandon.
 
"When the revolution comes...." OMG, am I dating myself? I HATE it when I do that!

In the meantime.......
It appears from the response that Brandon received that the more folks who contact the FTC, because they feel uncomfortable about these policies, the faster the FTC will launch an investigation. My next stop will be to talk to my State Attorney General.
 
I just had a quick discussion with the Antitrust office of the NYS Attorney General. As I was explaining the circumstances, she said that it sounds as if it would come under the heading of price-fixing; and that I should send them a written statement of what I suspect may be a violation of the Antitrust laws.

I suggest that you do the same (with your state's attorney general), if you feel that the policies of any company create a situation that stifles competition.
 
Just sent to Aqualung...

Dear Sirs,

It has recently come to my attention the manner in which your minimum advertised price affects your retail dealerships in the U.S. I can tell you that my wife and I are avid divers, and my brother is on the way to being certified. I dive with an Apeks ATX50, and my wife and Apeks ATX 100. We are both extremely happy with these regulators. Sadly, they are the last Aqualung purchases we will make. I will steer my brother away from Apeks and Aqualung when it comes to his regulator purchase, and when it comes time to add to my own collection for the purpose of varied conditions, tek diving, and duties as a divemaster, I will look elsewhere.

The reason is that you apparently have simultaneously decided that local dive shops are no longer an important part of your business, and that it is wise to play the diving public as a whole as fools. Clearly, you do little to stem the flow of your "foreign" regulators to internet outlets such as Leisurepro.com, at greatly reduced prices from your American products. Then you contractually force the American dive shops to sell your products at uncompetitive prices.

Most disturbing to me is that you have now threatened to sue one shop owner because he publicly aired his side of the story after you pulled his dealership for pricing competitively with Leisurepro. As a business person myself, I can assure you that in this day and age, information travels much too quickly to allow a situation like this to arise. Your tactic of threatening legal action was ill-advised. It would be much more prudent to address those customers and potential customers who have voiced concerns over your policies. Unfortunately, you seem to already have chosen your path, and therefore, I have chosen mine.

I consider my line of communication open if you wish to reconsider. Otherwise, I will have to get used to the idea of diving with a ProMate or DiveRite regulator at some point in the not too distant future.
 
Yeah, don't bother contacting Aqualung... they've already shown they're not willing to listen.

The FTC complaint seems to be one of our best options at the moment, I'd suggest using that.

-Brandon.
 
fairbanksdiver:
Yeah, don't bother contacting Aqualung... they've already shown they're not willing to listen.

The FTC complaint seems to be one of our best options at the moment, I'd suggest using that.

-Brandon.

Oh, I don't think or expect they will reply to my letter. Just wanted to add to the deluge they are receiving. Flood their email boxes with people swearing they will never buy another AL/Apeks product again.

As for the FTC complaint, that is coming up shortly. :wink:
 

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