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UNITED STATES OF AMERICA In the Matter of File No. 991-0038 The Federal Trade Commission ("Commission"), having initiated an investigation of certain acts and practices of certain swimming pool contractors, sometimes acting collectively as the Southern Valley Pool Association, hereinafter sometimes referred to as "proposed respondents," and it now appearing that proposed respondents are willing to enter into an agreement containing an Order to cease and desist from those acts and practices, and providing for other relief, IT IS HEREBY AGREED by and between proposed respondents and their respective attorneys, and counsel for the Federal Trade Commission that: 1. Proposed respondent Pools by Ike, Inc., a California corporation, is a licensed swimming pool contractor with its office and principal place of business at 1730 Art Street, Bakersfield, California 93312. 2. Proposed respondent Isaac W. Hornsby II is an individual and the president of Pool by Ike, Inc, a California corporation, a licensed swimming pool contractor with its office and principal place of business at 1730 Art Street, Bakersfield, California 93312. 3. Proposed respondent Ricky Sneed, an individual doing business as Aloha Pools, is a licensed swimming pool contractor, with his office and principal place of business at 119 Garden Drive, Bakersfield, California 93307. 4. Proposed respondent Crystal One, Inc., a California corporation doing business as Crystal Pools, is a licensed swimming pool contractor with its office and principal place of business at 217 Mount Vernon Avenue, Suite 11, Bakersfield, California 93307. 5. Proposed respondent Mario F. Medina is an individual and the president of Crystal One, Inc., a California corporation doing business as Crystal Pools, a licensed swimming pool contractor with its office and principal place of business at 217 Mount Vernon Avenue, Suite 11, Bakersfield, California 93307. 6. Proposed respondent Swimco Pools, Inc., a California corporation doing business as Executive Pools and Service, is a licensed swimming pool contractor with its office and principal place of business at 5650 District Boulevard, Suite 105, Bakersfield, California 93313. 7. Proposed respondent Brad L. Ward is an individual and the president of Swimco Pools, Inc., a California corporation doing business as Executive Pools and Service, a licensed swimming pool contractor with its office and principal place of business at 5650 District Boulevard, Suite 105, Bakersfield, California 93313. 8. Proposed respondent Neudeck Pools, Inc., a California corporation, is a licensed swimming pool contractor with its office and principal place of business at 509 Ming Avenue, Bakersfield, California 93307. 9. Proposed respondent Robert D. Hamilton is an individual and the president of Neudeck Pools, Inc., a California corporation, a licensed swimming pool contractor with its office and principal place of business at 509 Ming Avenue, Bakersfield, California 93307. 10. Proposed respondent Capri Pools, Inc., a California corporation, is a licensed swimming pool contractor with its office and principal place of business at 2810 Case Street, Bakersfield, California 93308. 11. Proposed respondent M. Kirt Campbell is an individual and the president of Capri Pools, Inc., a California corporation, a licensed swimming pool contractor with its office and principal place of business at 2810 Case Street, Bakersfield, California 93308. 12. Proposed respondent Randall R. Arvizu, an individual doing business as Pacific Pools and Spas, is a licensed swimming pool contractor with his office and principal place of business at 12308 Clementa Avenue, Bakersfield, California 93312. 13. Proposed respondent Robbie Smith, an individual doing business as Robbie Smith Construction and Pools by Robbie, is licensed swimming pool contractor with his office and principal place of business at 8416 Rockport Drive, Bakersfield, California 93312. 14. Proposed respondent Rock Bottom, Inc., a California corporation, is a licensed swimming pool contractor with its office and principal place of business at 801 Angus Lane, Bakersfield, California 93312. 15. Proposed respondent Chuck D. Holmes is an individual and the president of Rock Bottom, Inc., a California corporation, a licensed swimming pool contractor with its office and principal place of business at 801 Angus Lane, Bakersfield, California 93312. 16. Proposed respondent W.W. Harper Enterprises, a California corporation doing business as WW Harper Pools & Spas, is a licensed swimming pool contractor with its office and principal place of business at 2400 K Street, Bakersfield, California 93301. 17. Proposed respondent Michael J. Harper is an individual and the president of W.W. Harper Enterprises, a California corporation doing business as WW Harper Pools & Spas, a licensed swimming pool contractor with its office and principal place of business at 2400 K Street, Bakersfield, California 93301. 18. Proposed respondent Michael A. Severini, an individual doing business as Severini Pools and Spas, is a licensed swimming pool contractor with his office and principal place of business at 661 Delfino Lane, Bakersfield, California 93304. 19. Proposed respondent Caribbean Enterprises Construction Co., a California corporation doing business as Caribbean Pools & Spas, is a licensed swimming pool contractor with its office and principal place of business at 5330 Office Center Court, #30, Bakersfield, California 93309. 20. Proposed respondent Michael Webb is an individual and the president of Caribbean Enterprises Construction Co., a California corporation doing business as Caribbean Pools & Spas, a licensed swimming pool contractor with its office and principal place of business at 5330 Office Center Court, #30, Bakersfield, California 93309. 21. Proposed respondent Sunburst Pools, Inc., a California corporation doing business as Sunnyside Pool Service, is a licensed swimming pool contractor with its principal office and place of business at 5630 District Blvd., Bakersfield, California 93313. 22. Proposed respondent Keith E. Kelley is an individual and the president of Sunburst Pools, Inc., a California corporation doing business as Sunnyside Pools Service, a licensed swimming pool contractor with its principal office and place of business at 5630 District Blvd., Bakersfield, California 93313. 23. Proposed respondent Pamela Gates, an individual doing business as Tiffany Pools, is a licensed swimming pool contractor with her office and principal place of business at 324 Oak Street, Suite N, Bakersfield, California 93304. 24. Proposed respondents admit all the jurisdictional facts set forth in the draft of complaint here attached. 25. Proposed respondents waive:
26. 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 draft of complaint contemplated thereby, will 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 respondents, 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. 27. This agreement is for settlement purposes only and does not constitute an admission by proposed respondents that the law has been violated as alleged in the draft of complaint here attached, or that the facts as alleged in the draft complaint, other than jurisdictional facts, are true. 28. 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 respondents, (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 respondents' addresses as stated in this agreement shall constitute service. Proposed respondents waive any right they 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. 29. By signing this agreement containing consent Order, proposed respondents represent that the full relief contemplated by this agreement can be accomplished. Proposed respondents have read the proposed complaint and Order contemplated hereby. Proposed respondents understand that once the Order has been issued, they will be required to file one or more compliance reports showing that they have fully complied with the Order. Proposed respondents agree to comply with Paragraph II of the proposed Order from the date they sign this agreement. Proposed respondents further understand that they 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, the following definitions shall apply:
II. IT IS FURTHER ORDERED that respondents, directly or indirectly, or through any corporate or other device, in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44, shall forthwith cease and desist from:
Provided, however, that nothing in Paragraph II of this Order prohibits any respondent from discussing and/or entering into a specific proposed or actual business transaction or project in which those involved are or would be in a contractor/subcontractor or other joint or cooperative working relationship. III. IT IS FURTHER ORDERED that for a period of five (5) years from the date this Order becomes final, respondents shall make an audible tape recording of the entirety of any meeting and shall maintain a copy of the tape recording and all materials distributed at the meeting for a period of three (3) years from the date of the meeting. For the purpose of compliance with this paragraph, respondents may designate an individual as custodian of the tape recordings and materials to be maintained. IV. IT IS FURTHER ORDERED that respondents shall, in the event that they, or any of them, forms an organization or trade association, a purpose of which is to represent the interests of swimming pool contractors, incorporate Paragraph II of this Order by reference in the by-laws of any such organization or trade association and shall distribute by first-class mail a copy of the by-laws to each of the members of the organization or trade association. V. IT IS FURTHER ORDERED that each respondent shall notify the Commission at least thirty (30) days prior to any proposed change in his/her business format, including incorporation, the creation of or dissolution of any partnership, the assignment of any license, or sale, or in the case of any corporate respondent, any proposed change in any corporate respondent, such as dissolution, assignment, sale resulting in the emergence of a successor corporation, or the creation or dissolution of subsidiaries or any other change in the corporation that may affect compliance obligations arising under this Order. VI. IT IS FURTHER ORDERED that:
Office of the Secretary VII. IT IS FURTHER ORDERED that, for the purpose of determining or securing compliance with this Order, upon written request, each respondent shall permit any duly authorized representative of the Commission:
VIII. IT IS FURTHER ORDERED that this Order shall terminate twenty (20) years from the date this Order becomes final. Signed this day of , . ______________________________ Signed this day of , . Signed this day of , . ______________________________ Swimco Pools, Inc. doing business as Executive Pools and Service ______________________________ Signed this day of , . ______________________________ By:___________________________ ______________________________ APPROVED AS TO FORM AND CONTENT ______________________________ ______________________________ Signed this day of , . By:___________________________ ______________________________ ______________________________ By:___________________________ ______________________________ APPROVED AS TO FORM AND CONTENT ______________________________ ______________________________ By:___________________________ ______________________________ By:___________________________ ______________________________ Signed this day of , . ______________________________ Signed this ____ day of __________, ____ FEDERAL TRADE COMMISSION BY: APPROVED: Jeffrey Klurfeld Willard K. Tom William J. Baer |