Ag Stops Bus Tour Operators From Rigging Prices

Attorney General Spitzer announced today that a group of tour bus operators and their top executives have agreed to pay a $150,000 civil penalty to the State of New York for conspiring to fix the prices of Chinese-language bus tours.

The agreement came after the State began presenting its evidence at a trial in federal district court in Manhattan. The Attorney General's office alleged that the operators, after several meetings in New York City, had agreed to a substantial increase in the prices they would charge consumers for the tours.

As part of the settlement of the case, the defendants agreed to institute a reporting and compliance program, under which the State will be permitted to audit all of the defendants' advertising materials for at least two years to insure that the price-fixing has stopped. The defendants also agreed to the entry of a permanent injunction against any future price-fixing behavior.

"This was a particularly blatant violation of antitrust laws," said Spitzer. "Ads placed in the Chinese language press showed an immediate price rise after the defendants exchanged a detailed price list at one of their meetings. We expect the stiff civil penalty and the auditing program will deter these defendants from engaging in this type of anticompetitive conduct in the future."

Increased use of the civil penalty provision of New York State's antitrust law is an important part of the Attorney General's program of stronger antitrust enforcement. Violation of this provision carries a maximum one million dollar fine against corporations and $100,000 fines against individuals.

"This is fair warning," said Spitzer, "of our intention to press for increased penalties against antitrust violators."

The corporate defendants in the case were Asian American Tourist, Inc., Chi-Am Tours, Inc., Five Star Tours International Inc., Jonathan Travel & Tours Inc., New Golden Horse Tours, Inc. The companies provide bus tours from New York City to various destinations, from Florida to Canada.

The individual defendants were Kwok Ho Chu, Jonathan Wong, Tony Wong, and Tie Min Zhuang.

The Attorney General's office sued the defendants in 1997.

The case was investigated by the Antitrust Bureau of the Attorney General's Office and was tried by Assistant Attorney General George R. Mesires, with assistance from law-student intern Daniel Schafer.