AquaStar Files Suit Against Hayward

by Scott Webb January 16, 2012 14:56 PM

AquaStar Pool Products has initiated legal proceedings against Hayward Industries, alleging that the large, comprehensive pool product manufacturer has been using its clout with distributors to muscle out its smaller APC competitor, AquaStar.

In some ways, the suit echoes allegations made against POOLCORP in a filing by the Federal Trade Commission settled in November of last year, in which POOLCORP was accused of using its leverage as a dominant player in the distributor market to squeeze out smaller distributors.

In this case, however, AquaStar has alleged Hayward threatened to punish AquaStar distributors in various ways, including by withholding Hayward products, which make up a significant percentage of some distributors’ inventories. Losing access to Hayward products would force those distributors' customers to go elsewhere.

Hayward has denied the allegations, but its motion to dismiss the case has been refused and the suit will proceed.



Scott Webb has been with AQUA magazine in one capacity or another since April 2001; he now serves as executive editor. Scott has a degree from University of Cincinnati in Aerospace Engineering and lives in Madison, Wisc.

Comments (5) -

1/17/2012 3:53:30 PM #

Oh my! Another lawsuit about who did what to whom...I don't give a damn! The higher up the ladder you go, the more of your ass is showing!!! I hope they both lose and I don't even care to hear the circumstances.

S. Whaley

1/18/2012 3:28:12 PM #

Sure you don't care if it doesn't effect you! However there a lot of people who do care
about whether or not free enterprise remains intact in America. Small pool business
people are tired of getting squeezed out by the big boys. Collusion is rampant in this
industry!!

John M.

1/18/2012 5:48:42 PM #

Of course they're gonna deny it. Pretty sad, though, a company of this size would have to resort to these kind of measures to ensure their marketshare. Pretty lame if you ask me. I honestly hope the guilty party gets a huge financial chunk taken out of their hull. HUGE!!!

Dan

1/19/2012 7:09:09 PM #

I knew a pool guy who was so proud to have opened up a small pool wholesaling business.
He told me the stories of how the big wholesalers were using tactics to limit what name brands he could carry and who would even talk to him. His selection, needless to say, was pathetic...he had to shut his doors...It's all about the $$$$ and the power

Rich T

2/1/2012 5:25:07 PM #

This speaks directly to my experiences trying to get product acceptance for the Solar Roller (R) by distributors after Larry Schwimmer of ILP lost his attempt to take over my brand in 2005, and though I can't prove it, distributors I feel have been "put on notice" if you get my drift.  

The problem will never change until all you out there quit being loyal to the power-brokers for your own self interests which is S. Whaley's attitude in the first comment.  Whaley could care less about anyone but himself, and that's how the power-brokers work. They capitalize on your weakness to be self-serving and overlook their legal but corrupt tactics and practices.

The solar cover companies could quadruple their sales so what's their game? The industry could be expanded by 2 month/year for everyone with warm water, the service companies can get pool covers easily out of their way with my device, but cover manufacturers like GLI and Midwest Canvas would rather knock me off than help the inventor bring a product to market that increases their own sales.  They don't want cooperation, they want power, and they don't care about the customer having a way to handle their pool cover, they care about that power even if it costs them in cover sales but keeps me off the market.  They see me as a threat.  

Now I see Midwest Canvas' other company Horizon Reels openly violating my "registered" trademark with their Blue Solar Roller Lite product advertised all over the web.  Why? to drag me into a battle to exhaust me financially like Schwimmer did.  And Schwimmers Hydrotools reels are still being marketed all over the web despite the injunction, blatant disregard for the law because they know I'm  a little guy.

Egos and power are what's behind it all.  The question is, does the rest of the industry care, or do they make snide remarks like Whaley with only their self-interests in mind?

David Hoff

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