Attorney General Jim Ryan takes on vacation scammers |
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Vacation package rip-offs are out there. "When the weather turns cold, scam artists turn up the heat on consumers with false and misleading claims about tropical vacations," Attorney General Jim Ryan said. Ryan recently joined 15 states and the District of Columbia in settling two separate lawsuits against promotion companies and their directors. The defendants had allegedly mislead consumers about vacation packages. Ryan also entered a modified settlement with a third company sued in 1997 for similar conduct. The Consent Decrees, filed in Sangamon County Circuit Court, settle allegations that the defendants violated the state's Consumer Fraud and Deceptive Business Practices Act and the Illinois Real Estate Time-Share Act. The clear disclosure of vacation costs and the fact that packages required attendance at a time-share presentation were two of the many factors leading to litigation and a settlement. "These settlements should send a message that we are watching and will not allow travel scams to flourish in Illinois," Ryan said. The lawsuits included allegations that the defendants used direct mail to promote what appeared to be complementary vacation packages to Florida and the Bahamas. The defendants allegedly mailed consumers official-looking documents appearing as awards of a vacation package. In fact, the offers cost hundreds of dollars in airfare, hotel accommodations and service fees. The mailed certificate directed consumers to call a toll-free number to confirm the deal. When the consumer called, the companies would pitch alleged discount vacation packages. The suits stated that even then, important information was not disclosed and consumers paid more than they were told they would pay. The Illinois' Real Estate Time-Share Act was violated when companies allegedly failed to disclose that consumers who bought the package were required to attend a time-share presentation while on vacation. Under state law, companies must disclose this requirement and all rules of the promotion clearly in direct mail solicitations. The consent decrees settled lawsuits against Florida Travel Network, Crown Plaza Resorts d/b/a Imperial Cruise Lines and its owners, all based in Treasure Island, Fla. National Travel Service Inc. and Plaza Resorts Inc., both from Fort Lauderdale, and their company directors were included in the settlement. Robin Leach of "Lifestyles" fame is named in the same suit against National Travel and Plaza Resorts. Leach, who endorsed the alleged scams through the use of his name and photograph, is not part of the settlement. The lawsuit against him is still pending. Under the terms of the consent decrees, all defendants agreed to pay each state $40,000 to cover litigation costs, and disclose "clearly and conspicuously" on solicitations the actual price of the vacation package or that the consumer must purchase the vacation package. The defendants will have to disclose that the consumer will be solicited to tour and purchase a time-share, and defendants must stop creating a false sense of urgency by misrepresenting limitations on the time period by which a consumer must respond. Vacation packages represented as "world class" or "first class" must be substantiated through evaluations and rating from independent, internationally recognized travel publications of similar representations. The defendants will pay Illinois consumers restitution. Full refunds will go to Illinois consumers if they purchased a vacation package, have not used it and file a written complaint by April 10 of this year. Illinois residents who purchased a vacation package, traveled and have already filed a complaint will be refunded $200. | |