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Unscrupulous Travel Marketers |
August 23, 2000 - A South Carolina man got an
unsolicited fax at his office offering a vacation deal he couldn�t refuse.
He quickly called to book the trip, looking forward to the comfortable
resort accommodations, free breakfasts and special cruise outing promised
in the fax.
When a Florida woman got a call offering a vacation deal, she said she wasn�t quite ready to commit. But the telemarketer convinced her to send a deposit for the trip, promising a full refund if she changed her mind. When she later tried to cancel the order and get back her deposit, she was told that it was non-refundable. A Missouri couple who bought a trip to the Bahamas pitched on the phone expected to stay in a five-star resort as promised. But what they got was a dilapidated room with no air conditioning, carpeting, transportation or easy access to the beach. �This whole vacation experience was a nightmare, and absolutely nothing like what was represented by the company,� the woman told the Federal Trade Commission. Vacations are supposed to be carefree times to unwind and reconnect with friends and loved ones. But for consumers who unknowingly book their trips through unscrupulous travel marketers, vacations can be expensive disappointments. Travel scams consistently rank near the top of the list of complaints received by the FTC. In a recent action dubbed �Operation Travel Unravel,� the FTC sued three travel companies for bilking consumers out of hundreds of thousands of dollars, and Attorneys General in some 40 states announced cases and settlements involving fraudulent travel operators. Fraudulent companies promote their travel packages through the mail, by phone and by unsolicited emails, or �spam.� Recently, the FTC has noted an increase in fraudulent travel promotions advertised through unsolicited faxes - sometimes disguised to look like they�re from a travel company the consumer may recognize. A Tennessee woman, for example, received an unsolicited fax at her office advertising a vacation trip to Orlando, Cocoa Beach and the Bahamas. The letterhead on the fax looked exactly like the one used by her employer�s travel group, and she thought the unbelievably low price was a special employee benefit. Anxious to take advantage of the offer, she quickly booked her trip. As it turned out, the company had no affiliation with the woman�s employer, and she never received the tickets she paid for. Some bogus promoters take consumers� money and don�t provide a trip. Other promoters advertise rock-bottom prices, but hide certain fees until the deal is sealed. Some promise luxurious accommodations and services, but deliver far less. Still others don�t reveal that the deal includes an obligation to sit through a timeshare pitch at the destination. And some promoters guarantee consumers that they can get a full refund if they decide to cancel the trip, but don�t make good on their promise. For example, when a Florida woman responded to a fax she received at work, she found herself getting talked into paying $1,000 for what was advertised as a $200 vacation. She soon regretted her decision and called to cancel. She got the runaround and, eight months later, has yet to see her refund. Fraudulent travel offers can be hard to distinguish from legitimate ones. But according to FTC attorney Cindy Liebes, there are some tips to keep your trip from unraveling. She recommends that consumers avoid doing business with companies that
use high-pressure sales techniques, promote elaborate trips at below-market
prices, urge you to use a courier service or overnight mail to send your
payment, or tell you they need your credit card number for identification
or verification.
�A vacation package represents a real investment in both money and time,� Liebes says. �Unwary consumers can lose lots of money or end up at a heartbreak hotel.� The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at www.ftc.gov. |
Federal Trade Commission Bureau of Consumer Protection Cindy Liebes 404/656-1359 www.ftc.gov |
Also See | Visa U.S.A. reduced fraud on its credit and debit cards to a record low in 1997 / Feb 1998 |
Internal Control and Audit issues in the Hospitality Industry / July 1998 |