Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Vacation package scammers settle New York AG claims, (Jan 21, 2015)
New York Attorney General Eric T. Schneiderman has settled a lawsuit against Vacation Tours USA, Inc., alleging that the marketing company used deceptive business practices to scam New York residents into attending sales seminars, the attorney general’s office announced today.
Vacation Tours sent letters to consumers telling them they had won a vacation package, including airfare and lodging, and invited them to attend a seminar at a local hotel. The alleged retail value of the airline tickets and lodging was up to $1,398. Consumers were told they must attend a seminar at a local hotel in order to claim their tickets and lodging. However, the seminars were actually sales presentation conducted by a third-party company. No vouchers for free airline tickets and hotel stays were actually provided to attendees.
The settlement requires Vacation Tours to halt all deceptive, fraudulent, and illegal business practices in New York State, pay restitution to all consumers who file a complaint within 90 days of the agreement, and to pay $22,500 in civil penalties and costs.
News: ConsumerProtection NewYorkNews