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Connecticut Sues Alleged Discount Travel Scammers

'Free' and 'discounted' travel were anything but, state charges

May 15, 2008

In reality, neither the trips nor the airline tickets were free, and discounts promised by the travel service were usually nonexistent or effectively worthless.

The suit, filed by Attorney General Richard Blumenthal, accuses Ultimate Travel Network, LLC, Ameri-World Group, LLC and Ted Wilkie -- who was involved in both companies -- of violating the Connecticut Unfair Trade Practices Act (CUPTA).

Also named was Millennium Travel and Promotions, Inc., of Orange, Fl., which allegedly supplied bogus or deceptive travel certificates for the scam.

"These companies exploited classic bait-and-switch," Blumenthal said. "They lured consumers to seminars with false promises of free trips, airline tickets and other services only to hit them with a hard sell so strong that it bullied them into buying. The supposed free offers were monetary mirages -- rendered worthless by concealed conditions and fees. Memberships in the so-called 'discount travel clubs' -- costing as much as $9,000 -- provided few if any markdowns."

"Ultimately, there was nothing free about a trip from Ultimate Travel Network. We allege in our complaint that there was significant material omission of the terms and conditions of the network's membership, and that the barrage of sales tactics used on consumers involved a misrepresentation of service and cost,” said Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr.

Since at least 2003, Ameri-World Group and, in later years, Ultimate Travel Network have contacted consumers by mail or phone claiming they were "selected" or "verified" to receive a "free" trip, plane tickets or other travel service. All consumers had to do to collect was attend a 90-minute sales presentation, the offers said.

After the presentation, consumers were subjected to a high-pressure sales pitch for a discount travel club from multiple salespeople escalating to the sales manager if they did not sign up. Consumers were initially quoted a price as high as $9,000 plus an annual maintenance fee for memberships that they told would provide them with discounts on travel services.

When consumers resisted, the price dropped precipitously, at least as low as $2,000. The companies provided consumers with the full purchase agreement and terms and conditions only after they signed up.

Consumers who tried to collect their "free" trip or service discovered it laden with hidden fees and numerous restrictions. Vacation properties shown to consumers were often not available and in some instances not affiliated with the companies. In reality, the club offered few if any benefits.

Farrell offered this advice related to travelers:

• Be wary of "great" deals. Walk away from high-pressured sales pitches. Ask detailed questions about promotions;

• Get all the details, total cost and any refund policy in writing before you pay;

• Never give your credit card number over the phone unless you know the person or company you are dealing with;

• Never be rushed into sending money by overnight express;

• Buy travel services only from a business you know.

The lawsuit seeks restitution to consumers, a fine of up $5,000 per CUTPA violation, disgorgement of all ill-gotten gains, payment of the state's legal fees and costs and a court order prohibiting the companies from further violating state consumer protection laws.

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