BY FRAN DURBIN
WASHINGTON -- In an unprecedented sweep called Operation
Trip-Up, the Federal Trade Commission and 12 states filed lawsuits
against two dozen outfits that allegedly operate a wide variety of
travel scams.
Jodie Bernstein, director of the FTC bureau of consumer
protection, told a press conference here that the scams range "from
the run-of-the-mill vacation certificate telemarketers and
timeshare resellers" to new variations involving "flights pitched
to immigrants" and travel agent "credential mills."
In all, 36 lawsuits were filed across the nation by the FTC and
state and local attorneys general; some companies were hit with
multiple suits.
In a second part of Operation Trip-Up, Bernstein announced a
consumer education program in cooperation with ASTA, the U.S. Tour
Operators Association and the National Tour Association.
"Consumer education is the strongest weapon we have" in terms of
prevention, she said, adding that "legitimate parts of the
industry" are happy to join the effort.
Bernstein said that Operation Trip-Up was developed because
consumer complaints about travel consistently rank among the top
five categories at both federal and state levels.
Consumers are bilked by travel scams to the tune of an estimated
$12 billion in losses a year, she said.
The goal of the operation, she said, is to drive the two dozen
companies out of business and "hopefully get some money back for
consumers."
Allen Hile, FTC assistant director for marketing practices, said
the commission and the states are trying to "create a feeling
[among travel scam artists] that they are taking their
chances."
"We want to make it as uncomfortable as possible for them," Hile
said.
Some of the legal actions resulted in halting the marketing
practices and freezing the assets of the operators, and Bernstein
said some companies could be sued later on criminal charges.
The FTC itself sued five companies for a variety of alleged
deceptions, estimating they ripped off consumers for a total of at
least $43 million since their inception (see story, Page 81).
In all five cases, the FTC sought permanent orders requiring the
firms to pay redress to consumers and prohibiting them from
"engaging in similarly deceptive travel schemes in the future."
At the state level, the operator that had the most lawsuits was
Vacation Break, a Florida company described by the FTC as "one of
the largest sellers of vacation travel certificates and timeshares
in the country."
Vacation Break was sued by five states and two California
counties, the FTC said.
In the consumer education program, ASTA, the USTOA and the NTA
will distribute a postcard and several brochures through the
associations' Web sites and through their members' offices,
according to the FTC.
The color postcard shows two empty beach chairs on the sand,
facing a beautiful blue ocean, with the message "Wish I Was There!"
The back of the card advises consumers to "be wary of 'bargain'
vacation offers on postcards and certificates."
Bernstein went out of her way to say that ASTA has been "very
cooperative with us."