YTB Travel News: As reported by Elizabet Donald:WOOD RIVER -- Illinois has filed a lawsuit against the YourTravelBiz company and California has leveled a $1 million fine against it.
The company and its officers face litigation from Illinois Attorney General Lisa Madigan, according to spokesman Natalie Bauer.
Jonathan Quinn, an attorney for YourTravelBiz, said the company does not have a comment at this time on the Illinois complaint. "We have not been formally served, and when we are we will review the complaint and be in a position to comment," he said.
According to the Illinois complaint filed against YTB on Thursday, the company charged its clients a $450 initial fee plus $50 a month to purchase a travel Web site. The suit alleges that the company misled their clients as to the commissions they received, that advertising showed there was no cost to join. Calling it a pyramid scheme, the complaint alleges that the real money came from referring others to join YTB instead of the travel sales themselves.
According to the suit, the average representative earned about $114 a year, while executives made millions. Madigan alleges that the company violated the Consumer Fraud Act and Uniform Deceptive Trade Practices Act.
This comes after California's lawsuit against the company was settled for a $1 million fine on Thursday.
Also, the company faces a federal class-action lawsuit from former customers.
The class-action suit, filed last year on behalf of more than 1,000 people who participated in the YTB system, seeks more than $100 million in damages.
For more information contact:
Daryl D. Alex
Regional Executive
Traverus Travel and Televerus Cell Phones
1-800-781-3254
1-877-744-3431
225-590-7700
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