USA: another law suit filed by former YTB affiliates

A number of former affiliates filed a third version of their complaint against YTB in the U.S. District Court for Southern Illinois. The former YTB referring travel agents (RTAs) have charged they were induced to join an illegal pyramid scheme. They claim current and former affiliates have suffered damages of more than $100 million. In two cases brought previously they have not convinced Judge Patrick Murphy that the charges can be based on a consumer protection law because the case involves business-to-business dealings.

Source: Travel Weekly; find article here>>.

Also see previous postings of June 10, 2009 and May 19, 2009.

Florida: Injunction Sought Against Timeshare Resale Companies

Attorney General Bill McCollum on Nov. 2nd announced that his office has filed a lawsuit and has requested an emergency injunction against two related South Florida timeshare resale marketing companies. Universal Marketing Solutions, Creative Vacation Solutions, and owner/manager Jennifer Kirk allegedly collected over $4 million in marketing fees on a monthly basis, but rarely if ever marketed, advertised, or facilitated sales for the timeshare owners who had contracts with the companies. The injunction requests the companies’ cease doing any timeshare business while the lawsuit is pending.

In a statement released Nov. 3rd, the American Resort Development Association (ARDA) welcomed the move to seek an emergency injunction: Although there were many reputable companies that provided resale services, the largely unregulated secondary market also included some that used unscrupulous tactics to take advantage of owners who may wish to sell their timeshares.

Sources: Attorney General Bill McCollum News Release, ARDA press release.