FOR IMMEDIATE RELEASE: October 2, 1989 FTC CHARGES FLORIDA TRAVEL CLUB WITH DECEPTIVE MARKETING OF ITS TRAVEL-RELATED SERVICES The Federal Trade Commission has charged in a complaint filed in district court that three Florida companies deceptively marketed their travel-related services, failed to provide refunds to consumers, made unauthorized credit card charges and violated the Truth-in-Lending Act. The FTC has asked the court to grant a temporary restraining order, issue preliminary and permanent injunctions, and order the defendants to pay consumer redress. The U.S. District Court for the Middle District of Florida has granted the temporary restraining order, which freezes the defendants' assets, while the other issues are being litigated. The complaint names Vacation Travel Club, Inc. (VTC), World Travel Club, Inc., World Cruise Club, Inc., and Harry Powell, Jr. Powell is president of the three corporations. VTC sells "vacation packages" to consumers throughout the U.S. and Canada. The company claims that its vacation packages entitle the purchaser to prepaid accommodations or discounts on lodging, meals, rental cars and entertainment attractions in Florida and the Bahamas. VTC markets these packages by postcard announcements that a "Fabulous Florida Vacation" is being held for the consumer by the "Contest Division of Vacation Award Center, Inc." The postcards instruct recipients to call a toll- free telephone number for information. According to the complaint, the defendants misrepresent to consumers that they are offering valuable travel-related services at no charge as a prize or award. In addition, defendants misrepresent to consumers that their credit card numbers were to be used for "verification" or "validation" purposes and then proceed to charge their credit-card accounts for the purchase of the travel package. In many instances, the defendants bill consumers' credit-card accounts for the initial purchase or for annual extensions of their vacation packages without authorization from the consumers. (More) „The complaint also charges that the defendants misrepresent that consumers who comply with certain requirements, typically including return of the VTC vacation package, would receive a full refund of the purchase price of that package. Despite its promises, VTC frequently fails to provide refunds to purchasers who have complied with all stated requirements for a refund. Purchasers also found that the VTC vacation packages did not always entitle them to discounts and travel services of the type or quality represented by VTC and that additional fees may have been required to use the vacation package. In addition, according to the complaint, the companies violated the Truth-in-Lending Act by failing to transmit credit slips to consumers' credit card companies within the required time limit, when consumers cancelled their purchases. The Commission's complaint asks the court to issue a permanent injunction barring the companies and individual from violating the FTC Act and Truth-in-Lending Act in the future and to order the companies to make refunds to consumers. The court granted the Commission's motion for a temporary restraining order on September 25. Vacation Travel Club, Inc., World Travel Club, Inc., and World Cruise Club, Inc. are based in Lehigh, Fla. Consumers with complaints against any of these companies or information about their practices, are encouraged to call the FTC Vacation Travel Information Line, 202-326-3184. NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court. During the investigation leading to the complaint, the FTC received assistance from the Offices of the Attorney General for the States of Tennessee and Florida, the Better Business Bureau of Southern Florida, and the Florida Department of Agriculture and Consumer Services. (More) „Copies of the complaint are available from the FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania Ave. N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502. # # # MEDIA CONTACT: Brenda A. Mack, Office of Public Affairs, 202-326-2182 STAFF CONTACT: Jean Noonan, Bureau of Consumer Protection, 202-326-3224 Richard Sauer, Bureau of Consumer Protection, 202-326-3144 (FTC File No. 882-3268) (Civil Action No. 89-219-CIV-FTM-13C) (VTC)