Reporter Resources: Travel Fraud
Introduction
Travel Fraud complaints, ranging from telemarketing travel scams to timeshare reseller issues, are consistently filed by consumers with the Federal Trade Commission. Since 1997, the FTC has led the national response against travel-related fraud through the initiation of three major law-enforcement sweeps, "Operation Trip Up," "Operation Trip Trap," and "Operation Travel Unravel." In conjunction with federal and state law enforcement agencies, the FTC has filed 17 cases against companies that have misled consumers in their advertisement of travel services and the travel products and services they eventually provided, as of November 2007. Cases include instances of deception in timeshare reselling, vacation certificate telemarketing, travel agent "credential mills", and fraudulent travel flights pitched at immigrants wishing to visit their families abroad. The law enforcement measures were coupled with consumer education campaigns to alert American consumers of the breadth of travel fraud and ways to avoid getting scammed when planning a vacation.
The Federal Trade Commission launched a travel-fraud prevention game for consumers in May of 2006. The consumer education program, "Gear Up for A Great Trip" focuses on travel scam awareness and provides information on how to plan for a successful vacation. Information about the game and links to both its Spanish and English versions is available through the link above.
Operation Trip Up
In March of 1997, The Federal Trade Commission began its campaign against travel fraud by launching "Operation Trip Up,” a joint federal-state-local campaign targeting a wide range of vacation frauds. At the program's onset, 36 law enforcement actions were filed as part of the campaign along with an extensive consumer education program. The cases filed as part of the action ran the gamut of travel fraud, including everything from typical vacation certificate telemarketers and timeshare resellers, to immigrant-targeted flight promises and "credential mill" travel agent scams. The goal of Operation Trip-Up was to ground those scam artists who had been pitching a substantial number of deceptive travel offers, and to prevent consumers from victimization by the myriad of travel scams they could encounter. Then Director of the FTC Bureau of Competition, Jodie Bernstein, issued a statement announcing "Operation Trip Up."
Operation Trip Trap
Continuing to see consumer complaints related to travel fraud, in 1999 the FTC launched its second law enforcement sweep, "Operation Trip Trap," a joint law enforcement and consumer education effort targeting companies that misrepresent vacation packages through fraudulent telemarketing and other deceptive practices. The FTC and 21 federal and state law enforcement authorities charged that 25 companies misled consumers about the vacation packages they were selling, overstated the amenities included, told travelers they had won trips that they had not, hid extra charges in "all-inclusive" packages, or charged consumers for products and services they never received.
The FTC filed five complaints in federal district courts asking the courts to permanently enjoin the alleged law violations and to award consumer redress.
Press Release Announcing Operation Trip Trap
Operation Trip Trap List of Law Enforcement Actions
Operation Travel Unravel
In August of 2000, the FTC launched "Travel Unravel," a program to target travel industry fraud in the United States. The operation was a bilateral effort with 19 state authorities to uncover fraud and deception that cost consumers hundreds of thousands of dollars each year. The operation resulted in 85 actions for alleged law violations, including failure to disclose the actual cost of travel packages, misleading consumers by telling them they have won a free trip while subsequently charging fees, and failing to inform travelers that when purchasing a package they will be required to attend one, or several, timeshare presentations. The Commission cases were filed by the FTC's Southeast Region and Midwest Region (with the Commonwealth of Virginia a co-complainant) and the Commission's Division of Marketing Practices.
More information regarding "Operation Travel Unravel"
Consumer Resources
The Federal Trade Commission is continually working to prevent travel-related fraud. Consumer information and tips for avoiding travel fraud can be found on FTC.gov:
Consumer Tips to Avoid Travel Fraud:
- Be wary of "great deals" and low-priced offers. Few legitimate businesses can afford to give away products and services of real value or substantially undercut other companies' prices;
- Don't be pressured into buying. A good offer today will be a good offer tomorrow. Legitimate businesses don't expect you to make snap decisions;
- Ask detailed questions. Find out exactly what the price covers and what it doesn't. Be sure to ask about additional charges, as well;
- If you do decide to buy, get all information about the trip in writing. Once you receive the written information, make sure it reflects what you were told over the phone and the terms you agreed to;
- Don't give your credit card number or bank information over the phone unless you know the company with whom you are working;
- Be aware that when you place your business card or name into a drawing for a free vacation, you may be added to a telemarketing call-out list;
- Know that your personal information also can be collected via the Internet when you are visiting travel-related sites seeking deals on trips or airfare;
- Don't send money by messenger or overnight mail. Some "scam artists" may ask you to send them money immediately. If you pay with cash or check, as opposed to using a credit card, you lose your right to dispute any potential fraudulent charges under the Fair Credit Billing Act; and
- When in doubt, say "no." If you have any doubts about the trustworthiness of a company, trust your instincts. It's less risky to turn down the offer and hang up the phone.
Travel Tips:
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt012.pdf (PDF)
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt012.shtm (Website)
"Gear Up for a Great Trip" Travel Game:
http://www.ftc.gov/bcp/conline/interactive/travel/flash.html (English)
http://www.ftc.gov/viajar/ (Spanish)
Consumer Protection: Travel Fraud
http://www.ftc.gov/bcp/menus/consumer/shop/travel.shtm
Telemarketing Travel Fraud
http://www.ftc.gov/bcp/conline/pubs/tmarkg/ditch.shtm
Timeshare Vacation Plans
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea15.shtm
International Driving Permits
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea15.shtm
Tour Packages
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt029.shtm
