Replies to post #220 on YTB International (fka YTBLQ)

[xanadu]

Have no idea what is going on yesterday/today but see I failed to post this news article from April.

State settlement places rules on YTB
Comments 3
April 13, 2011 8:33 PM
By SANFORD J. SCHMIDT
The Telegraph
WOOD RIVER - The Illinois Attorney General's Office has settled a case with controversial travel company YTB and affiliates for $153,000, but the firm will have to stick to strict guidelines on how it does business.

The attorney general's office agrees that the company has already changed its style, but the order approving the settlement states that the company is not off the hook for any claims that may arise since the suit was filed May 14, 2009.

The company no longer sells websites. It once sold websites for people who wanted to retail travel deals to consumers and also awarded bonuses for each additional people the owner persuaded to buy an additional website.

Authorities alleged more revenue was earned by bringing others into such deals than was earned by actual sales of travel.

Most of the top officials of the company have left. It has sold its former headquarters building in Edwardsville and its building in Wood River. The company now leases a small space in its former sprawling location in Wood River.

YTB is now in the business of selling items at retail via the Internet. It once operated a nationwide travel sales company, which critics called "a giant pyramid scheme."

In the settlement, YTB did not admit or deny guilt in the settlement, which stems from fraud charges filed in 2009 by Illinois Attorney General Lisa Madigan.

Madigan sued shortly after California filed its suit. California eventually settled for $1 million.

The firm was also the target of several complaints to the Better Business Bureau. It was named in two class action suits that were consolidated into one on the federal level.

The company once had more than 130,000 online travel agents and $162 million in revenue in 2008, In 2010, revenue was $36.3 million.

"Reaching a settlement that obtains thousands of dollars in restitution for consumers was in the best interest of those affected by YTB's practices and a primary goal in filing this action. The Attorney General's Office will now be working to distribute refunds to consumers who filed complaints against YTB with our office," a spokeswoman for Madigan said.

Including in the settlement order is an agreement by YTB to refrain from doing many of the things that led to its legal troubles.

Its advertising practices will be restricted.

"Defendants shall not make any representations regarding the website owner income, compensation or lifestyle, including but not limited to potential income, potential compensation, potential lifestyle and pictures or representations of home, vehicles, or leisure activities explicitly or implicitly enjoyed by a website owner," one paragraph of the order states.

Sources of income must also be reported, along with the average amount of money the website owner earns.

The advertising must including disclaimers, such as "No one can guarantee your success as a website distributor."

The case was decided in Champaign County. The court retains jurisdiction for the purpose of ensuring compliance.

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[slob]

and down she goes,,look on the 1 yr chart,, august 12-13,, looks pretty much the same thing is happening,,looks like it will drop back to where it was .03,, oh well!!