It is a PDF file and it appears that in addition to the four named individuals they will be pursuing up to 100 other individuals to be named at a later date. I have been told by a local attorney, that the phrase "Does 1-100" typically does not indicate a specific number, but rather that there will be additional people enjoined in the suit.
It appears that at this time, this is only a civil matter.
I just read through the suit. If you are involved with YTB, you really should take time to read the entire lawsuit. You may even want to consult an attorney before you continue to sell YTB to other people. They (the Attorney General) have left the door open to name reps and RTAs in the suit. I would not count on pleding ignorance.
ReplyDeleteI am sure that loyal YTB reps and RTAs will try to make something positive out of this. That is only natural. But they might want to consider their own well being first at this point. You are under the microscope now. Make sure that your actions are legal.
This is not just a blog discussion, or a youtube video. This is a major lawsuit. Time to sober up a bit. The situation here has nothing to do with TTA vs. YTB. It is a very serious lawsuit.
You are not being dis-loyal by making sure that you are operating a good legal business. You are not being dis-loyal when you look out for yourself.
You need to know what you are facing, and what the laws are. You can not assume that every thing is hunky dorry just because someone tells you that it is. Know the facts, then decide what you are going to do. All you are doing, is choosing to operate from a point of knowledge.
I know that my name isn't "Coach", but my message here is just good common sense.
Thanks for your insight Mark! So glad you are looking out for the RTA's!
ReplyDeleteLike you stated in one of your comments Firemedic227: This is about PEOPLE.
ReplyDeleteThis is not a matter of opinions.
Very smart words Mark, and you are right this is about PEOPLE. Everyone seems to think that we are these evil beings simply hell bent on making you all homeless. That is not the case. We've said time and time before, if you want to really be in the travel industry, find a reputable company with whom to do it. YTB is skirting the law, and now they will have to answer for alot of it.
ReplyDeleteThis is your livelyhood...do not ASSUME Coach is going to take care of it all, and of you all. That is up to you to do.
It's just basic common sense to have an attorney look over business contracts to protect your interest.
ReplyDeleteIf I were a Rep, I woud lbe very very concerned. If I had any number of reps under me (ie I was a director) I woudl be skipping the kool aid fest and speaking with my attorney because just as YTB is likely to be liable to a degree for your actions, you may indeed likley be liable for those under you.
ReplyDeleteAnd all those people that said the riduculous things for the sake of recruiting, watch out.
How many of the YTBites on this blog are from California>?
Anyone want to take bets on what state is next?
I would agree in threory that it is about people. I just read the suit and while I am no attorney a few things stand out. First, the "charges"....one of which says defendants pay an "INITIAL" fee of over 500 dollars...Well that isn't true.
ReplyDeleteAlso, the "charge" that defendants charge consumers the upfront fee with the promise of making money by selling other websites.
Herein lies the big problem.....Selling other websites is the REP opportunity and has ZERO UPFRONT fee. In fact it has ZERO required fees.
I think that this will be the big issue and is precisely why IMO, the lawsuit will ultimately be tossed.
Now, what happens up until that point is anyone's guess.
Joshie pooh you are not an attorney and you don't know jack. They wouldn't go to all this trouble to have it tossed. Stick to babysitting honey and keep drinking the Kool Aid.
ReplyDeleteThey typically do not throw out suits based on something as simple as a misquote.
ReplyDeleteWhat is going to come back to bite then is the whole "we are two separate companies but we are one when it is better for us" mentality.
Example...you have your RTA fee rebated when your RECRUIT people. Mixing the 2 separate businesses.
Example..as a non travel selling Rep, you can earn travel commissions (RTA) on people you recruit. Mixing 2 separate businesses.
Example...we will send you to a certified REFERRING TRAVEL AGENT class and teach you how to RECRUIT. Mixing 2 separate businesses.
Example...Directors (REPS) perform travel training (RTA) Mixing 2 separate businesses.
I am glad you found one mistake, but how do you address the other points in the charges?
A couple of things.
ReplyDelete1) In paragraph 2, where it says, "For the opportunity to own and operate an online travel agency, consumers pay Defendants over $1,000 per year." That should really be amended to "in the first year and approximately $600 per year thereafter."
2) In paragraph 13, b, 1, it says, "Defendants charge consumers a total initial payment exceeding $500 but less than $50,000, for their own “online travel agency”". Isn't the initial payment just under $500? $449.00 signup + $49.95 for first month. I think originally the signup was $499.00 but dropped to $449, probably to keep the initial under $500.
3) The suit does not really distinguish between the REP and RTA. I'm sure that one of the defense will be that they are separate ventures. The reps pay no money, but can make money by selling RTA web sites. The RTA's can make money selling travel. Where YTB may get into trouble is where they blurred the line by providing overrides to REPs based on the RTA's travel sales.
It sure will be interesting to see how this pans out, and what if any comments will come out of the convention that starts tomorrow.
Insider said, "Anyone want to take bets on what state is next?"
ReplyDeleteIf Eliot Spitzer hadn't been caught with his pants down, I would have said New York.. :)
Insider said, "Anyone want to take bets on what state is next?"
ReplyDeleteActually, I would think it would be another state with strict Seller of Travel laws, such as Florida.....
I will lay odds on Florida. They are not strangers to YTB and the deceptive business practices. They tried once before and for some reason it fell flat, but now with the momentum of California....90 days.
ReplyDeleteI would dearly love to be at the convention just to hear and see the reactions.
ReplyDeleteWell, you know they are going to spin it and say it's all a misunderstanding like IATAN. Hey did you check out the stock prices today? Big nose dive....
ReplyDeleteI predicted the stock slide a few weeks ago. I figured it would be under $1 soon. But not this soon. 33% nosedive. Gah...2 more days of that and the stock will be worth umm even less than it is now...nothing. *shakes head*
ReplyDelete