YTB Hit With Another Class-Action Lawsuit
Features & Advice | June 17, 2010
A group of plaintiffs from Illinois, Missouri, Georgia and Utah have filed a putative class-action suit against YTB, claiming that the company offers no opportunities to actually sell travel and instead is a model focused only on recruiting others into a program of setting up low-cost online travel agencies.
About 75 percent of the $162 million YTB earned in 2008 was derived from the independent marketing representatives, yet a majority of the representatives -- about 80 percent -- failed to earn a profit, according to the complaint.
Last summer, several referral travel agents formerly associated with YTB, Inc. filed a class action lawsuit against YTB International, Inc., in U.S. District Court for Southern Illinois. And in May 2009, California Attorney General Edmund G. Brown Jr. announced an agreement forcing YTB International to stop the deceptive marketing of its largely unprofitable travel websites and prohibiting the company from charging consumers nearly $500 to recruit others into its endless chain scheme. Brown had filed a suit against YTB in 2008. For more information, visit www.ytb.com.
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