FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

Telemarketing Travel Fraud

H ave you ever been tempted to sign up to win a “free” trip at a fair, trade show or restaurant? If so, you may get a phone call, letter, unsolicited fax, email or 

postcard telling you that you’ve won a vacation. Be careful. It may be a “trip trap.” The 

vacation that you’ve “won” likely isn’t free. And the “bargain-priced” travel package you’re 

offered over the telephone or online may not fit your idea of luxury. 

While some travel opportunities sold over the phone or offered through the mail, online or 

by fax are legitimate, many are scams that defraud consumers out of millions of dollars each 

month.

The word “offer” can be a clue to hidden charges. When you get the phone call, or place 

the call in response to a postcard, letter, fax or Internet ad, you also get a sales pitch for a 

supposedly luxurious trip — one that you could pay dearly for. 

“Hello...you have been specially selected 

to receive our SPECTACULAR LUXURY 

DREAM VACATION offer!”
Facts for Consumers

The salesperson may ask for your credit card 

number to bill your account for the travel 

package. Once you pay, you receive the details of 

the “package,” which usually include instructions 

for making trip reservation requests. Your request 

often must be accompanied by yet another fee. 

In addition, many offers require you to pay 

upgrade costs to receive the actual destinations, 

accommodations, cruises or dates you were 

promised. Some offers may require you to pay 

more for port charges, hotel taxes or service fees. 

See a pattern developing? New charges are being 

added every step of the way. You may never get 

your “bargain” trip because your reservations 

may not be confirmed or because you must 

comply with hard-to-meet hidden or expensive 

“conditions.” 

Telemarketing travel scams usually originate out 

of “boiler rooms.” Skilled salespeople, often with 

years of experience selling dubious products and 

services over the phone, pitch travel packages that 

may sound legitimate, but often are not. These 

pitches usually include: 

Oral Misrepresentations. Particular schemes 

vary, but all fraudulent telemarketers promise 

you a “deal” they can’t possibly deliver. 

Unfortunately, you won’t know it until your 

money’s gone. 

High Pressure/Time Pressure Tactics. Scam 

operators often say they need your commitment 

to buy immediately or that the offer won’t be 

available much longer. They typically brush aside 

questions or concerns with vague answers or 

assurances. 

“Affordable” Offers. Unlike fraudulent 

telemarketers who try to persuade people to spend 

thousands of dollars on an investment scheme, 

fraudulent travel telemarketers usually pitch 

club membership or vacation offers in a lower 

price range. The offers sound reasonable and are 

designed to appeal to anyone who is looking for a 

getaway. 

Contradictory Follow-up Material. Some 

companies may agree to send you written 

confirmation of your deal. However, it usually 

bears little resemblance to the offer you accepted 

over the phone. The written materials often 

disclose additional terms, conditions and costs. 

How To Protect Yourself

Unpleasant surprises can ruin a vacation, 

especially when they cost money. That’s why it 

pays to investigate a travel package before you 

buy. But it can be difficult to tell a legitimate 

sales pitch from a fraudulent one. Consider these 

travelers’ advisories:

• 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 usually 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. 

Ask about additional charges. Get the names 

of the hotel, airports, airlines and restaurants 

included in your package. Consider 

contacting these businesses directly to 

verify arrangements. Ask about cancellation 

policies and refunds. If the salesperson can’t 

give you detailed answers, hang up. 

If you decide to buy, find out the name of the 

travel provider — the company that is getting your 

reservations and tickets. This company usually is 

not the telemarketer. 

• Get all information in writing before you 

agree to buy. Once you receive the written 

information, make sure it reflects what you 

were told over the phone and the terms you 

agreed to.
Facts for Consumers

• Don’t buy part of the package — the air fare 

or hotel stay — separately from the rest. If 

the deal is not what you expected, it may be 

difficult to get your money back for the part 

of the package you purchased. 

• Don’t give your credit card number or bank 

information over the phone unless you 

know the company. One easy way for a 

scam operator to close a deal is to get your 

credit card number and charge your account. 

Sometimes fraudulent telemarketers say they 

need the number for verification purposes 

only. Don’t believe them. 

• Don’t send money by messenger or overnight 

mail. Some scam artists may ask you to send 

them a check or money order immediately. 

Others may offer to send a messenger to 

pick up your payment. If you pay with cash 

or a check, rather than a credit card, you 

lose your right to dispute fraudulent charges 

under the Fair Credit Billing Act. If you 

charged your trip to a credit card, you may 

dispute the charges by writing to your credit 

card issuer at the address provided for billing 

disputes. If possible, do this as soon as you 

receive your statement. In any case, the 

law gives you up to 60 days after the bill’s 

statement date to dispute the charge. 

• Check out the company before you buy. 

Contact the Attorney General in your state 

or where the company is located to see if 

any complaints have been lodged against the 

travel firm or the travel provider. Be aware 

that fraudulent businesses often change their 

names to avoid detection. 

• If in doubt, say “no.” Trust your instincts. 

It’s less risky to turn down the offer and 

hang up the phone. 

Where to Complain 

Several organizations can provide additional 

information and help you with complaints. 

Your state Attorney General or the Attorney 

General in the state where the company is located 

probably has a division that deals with consumer 

protection issues. 

The American Society of Travel Agents, 

Consumer Affairs, at 1101 King Street, Suite 200, 

Alexandria,VA 22314, may be able to mediate 

your dispute with an ASTA member. 

The FTC works to prevent fraudulent, deceptive 

and unfair business practices in the marketplace 

and to provide information to help consumers 

spot, stop and avoid them. To file a complaint 

or get free information on consumer issues, 

visit ftc.gov or call toll-free, 1-877-FTC-HELP 

(1-877-382-4357); TTY: 1-866-653-4261. 

Watch a video, How to File a Complaint, at 

ftc.gov/video to learn more. The FTC enters 

consumer complaints into the Consumer 

Sentinel Network, a secure online database and 

investigative tool used by hundreds of civil and 

criminal law enforcement agencies in the U.S. 

and abroad.
Facts for Consumers

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

May 2011

Federal Trade Commission

Bureau of Consumer Protection

Division of Consumer and Business Education

The Federal Trade Commission (FTC) is the nation’s consumer protection agency. Here are some tips 

from the FTC to help you be a more savvy consumer.

1. Know who you’re dealing with. Do business only with companies that clearly provide their name, 

street address, and phone number.

2. Protect your personal information. Share credit card or other personal information only when buying 

from a company you know and trust. 

3. Take your time. Resist the urge to “act now.” Most any offer that’s good today will be good 

tomorrow, too. 

4. Rate the risks. Every potentially high-profit investment is a high-risk investment. That means you 

could lose your investment — all of it. 

5. Read the small print. Get all promises in writing and read all paperwork before making any 

payments or signing any contracts. Pay special attention to the small print. 

6. “Free” means free. Throw out any offer that says you have to pay to get a gift or a “free” gift. If 

something is free or a gift, you don’t have to pay for it. Period. 

7. Report fraud. If you think you’ve been a victim of fraud, report it. It’s one way to get even with a 

scam artist who cheated you. By reporting your complaint to 1-877-FTC-HELP or ftc.gov, you are 

providing important information to help law enforcement officials track down scam artists and stop 

them!