FTC FACTSfor Consumers

TELEMARKETING

1-877-FTC-HELP

FEDERAL TRADE COMMISSION

www.ftc.gov

Have 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 Internet may not fit your idea of luxury.

While some travel opportunities sold over the phone or offered through the

mail, Internet 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.

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.

Telemarketing

Travel Fraud

Hello...you have

been specially

selected

to receive our

SPECTACULAR

LUXURY DREAM

VACATION offer!

FOR THE CONSUMER
Facts for Consumers

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.

• 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.
Facts for Consumers

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,

Alexandria,VA 22314, may be able to mediate

your dispute with an ASTA member.

The FTC works for the consumer 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 to get free information on

consumer issues, visit www.ftc.gov or call tollfree, 1-877-FTC-HELP (1-877-382-4357); TTY:

1-866-653-4261. The FTC enters Internet,

telemarketing, identity theft and other fraudrelated complaints into Consumer Sentinel, a

secure, online database available to hundreds of

civil and criminal law enforcement agencies in the

U.S. and abroad.
Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education

August 2000

F C EDERAL RADE OMMISSION T FTC OR HE ONSUMER

1-877-FTC-HELP www.ftc.gov

Facts for Consumers