Is the Federal Trade Commission snoozing while the travel industry comes unraveled?

wreckIt’s been nearly a decade since the Federal Trade Commission launched Operation Travel Unravel, a sweeping program that targeted travel industry fraud in America. Since then, the agency’s only major travel-related initiative — apart from an enforcement action or two — appears to have been to launch an interactive game designed to increase consumer awareness of travel industry mischief.

Did the good guys win, or are the fraudsters unraveling travel while the watchdogs sleep?

The FTCs actions in 2000 capped several years of intensive travel-related campaigns, including Operation Trip Up in 1997 and Operation Trip Trap two years later.

Travel Unravel was billed as a bilateral effort with 19 state authorities to uncover fraud and deception that cost consumers hundreds of thousands of dollars each year. It resulted in 85 actions for alleged law violations, including failure to disclose the actual cost of travel packages, misleading consumers by telling them they won a free trip while subsequently charging fees, and failing to inform travelers that when purchasing a package they will be required to attend one, or several, timeshare presentations.

Sadly, these actions didn’t send the bad guys packing. At least not all of them.

I’ve come across plenty of questionable offers, like this one or this one. And of course there’s this one, too.

I’ve shared some of my findings with the Federal Trade Commission, but there’s no evidence that they’ve taking any of the current problems as seriously as they did in the past.

Maybe it’s time for another sting. Whaddya say, fellas?

(Photo: Brian Barnett/Flickr)

  • SirWired

    The FTC is a whole pile of useless. I guarantee that even if they did go after fraudulent clowns you would see something along the lines of the following press release when it was all over from the FTC:

    XYZ ScumTravelCorp has had a judgement entered in the amount of eleventy bajillion dollars for their misleading activities. All but fifty cents of the judgement is suspended based on a demonstrated inability to pay. [translation: the money got shipped off-shore].

    Defendants agree to not misrepresent travel services in the future. [Translation: The thieves promise to go forth and sin no more. And if you believe that, I have a bridge to sell.]

    No jail time, ever, even if the activity is outright, obvious, fraud.

  • http://www.coachclassblog.com Jeanne Leblanc

    You said it, brother. I just got an email announcing that I’d won three free days in Cancun, another of dozens of pieces patently fraudulent crap that lands in my inbox weekly. If nobody is doing anything about the obvious fraud, it’s no wonder that more sophisticated scams are operating unchecked.

  • David H

    Those who fleece the rich through ponzi schemes or other means (Bernie Madoff, Conrad Black to name a couple) get many years in prison. Those who fleece the less well-off get away virtually scot-free.

    It shows where loyalties lie, doesn’t it?