I would start off with “I hate to say it” but that wouldn’t be accurate or true. Fact of the matter is – I’m rather pleased that “I told you so“.

In a press release announced yesterday, YTB has agreed to enter into a final judgment and consent decree by the court without trial or adjudication of any issue of fact or law concerning yet another slanderous and erroneous lawsuit against YTB – this one filed by the Attorney General in Illinois.

Total damages of this lawsuit – basically restitution for approximately 300 people. I’m being generous with this number, simply taking the $500 start-up fee in the purchase of an online booking engine and not accounting for any monthly fees. We’ve learned from the Class Action that has been thrown out of court a half dozen times (and counting) that most who look for this type of refund or restitution don’t give the business much time or effort before they throw up their arms and quit.

Total cost of the restitution – $150,000 which represents 0.002% of everyone who’s ever signed up with YTB Travel as a Referring Travel Agent.

It’s important to note that all this money should go to former RTA’s of the company. There’s never been any fee for the right sell these websites to anyone (known as a “REP”) – although someone in the Class Action suit never paid a dime, but wanted restitution anyway.

Even when you combine the restitution to “victims” in the California suit settled two years ago, that still totals less than $300K. If you’re thinking – “wait a minute that was settled for $1 million?” you’re partially correct. Almost 90% or more exact – $875,000 went directly to the State of California, leaving a measly $125,000 for the “victims” that suit was designed to protect.

Look – I know how all these law suits put some people in a tizzy. Frankly, some who don’t know squat about Network Marketing (and never will the ignorant Zealots) became raving lunatics about the claims filed. Problem is – these suits were just that – claims. Most simply skipped ahead and proclaimed YTB was guilty of what was said simply because it matches their limited knowledge about the industry as a whole.

Now those who claim to be experts but have no real – practical experience will certainly have egg on their face. Truth is and always has been that nobody ever paid for the opportunity to recruit others. In addition and like it or not, other Host Agencies do charge a startup fee and monthly maintenance to partner with them.

And let me tell you – there was just no way any court would allow anyone to bypass those facts. Not even an Attorney General.

So here I sit today, with the same company, pretty much the same booking engine, and an even better opportunity I had three years ago. My commissions have actually increased from 60% to 75% on travel, and I’ve got an online store that gives me additional commission and provides cash back to my customers.

Instead of going out of business like some had speculated – I ended up with a better business. And I didn’t have to move an inch.

That’s what YTB has always been for me. Nor was there ever any doubt that it would survive. The clowns with the circus act with tails about a “house of cards” this and “endless chain” that don’t have a clue what their talking about. I know the industry from experience, I also know that Founders from personal contact. It was very clear to me that people totally underestimated both. That’s why I stuck around.

Sure there will be those that will continue to harp on the failed attempts to put the company under. They need someone like Jerry Brown or Lisa Madigan to justify their meaningless existence and limiting beliefs. There will also be those that want to focus on the recruiting aspect of the company. If they do more power to them – it’s their problem and misinformation, not mine. Network Marketing has been available and sustainable for the last 125 years. So get over it.

To me – honestly – some acted like such crazed dogs they need to be shot and put out of their self-inflicted misery. It never ceases to amaze me how some will just prowl every nook and cranny to find something they can get upset about. Or even worse, just make it up as they go along. And when challenged with an opposing view, they pretend to talk to someone else who agrees with them. Like that’s healthy or even normal.

I have to admit – it’s hard to believe that all this started three years ago. It sure has flown by. Probably because I always knew the bark was far worse than the bite. While some can’t seem to distinguish the obvious difference between a legitimate Direct Sales company or MLM and some long winded and very broad terminology that scream “pyramid scheme” it’s good to see that right still wins over wrong.

Happy to have all this behind us and I’m certainly ready to move on with a stronger, more lucrative, and diversified company. In that regard, I’m certainly not sorry any of this happened. Times like these always separate the weak from the strong – and the strong always get stronger.

Maybe now with this last suit out of the way we can get back to what we initially set out to do three years ago – Life, Liberty and The Pursuit of Travel.

It’s been long overdue.

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A four year old class action lawsuit looks as if it will finally close pending court approval in December to the tune of $123.4 million to be paid by Expedia, and another $5.5 million to be paid by Hotwire. The suit filed back in 2005 came to a head back in June when a Superior Court ruled that Expedia collected a total of $184.4 million in service fees which the company pocketed as “pure profit” from consumers who purchased hotel stays and other travel packages between 2003 and 2006. The judgment is currently the largest award in Washington state history for a consumer class action.

When the ruling was handed down back in June, Expedia was quoted that it would “vigorously pursue our rights on appeal“, but changed it’s mind due to the high cost of the litigation and the additional time it would take to appeal. Instead, Expedia was able to deny any wrongdoing in the settlement, and has set aside $19 million for the class action settlement, a low end estimate of the cost associated with the settlement.

The class action case was based on unfair business practices and breach of contract in the way the online travel company paid taxes. Not only did Expedia bundled the service-fee charges with taxes into a single line item, but collected taxes based a higher retail price, when they paid wholesale, thus pocketing the difference.

Expedia’s second quarter profit fell to $41 million, down from $96 million a year ago – a 57% drop.

Although we don’t see much about the hotel tax issue at all on message boards and blogs due to over aggressive concerns concerning Travel MLM’s being “flawed”, the battle over traditional online travel companies has been a heated debate in courts all across the continent.

In June, a Los Angeles Superior Court ruled that Expedia and Hotwire had to pay $35.6 million to the city of San Francisco. A Georgia Supreme Court has also required Expedia to pay the city of Columbus, Ga. a 7% tax on the retail rate of hotel rooms, which forced Expedia and other online agencies to cease doing business completely in the city. New York adopted a new hotel-occupancy tax ordinance requiring that OTA’s remit taxes to hotels based on the net rate, then pay the city an additional taxes for service fees or margins. Also in Canada, an Ontario Superior Court is seeking $47.5 million in damages for violating Canada’s Competition Act and Consumer Protection Act for disguising taxes and service fees.

In all, some 46 city and county taxing districts have filed lawsuits due to this issue.

But what will critics in the travel industry be talking about today? An overly aggressive and unfounded theory about how YTB will run out of people to recruit in some “pay to play” pyramid scheme suit up in Illinois. (An issue that has already been thrown out in a District Court there for being redundant, immaterial, impertinent, and scandalous.)

For those that desire to reside in reality, or have been “taken” by the concealment of service fees by Expedia over the years now have several options according to the Expedia Litigation Settlement Website.

1. Tell them you want a cash settlement (Send me a check)
2. Tell them you would like a credit (To be used on a future Expedia purchase)
3. Object to the settlement (It was all some big “misunderstanding” and it’s YTB’s fault.)
4. Opt out (You don’t care to receive cash or credit now due.)

Here’s what you need to be considered and qualify as part of the settlement:

You need to have “made a “standalone” hotel reservation through Expedia between January 10, 2001 and June 11, 2008 and paid a bundled “Tax Recovery Charge” and “Service Fee” in connection with that booking…

and/or

…you made any hotel reservation (either “standalone,” or as part of a “package” including airfare and/or car rental) through Expedia between February 18, 2003 and December 11, 2006 and paid a “Tax Recovery Charge” and “Service Fee” charge in connection with that booking”

A Final Approval hearing will be held on December 1, 2009, at 10:00 a.m. to determine if the proposed Settlement is fair, reasonable and adequate – whether the Named Plaintiffs will receive incentive awards in an amount not to exceed $7,500 each – decide if counsel should receive an award of attorneys’ fees and costs – or Order of Final Judgment and Dismissal should be entered.

While the final chapter certainly hasn’t closed on the subject of unfair and deceptive trade practices, it is however apparent at this point that many have taken issue and given notice over the Expedia issue. We’ll see what comes in the future for YTB concerning the claims surrounding YTB and this nonsense about misleading and deceiving people. While it has returned $125K to consumers in California, it’s a small pittance compared to the $129 MILLION settlement with Expedia.

But as we’ve seen for the past few years, YTB is apparently a bigger threat and far more dominant in the minds of a select few who want to wallow in thier own illusions that YTB is the real problem in the travel industry.

PS - If you're involved with YTB, sign up for our FREE Newsletter. As a Website Owner or Website Seller, we'll keep you up to date with all the latest news, acquisitions, and developments with YTB.

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

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