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Newark
– Vacation Clubs, LLC, which does business
as La Bonne Vie Travel, has been added as
a defendant to the lawsuit previously filed
by the Office of the Attorney General and
its Division of Consumer Affairs.
In
May, the State filed suit in the Superior
Court, Chancery Division in Morris County
against Daryl T. Turner and his businesses,
Dreamworks Vacation Club (also known as Dreamworks
Vacations and Dreamworks), Five Points Travel
Company and Bentley Travel. These businesses
had previously operated out of locations in
Parsippany, Sewell and Westampton. Defendants
are now operating La Bonne Vie Travel at 600
Park Avenue, Suite 200, in Manalapan.
“We’re
continuing our investigation of Turner and
his companies. This investigative effort has
led us to La Bonne Vie Travel, which we’ve
added as a defendant,” said David Szuchman,
Consumer Affairs Director.
To
date, the Division has received complaints
from approximately 300 consumers against the
defendants either directly or from the Burlington
County Consumer Affairs Office.
The
defendants this month filed a response to
the state’s Complaint, in which they
deny all the alleged violations.
The
state’s complaint alleges that the defendants
failed to provide any services to consumers
and misrepresented their relationship with
hotel, airline and car rental companies through
the unauthorized use of their corporate logos.
The state also alleges that the defendants
depicted specific resorts, regions and packages
in mailings and sales presentations that,
in actuality, were not available to consumers.
The
investigation that led to the state’s
action began with the Burlington County Consumer
Affairs Local Assistance (CALA) office, and
was referred to the Division of Consumer Affairs
for joint investigation.
The
state also alleges that the defendants also
did not provide the free gifts that consumers
were led to believe they would receive, including
seven-day cruises, round-trip airline tickets
for two, hotel stays, free dinners, car rentals
and/or free gas coupons. When consumers contacted
the “800” telephone number listed
on the mailings to claim their gifts, they
were informed that they had to attend a 90-minute
sales presentation for vacation packages.
Even if they attended the presentations, consumers
were not provided with the gifts.
Consumers
paid $1,200 to $8,000 upfront to purchase
a vacation membership package, but were not
provided with ability to book the airline,
hotel or other travel arrangements at the
price and quality represented by defendants
prior to purchase.
The state’s revised eight-count Complaint
alleges that the defendants violated the Consumer
Fraud Act and Advertising Regulations by:
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Utilizing the terms “Bailout”,
“Division of Revenue” and “Department
of Funding” on mailings sent to consumers
to falsely imply that the mailing originated
from a state or federal government agency
or department;
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In mail solicitations and other advertising
materials, utilizing without authorization,
the trademarks of airlines, hotels, car
rental companies and restaurants;
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Forwarding mailings to consumers which indicated
that consumers were entitled to complimentary
gifts, when receipt of such gifts were conditioned
upon attendance at a sales presentation
for vacation packages;
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During sales presentations, inducing consumers
to purchase vacation packages by showing
them brochures with resort areas and packages
that were not available;
-
Advising consumers prior to purchase that
they have the right to cancel the contract
if they were not satisfied with the vacation
package, and then refusing to permit the
consumers to cancel the contract;
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Charging consumers’ credit cards for
fees and services that were not authorized
by the consumers;
-
Submitting bills to collection agencies
after consumers have cancelled the contract
and formally disputed the charges;
-
Representing to consumers that they were
members of the Better Business Bureau (“BBB”)
in good standing, when such was not the
case;
-
Failing to disclose to consumers prior to
their purchase of a vacation package that
they would be required to pay additional
fees prior to utilizing the service; and
-
Requiring consumers to sign incomplete or
blank sales contracts for vacation packages
and then failing to provide consumers with
full and accurate copies of such contracts.
The
state’s Complaint also alleges a violation
of the Consumer Fraud Act, based upon violations
of the Rule Concerning the Cooling-Off Period
For Sales, 16 C.F.R. §429.1, which provides
that contracts entered through “door-to-door
sales” include a statement providing
consumers with the opportunity to cancel at
any time prior to midnight of the third business
day after the date of the transaction. The
state alleges that the defendants conducted
door-to-door sales, at least in January and
February 2008 when they held presentations
for vacation travel membership packages at
the Marriott Trenton at Lafayette Yard.
As
part of the initial filing, the state requested
an asset freeze and preliminary injunctive
relief. On June 9, 2009, the Court issued
an Order enjoining defendants from:
-
violating the CFA and the Advertising Regulations;
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destroying or transferring books and records;
- failing
to keep books and records;
- utilizing
trademarks, service marks or logos of airlines,
hotels and restaurants without their authorization;
and
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utilizing government related names in their
mailings.
At that time, the Court denied the state’s
request:
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to enjoin the defendants from engaging in
the advertisement and sale of vacation club
membership packages:
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to enjoin the defendants from disposing
of assets, including all deposits or monies
paid by consumers for vacation club membership
packages; and
-
to freeze all assets of defendants, including
bank accounts.
The
state’s complaint seeks injunctive and
other relief, maximum civil penalties, consumer
restitution and reimbursement of the state’s
legal fees and investigative costs.
Consumers
can file complaints with the Division on its
Web site at www.nj.gov/oag/ca/ocp/ocpform.htm
or by calling 1-800-242-5846
(toll-free within N.J.) or 973-504-6200.
Deputy
Attorney General Gina M. Betts of the Consumer
Fraud Prosecution Section is representing
the state in this action.
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