USA: class action suit against YTB reinstated
The United States Court of Appeals for the Seventh Circuit in Illinois reinstated a class action lawsuit against YTB International, which offers booking websites and travel agent training. The class action is seeking $5 million in damages for more than 100 plaintiffs nationwide against Illinois-based YTB, also known as YourTravelBiz.com. The suit alleges that while YTB does sell travel packages, the sale of travel does not represent a substantial portion of revenue. The suit also claims that YTB relies on its users to bring more potential “travel agents” to the site, creating more selling opportunities for users, and more income for YTB.
The complaint maintains that business model can only deliver profits to users if other persons continue to join the site, thus constituting an illegal pyramid scheme and a business model that violates the Illinois Consumer Fraud Act.
Source: Travel Pulse; find article here>>.