False, Misleading and Deceptive Advertising in the Travel Industry
![handle is hein.journals/itlj2007 and id is 96 raw text is: [2007] International Travel Law Jou rnal
*ALSE, MISLEADING AND DECEPTIVE
ADVERTISING IN THE TRAVEL INDUSTRY
Thomas A Dickerson
In this article the author provides a comprehensive overview of the case law on false and
deceptive travel advertising.
1. Luskins v Consumer Protection Division, 353
Md. 335, 726 A. 2d 702 (1999).
2. 'DOT fines Hotwire for deceptive radio ads',
Travel Weekly, October 14, 2002, p. 8.
3. Plutock v European American Bank, 143
Misc. 2d 149, 540 N.YS. 2d 135 (1989).
4. Federal Trade Commission v Med Resorts
International, 2001 WL 327880 (N.D. Ill.
2001).
5. Federal Trade Commission v
Commonwealth Marketing Group, 1999 WL
816726 (W.D. Pa. 1999).
6. Hotels.Com v Canales, 2006 WL 228720
(Tex. App. 2006)
7. Ricard v Travel Coordinators, Inc. 2003 WL
1301540 (Cal. App. 2003)
8. Milligan, 'Travel groups fight new FCC rule
on faxes', Travel Weekly, August 18, 2003,
p. 4.
The Methods of Travel Advertising
Suppliers and tour operators will create and distribute full
colour brochures and use:
* TV1 (bogus vacation certificates offering 'free air fare for
two' advertised on TV and in newspapers);
radio2 (DOT fined Hotwire $50,000 for using deceptive
radio ads to promote its low fares)
* newspapers;
* direct mail3 (postcards stating that recipient had been
selected to receive a pre-paid luxury cruise plus hotel
accommodations);
* telephones (time share promoter made unsolicited
telephone calls inviting consumers to attend sales
meeting and join vacation club; 4 telemarketing of
vacations5);
* the Internet6 (By its own admission, Hotels.com neither
charges nor collects taxes nor does it remit taxes directly
to any taxing authority. Rather, after the customer
completes his or her stay, Hotels.com pays the hotel the
negotiated rate and keeps the difference between the
negotiated rate and the published rate. Hotels.com also
pays an additional amount to cover any applicable sales
and/or occupancy taxes, based on the negotiated rate,
directly to the hotel. The hotel then pays the appropriate
taxes to the proper taxing authority. Hotels.com retains
the difference between the amount paid by the customer
for 'taxes/fees' and the amount paid to the hotel for
applicable taxes) including e-mails7 (travel agents
defrauded after receiving e-mails and purchasing fam
trips, e-mails were sent via a mass e-mailing to e-mail
addresses on a mailing list of travel agents);
fax transmissions8.](ViewImageLocal?handle=hein.journals/itlj2007&div=21&collection=&method=preview&ext=.png&size=3)
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False, Misleading and Deceptive Advertising in the Travel Industry
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