As we told you a week ago, YTB Travel is being sued by the California Attorney General claiming that the online travel company is operating a pyramid scheme. Now, YTB has more problems on its hand. Two former agents have filed a $100 million dollar class action suit, and the Better Business Bureau has released reports claiming the have received numerous complaints against the company and has a rating of “unsatisfactory”.
The new suit that has been filed in federal court in Illinois makes similar claims to that of the California suit. The suit claims that YTB ran an illegal pyramid scheme and defrauded “agents” out of thousands of dollars. The class action suit was filed both on behalf of as many as 1,000 people who were former YTB members.
The Better Business Bureau also released many complaints it had received about the company. The BBB says that they have received complaints about the company in at least 31 states.
The lawsuit, brought about by the plaintiffs, two former YTB agents, Faye Morris of St. Louis and Kwame Thompson of Atlanta was filed Friday in federal court in Illinois and seeks $100 million in damages on behalf of the named plaintiffs along with 1,000 other former members.
The defendants named in the suit were the same as in the California suit; YTB International Inc., YourTravelBiz.Com, YTB Travel Network Inc., YTB Travel Network of Illinois and its technology unit Rezconnect Technologies.
Along with the company itself, several officers of YTB were also named including founder J. Lloyd Tomer.
Executive Officer Scott Toner, released a brief statement addressing the accusations saying that they were “unaware” of any unresolved BBB complaints. He added, “we are proud of our business model and how our operations are conducted in an ethical and transparent way. We also are wholly confident that our business model will withstand scrutiny, and look forward to setting the record straight in court.”
Class action suits are easy to file against publicly traded company so expect to see more of them. Unfortunately, a lot of people will try and jump on this bandwagon and make it frustrating for YTB - especially if it is not guilty of the charges alleged.
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[...] that is currently in trouble, namely, YTB, the online travel company and DSA member currently being sued in 2 states for over $100 million dollars for fraud as well as the California DA. Recently, there have been [...]
Pingback by MLM News - OpTree » DSA Finally Responds to Bad News Regarding One of Their Member Companies- Issues Statement Regarding YTB Lawsuit — August 12, 2008 @ 6:34 pm
I think some past YTB reps have thought they have found a get rich lets sue YTB for quick money! Its not going to work! YTB works for anyone who will work! It does not work if you sit home and don’t tell people you have a web site!
Its doesn’t work if you don’t train and train some more! A YTB Rep has to decide how much effort they are going to put into YTB! Lets ask Faye Morris & Kwame Thompson how many times did they go to CRTA Training? I have been in YTB for 1.5 years and have been at least 10 times! Plus did numerous on line training, Flew to Florida for a Travel Convention. Did my CLIA Training. Weekly I train! Daily I lsten to a training call! Why am I not sueing YTB? Because I have put the effort in, it needs to run my business! I will be a YTB Director! YTB will just keep getting stronger! Sorry folks were here to stay! We will be #1 Travel Company!
Comment by Cyndi Brown — August 15, 2008 @ 3:40 pm
Cyndi
I think you make a valid point about the fact that you have to work for it to work for you. But considering the company has so many complaints against it around the US does make me wonder what is really going on. I have looked at YTB as a possible company to get involved with but the California lawsuit does make me worried.
Comment by Charles — August 17, 2008 @ 5:05 am
Any company as successful as we are will always have to stand up and be proud of our leadership.We all have to start our crusade and build faster than ever.No one can stop a true crusader with a great cause.Remember always THE LORD IS OUR SHEPARD. YTB IS NUMBER ONE!! GO TEAM ! COACH YOUR THE BEST !
Comment by peter caggiano — August 17, 2008 @ 3:17 pm
Charles
Don’t worry so much. All great companies will be the target of complaints. Can you even imagine how many complaints there have been against Microsoft over the years? But if that would have kept you from buying their stock years ago you would be kicking yourself right now. It is reported that YTB had 90 complaints to the BBB over the last 36 months. That is a very small number considering their explosive growth. Other blogs and websites point to this a big issue as they try to discredit YTB but consider in the same time period Expedia had 1024 complaints, Orbitz 1729 & Travelocity 1528. I would say YTB is doing VERY WELL.
Comment by Scott — August 18, 2008 @ 10:35 pm
I have been involved with YTB Travel for 3 1/2 years now and I LOVE this company. I am a HS teacher and coach in Florida, sponsored by the #1 man in YTB. I book over $100,000 a year in travel and tell people everyday about this incredible business opportunity. You get what you put into YTB. Some people listen and others don’t. Here is my personal story:
1st year = $4,000
2nd year = $16,000
3rd year = $26,000
This year = over $20,000 already
The problem with the people complaining about YTB is their work ethic. They are secret agents in YTB and expect to make money with no effort. If you don’t tell people that you have a Travel Website and a great business opportunity, people will never know you exist. You have to market your business. YTB is not for everyone. This is an opporunity that YOU must decide to take advantage of.
I have personally sponsored 31 RTA’s in YTB and help that group grow to over 800 RTA’s all over the country.
Stop complaing about the 26th largest Travel Agency in North America, and GO TO WORK!!!!!!!!!!
Comment by Coach Mark — August 19, 2008 @ 8:15 am
Listen, i’m new to the travel business, and still excited about the opportunity i bought into with YTB.
Like any business your have to be good at what you do in order to sell your product, travel.
Participating in ytb train classes and conference calls is a very small part in making a biz take off. Marketing is the key… You have to spend the marketing dollars to promote and excite new and future customers about your product, travel.
Now, the truth be told, most of you who buy into low-cost business venture like tyb, don’t have the additional expendable, disposable capital to market your business properly… Your dreams of having a business undermined by the lack of disposable income needed to promote and market your business. And remember, the people who fail, which are many, fail because they are too focused on building the down line and not the product, travel.
People buy into the tyb home-based business on tight budget, wrong. You can’t expect to come in making money right away… Traditionally, most new starts up break even at year 2. So, those of you who are complaining about not making your dreams come true… you’re a little premature with your complaints and lawsuits.
marketing is the key… market, market, market… The dollars you spend on marketing is part of your advertisement budget. “What, you don’t have an advertisement budget.” No wonder you failed…
You collateral income exclusively for marketing. This is cash money you spend AND DON’T EXPECT IT BACK IN THE SHORT TERM. The return on marketing is not a science….shot and miss sort of thing.
Don’t spend you rent money on ytb, hoping ytb will bring you prosperity and wealth, not.
You can start up a business on a budget. Ask those who failed, “how many had a 5-year business plan?” Probably “O”
Shawn
travelohagency.com
Comment by Shawn, Temecula California — August 31, 2008 @ 5:47 pm
All of the comments above are right on the money! I’ve been a school teacher, a small business owner, an employee who depends on the decisions made by someone else, and now an owner of my own travel business. I started YTB to get great deals on travel, to be able to write off my travel, and to get commissions on my travel! It’s win win if I make money by referring others to my travel web site! It’s absolutely NOT get rich quick…..people hear what they want to hear sometimes, and it’s sad that they don’t look inward to see how they could have done things differently, and choose to blame others with frivolous law suits!
Comment by Lesa — September 7, 2008 @ 7:11 pm
I have a YTB travel website and proud of it. My overhead is $0.00
In contrast my traditional business cost’s me thousand’s of dollars a month just to stay open and has not been growing due to a slow economy. My YTB biz just continues to grow, and YES you as in any biz need to do some work. How much depends on how fast you would like to grow your biz. I like that my hours are very flexable.
Comment by Jim — September 9, 2008 @ 8:55 am
I have been in YTB for 5 months now and I love the future that awaits for me down the road . This is a not a get rich fast program. You have to training so stay plugged in . I went this weekend to fundshine travel her in Orlando and learned new stuff in the travel industry that will help my business grow and if it was not for the training the company gives then i would not learn how to grow my business . Some people do not like change but YTB is going to change the travel industry and it’s going to be number one! So stop putting down a Company that is doing great things for people. Just this weekend I saw a cheque for
$10,000 given to one of the YTB members with my own eyes.
Need to get out of the box and stop putting down great opportunities when they present!!
Go and read: who moved my cheese?
And try to be a Sniff a and a Scurry rather than a Hem, for those that always complain to find more cheese but they stay in station C and that cheese does not show up. Be a Haw an adventure out more! I personally we myself being a Sniff , because I sniff for a great opportunity and a Scurry , because I ran with it!
Comment by Andrew — September 14, 2008 @ 3:29 am
[...] keep coming up about DSA Member company YTB and whether or not the company is completely legit. Lawsuits have been filed, board members have resigned, and allegations have been flying for months now that the company, an [...]
Pingback by MLM News - OpTree » Florida State Senator Burt Saunders Paid By YTB as Board Member and Consultant — October 10, 2008 @ 4:52 am
I WAS with YTB, so let me say that I am not 100% sure of what is going on. I just know that I have found a better deal! The one thing that bothered me, and I think is part of the lawsuit is the fact that at a presentation you learn of the 60% on travel commisions, yet it is not made clear that you earn 60% of the commision that YTB gets. The owners are very honest people and are not decieveing(is that how you spell that?) reps. But you must pay attention to the presentation, after which if you don’t ask questions then…well… you can see what i mean. The only other thing that I see is that, and look for yourself, the money figures show more money IS made from travel store sales than for money made booking travel. That said, my company is about to make a HUGE annoucement in 2008 about something that will sky rocket us in 2009, DON’T WAIT ANY LONGER!!
Comment by Mike — October 17, 2008 @ 6:30 am
I have been with YTB for about 3 months now. I am really enjoying it. People need to understand you can’t get paid without effort. I know I am unable to attend the training all the time but I know thats my fault. I work 2 other jobs and just tell people about my business. But tell me why in three months I have had a number of people book and some of them I have no idea who they are.. But I appreciate their business. YTB is a great product and my friends and family love it.. Get to work people and dont be lazy.. if you owned a storefront, you would work hard too right?? same with this but you dont have 2000-3000 in rental fees..and other cam charges.. its a great thing.. get on it..
Comment by Brian — October 27, 2008 @ 11:58 am
I have been with YTB for about a year, and I came on board mainly because I saw the opportunity to start a career in the best industry in the world “TRAVEL” for pennies. Yes!!! You make a small investment and in seconds you start your own travel business. This is a golden opportunity for those who want to work, who want to learn, who want to share, who can be trained and be inspired by successful people like Coach, Scott and Kim and so many others. They blame YTB?? YTB gives us all!!! It is up to us to invest in ourselves and get the skills that we need to work our business. We had in the past and we have now more and more training for FREE!!! Plus on-line training, plus the E-campus. In the back office we have an archive of travel training, hours of training that we can access at any time. Also if we need support, we have corporate office and our 300 employees are always there to help.
I wonder why people are so concern about these law suits… what are you people afraid of?? I think that is another excuse not to be responsible of your own destiny. It is always easier to blame a boss, the economy, the mortgage rates, the government or even a law suit!
Please if you are shared this business, just look at us, join if you like the opportunity and don’t join if you don’t like our concept but with respect to us…we are working…
As an insider, I am telling you, this is a real, proven, stable and growing company and we will be the # 1 travel company in the world!!!
God Bless!
Comment by Patricia Rapan — November 11, 2008 @ 8:06 pm
You see, you are very right in the fact that for YTB to work for you, you have to put the work into it. The only problem is is that when you are “working hard”, the only thing that is accomplished is that more people join your business. For the size fo the company, the net revenue received from selling travel should be much higher. When only 14.5% of the company’s earnings come from travel, it is very quickly proven that the company is a pyramid scheme. Those of you in YTB will not see it as such because you feel that you are helping people by doing this, but if you would do your research, you will see that there were many other companies much larger than YTB that have crumbled due to this very fact. Eventually people stop buying the website that you sell, the pyramid reaches full capacity, and it caves in on itself. I dont think you have to look very hard into the recent SEC filings as well as stock prices to see that the company is not doing well financialy right now. They are selling just as much travel as they were before, but now the company does not have the in-flow of cash that they had from recruiting more people. When this lawsuit is finally settled, unless YTB really starts to sell a lot more travel and quits paying so much to recruit people, I believe we will see the fate that so many companies before have seen and thousands of people are going to be left with nothing because they are putting all of their eggs in one basket. Not a smart move, especially with a risky company like this.
Comment by Apocalypse — January 8, 2009 @ 9:00 pm
The YTB stock is at 30 cents a share.This company is a dog.Look at the stock,look at what the executives do with their stock.Every time the stock goes up they sell large chunks of stock,which they got for free when the company went public.Eventually they’ll sell it all and leave and YTB will be no more.It’s a chop shop,plain and simple.
Comment by Slurpers — January 15, 2009 @ 2:24 am
I live in California, and I am embarrased of Brown and the lawsuit. People keep in mind that any idiot can sue anyone. To call YTB an Illegal pyramid is frankly ignorant on their part. Members of D.S.A. Direct Selling Association. YTB is an open book nothing to hide, publicly traded and if you go to head quarters they will take you for a tour. Why doesn’t the atorney general tell the truth that he was pressured by those who grease his palm and provide him with campgain funds. YTB will put ALL Brick and Mortor Companys out of business, and there is nothing that California or any other state can do about it. God Bless you Coach and Scott, you are true humanitarians and your Passport To Giving program speaks volumes for all you do for non-profits. I am proud to be an RTA and I will try to learn as much as I can about traveling. California loves YTB! Leave us alone. YTB YTB YTB YTB!
Comment by Tony — January 17, 2009 @ 10:07 pm
I love when the words “pyramid scheme” get thrown around so liberally. People who say those words work for a “pyramid scheme.” And if you were to ask them what that is, they probably couldn’t tell you. Ask those people if they will ever be the owner of their company, CEO, President, VP, etc…Almost every one of them will say no because they work for the biggest “pyramid scheme” of them all… Employer/employee structure. You do all the work, and the people at the top collect the paychecks. Our society trains everyone to be employees (sheep). “Go work for someone that was more forward thinking than you” (shepherd). Don’t be forward thinking, don’t invent things, don’t rock the boat.
And as far as their stock goes…THEY ARE PUBLICLY TRADED! How many other mlm companies can say that? Most of them haven’t been successful or transparent enough to even think about doing it. So all the nay-sayers should crawl back to their ‘workin for the man’ existence, and leave the people that would rather control their existence alone.
Enjoy your employment slavery!
Comment by Jason — January 30, 2009 @ 8:30 am