The DSA has finally made a statement regarding the status of one of their companies 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 several DSA member companies that have run into some major problems, making us wonder what the purpose of the DSA really is. Their requirements are so strict, yet recently DSA member companies have closed, (Weekenders) or been sued (YTB). Finally, the DSA, who has been awfully quiet lately, has released a statement:
“DSA maintains a rigorous Code of Ethics that provides both independent sales representatives and consumers with the opportunity to file complaints with the independent DSA Code Administrator. The DSA Code of Ethics prohibits pyramid schemes, unsubstantiated earnings claims and unfair or deceptive sales and recruiting practices. As is the case with any DSA member company, YTB distributors and customers who feel they have been treated unfairly are invited to file a complaint under DSA’s Code of Ethics.
“Although the allegations made by the California Attorney General against YourTravelBiz.com are unproven, DSA takes any allegations of this kind seriously and has set in motion the standard procedures it follows when a member company is accused of possible violations of the DSA Code of Ethics.
Specifically, DSA is:
-Seeking additional information about the complaint and the allegations from both the California Attorney General and YTB.
-Advising the independent DSA Code Administrator of these developments and forwarding any additional information DSA receives.
-Evaluating the materials related to this case and will take further action as appropriate.
Closely monitoring the situation and keeping the Code Administrator and other DSA members apprised of related news and developments“Information on the Code of Ethics, the complaint process and penalties for violation can be found on the DSA Web site at www.dsa.org.”
Its great that they have finally said something about whats going on- we’re still waiting on the official word on what they are going to do about all the people who lost money with Weekenders- the same people who trusted the company due to its association with the DSA but this is absolutely a step in the right direction.
It is our strong opinion that in cases where a company is being sued for fraud by a State agency or has an excessive number of complaints against them filed with the Better Business Bureau, it should be the Associations obligation to notify its members and put the company on probation until the matters are settled. The problem is, then it may find the member company will withhold membership dues which is the lifeline of the DSA.
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