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Repost: St. Louis Business Journal - by Kelsey Volkmann

Ana Temple wanted to make some extra cash to supplement her income as a finance and human resources director for an architectural firm.

So when a family friend told her about YourTravelBiz.com and how she could set up her own online travel agency, she jumped at the chance in April.

She paid nearly $500 to set up a Web site through Wood River, Ill.-based YTB International. The company told her she’d make 60 percent commission off every trip she booked.

But then she got her paycheck: $3 per airline ticket.

That’s when the company told her travel agents make 60 percent of what YTB makes, she said.

“I feel so deceived,” said Temple, a Copiague, N.Y., resident. “They told us people could retire off this and take free trips. It’s all a bunch of bull.”

On Monday, the California attorney general sued YTB, calling it a “gigantic pyramid scheme” that swindled an estimated $103 million out of as many as 200,000 people nationwide in 2007 alone. The majority of members make most of their money from recruiting new members, not from selling travel, so only a few see the promised profits, Attorney General Jerry Brown Jr. said.

More than 90 people over the past three years have complained about YourTravelBiz.com to the Better Business Bureau of eastern Missouri and southern Illinois.

YTB denies any wrongdoing.

Several YTB agents vigorously defended YTB at the company’s national convention in St. Louis this week, saying they had made money and received discounts on personal travel.

“That’s because they got thousands of suckers underneath them and they’re making money off us,” said Temple, 38.

When she tried to cancel, YTB refused, saying it was past the five-day cancellation period. But Temple said she didn’t receive her packet informing her of the cancellation policy until after the five- day period expired.

YTB denied this and she was still required to read the online terms and conditions before paying.

“They gave us so much false information,” she said. “Total, total lies.”

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With the help of some funding from the Direct Selling Education Foundation, The National Consumers League - has just released new material to help consumers recognize the difference between legitimate sales opportunities, charitable organizations and door-to-door sales and those that are scams.

There have been several cases over the years of salespeople from door to door operations committing crimes, not delivering products, or selling goods at higher rates than they should. Many of the dishonest companies piggyback on the good reputation of legitimate companies, making it easier to take advantage of people and scam them. Often, sales people make false claims that they are raising money for school or charity, or that you can win prizes by buying products.

The NCL recommends that every consumer thoroughly check out a charity or door to door sales company before buying anything. Some advice that the NCL gives is to be sure the seller has the proper permits, provides brochures and literature upon request and is willing to set an appointment to come back and speak with you, thereby giving you a chance to do any necessary research. If you suspect anything, you can always call the Better Business Bureau for more information or to complain about a company.

The report also discusses which traveling sales job might be right for you. The study is aimed primarily at young people who often take such jobs to earn extra money and travel.

These scams have been around for year and people are still getting taken advantage of. Don’t be afraid to say no, or ask a lot of questions. Hopefully the NCL along with the Direct Selling Education Fund, who is funding the effort, can continue their work and spread the word about the potential dangers of some of these sales companies. While many of these charities and sales teams good and reputable, there are also some are just looking to take advantage of innocent people who up until now have not been well informed.

You can check out all of the studies done by the NCL along with the DSEF here.

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