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YTB Settles Pyramid Scheme Suit

3 replies [Last post]
slim's picture
Joined: 01/18/2008

The state of California accused YTB of being a gigantic pyramid schemeA pyramid scheme is an illegal multilevel marketing program in which people pay an entrance fee for the opportunity to recruit others to do the same. and YTB has settled the suit. The state and YTB have yet to reach an agreement, but this appears to be a huge blow to YTB. I have a number of brainwashed friends who believe YTB is legit even though their travel biz isn't paying them anything! They see none of the perks promised when they signed up as the hotels are always blacked out on the dates they want to use their travel agent benefits. Or travel consultant, or whatever crazy title YTB promises them with the signup fee.

In August, Brown, Attorney General of California, sued the Wood River, Ill.,-based online travel company seeking more than $25 million in fines and restitution.

The lawsuit and a subsequent decline in travel agents and sales recently prompted an auditor to issue a going concern for the company.

YTB suffered a 44 percent decrease in active reps and a 29 percent decrease in travel agents during 2008.

More than 200,000 members in 2007 paid more than $1,000 a year to set up online travel agencies, but only 38 percent of the company's members made any travel commissions, according to Brown’s office. Consumers paid more than $103 million to the company in 2007, but made $13 million in travel sales commissions, according to the lawsuit.

This might be the beginning of the end for YTB as the premier pyramid scheme. YTB had better hope the other 49 states don't follow California's lead and bring their own lawsuits against YTB.

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fergie's picture
Joined: 02/17/2008

Everyone I know in YTB got in late and they are looking for ways to quit YTB. It appears the $500 or close to that amount they paid to signup is not refundable and they are still getting charged to be travel agents or whatever the heck it is YTB promises you can be once you signup.

50cent's picture
Joined: 02/14/2008

I have heard 95% bad things about YTB and about 5% good or neutral. Many of the people with good reports got in early, like 3-5 years ago, and actually made a little money. However, all the pawns at the bottom of the totem pole are reporting bad things, scamA confidence game or other fraudulent scheme, especially for making a quick profit; , pyramid, etc. Many paid their initial fees and received none of the promised web sites and travel discounts. A few did receive web sites, but the sites were not as flexible as promised in the meetings. They are just a mask for the YTB web site and you have the option of purchasing domain masking from your registrar. Well, glad I never signed up for YTB if they have fessed up to being a pyramid!


Joined: 04/15/2009

What a shame that people actually get taken by these things. I'm glad that someone made them pay up, at least some. It's hard enough to make a living in this world without someone else trying to take every penny you have. Hope your friends wise up soon.

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