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Around the same time, several former YTB agents filed a class-action lawsuit that alleged the company was an illegal pyramid scheme. The lawsuit says that the company "claims to sell travel services, but said company's main business is inducing others to become travel agents."
But YTB went through a couple of lawsuits. Between 2006 and 2009, the company was the subject of several lawsuits and investigations in California, Illinois, and Rhode Island, alleging the company to be using deceptive marketing and being a pyramid scheme.
5 Αυγ 2008 · LOS ANGELES--California Attorney General Edmund G. Brown Jr. today announced a lawsuit against YourTravelBiz.com for operating a 'gigantic pyramid scheme' that recruited tens of thousands of members with deceptive claims that members could earn huge sums of money through its online travel agencies.
1 ημέρα πριν · Plus, an MLM that focuses more on recruitment and less on selling actual products can resemble a pyramid scheme. 5. Phishing scams. Phishing is when scammers try to trick an affiliate marketer into giving away sensitive information, such as passwords or credit card numbers.
MLM expert, Robert FitzPatrick, published a 2008 study that covered ten publicly traded MLMs at its time—including the now-defunct travel MLM Your Travel Business (YTB). What did he find? In short this: ". . . 99% of all [MLM] participants received less than $10 a week in commissions, before all expenses." 1
15 Μαΐ 2009 · The California Attorney General sued YTB in August of 20 08, calling the company a “gigantic pyramid scheme”. Now it has settled with the company. The result will likely lead to the company’s ceasing operations. Consumers also filed a $100 million class action lawsuit against YTB, charging that it operates fraudulently.
