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FTC Actions
FTC Action Summaries
Epic Resorts(M.D. Fla. filed
Aug. 14, 2000)
Defendants: Epic Resorts, LLC, Epic Travel, LLC, Thomas Flatley, and Scott Egelkamp
Type: Telemarketing Sales Rule & FTC Act
The FTC filed suit in federal court on Aug. 14, 2000, charging that Epic sent consumers unsolicited e-mails and faxes and invited them to call defendants’ telemarketers about Florida and Bahamas vacation packages. The FTC alleged that, through these solicitations and outbound telemarketing calls, defendants violated the FTC Act and the Telemarketing Sales Rule (TSR) by misrepresenting that consumers had won or been specially selected to receive a vacation package and by deceiving consumers about the total cost and the material restrictions and conditions related to defendants’ vacation packages. The FTC also alleged that defendants violated the TSR when they called back consumers who said they wanted no more phone calls.
Under the terms of the proposed order announced on September 5, 2001,
which will become effective when signed by the district court judge, Epic Resorts, Epic Travel, and Flatley are required to provide redress to consumers who returned their vacation packages within the defendants' 30-day cancellation period and sought, but did not receive, refunds from the company. The defendants also are enjoined from the illegal activities alleged in the complaint, including:1. misrepresenting that consumers have won or have been specially selected to receive a package;
2. failing to disclose all material conditions associated with a package; or misrepresenting the total cost of the package;
3. violating the TSR and its "Do Not Call" provision; and
4. failing to provide credit card refunds within seven business days of receiving a returned package (as required by TILA).
http://www.ftc.gov/opa/2000/08/travelunravel.htm (press release - complaint)
http://www.ftc.gov/opa/2001/09/epic.htm (press release – stipulated final order)
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