STATE OF FLORIDA ASSURANCE OF VOLUNTARY COMPLIANCE A. INTRODUCTION

Transcription

1 STATE OF FLORDA OFFCE OF THE ATTORNEY GENERAL N THE MATTER OF: VACATONS ON DECK, NC. & WLLAM KARLSON Case No.: L Respondents. / ASSURANCE OF VOLUNTARY COMPLANCE A. NTRODUCTON 1. Pursul:)nt to the provisions of Chapter 501, Part, Florida Statutes, the State of Florida, Department. of Legal Affairs, Office of the Attorney General (hereinafter "OAG"), caused an invest~gation to be made into certain acts and practices of Vacations on Deck, nc. ("VOD"), a Florida corporation, and William Karlson ("Karlson") (eollectively referred to as "Respondents"). 2. VOD's principal place of business is 2950 W. Cypress Creek Road, Suite 205, Fort Lauderdale, FL William Karlson is the ChiefExecutive Officer ofvod. 3. ~espondents market and sell vacation packages to consumers through their website VacationsOnDeck.com and via telemarketing. These packages offer discounted pricing for cruises, airlines, etc. The packages do not indicate a time period in which the consumer must use the package'by a specific date. 4. Beginning in 2014, OAG began receiving complaints alleging Respondents.. ~ engaged in unfair and deceptive acts and practices relating to the vacation packages. The P~ge 1 of 10. 1

2 complaints allege that Respondents were contacting consumers demanding that they pay additional funds- often more than $1200- because the consumers had not executed previously purchased travel packages. Respondents threatened to send consumers to collections, sue the consumers, ~d/or cancel unexecuted packages. However, many of these packages had been purchased and executed as far back as Other consumers contacted by Respondents had purchased, but later cancelled their packages years before receiving a call from Respondents. n the case of consumers who had purchased package and not yet executed or cancelled it, the consumers had paid in-full, and nowhere in the purchase agreement did it require that the consumers execute the travel package within a certain time frame. And finally, some consumers contacted by Respondents had never purchased anything from them. However, feeling ' l pressured, many consumers paid Respondents' demand even though they had no obligation to do so. 5. Respondents have paid restitution to consumers who submitted complaints to the OAG in the amount $5, Respondents deny any wrongdoing or violation of law, but desire to resolve this investigation in order to avoid the expense ~nd inconvenience of litigation. 7. THEREFORE, without any admission that Respondents have violated the law and for the purpose of resolution of this matter only, the OAG, by and through the undersigneq, does in this matter accept this Assurance of Voluntary Compliance ("AVC") in termination of this investigation with prejudice, pursuant to Section (6), Florida Statutes, and by virtue of the authority vested in the OAG by said statute and without any finding of wrongdoing on the part of Respondents. The OAG and Respondents (hereinafter "the Parties") hereby agree and stipulate to the following: Page 2 oflo

3 B..TORSDCTON AND VENUE 6. T S AGREED by the Parties that VOD is a vacation certificate seller of travel as defined by the Florida Sellers of Travel Act, Florida Statutes, Section , et seq. (2014). 7. T S FURTHER AGREED by the Parties that the State of Florida has jurisdiction over Respondents solely for the putpose of entering into this A VC and in any enforcement or investigative actions arising out of this A VC. 8. T S FURTHER AGREED by the Parties that venue for any matter relating to or arising out of this AVC shall lie solely in Leon County, Florida: C. DEFNTONS 9. "ndependent agent" means a person who represents a seller of travel by soliciting persons on its behalf, who has a written contract with a seller of travel that is operating in. compliance with this part and an rules promulgated thereunder, who does not receive a fee, commission, or other valuable consideration directly from the purchaser for the sale of travel, who does not at any time have any unissued ticket stock or travel doc~ments in his or her possession, and who does not have the ability to issue tickets, vacation certificates, or any other travel documents. 10. "Purchaser" means the purchaser of. or person otherwise entitled to receive, preaitanged travel, tourist-related services, or tour-guide services, for a fee or commission, or who has acquired a vacation certificate for personal use. 11. "Registranf' means any person registered as a seller of travel. 12. "Seller of travel" means any resident or nonresident person, finn, corporation, or business entity who offers for sale, directly or indirectly, at wholesale or retail, prearranged Page 3 of 10

4 travel, tourist-related services, or tour-guide services for individuals or groups, including, but not limited to,'. vacation or tour packages, or vacation certificates in exchange for a fee, commission, or other valuable consideration. The term includes any business entity offering membership in a travel club or travel services for an advance fee or payment, even if no travel contracts or certificates or vacation or tour packages are sold by the business.entity. 13. "Vacation cettificate" means any aitangement, plan, program, or vacation package that promotes, discusses, or discloses a destination or itinerary or type of travel, whereby a purchaser for consideration paid in advance is entitled to the use of travel, accommodations, or facilities for any number of days, whether certain or uncertain, during the period in which the certificate can be exercised, and no sp~ific date or dates for its use are designated. A vacation certificate does not include prearranged travel, tourist-related.services, or tour-guide services when a seller.of travel remits full payment for the cost of such services to the provider or supplier within 10 business days of the purchaser's initial payment to the seller of travel. D. AGREEMENT OF COMPLANCE 14. T S AGREED by the Parties that this AVC applies to and binds Respondents. 15. T S FURTHER AGREED by the Patties that Respondents shall adhere to all J registration and operation requirements as required by the Florida Sellers of Travel Act, Chapter T S FURTHER AGREED by the Parties that Respondents shall adhere to and abide by all requirements of the National and Florida Do Not Call lists pursuant to its telemarketing efforts. Page 4 oflo

5 17. T S FURTHER AGREED by the Parties that Respondents, in the course of its telemarketing and sales efforts, that all representatives and associates of Respondents shall identify themselves as representatives, associates or employees of Respondents, and shall not misrepresent their identity, nor misrepresent the actual and intended purpose of their call. 18. T S FURTHER AGREED by the Parties that Respondents, in the course of its telemarketing and sales efforts, that all representatives, associates or employees of Respondents shall not misrepresent the terms or requirements of any contract previously entered into by the consumer, nor shall any threats, intimidation or coercion be made towards the consumer if immediate payment or additional payments are not made. 19. T S FURTHER AGREED by the Parties that Respondents shall notify the OAG immediately if Respondents enter into the vacation or travel business unde.r any other business or company name that would require registration with the Florida Department of Agricultural or Consumer Affairs as per Florida Statute , Sellers oftravel. E. PAYMENT BY RESPONDENT 20. To resolve claims by the OAG that Respondents violated Florida law, but without admitting wrongdoing or violation of law, Respondent agrees to pay the sum of $5,000 to OAG, due within 30 days from date of execution of this A VC. Respondents' payment shall be made payable to the Department of Legal Affairs Revolving Trust Fund for expended attomey's fees and costs and expenses, including but not limited to non-attomey employee costs, management fees; administrative expenses and overhead as sociated with the matters resolved herein and to cover the OAG for the costs of future enforcement, and shall be delivered to Richard P. Lawson, Director, Consumer Protection Division, Office of the Attorney General, Department of Legal Page 5 of 10

6 Affairs, PL-01, The Capitol, Tallahassee, Florida , pursuant to Section (6), Flotida Statutes (2014). 21. As noted above in paragraph 5, Respondents have paid restitution in the amount of $5,984 to consumers who submitted complaints to the OAG. Therefore, the OAG is not seeking consumer restitution. F. RECORDKEEPNG PROVSONS 21. T S FURTHER AGREED by the Parties that a period of twelve (12) months from the date of the execution of this A VC, or until such time as the indebtedness described in Section E is satisfied, whichever period is longer, Respondents shall promptly notify the OAG of anr ch~ges in corporate structure that may materially affect compliance obligations arising under the AVC, including but not limited to a dissolution, assignment, sale, merger, or.other action that would result in the emergenc:e of a successor entity; the creation or dissolution of a subsidiary, parent, or affiliate entity that engages in any acts or practices subject to this A VC; the filing of any bankruptcy petition; a change in the corporate name or address; or a change in any corporate ownership or control. 22. T S FURTHER AGREED by the Pru.1ies that for purposes of this AVC, a. Respondents shall, unless otherwise directed by OAG representatives, mail all written notifications to the OAG, identifying all written communications as iii reference to OAG Case No. Ll , and sent to: Consumer Protection Division/Tallahassee Office of the Attorney General The Capitol, PL-01 Tallahassee, Florida ; and i l b. The OAG shall, unless otherwise directed by Respondents, mail all written notifications to Respondents to: Page 6 of 10

7 Vacations on Deck 2950 W. Cypress Creek Rd., Suite 205 Ft. Lauderdale, FL G. NO ADMSSON OF LABLTY OR WAVER OF DEFENSES 23. T S FURTHER AGREED by the Parties that this AVC is not and shall not in any event be construed, deemed to be, and/or used as: 24. An admission or evidence of the validity of any claim that the OAG has or could i asse1t against Respondents or an admission of any alleged wrongdoing or liability by Respondents; 25. An admission or evidence of any fault of omission by Respondents in any civil, criminal, or administrative proceed~g in any court, administrative agency or other tribunal, other than such proceedings as may be necessary to consummate or enforce this A VC. Moreover, by entering into this A VC and agreeing to the terms and conditions-provided herein, Respondents do not intend to waive and do not waive any defenses it may have in any other action or proceeding that has been or may be brought against Respondents; 26. A finding by any court or agency, including the OAG, that Respondents have engaged in any act or practice declared unlawful by any laws, rules or regulations of the State of Florida. H. APPLCATON, EFFECT AND OTHER TERMS T S FURTHER AGREED by the Parties that: 27. This A VC shall become effective upon its acceptance by the Attorney General, by and through Richard P. Lawson, Assistant Attorney General, who may refuse to accept it.at his discretion; Page 7 oflo : ~ l

8 28. Respondents will implement the terms of this A VC immediately upon acceptance by the Attorney General; 29. No waiver, modification or amendment of the tenns of this AVC shall be valid or binding unless made in writing, signed by the Parties and then only to the extent set forth in such Wlitten waiver, modification, or amendment; 30. This A VC shalj be governed by, construed and enforced exclusively in accordance with and subject to the laws of the State of Flotida, including, but not limited to, its choice of law ptinciples; 31. No waiver of any term, provision, or condition of this A VC, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or shall constitute, a waiver of any other provision hereof, whether or not similar, nor shall such waiver constitute a continuing waiver, and no waiver shall be binding unless executed in writing by the party making the waiver; 32. f any clause, provision, or section of the A VC shall, for any reason, be held illegal, invalid, or unenforceable, such illegality, invalidity, or unenforceability shall not affect any other clause, provision, or section of this A VC, and this A VC shall be construed and enforced as if such illegal, invalid, or unenforceable clause, section, or other provision had not been contained herein; 33. Violations of this A VC shall subject Respondents to civil penalties and sanctions provided by law, and payment of attorney's fees and costs incurred in enforcing the provisions of this AVC; 34. This AVC shall become effective upon its execution. by all parties; l i Page 8 of d

9 35. This AVC constitutes the entire agreement and understandin~ between the Parties relating to th~ subject matter contained herein. 1bis AVC may not be altered, amended, or modified in any respect or particular whatsoever except by a writing duly executed by each of the parties hereto; 36. The OAG, on be4,alf of the State of Florida, hereby releases, acquits, and forever discharges Respondents and its subsidiaries, affiliates, successors and the officers, directors, prid.cipals, agents, employees, independent contractors, attomeys, customers, insur-ers and assigns from any and all actions, causes of action, obligations, liabilities, claims or demand for damages, civil penalties, claims for relief, or demand whatsoever in law or in equity, civil or. administrative, which were asserted or maintained, could have been asserted or maintained, or which could in the future be asserted or maintained against them in any civil, enforcement action or administrative action, or proceeding, based upon, arising out of, related to, or connected with, directly or indirectly, the subject of the OAG's investigation and the alleged wrongful conduct described above. it is agreed that the bag shal1 not reopen this matter except to the extent it investigates an alleged breach of this A VC; and 37. The terms of this AVC shall not in any way limit any other action, relief, or sanction available to the Department of Legal Affairs for any act which, independent of this AVC, would constitute a violation of the laws of Florida, and for which this AVC does not act as a release.. EXECUTON BY MY SGNATURE hereby affirm that am acting in my capacity with N&A Consulting and that by my signature am bihding said company and William Karlson, its managing m~ber, to this Agreement. Page 9 of

10 William Kal"lson, CEO Vacations on De~k, nc. Date Accepted this ZS ~ay of J '.A.~ w~ Assistant Attomey General OFFCE OF THE ATTORNEY GENERAL The Capitol, PL-01 Tallahassee, Florida (850) i. i Ricip r/ P. Lawson As{is(ant Attorney General State of Florida OFFCE OF THE ATTORNEY GENERAL The Capitol, PL-0 1 Tallahassee, Florida l Page 10 oflo ' ' t.,!. ~ l,,