Attorney General Mark Pryor Sends Travel And Telemarketing Company On Permanent Vacation

Press Release
First published August 23, 2001
LITTLE ROCK -- Attorney General Mark Pryor today filed a lawsuit against Fairfield Communities, Inc., and Apex Marketing, Inc. of Orlando, Florida, for a pattern of deceptive sales practices and for violating the Arkansas Bank Draft law and the Do Not Call law. "Telemarketers all too often work deceptively in order to make the sale, and it's time to send these two companies on a permanent vacation," Pryor said. "Most travel companies follow the law and provide high-quality service, but I'm suing companies, like these, that break the law."

The Attorney General alleges that the defendants solicited Arkansas consumers via telemarketing to purchase "discounted travel packages." During the telemarketing pitch, consumers were subjected to high-pressure sales tactics, during which misrepresentations were made regarding the terms of the package, and defendants' failure to disclose material terms related to fees and refund policies.

As part of the telemarketing pitch, the defendants told consumers who bought the travel packages that they would be required to attend a ninety-minute sales presentation while visiting the defendants' properties. They were solicited to purchase a time-share vacation or vacation-ownership interest during their visit.

Many consumers purchased these travel packages over the telephone through bank drafts or by credit card. The defendants then failed to obtain express written consent to draft the bank accounts of these consumers, as required by Arkansas law, and cashed them in.

Once the consumer purchased the travel package and took the trip, they were subjected to high-pressure sales presentations, lasting at times up to four-and-a-half hours. If the consumer initially declined to purchase an additional travel package, the defendants sent additional "closers" to convince the consumer to make a purchase. It was not uncommon for as many as three "closers" to attempt to complete the sale. At least one consumer, who has filed a complaint, made the purchase just to "get away from the constant barrage of sales pitches."

The Attorney General also has received many other complaints about the defendants. These include encouraging consumers to lie about their income in order to meet the requirements to make the sale; promising consumers lavish travel arrangements that, in reality, were far less than were promised; and promising consumers coupon books many that had expired or were not applicable.

The Attorney General is also suing the defendants under Arkansas's Do Not Call Law. So far, 24 consumer complaints have been filed by Arkansans reporting unsolicited telemarketing calls made by the defendants to the consumers' homes between January 6, 2000, and January 9, 2001. In some cases, the telemarketers immediately disconnected the call upon being informed that the consumer's telephone number was on the Attorney General's Do Not Call List. In other cases, the telemarketers refused to identify themselves or their address upon being informed that the consumer's telephone number was on the Attorney General's Do Not Call List.

"This lawsuit sends a message that Arkansas will not tolerate companies that deceive consumers with false promises," stated Pryor. The lawsuit, filed in Pulaski County Circuit Court, seeks a permanent injunction, civil penalties and other equitable relief.

If you have any questions about the Attorney General's Do Not Call program or any other consumer-related questions, contact the Consumer Protection Division of the Attorney General's Office at 200 Catlett-Prien Tower Building, 323 Center Street, Little Rock, AR 72201.

The office can be reached by calling 501-682-2341 or 1-800-482-8982 or by visiting our Web Site at www.ag.state.ar.us. TDD service is available for the
hearing-impaired.

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Contact: Michael Teague
(501) 682-0517