LEACH, TRAVEL FIRMS EXPECT DEAL WITH U.S. STATES

July 19, 1999
PHILADELPHIA (Reuters)-- Lawyers for television personality Robin Leach and two Florida travel companies said Thursday they expect to settle within weeks lawsuits brought by 14 states accusing their clients of misleading consumers about supposedly free tropical vacations.

Fort Lauderdale, Fla.-based National Travel Services Inc. and Plaza Resorts Inc. made "every effort" to ensure customers were fully aware of the terms and conditions of vacation offers distributed by direct mail and telemarketing programs, according to a statement released by the law firm that represents the two companies and Leach.

But the statement said the companies, which have been negotiating with the states, intended to modify their marketing practices and predicted that "all issues will be resolved within the next several weeks."

The District of Columbia and seven states -- Arkansas, Arizona, Kansas, Michigan, Missouri, New Mexico and Pennsylvania -- filed suit against the companies and Leach this week. Connecticut, Illinois, North Carolina, Ohio, Washington, West Virginia and Wisconsin filed similar lawsuits in February.

The lawsuits accused Leach, host of the television show "Lifestyles of the Rich and Famous," and the companies of misleading consumers into believing they had won free tropical vacations only to find less-than-luxurious accommodations and hundreds of dollars in hidden fees.

State investigators targeted National Travel Services and Plaza Resorts telemarketers and mass mailings that allegedly told consumers they were "registered from National Travel Services with Robin Leach" or "certified" to receive discounted vacation packages.

"The written and oral materials provided to each customer fully explains the nature of the vacation offer," said the statement provided by the Fort Lauderdale law firm that represents the two companies and Leach.

The lawsuits sought to require the defendants to make restitution, pay $1,000 for every violation involving people younger than 60 and $3,000 for every victim 60 or older, as well as paying for the investigation.