More Truth Out Of California

While YTB is claiming "victory" in California, I believe it is anything but. YTB was in discussions for 18 months with California BEFORE they filed suit. One must assume that the discussions were not going well. Of course, YTB tried at the last minute to prevent the suit by announcing a "franchise" option which was most likely one of the discussion points in the previous 18 months. Regardless, California demanded some serious changes from YTB and YTB would not accommodate them, so they sued.

No, YTB is not out of business (yet), but their business in California, their number 1 state, is severely curtailed.

Here is a list of some changes (in no particular order) YTB has made or will make as a direct result of the California investigation, lawsuit, and ultimate settlement.

• Eliminated program where purchase of website (total of 4 and one could be your own) can make you eligible for additional Rep bonuses
• Eliminate program where successful Rep gets his/her own website fees refunded
• Required to give all Reps demonstration website that must be used to recruit (not their own website)
• Eliminated Certified RTA program where if Rep pays for certification, he/she gets paid for travel sold by his/her Power Team recruits
• Eliminate travel discounts from advertising as benefit of owning website
• Eliminate travel credentials
• Franchise regulation which requires disclosures, 14-day cooling period before sign-up, etc.
• Eliminated Two Fly Free program b/c violation of CA Travel Discount Program law
• Eliminate tax deductions from advertising
• Income disclosures required for website owners (with median numbers, not "averages")
• Income disclosures required for Reps (with median numbers)
• Cost disclosures
• Additional miscellaneous disclosures, including clear explanation of how commissions work
• YTB's ban of Rep websites/marketing materials (December 15th anyone)
  
• Clear and complete separation of marketing for the website and Rep opportunities, including presentations and marketing materials
• Make cancellation easier
• Limitations on Rep income
• Oversight and monitoring by AG's office

YTB's changes, even those made before the settlement would never have been made without the contact and/or demands from the Attorney General. The changes to YTB's business model, both in what they've done due to the investigation/lawsuit and what additionally they now have to do, will mean their business will have to stand on its own merits--travel. Or fail. In California.