International Law

YTB a Card Mill?

'I'm not running a pyramid scheme' - were falser words ever uttered?

"A Bermuda Sun investigation suggests that most people investing in YTB in the U.S. make their money by recruiting new subscribers, rather than from selling travel.

Mr. Furbert - who plans to launch YTB in Bermuda next month - denied yesterday that the company is a pyramid scheme.

The Bermuda Sun investigation also revealed that U.S. travel organizations are beginning to back away from YTB, calling it "a card mill" because its agents lack bona fide travel credentials.

Cheryl Hayward-Chew, vice president of Meyer Franklin Travel, confirmed travel suppliers are beginning to refuse discounts to YTB. She said people should do their research before signing up and warned that the people who are likely to make the most money are people at the top - those who buy in early.

There is heated debate on the Internet as to whether YTB is a pyramid scheme - whereby the money of new investors ends up in the hands of those at the top. "

Want to guess how this ends?

Full post as published by Misleading Advertising Law on January 31, 2008 (boomark / email).