The internet can be the new frontier for travel misrepresentation and fraud, reports the nonprofit United States Tour Operators Association. While telemarketing and fax schemes still exist as vehicles for travel fraud, the internet makes it easy for unscrupulous tour operators and travel companies to misrepresent themselves and provide unsubstantiated claims, says Bob Whitley, USTOA President.

According to recent statistics (Jupiter Media Metrix), consumers are expected to spend $37.3 billion on travel web sites in 2003, up from 30.8 billion in 2002. By 2005, consumers will spend as much as $50.1 billion. While the vast majority of travel web sites are legitimate, the internet does make it simple for some companies to fool unsuspecting consumers, notes Whitley.

"We are seeing a constant stream of complaints about companies that misrepresent themselves over the internet as members of USTOA and other travel industry organizations. In the case of USTOA, this can be very serious, as all USTOA Active Member companies must participate in our $1 Million Travelers Assistance Program. The plan requires each USTOA company to set aside a fully secured $1 Million bond or Letter of Credit to reimburse consumers' payments and deposits in case the company goes out of business," he says.

By citing USTOA membership, a company is actually promising consumers they will be protected by this $1 Million coverage, cautions Whitley. "If the company falsely claims to be a USTOA member and goes out of business after you have paid for your vacation, you as a consumer are not protected by our $1 Million Plan," adds Whitley.

Any company can set up a web site and claim they are USTOA members, notes Whitley. "When consumers and travel agents bring a company to our attention, we investigate the web site and the claims. If they are falsely claiming to be USTOA members, we have our lawyers contact them and request them to cease and desist or face legal action. This is usually sufficient to deter them from further exploiting our name," he reports.

A recent search of the internet revealed a number of companies falsely claiming to be members, including a company selling travel to the Middle East, a company selling special-interest cruises, and a company specializing in train tours.

Before you put down a deposit on your next vacation, check to see if the company is a member of a reputable travel industry organization such as USTOA or the National Tour Association (NTA), which both require their members to set aside a certain dollar amount to protect consumers in case the company goes out of business. And, don't necessarily take the company's word for it. It's always best to double check with the organization itself or with your travel agent, cautions Whitley. USTOA's Web site (www.ustoa.com), for instance, includes a list of all Active Members. "If a company is not listed on our Web Site, they are not an Active Member of USTOA," cautions Whitley.

Whitley also advises travelers to look for these warning signs:

• Prices that seem too good to be true
• Companies requiring travelers to buy or sell vacation certificates
• Companies that claim to make you an instant travel agent
• Pressure tactics to put down a deposit on a vacation

Consumers who feel they are victims of fraudulent advertising or solicitations can also file a complaint with the Federal Trade Commission on the FTC web site: www.FTC.gov; or phone the FTC's Consumer Response Center: 1-877-382-4357.

USTOA currently represents 47 Active Corporate Members, with over 150 brands. The association's members move more than 11 million travelers yearly, and have met the travel industry's strictest standards for membership.

USTOA maintains a listing of its current Active Member companies on its web site.

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The Standard for Confident Travel (2 pages)