From The Examiner:

Bringing an end to an "elaborate pyramid scheme," Attorney General Jerry Brown today completed an agreement forcing YTB International to stop deceptive markting of its online travel business.

The attorney general's office said YourTravelBiz.com used deceptive marketing of its "largely unprofitable travel Web sites" to attract customers who paid close to $500 in what the AG called and "endless chain scheme."

"YTB falsely promised customers they could get rich quick by selling travel online," Brown said. "In reality, customers were reeled into an elaborate pyramid scheme and most never earned a dime. Today's settlement ends YTB's pyramid scheme by arming consumers with hard facts and eliminating the need to sign up for this largely unprofitable Web site."

On August 7, 2008, Brown filed suit against YTB, its affiliates, and founders to end the pyramid scheme and stop YTB's false and misleading marketing campaign. Today's stipulated judgment, filed with the Los Angeles County Superior Court, accomplishes this, the attorney general's office stated.

YourTravelBiz.com's company records claimed more than 200,000 members who paid between $500 and $1,000 to set up their own online travel agency.

The agreement requires YTB to provide consumers with information in "a clear and conspicuous manner" about how difficult it is to make money by selling travel through YTB.  It prohibits the company from charging nearly $500 to recruit others into the scheme, and requires new-member recruitment be done using a free online demonstration. The agreement also limits the pyramid nature of the business by limiting income from "downstream sellers"  — people who have been recruited and who have become recruiters themselves –eliminating perks and other incentives for joining, and making it easier to quit, according to the attorney general's office.

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