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Epic Resorts Ordered to Pay Refunds

WASHINGTON, Sept. 5, 2001 --Many consumers who bought travel packages from Epic Resorts and its subsidiary Epic Travel will be getting refunds within the next few weeks, under the terms of a settlement with the Federal Trade Commission (FTC).

Under the order, the companies are required to refund the money of customers who requested, but did not receive, their refunds within a 30-day cancellation period.

The Commission filed its complaint in U.S. District Court in Florida against Epic Resorts and Epic Travel as part of the August 2000 "Operation Travel Unravel" law enforcement sweep of companies allegedly engaged in travel fraud and violations of the FTC Act and Telemarketing Sales Rule (TSR). The order also enjoins the defendants from failing to make required travel-related disclosures in the future and prohibits them from violating the "Do Not Call" provision of the TSR, as well as the Truth in Lending Act (TILA).

According to the Commission's complaint, Epic Resorts, Epic Travel, and the companies' owner and president, Thomas Flatley, violated the FTC Act and the TSR by misrepresenting that consumers had won or were specially selected to receive a vacation, misrepresenting the total cost of vacation packages, and failing to disclose material conditions and restrictions on the use of the packages.

In addition, the complaint alleged that the companies, which sent out unsolicited faxes and e-mails to consumers who had registered to win vacations, failed to disclose material costs and restrictions concerning the vacation packages before consumers paid for them, as required by the TSR. The company also was charged with violating the Rule's "Do Not Call" provision by continuing to call customers who had asked not to be contacted. The complaint marked the first time the Commission alleged a violation of the "Do Not Call" provision of the TSR.

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