Travel club companies settle for $50K in Wisconsin

By Bryan Cohen | Aug 21, 2014

MADISON, Wis. (Legal Newsline) - Wisconsin Attorney General J.B. Van Hollen announced a $50,000 settlement on Wednesday with two out-of-state marketing companies that allegedly violated Wisconsin laws while marketing travel club memberships.

The Texas-based Green Palm Vacations Corporation, formerly known as Thor Corp., conducted in-person sales presentations to promote travel club memberships in Middleton, Wis. in late 2012. The Arizona-based Perfekt Marketing LLC conducted a direct marketing campaign on behalf of Thor Corp.

The direct mail campaign run by the companies, which allegedly used postcards promising free travel to individuals who responded, allegedly violated Wisconsin's prize notice law and direct mail regulations. Thor and Perfekt allegedly misrepresented the source of the offering and failed to make legally necessary disclosures regarding the nature of the prizes being offered.

The companies agreed to consent judgments, which are subject to approval by the Dane County Circuit Court. Under the terms of the proposed agreements, the companies would pay $50,000 in restitution, forfeitures and attorney costs. Green Palm and Perfekt also agreed to injunctions that limit the business practices of both companies.

The Department of Agriculture, Trade and Consumer Protection also referred several individuals involved in Thor's sales presentations for criminal prosecutions. The referrals led to one misdemeanor conviction and multiple civil forfeitures.

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