The State of Wisconsin has settled allegations against two out-of-state marketing companies in relation to their marketing of travel-club memberships in Wisconsin in late 2012, according to Attorney General J.B. Van Hollen.
The Texas-based company Green Palm Vacations Corp., formerly known as Thor Corp., conducted in-person sales presentations in Middleton in late 2012, promoting memberships in the “Vacation Fulfillment VIP Vacation Plan.” Perfekt Marketing LLC of Tempe, Arizona, conducted a direct marketing campaign on behalf of Thor Corp.
The companies’ direct-mail campaign involved the use of postcards promising free travel to consumers who responded.
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The mail pieces violated Wisconsin’s prize-notice law and direct-mail regulations by misrepresenting the source of the offering and failing to make legally necessary disclosures regarding the nature of the prizes being offered and their true cost to consumers.
Both companies have agreed to the entry of Consent Judgments. The Consent Judgments, which are subject to approval by the Dane County Circuit Court, provide for permanent injunctions limiting the business practices of both companies, and payments totaling $50,000 for consumer restitution, forfeitures and the costs of the state’s investigation. The proposed Consent Judgment with Green Palm Corporation was filed on Aug. 20; the agreed-upon proposed Consent Judgment with Perfekt Marketing will be filed after Perfekt answers the complaint, as agreed to in its settlement with the state.
This matter was investigated by the Department of Agriculture, Trade, and Consumer Protection. In addition to referring the case to the Department of Justice for civil enforcement, the department referred several individuals involved in Thor’s sales presentations to the Dane County District Attorney’s office for criminal prosecution. Those referrals resulted in one misdemeanor conviction and several civil forfeitures.
The state was represented in this matter by Assistant Attorney General Lewis Beilin.
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