For Release: January
16, 2003 FTC Targets Sellers Who
Deceptively Marketed International Driver's Permits over the Internet and via Spam
Six Complaints Filed Against Firms
that Sold Fake Documents
The fortunes of several marketers who used the Internet and
spam to sell purportedly authentic international driver's permits (IDPs) have taken a
decided turn for the worse, with the Federal Trade Commission today announcing six federal
district court complaints to stop their allegedly deceptive behavior. The Commission's
actions, taken as part of the "Operation License for Trouble" law enforcement
sweep, targeted sellers who, under the guise of "international law," pitched
their worthless documents to immigrants and other consumers who were seeking an
alternative to a government-issued driver's license or identification document. According
to the FTC, authentic IDPs, which are available in the U.S. from only two authorized
agencies, American Automobile Association
(AAA) and American Automobile Touring
Alliance (AATA), have a very limited use and purpose.
"The defendants deceptively marketed bogus
documents," said J. Howard Beales III, Director of the FTC's Bureau of Consumer
Protection. "They misled people with limited English proficiency and those whose
licenses have been revoked about the value and the purpose of the IDP. And they charged
them exorbitant fees. We're pleased that the FTC can put this scam in park." He noted
that while the permits being deceptively marketed on the Internet typically sold for
between $65 and $375, the real IDPs offered by AAA and the AATA are just $10 apiece.
Legitimate IDPs, which are issued pursuant to the United
Nations Road Traffic Convention of 1949, assist a person with a valid driver's license to
drive in foreign countries that have also signed the Convention. Notably, an IDP is not a
substitute for a government-issued driver's license; rather it is simply a booklet that
translates that government-issued driver's license into a number of different languages.
Therefore, IDPs merely serve as a translation document for a government-issued driver's
license, and they have no value independent of such government-issued licenses. IDPs do
not protect their holders from traffic enforcement or from "points," and cannot
be used in place of suspended or revoked license, or as identification in lieu of a
government-issued document.
"The FTC's action helps alert consumers to these scams,
while letting bogus marketers know this conduct won't be tolerated," said Sandra
Hughes, vice president of AAA Travel. "These scams lead innocent travelers to spend
hundreds of dollars for false documents. Even worse, they encourage unlicensed drivers to
return to our highways, endangering all of us."
The Commission's Complaints
The FTC filed complaints in federal district court against
the following defendants:
1) Yad Abraham (Abraham), also known as (a.k.a.) Tim Thorn
and Timothy Thorn, individually and doing business as (d.b.a.) Sharpthorn Internet
Solutions and Internex, LLC; 2) Jaguar Business Concepts, LP d.b.a. Libertymall.com,
Cheyenne Investment Alliance, LLC (Cheyenne), and Jacqueline Demer, individually and as
member/manager of Cheyenne; 3) Jordan Maxwell, a.k.a. Russell Pine, individually and doing
business as BBCOA, a.k.a. BBC of America, a.k.a. Better Book and Cassette of America, and
Vic Varjabedian, a.k.a. Victor Varjabedian, a.k.a. Varouj Varjabedian, individually; 4)
William Scott Dion, individually and d.b.a. PT Resource Center and PTRC, a.k.a. Don
Glessner; 5) Carlton Press, Inc., Carlton Press, Ltd., and Kim Fleming Bo Weiss; and 6)
one or more parties d.b.a. the Institute for International Licensing (IIL), Aladdin
Financial Management, University Systems, and Wheelie International Limited.
In each complaint, the Commission alleges that, in violation
of the FTC Act, the defendants falsely claim that their IDPs are a legitimate alternative
to a state-issued driver's license, and misrepresent that: 1) their IDPs authorize
consumers to drive legally in the United States; 2) their IDPs allow consumers to avoid
points or traffic violations, as well as sanctions for driving with a suspended or revoked
driver's license; and 3) their IDPs can be used in the United States as an identification
document in the same ways that a person uses a government-issued photo identification
document. The allegations against each defendant are presented below.
Abraham. According to the FTC, the defendants
conducted a nationwide scheme to sell worthless IDPs through the drivelegal.com Web site.
The defendants contended that the documents met all the conditions of the U.N. Convention
and that they could be used to avoid many types of driving sanctions, such as points. The
defendants further claimed the IDP would allow users to obtain auto insurance and rent
cars - neither of which was true. Their IDP costs $350, plus shipping and handling.
Libertymall.com. Using the Libertymall.com Web site,
the defendants sold supposedly authentic IDPs, claiming they were developed in compliance
with the U.N. Convention. Claiming that their documents would enable visitors to become
"permanent tourists," the defendants charged consumers $65 per IDP, which the
FTC alleges was simply a laminated card. Each card was signed by a purported
"Agent" of the so-called International Travel Association.
BBCOA. The FTC alleges that this defendants' IDPs,
which they sold over the BBCOA Web site at a cost of $85 each, were nothing more than a
laminated card and an IDP booklet that closely resembled a real IDP - except that they
contained a seal of the so-called International Travel Association. In addition to selling
supposedly authentic IDPs, the defendants also marketed credit repair services and
"debt termination programs," and the FTC's complaint contains additional
allegations regarding these activities.
PT Resource Center. Operating since at least 1995,
PTRC's Web site contained statements very similar to those found on the LibertyMall.com
and BBCOA Web sites. In addition to providing a supposedly real IDP for $65, the
defendants went as far as informing consumers exactly what to say if stopped by the police
and stressing that "Your IDP . . . [is] perfectly valid if used in a lawful manner.
Following these tips will greatly increase your success rate, and minimize contact with
'Big Brother.'"
Carlton Press. Operating since at least October
2000, the defendants used two Web sites to pitch their supposedly real IDPs for $147 each.
The booklets they offered were exactly the same as those sold by BBCOA and PTRC.
Institute for International Licensing (IIL). These
defendants also sold their permits over two Web sites, pitching them as a way for
consumers with poor driving records or revoked or suspended driver's licenses to get
around the system. Consumers wishing to buy a permit from their Web site were asked to
mail in certain personal information, while those responding to spam messages were
instructed to call a recorded line. Either way, the result was the same - consumers were
sent two IDPs, along with a rubber stamp bearing the company's logo and instructions for
using the document.
In each matter, the Commission is seeking either temporary
and permanent injunctive relief, as well as other relief as deemed appropriate by the
court, to prevent current and future violations of the FTC Act.
Consumer Education
Consumers seeking more information about how to avoid
potentially deceptive ads for IDPs are encouraged to read the new FTC consumer alert:
"Ads for International Driver's Licenses or Permits Could be a Dead End." This
publication, which is available on the Commission's Web, site also cautions consumers that
it is against the law for U.S. citizens and residents to use an international driver's
permit in place of their state-issued driver's license.
The Commission vote authorizing staff to file each of the six
complaints was 5-0. The complaints were filed in the following courts: 1) Yad Abraham,
U.S. District Court for the Central District of California on January 8, 2003; 2) Liberty
Mall.com, U.S. District Court for the District of Maryland, Northern Division on January
13, 2003; 3) BBCOA, U.S. District Court for the Central District of California, Western
Division on January 7, 2003; 4) PT Resource Center, U.S. District Court for the District
of Massachusetts on January 8, 2003; 5) Carlton Press, U.S. District Court for the
Southern District of New York on January 10, 2003; and 6) IIL, U.S. District Court for the
District of Columbia on January 7, 2003.
The FTC would like to thank the Offices of the Attorney
General of the states of Illinois and Missouri, the California Department of Motor
Vehicles, the AAA, the AATA, the American Association of Motor Vehicle Administrators, the
Northeast Region of the U.S. Postal Inspection Service, and the Office of the U.S.
Attorney for the District of Massachusetts for their support and assistance in bringing
these cases. The Office of Fair Trading in the United Kingdom and the Consumer Ombudsman's
Office of Denmark also provided assistance. |