On July 2, 2018 the New York Attorney General announced an investigation and settlement with Adventure Resorts of America, LLC, Adirondack Adventure Resorts of Lake George, Inc. and Saratoga Escape Lodges & RV Resort, Inc., concerning allegations of the campgrounds’ misleading marketing and sale of campground memberships.
According to the NY OAG, the settlement requires the payment of $41,133.56 in restitution to consumers who sought to cancel their contracts during their contractual cancellation period, or because the campground facilities allegedly did not live up to representations made in sales pitches. The settlement also requires respondents to reform its business practices.
“When New Yorkers spend thousands of dollars on a membership, they should receive the services and amenities they’re promised,” said Attorney General Underwood. “This settlement compensates consumers who were duped and requires the companies to fully deliver what they promise to those who buy campground memberships.”
According to reports, consumers typically paid between $3,000 and $6,000 for lifetime campground memberships or memberships with terms of either 5 or 10n years, and were required to pay additional annual dues of $349. The NY OAG states that numerous consumers paid extra to participate in a reciprocal campground program that permitted them to reserve campsites at preferential rates throughout the country.
As set for in the recent press release, the investigation allegedly revealed that the companies lured consumers to visit the campgrounds for tours during the off-season with misleading direct mailers promising free giveaways. The OAG also alleges that during lengthy one-on-one sales pitches conducted after the tour, the companies misrepresented available amenities and the ability of consumers to reserve campsites in the program. The OAG also alleges that the companies failed to honor membership cancellation requests of consumers.
Settlement terms include, without limitation:
- Honoring free giveaway promises
- Ensuring that sales pitches are truthful and non-misleading
- Clearly disclosing material terms or restrictions
- Honoring timely cancellation requests
- Issuing refunds to consumers
- Paying restitution to harmed consumers that file a complaint within the next six months
If you are interested in implementing preventative compliance controls or if you are the subject of a regulatory investigation, contact a state attorney general defense lawyer at [email protected] or at (212) 756-8777.
Informational purposes only. Not legal advice. Previous case results do not guarantee similar future result. Hinch Newman LLP | 40 Wall St., 35th Floor, New York, NY 10005 | (212) 756-8777