Attorney General Carr Files Lawsuit Against Company for Misleading Internet Advertising, Deceptive Sales Practices

Staff Report From Georgia CEO

Friday, July 21st, 2017

Attorney General Chris Carr filed an action to stop Marvelay, LLC, operating under the names “Spot Reservation” and “Rushcube,” from defrauding consumers through misleading internet advertising and unfair and deceptive sales practices.

“Our office is committed to protecting the public from companies whose business models rely on misleading, deceptive acts and practices,” said Attorney General Chris Carr. “As we investigated Marvelay, we found overwhelming evidence of these types of behaviors, and we will hold them accountable for their actions.”

According to the Complaint, the Defendants operate through numerous websites, representing themselves as different companies that provide a variety of recreational activities at locations across the Unites States, such as sky diving, hot air balloon rides, helicopter tours and airplane flight lessons; however, the companies named on the websites do not really exist, and the Defendants themselves are not activity providers. Rather, they sell events to consumers, and then they proceed to book those events through third-party vendors.

The Complaint alleges that consumers believed they were dealing with the companies that actually provided the activities when they purchased an adventure product from the Defendants. In addition, it alleges that:

  • Defendants accepted payments from consumers but did not secure reservations for the activity that was purchased;

  • Defendants confirmed reservations and accepted payment for activities that were to occur at a specific day and time, when the actual vendor did not have an opening for that day and time;

  • Defendants advertise that activities were available in specific cities or locations, when they were not—consumers may have traveled for hours to participate in the activity they purchased;

  • When third-party vendors cancel reservations due to weather, Defendants were unresponsive or unable to provide new reservations or provide the paid-for service.

The types of activities consumers thought they were buying from Marvelay were often purchased for special occasions, including, but not limited to, birthdays, anniversary celebrations or marriage proposals; therefore, in addition to consumers’ financial loss, there was also an emotional expense.

The Attorney General is seeking a permanent injunction restraining the Defendants from future violations of Georgia’s Fair Business Practices Act, restitution for affected consumers, civil penalties of up to $5,000 per violation and recovery of fees and costs for this lawsuit.