Travelzoo stiffs us! (alternate title: Wish I went with Groupon instead)

Update!: Travelzoo admits their error and will refund us! (10/26/11)

A letter I sent on Oct. 17:

Dear Travelzoo,

I am writing to insist that your company refund my sister and myself the amount we paid for the vouchers bought for a skydive from Skydive America California, $99 each. To refuse a refund is to renege on your own Terms and Conditions, explicitly stated on the voucher.

Here is a condensed version of my dealings with Travelzoo and Skydive America California: my sister and I purchased the aforementioned vouchers on or around April 5. About a month later we set a skydive appointment for Oct. 16. While this was a few days past the expiration date of Oct. 7, Skydive America California promised to honor the voucher because they had oversold the vouchers and had no weekend openings before then. On Oct. 10, under the impression they were still operating, I emailed Travelzoo to get a copy of the voucher so I could print it out. On Oct. 11, you sent the voucher, but I learned that day that Skydive America California had closed shop. I emailed you the same day to request a refund, and on Oct. 12 reached a representative at your office (Sherry, representative #XXXX), who denied me a refund. On Oct. 13, I received an email confirming this refusal.

However, to refuse to issue a refund would be in direct violation of your own Terms and Conditions, as listed on the voucher. You state that “even if the Promotional Offer stated on your Travelzoo Local
Deal Voucher has expired, you may be entitled under applicable law to redeem your Local Deal Voucher for the face value at the Merchant named, up to the amount that you paid for it to the extent required by applicable law. … IF YOU HAVE GONE TO THE MERCHANT AND THE MERCHANT HAS REFUSED TO REDEEM THE FACE AMOUNT OF YOUR LOCAL DEAL VOUCHER, AND IF APPLICABLE LAW ENTITLES YOU TO SUCH REDEMPTION, TRAVELZOO WILL REFUND THE PURCHASE PRICE OF THE VOUCHER PER ITS TERMS OF SALE.” (emphasis added)

As you are well aware, my sister and I are entitled to a face-value redemption under applicable California law. And as you also know, Skydive America California has refused to redeem this face-value amount. Thus, you need to issue a refund of the purchase price. I am perplexed as to how this is even an issue.
Your claim that you are unable to issue a refund because we are past the 7-day refund limit is irrelevant — Sherry (and Yelp reviews) confirmed that you issued refunds to others as long as they requested
one before the expiration date, even though it was past the 7-day refund limit. Your other claim that you cannot issue a refund because the voucher has expired is equally irrelevant. Your own Terms and
Conditions on this matter concern what should happen IN THE EVENT of an expired voucher. That is why we’re even talking about face value, instead of promotional value. Pursuant to California law, there is no expiration date for the face value of a voucher.

Your email also states that “the merchant is solely responsible for honoring and redeeming the voucher.” That is correct. I do not expect Travelzoo to give me a skydive. However, per your Terms and Conditions, I do expect Travelzoo to issue me a refund for the purchase price.

On a side note, when it comes to basic customer service, your company is sorely lacking. You were well aware early on that Skydive America California had closed down (during my call on Oct. 12 with Sherry, I said, “I think they’ve shut down,” and she didn’t hesitate before replying, “Yes, they have.”). Considering that $99 is not a small amount of money, an email warning would have been appropriate. Also, when I emailed on Oct. 10 requesting a copy of my voucher to show the company, it was evident I thought they were in operation. When your office emailed the voucher the next day, there was no warning that Skydive America California had shut down. Had I not checked, I would have driven 250 miles round-trip from Los Angeles to San Diego and spent $40 on gas, only to find the company no longer existed when I showed up at the airport. It is galling that you KNEW this and opted not to say anything.

That being said, I return to my original point: your Terms and Conditions clearly note that in the event of an expired voucher here in California, the merchant needs to offer us the option of applying the face value of the voucher toward its products and services. In the event that they fail to do so—and we can agree that Skydive America California will not do so—Travelzoo said it would “refund the purchase
price of the Voucher” per the Terms of Sale. In no case do you say “as long as you contact us before the expiration date.” In fact, the refund you promise would take place if the company refuses to redeem the face value, which can ONLY happen if the voucher has expired. I reiterate: YOU ARE IN VIOLATION OF YOUR OWN TERMS AND CONDITIONS. You need to follow your own promise by issuing a refund to my sister and myself.

If we cannot resolve this informally, my sister and I will have no other option but to file individual claims with the American Arbitration Association. In addition, we will have to file a complaint against Travelzoo with the Better Business Bureau, the California Department of Justice, the California Department of Consumer Affairs, and the Federal Trade Commission. In light of the recent lawsuits
against Groupon, I find it appalling that you are still attempting to bilk consumers in this manner.

I fully believe we can resolve this matter informally before either parties extend anymore resources. I am simply asking you to comply by your own terms and conditions and refund my sister and I the $99 we paid for a skydive that, by conditions beyond our control, we were not able to redeem.

Sincerely,

Pauline