Usacomplaints.com » Traveling & Tourism » Complaint / Review: People To People - Marketing Fraud. #524634

Complaint / Review
People To People
Marketing Fraud

People to People International has impeccable credentials and some very impressive stationery. Its honorary chairs start with its founder, the late President Dwight D. Eisenhower and include nearly every President since then, up to and including George W. Bush.
The organization has come under fire for its recruiting methods. Its letter to prospective student "ambassadors" give the impression the student has been specially chosen when, in fact, many of the names come from lists the organization purchased.
The state's attorney general investigated and People to People agreed to modify its practices.
Lisa Wade McCormick spent weeks investigating People to People's operation and interviewing students, parents and the organization's president, President Eisenhower's granddaughter, Mary Jean Eisenhower.
Next: People to People: "Ambassadors" or Tourists?
The letter Crystal — and thousands of other parents — received from the organization stated their children were eligible for these "educational exploration programs... And named for this honor by a teacher, former Student Ambassador, or national academic listing."
But parents across the country say the letter is a misleading marketing gimmick designed to lure them into sending their children on oversea trips that cost thousands of dollars.
Parents we interviewed are outraged by the deceptive tactics the organization — founded to promote world peace — used to market its educational programs abroad.
Parents say the letter, which arrives in an official-looking envelope that touts the organization's ties to eight United States Presidents, duped their children into believing they were specially chosen for these trips. Many say their children's classmates received the same letter — even students who struggle academically.
They also learned the organization bought their child's name from a company that compiles and sells the names of students nationwide.
Parents Say Organization Continues To Deceive Students
But parents who contacted ConsumerAffairs.com say the organization continues to deceive students and exploit their dreams to travel abroad.
"When I informed my daughter of the complaints I'd read about the organization, she was devastated, " Tricia says, adding her 14-year-old daughter suffers from depression and Attention Deficit Hyperactivity Disorder. "She was very upset because she was led to believe she was specially chosen for this trip overseas. It made her feel special to get this invitation. And it was hard to explain to her that she still is special, and that in no way does this misleading letter mean she's not.
"When I found out this letter was nothing but trickery, it was devastating — to me as a parent and to my child."
Complaints Across the Country
People To People International is headquartered in Kansas City, Missouri. President Eisenhower's granddaughter, Mary Jean Eisenhower, is the group's president and chief executive officer.
Eisenhower also apologized to every student who believes the organization deceived them — or made them think they weren't special. "I feel awful that the letter made any child feel that way. They are special."
Eisenhower says her organization is "very selective" about the students invited to take one of its trips. And invitations are only sent to academic achievers.
How Does People To People Get Names?
Eisenhower says the names of potential student ambassadors are generated from three sources:

• A mailing list compiled by the American Student List company;
• Nominations from parents and teachers; and
• Nominations from individuals who've traveled with the organization.
But ConsumerAffairs.com discovered People To People's Web site doesn't ask for any supporting information about the student — or their qualifications for the program. It doesn't even ask for the name of the person making the nomination.
ConsumerAffairs.com reporter Joseph Enoch nominated himself to be a People To People Student Ambassador.
Enoch soon received letters stating he was recommended for the Student Ambassador program and the organization had identified him "as a remarkable and motivated student."
Ties To The Ambassador Group, Inc.
During our interview, Eisenhower described the relationship between her non-profit organization and the for-profit company that markets the trips and makes all the travel arrangements.

That company is the Ambassadors Group, Inc., which sent the letters to students nationwide on People To People letterhead.

The publicly-traded company (EPAX) is based in Spokane, Washington. It describes itself as a "leading educational travel company that organizes and promotes international and domestic educational travel and sports programs for youths, athletes and professionals."

A majority of those programs are marketed under the People To People name, including:

• People To People Student Ambassador Programs,
• People To People Sports Ambassador Program,
• People To People Ambassador programs (for adults);
• People To People Leadership Summits.

Eisenhower says her organization has partnered with the Ambassador Group since 1963."We've had a long, legitimate relationship with them, " she says. "They're more than a travel agency. They do all our logistics."

The Ambassador Group also puts money into People To People International's coffers. Revenue generated from the trips it markets goes into People To People International's operating budget.

People To People International's Tax Return
ConsumerAffairs.com reviewed People To People International's tax records for 2005. Those records listed its total revenue at $4.7 million dollars. Of that amount, records show the organization received:
• $940,657 from Student Programs;
• $701,983 from Adult programs,
• $1,867, 274, from what is listed as "other programs, "
• $712,499 from membership dues; and
• $45,154 from licensing fees.

Eisenhower says private donations to her organization are tax-deductible and do not go into the operating budget. She says 100 percent of any donation goes to the specific program named by the donor.

Tax records also reveal Eisenhower's annual salary is $157,628 plus $24,042 in other benefits.

That's substantially less than her counterpart at the for-profit Ambassador Group. Jeffery Thomas is the company's president and CEO, and stock information listed on Reuters.com reveals his annual salary is $1,203, 673 plus $872,206 in other compensation.

Cost And Safety Concerns
What about the cost of the Student Ambassador overseas trips?

Parents repeatedly asked ConsumerAffairs.com why the trips are so expensive and if they're worth the money? The average price for a 20-day trip is about $5,000, which Eisenhower agrees is high.

"But these are academic programs and students can receive school credit for going on these trips, " she says. "There's an educational aspect to the programs, and because of that content the price is a little higher."

Eisenhower assures parents the trips are worth the money. She says students go to places they might never have the opportunity to visit and many meet foreign dignitaries.

How do students pay for these trips abroad?

"We encourage kids to hold fundraisers like car washes and bake sales, " Eisenhower says. "Some kids also write to corporations and request donations, but if they're going on one of our ambassador programs those donations are not tax deductible (because the Ambassador Group is for-profit organization).

"We also have scholarships that students can apply for, " she adds. "And we pay 100 percent of the cost for students to go to our Peace Camps."

Safety Measures To Protect Students
Parents also wondered what safety measures are in place to protect their children in a foreign country. And they questioned whether background checks are done on the adults who supervise the students.

Eisenhower says safety is the organization's top priority.

Teacher leaders, she says, are specially trained how to handle a crisis overseas, including a terrorist threat.

"We had students in London when the terrorists bombed the subways last summer, " Eisenhower says. "I was in Belfast and immediately went to London. We quickly updated our Web site and called every parent to let them know their children were safe.

"We pride ourselves on our safety measures, " she adds. "We have a very good safety net in place. Only two people cancelled trips after that terrorist bombing. That shows you how much trust parents have in our ambassador programs. It puts them at ease."

The organization also screens everyone who travels with the students, Eisenhower says. "Most of the student leaders are teachers who've already undergone background checks."

First Complaints In The Organization's History
Eisenhower says these complaints are the first ones leveled against People To People International during its 50-year-history.

She said she takes each one seriously. And personally.

"I know something like this would be very upsetting to my grandfather, " she says, adding he founded the organization to create world peace — not controversy — by bringing people from diverse cultures together. "And that's so upsetting to me.

"I'm just mortified this has happened. We are sincerely sorry and we've taken measures to correct these problems. I hope that in spite of all of this, people will still want to marry us."

Some parents applaud Eisenhower for listening to their concerns and those raised by their children.

But Tracie Y. Of Niagara Falls, New York, says Eisenhower's comments haven't swayed her views.

"People To People shot my son's hopes of going overseas down the tubes, " Tracie says. "I was lied to and I don't take being lied to lightly. If they lied to me about this, then they lied to me that I can trust them with my child.

"I don't want anything to do with them again."

Next: Parents Object to Student Lists

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CREDIT CARDS
Avg. APR
Balance Transfer 9.75%
Business 10.46%
Low Interest 10.82%
Bad Credit 11.09%
Instant Approval 11.35%
Cash Back 11.58%
Reward 11.87%
Airline 12.87%
Student 15.02%
Source: CreditCards.com
Updated: 07-24
Print, mail, etc.

My daughter and I were taken advantage of, she is 14 years old and has ADD which she is on medication for. People to People were informed she had ADD and is on medication. All they cared about was the money for the trip, now due to her illness they are sending her back from Rome. I have paid over $9,000. For her to share a very small room with three girls. The activities that were on the agenda have not come to fruition. Therefore BEWARE of this company.


Offender: People To People

Country: USA

Category: Traveling & Tourism

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