Propsed class-action suit against Holland America

[Jason]

Seattle-Based Cruise Line Holland America Accused of Bilking Passengers

Proposed Class-Action Could Affect Thousands of Alaska Cruise Passengers

SEATTLE, Sept. 22 /PRNewswire/ -- Seattle-based cruise-ship operator Holland America Line, a wholly owned subsidiary of Carnival Corporation was accused yesterday of defrauding passengers traveling on Alaska cruises through a series of allegedly deceptive actions in a proposed national class-action lawsuit.

Among the charges are claims that the cruise line bilks passengers by levying what it claimed were government-imposed fines, and by accepting kick-backs by shore-excursion providers while hiding that arrangement from passengers.

Filed in US District court in Seattle on behalf of the proposed class by attorney Steve Berman, the suit seeks to represent all passengers who were charged a so-called Jones Act Penalty for boarding the ship at a port not of the original departure point and who paid for excursions while a passenger.

Berman is the managing partner of Seattle law firm Hagens Berman Sobol Shapiro.

In July 2006, Ohio resident J.B. Miller's flight to Seattle was delayed, causing him and his family to miss the sailing of a Holland America cruise to Alaska. According to the complaint, Miller and his family were instructed to fly to Juneau, Alaska, in order to meet the ship. Once aboard, Holland America charged the Millers $300 per person for what it characterized as a "Jones Act Penalty."

According to Berman, while the government does have the ability to fine passengers under a similar act, the Passenger Vessels Service Act, the government never imposed the fine on Holland America. "Holland America forced the family to come up with $1,200 under the guise of a federal fine, and we know that Holland America knew the government would never ask for the money in return, and the government did not do so here," Berman noted. "In our view this is an egregious fraud and we believe this may be a wide-spread practice, involving a large percentage of those fined."

The complaint also claims that Holland America accepts secret kickbacks from shore-excursion providers and hides that fact from passengers, in violation of the law.

According to Alaska statute, cruise lines can collect a fee from providers of shore-excursions such as fishing trips or sightseeing tours as long as the cruise lines disclose the financial arrangement. The suit alleges Holland America fails to make any disclosure.

"Alaska passed a statute designed to protect consumers from being charged more than they should, due to hidden kickbacks to cruise line operators," Berman said "Holland America has blatantly ignored that statute."

"Holland America is not above the law and consumers who have been injured will get their money back in this case," Berman noted.

In many cases, cruise passengers have the option to book excursions with outside vendors at lower prices, but opt for those provided through Holland America.

According to Berman, had cruise passengers known Holland America's recommendation of shore-excursion options was based on financial considerations benefiting the cruise line, they may have made different decisions, including selecting less-expensive independent options.

According to J.B. Miller, he booked a salmon fishing trip for $219 while onboard a Holland America ship, and was not told that the fishing charter company paid the cruise line to promote the outing to the passengers. Had Miller known this, the complaint states, he would have purchased a virtually identical trip not promoted by Holland America.

In a published media report, John Shively, vice president of Alaska government affairs for Holland America, acknowledged the ship operator did not make the disclosures as mandated by law. The Alaska Daily News quotes Shively as saying "Nobody else does it. Why should we?"

Berman estimates that there are thousands of passengers whose shore-excursions resulted in kickbacks to Holland America.

Holland America is a wholly owned subsidiary of Carnival Corporation & plc., the largest cruise company in the world. Today, the line operates 13 ships to seven continents and carries more than 700,000 cruise passengers a year.

[JoeyandDavid]

If these charges are true! .. I say sue the hell out of them...

[jacketwatch]

:cool: I agree with Joey here and especially for the first charge. That is simply outrageous!

[rogue]

I'm just wondering how many people on this board doesn't know that the cruise lines get a percentage of the cost for an excursion that's booked through the ship. I agree that if the 1st part is true, then the cruise line should be punished, but the 2nd part bothers me. Did that passenger think that the cruise line was doing this out of the goodness of their heart. I do believe that evryone who has a business is in it for some profit, and this does include cruise lines. I, for one, have some stock in the cruise lines, and hope that they profit nicely. :huh:

[jbond]

I think that you would have to be pretty naive to think that the cruise lines print excursion brochures, have an excursion desk and supply crew members to participate in the excuursions at their own cost. It's a business and like rogue, we also have stock in the cruise lines and hope that they keep making a profit.

As to the first allegation, if it's correct, then HAL should be punished. There's no excuse for that kind of behaviour.

[JoeyandDavid]

I agree, I too would want my favorite cruise line to make a profit.. if for nothing more, than to be around as a vacation option for us in the future..

I do however take exception when the tactics to enhance the profitability comes from less than honorable action.

[jtutak]

IMO Lawyers are slime-balls and will say :rolleyes: anything to make a buck

[jbond]

I think that's baloney. He had the option to take the tour but decided to pay more for a virtually identical tour. Duh! He had the guarantee of being on a tour that was approved by HAL. He didn't have to make any arrangements himself, was assured of getting back to the ship in case of a breakdown etc, etc. He took the easy way out and now he wants to sue HAL. Give me a break.