Private Sightseeing Company Agrees To Stop Misleading Tourists

Attorney General Spitzer today announced a settlement with a Niagara County tourism company that was accused of misrepresenting itself as a government-sponsored tourism office.

"Tourism is the second largest industry in New York State," Spitzer said. "We must protect the integrity of the hospitality trade in order to attract visitors from across the globe and expand economic activity."

Carole H. Guido, owner of Visitor Hospitality Services, Inc. (VHS), operating under the name Gray Line of Niagara Falls, has agreed to vacate a tourism information booth operated on Grand Island Boulevard and change some of the company's policies and practices.

The VHS salespeople misled tourists by exaggerating the severity of traffic, the accessibility of tourist attractions, and the availability of hotel rooms near the Falls. Using these misrepresentations, the VHS salespeople would promote the use of their company's services.

Nearly 100 consumers have filed complaints with the Attorney General's Office, other state agencies and the Niagara Falls Chamber of Commerce about this information booth placed near the State information center and deceptively appeared to resemble an official booth.

As part of the settlement, VHS has agreed to:

• post signs in and around service counters and booths clearly identifying that it is owned by VHS, a private corporation;
• post signs encouraging consumers to independently verify traffic conditions, parking and hotel availability;
• discharge all the sales agents involved with the Grand Island booth; revise its employment policies and post them in conspicuous places at each service center;
• retain an engineering firm to apply to the City of Niagara Falls for permission to change its signs; and
• create two specific management positions, one for supervising sales agents and another for customer service and community relations.

Guido and VHS also agreed to pay $15,000 to cover the costs of the investigation.

This case was handled by Assistant Attorney General Dennis Rosen of the Buffalo Regional Office.