The Eyes and Ears of Rural Alberta

Tour Bus Fraud

Dozens of complaints from angry consumers resulted in a prosecution and conviction under the act in March 2002. New complaints led the department to seek an injunction in August as consumers were still at risk. A statutory appeal period has now expired.

In future, neither Flett nor the two companies may take advance payments or deposits - directly or indirectly through the use of partnership or other names or other limited companies - from Alberta consumers for tours unless security in the amount of $50,000 is first provided to the province's Director of Fair Trading.

"Since we have not received any security from Mr. Flett or his associated companies, Albertans should not prepay or give deposits when making travel arrangements with Mr. Flett or any company associated with him," said Dian Kuhtey, manager of investigations for northern Alberta.

Alberta Government Services investigated 65 complaints involving more than 200 consumers who bought bus tour packages from Mr. Canada but did not receive the promised services. In March 2002, Mr. Canada pleaded guilty to three counts of misleading consumers under the province's Fair Trading Act and was fined a total of $3,000. The 24 consumers involved in the court action received $13,400 in restitution.

Many other consumers, however, remain out of luck for trips they paid for but never received. In some cases, customers who had used Visa credit cards received refunds after Alberta Government Services intervened. To date, MasterCard credit card customers have not been given refunds. Customers who paid for travel by cash, cheque or money order are unlikely to receive refunds.

For media information, contact:
Eoin Kenny
Alberta Government Services
(780) 422-7801