Suit Filed against Holland America for Fraud through Deceptive Practices

Holland America Line (HAL) rebuffed charges contained in a lawsuit filed last week that the line defrauded passengers traveling on Alaska cruises through deceptive practices.

The suit, which was filed in the U.S. District Court in Seattle, claims that although HAL levied what it claimed were government-imposed fines on its passengers for violating the Passenger Vessel Services Act, the line was not fined by the U.S. government.

The suit also alleges that Holland America accepted kickbacks from shore-excursion providers while concealing the true cost from passengers.

A Holland America statement called the suit “frivolous” and said the line’s executives are “confident that it will be dismissed.”

According to the plaintiff’s lawyer, Steve Berman, in July 2006 client J.B. Miller and his family were held back on a flight to Seattle, which caused them to miss the sailing of a Holland America cruise to Alaska. Miller and his family were told to fly to Juneau, Alaska, to meet the ship. Once aboard, the line charged the Millers $300 per person as a “Jones Act Penalty.”

Berman said the government can fine cruise lines under a similar act, the Passenger Vessels Services Act, which requires passengers on foreign-flagged cruise ships to visit a foreign port call during itineraries that originate and end in U.S. ports. But, he said, the government never imposed the fine on Holland America.

Holland America’s statement said passengers are notified in advance that the U.S. government may impose a fee when a passenger disembarks a Holland America vessel in violation of the Passenger Vessel Services Act.

The cruise contract stipulates that the line has the right to collect the fee, which is paid to the government when the fine is assessed. Holland America’s statement said it can take 60 to 90 days before the fine is issued. Collected fees are maintained in separate accounts, the statement said.