TWA Settles Consumer Protection Lawsuit

Trans World Airlines Inc. has agreed to pay $160,000 in penalties and legal costs and to forego collection of about $500,000 in student fees to settle a consumer protection lawsuit. The suit, filed by California Atty. Gen. Dan Lungren and Los Angeles Dist. Atty. Gil Garcetti, alleged that TWA violated state consumer laws when it recruited students, through help wanted newspaper columns, for a reservations sales course. The lawsuit said though TWA placed the advertisements in the help wanted sections, it did not offer immediate employment to applicants. Instead, they were induced to enroll in a six-week training program that cost each student about $2,800. St. Louis-based TWA said it had admitted no wrongdoing as part of the settlement but had stopped offering Californians training and jobs through the course.