A lawsuit filed this week accuses cruise ship line Holland America of defrauding its passengers who visit Alaska.
Holland America Line Inc. allegedly took kickbacks from shore-based tour operators without disclosing those ties to passengers, as required by state law, and it levied improper fees on passengers that it claimed were government fines, the lawsuit says.
The lawsuit was filed Thursday in Seattle as a proposed class action.
Seattle-based Holland America on Friday called the lawsuit "frivolous."
The company obeys Alaska's disclosure law and it is confident that the lawsuit will be dismissed, according to Holland America's written statement.
Others in Alaska said Friday that it had been only a matter of time before cruise ship passengers sued a cruise line under the disclosure law.
"What's really surprising is that someone didn't bring an action like this years ago," said Joe Geldhof, a Juneau attorney who spearheaded a successful ballot initiative this year to require more stringent financial disclosures by cruise lines operating in Alaska.
The lead plaintiff, J.B. Miller of Ohio, traveled on Holland America's Oosterdam in July and purchased a four-hour salmon fishing trip near Juneau. Holland America did not disclose, as required by state law, that the sport fish operator had paid the cruise line to promote the trip, according to the lawsuit.
According to Holland America, it's not illegal. The cruise line purchases excursions from vendors and resells them to passengers like a typical retail operation does, the company said Friday.
Holland America also charged Miller, his daughter and his parents a $300-per-person "Jones Act Penalty" after they missed the Oosterdam's departure from Seattle for Southeast Alaska.
Under the federal Jones Act, it is illegal for cruise lines to transport passengers between U.S. ports on a foreign-flagged ship unless the passenger returns to the original port, said Michael Crye, president of the International Council of Cruise Lines.
Holland America charged the Millers the $1,200 fee because they missed their Seattle departure and thus their trip didn't comply with the Jones Act. But U.S. Customs and Border Protection, which enforces the act, didn't charge Holland America a penalty, according to the lawsuit.
Miller learned the penalty had not been assessed after his U.S. representative, Ted Strickland of Ohio, contacted Customs.
Miller's attorney, Steve Berman of Seattle, accused Holland America on Friday of hiding "behind the badge of government authority to extract payments from passengers, knowing full well Uncle Sam rarely asks for the fine."
Holland America said Friday it has the right to collect the Jones Act fee, which is paid to the government when the fine is assessed. It can take 60 to 90 days before the fine is issued, according to the company.
Daily News reporter Elizabeth Bluemink can be reached at ebluemink@adn.com or 257-4317.