YOU ARE HERE: LAT HomeCollectionsMarketing LONDON — Great Britain is awash in a scandal that mixes high-stakes corporate blundering, international travel . . . and vacuum cleaners.They call it "Hoovergate."Already, the fiasco has sent executives' heads rolling at Hoover Europe, cost the company at least $30 million and left more than 200,000 of the manufacturer's customers demanding free airline tickets.Amazingly, Hoovergate seems to be rooted in a wayward mathematical equation that a 10-year-old could have flagged. To wit: It's tough to make a profit when you're handing out promotional freebies worth more than the product you're trying to sell.Nonetheless, Hoover Europe, a money-losing subsidiary of the Iowa-based Maytag Corp., felt it was a formula that would ignite sales in the stagnant vacuum-cleaner market. So it launched two separate campaigns, lasting from August to January, that promised two free airline tickets to cities in the United States or continental Europe to anyone in Britain or Ireland who spent at least $150 on a Hoover product.

With a pair of seats to those destinations costing an average of $660--while Hoover's cheapest vacuum costs just $178--the offer seemed too good to be true.But whereas consumers might normally have displayed a healthy skepticism about such an incredible offer, there was a key factor that diluted normal incredulity: Hoover's reputation.Over the decades, Hoover's British operation has built the kind of public image that corporations covet. It is known as trustworthy and reliable. And its name is synonymous with the activity of its most popular product.In Britain, you don't "vacuum the carpet." You "Hoover the carpet."So people rushed out to buy vacuum cleaners--despite the recession, despite the fact that many people didn't even need one.The results were immediately palpable. Appliance stores quickly ran out of Hoover vacuums. The Hoover factory in Wales shifted into a seven-day workweek to meet the demand. And newspaper classified sections across Britain began swelling with ads for secondhand but "never-used, still-in-box" Hoover vacuum cleaners.

The promotion worked beyond Hoover's wildest dreams. And that meant disaster.Airline ticket applications began flooding into Hoover headquarters. The company says it received more than 200,000 claims for free travel. hoover vacuum cleaner power headThat translates into requests for 400,000 airline seats.quiet vacuum cleaner ratings ukTravel agencies working for Hoover were overwhelmed. the vax vacuum cleanerMore travel agencies were recruited.Hoover executives have never specified how they expected their campaign to work and did not return calls from the Los Angeles Times. But comments from travel agents affiliated with the Hoover promotion, along with private and government consumer advocates investigating the debacle, reveal a company that apparently thought it had embedded enough stumbling blocks into the small print to prevent most people from qualifying.

From those who did manage to qualify, Hoover apparently expected to reap profits by selling pricey travel extras such as accommodations, car rentals and insurance.Finally, there is evidence that Hoover and its travel agencies eventually began giving flights to customers who spent big on the extras, while purposely creating huge logistic barriers for those who did not."I think Hoover was relying on most people not getting over all the hurdles," says Keith Richards, a senior lawyer with Britain's Consumers Assn. "They didn't realize how diligent people would be."To qualify, Hoover customers had to negotiate a maze of rules and regulations with strict deadlines all along the way. After the date of purchase, they had two weeks to send in a receipt and application, followed by a time limit on mailing in requests for destinations and flight dates.Customers whose first choices couldn't be met then had to send in another set of requests. And if those couldn't be met, they had to accept whatever Hoover offered them.

Consumer agencies began receiving stacks of complaints. Applicants were not getting their flights and were unable to get any information from Hoover. Hoover told some people their applications had never arrived and must have been lost in the mail.A British consumer-advocacy TV program called "Watchdog" took up the cause with a series of reports last month but could not get a response from Hoover, which denied there was a problem.Then "Watchdog" sent a reporter to work undercover at one of the travel agencies handling the Hoover promotion--and everything began to unravel.Armed with a hidden camera, reporter Hilary Bell found that she and others working in the telesales department of Free Flights Europe were supposed to dissuade customers from taking their free trips by making things as difficult as possible. TTI's principal areas of business are power tools, outdoor power equipment, floor care appliances, solar powered lighting and electronic measuring products. The industry giant is headquartered in Hong Kong, maintains a customer servicing network in North America, Europe and Australia.

TTI has combined Hoover with its existing Dirt Devil and Royal operations in Glenwillow, Ohio, to create TTI Floor Care North America, the largest floorcare business in North America. TTI is dedicated to building brand loyalty through customer satisfaction by providing customers with quality products that meet their cleaning needs. Continuing to focus on developing innovative products, and emphasizing advertising and operations, are the key drivers of TTI Floor Care North America's future growth and success. TTI helps you turn the place you live into a home. We're the home of trusted brand leaders in floor care, power equipment, solar lighting and electronic measuring industries. You probably know us better as Hoover®, Dirt Devil®, Oreck®, Royal®, Milwaukee®, AEG®, Ryobi®, Homelite®, Regina® and Vax®. Each brand is focused on new product development through inspiration, insight and dedication to premium quality. TTI brands and products are recognized worldwide for their deep heritage, superior quality, outstanding performance and compelling innovation.

Through a company-wide commitment to innovation and strong customer partnerships, we consistently deliver new products that enhance customer satisfaction and productivity. That spirit of innovation has been a cornerstone for the company since its founding in 1985 by Horst Julius Pudwill and Professor Roy Chi Ping Chung BBS JP. In 1990, TTI joined the Stock Exchange of Hong Kong Limited. Headquartered in Hong Kong, we maintain a global servicing network that extends throughout North America, Europe and Australia and employs more than 20,000 people. This focus and drive provides TTI with a powerful platform for sustainable leadership and strong growth. Working here is inspiring. We're always on the lookout for true innovators. If you're up to that challenge, apply. About TTI Floor Care North America We are the largest floor care business in North America, owning three of the biggest names in floor care. Each of these premier brands has a rich history that we're building on each day.

They are iconic companies with deep roots in the American floor care industry, and since 2007 has been based out of Glenwillow, Ohio. Hoover:We acquired this marquee brand in 2007, but Hoover's history reaches back more than 100 years and traces a path to the very invention of the vacuum itself. In 1907, janitor Murray Spangler saw a problem that needed fixing: In the course of his daily work, he encountered dust that triggered asthma attacks. Working at night, Spangler devised a "suction sweeper" to pull dust and dirt out of the air and off the ground. W. H. Hoover bought Spangler's patent in 1908, and began selling the country's first sweepers to the public. It was the beginning of more than a century of innovations, from our famous beater bar to disposable paper vacuum bags, vacuum cleaner headlights and self-propelling technology and even the side-mounted hose. Today, Hoover continues to build on its history of innovation and creating effortless cleaning solutions.

Dirt Devil/Royal: TTI purchased the Royal and Dirt Devil lines in 2002 - and acquired a company with an esteemed path through floor care history. In 1905, the P. A. Geier Company - creator of the Royal line of home cleaners - was founded in Cleveland, Ohio. By 1937 the company was producing the world's first hand-held vacuum, the Royal Prince. It was a sign of things to come. In 1953, ownership of the P. A. Geier Company changed hands, and the company was renamed Royal Appliance Manufacturing to better highlight its marquee line of trademarked machines. Dirt Devil joined the Royal family in 1981 and debuted its runaway best-seller, the Hand Vac, in 1984. More than 23 million hand vacs have been sold since its inception. Dirt Devil makes some of the most convenient, affordable home cleaning products on the market today. Oreck: Oreck joined the TTI family in 2013. One of America's most beloved vacuum brands, with a fiercely loyal base of customers, Oreck produces lightweight, powerful, premium cleaners.