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YTB International Inc. agreed to pay $1 million and to stop charging agents for travel Web sites to settle a deceptive marketing lawsuit filed by the California attorney general but now the Wood River, Ill., company faces similar litigation from the Illinois attorney general.

YTB, which operates through YourTravelBiz.com, agreed to stop charging agents $449.95 to buy online travel Web sites and agreed to develop a free online demonstration to recruit new members, according to California Attorney General Edmund Brown Jr.’s office.

YTB also agreed to pay $1 million in penalties, costs and restitution to Californians who filed complaints against YTB, eliminate perks for joining, make it easier for agents to quit and limit income from “downstream sellers,” or people who have been recruited and who have become recruiters themselves.

“YTB falsely promised customers they could get rich quick by selling travel online,” Brown said in a statement. “In reality, customers were reeled into an elaborate pyramid scheme and most never earned a dime. Today’s settlement ends YTB’s pyramid scheme by arming consumers with hard facts and eliminating the need to sign up for this largely unprofitable Web site.”

YTB CEO Scott Tomer said the business model changes go along with its plan to change from a referring travel agent business to a franchise operating system. “We believe the agreement with the State of California improves our business model and that as a result YTB will emerge a better company,” he said in a statement. “This agreement will help to further secure the future for our valued sales force.”

Reached by telephone Monday, President Andrew Cauthen declined to comment further.

YTB travel agents have complained that they were misled about how much money they would make and often made less than what it cost them to join, according to a consumer fraud lawsuit Illinois Attorney General Lisa Madigan filed Thursday against YTB. The lawsuit seeks fines of $50,000 for every consumer fraud violation the court finds.