TICO Agent and Wholesaler Disclosures 2

Question 1

Under TICO's standards, when must a travel agent disclose to a client that a travel supplier is not registered with TICO?

Accepted Answer

Before the client makes any payment for travel services provided by that supplier

Answer

Only if the client specifically asks about the supplier's registration status

Answer

After the booking is confirmed, in the final invoice

Answer

Only if the supplier is based outside of Canada

Question 2

A travel wholesaler in Ontario sells travel packages exclusively to registered travel agents, not directly to the public. Under the Travel Industry Act, 2002, the wholesaler must:

Accepted Answer

Be registered with TICO as a travel wholesaler

Answer

Register only if annual sales exceed $2 million

Answer

Be exempt from TICO registration since they do not sell directly to consumers

Answer

Register with the federal Competition Bureau instead of TICO

Question 3

When a client purchases a package tour through a TICO-registered agent from a TICO-registered wholesaler, which entity bears disclosure obligations?

Accepted Answer

Both the agent and the wholesaler share responsibility for their respective components of the disclosure

Answer

Only the travel agent is responsible for all disclosures

Answer

Only the wholesaler is responsible since they created the package

Answer

TICO assumes responsibility when both parties are registered

Question 4

Which of the following must a TICO-registered travel agent disclose to a client when there is a conflict of interest in recommending a particular supplier?

Accepted Answer

The nature of the conflict of interest, such as a financial incentive, preferred supplier relationship, or ownership interest

Answer

Only the dollar value of the commission received from the supplier

Answer

Conflict of interest disclosures are not required under Ontario travel law

Answer

Only the total dollar value of any bonus or incentive received

Question 5

A travel agent is also the owner of a resort property in Mexico. When recommending this resort to clients, the agent must:

Accepted Answer

Disclose their ownership interest in the property before making any booking

Answer

Provide an independent third-party valuation of the resort before recommending it

Answer

Avoid recommending the property entirely to prevent any conflict of interest

Answer

Disclose the ownership only if the client directly asks about the agent's interests

Question 6

TICO's disclosure requirements are primarily designed to achieve which consumer protection goal?

Accepted Answer

To ensure clients have the information they need to make informed purchasing decisions

Answer

To increase the administrative workload of travel agents as a deterrent to non-compliance

Answer

To generate revenue for the Travel Compensation Fund through disclosure fees

Answer

To allow TICO to collect data for industry marketing statistics