TICO Ontario Regulation 26/05 2 — Questions and Answers
Question 1: Ontario Regulation 26/05 was made under which Ontario statute?
- The Travel Industry Act, 2002 (Correct answer)
- The Consumer Protection Act, 2002
- The Business Corporations Act
- The Ontario Tourism Act
Correct answer: The Travel Industry Act, 2002
Ontario Regulation 26/05 is a regulation made under the authority of the Travel Industry Act, 2002 and provides the detailed rules implementing the Act.
Ontario Regulation 26/05 was enacted under the Travel Industry Act, 2002. It provides the detailed regulations that give practical effect to the Act's framework, including specific requirements for advertising, invoicing, disclosure, trust accounting, and standards of conduct. Both instruments work together to create the complete regulatory framework.
Question 2: Under Ontario Regulation 26/05, what must the balance in a travel agency's designated trust account always equal?
- An amount equal to all client funds received that have not yet been remitted to suppliers or earned as the agent's commission (Correct answer)
- A fixed minimum of $50,000 regardless of business volume
- An amount equal to one month's projected travel sales
- No minimum is specified; the account must simply exist
Correct answer: An amount equal to all client funds received that have not yet been remitted to suppliers or earned as the agent's commission
The trust account must hold all client funds received that have not yet been paid to suppliers or otherwise properly disbursed. The balance must match the outstanding client obligations.
Ontario Regulation 26/05 requires that the designated trust account always contain an amount at least equal to the total of all client funds received that have not yet been remitted to travel suppliers or legitimately earned by the agent. This ensures that client money is always available to be forwarded to suppliers or refunded if needed. A trust account shortfall is a serious regulatory violation.
Question 3: Under Ontario Regulation 26/05, which of the following is a prohibited trade practice for travel registrants?
- Charging an undisclosed fee that was not disclosed before the client made payment (Correct answer)
- Offering loyalty program points in addition to the travel service
- Providing a written receipt for all payments received
- Recommending comprehensive travel insurance to all clients
Correct answer: Charging an undisclosed fee that was not disclosed before the client made payment
Charging any fee that was not disclosed to the client in writing before payment is a prohibited trade practice under Ontario Regulation 26/05.
Ontario Regulation 26/05 explicitly prohibits registrants from charging fees that were not disclosed to the client before the transaction. This includes service fees, booking fees, administrative charges, and any other amounts beyond the advertised price. All fees must be disclosed in writing before the client makes any payment.
Question 4: Ontario Regulation 26/05 requires a travel agent to have a written booking confirmation with the consumer. When must this document be provided?
- Before or at the time of final payment (Correct answer)
- Within 14 days of the initial deposit
- Only upon the consumer's written request
- After departure, as a receipt for services rendered
Correct answer: Before or at the time of final payment
Under Ontario Regulation 26/05, the written booking confirmation must be provided to the consumer before or at the time of making final payment.
Ontario Regulation 26/05 requires that consumers receive a written booking confirmation containing all required disclosures before or at the time of making final payment. This timing ensures that consumers have the opportunity to review all terms — including cancellation policies and final pricing — before they are fully financially committed.
Question 5: Under Ontario Regulation 26/05, which records must a travel registrant maintain in their files?
- Written confirmation of all travel services purchased, trust account records, and records of all complaints received (Correct answer)
- Only receipts for client payments over $1,000
- Marketing materials and staff scheduling records only
- Records are only required for bookings made through global distribution systems (GDS)
Correct answer: Written confirmation of all travel services purchased, trust account records, and records of all complaints received
Registrants must maintain comprehensive records including booking confirmations, trust account records, and complaint records for a minimum of seven years.
Ontario Regulation 26/05 requires registrants to maintain a comprehensive set of records including written confirmations of all travel services sold, trust account statements and transaction records, and records of all complaints received and how they were resolved. These records must be retained for a minimum of seven years and must be available for inspection by TICO auditors.
Question 6: Under Ontario Regulation 26/05, what disclosure is required regarding travel advisories issued by the Government of Canada?
- Registrants must advise consumers of any applicable travel advisories before the booking is confirmed (Correct answer)
- Travel advisory disclosure is optional and at the agent's professional discretion
- Travel advisories only need to be disclosed for Level 4 (Avoid all travel) destinations
- Advisories must be disclosed only after the consumer has paid their full balance
Correct answer: Registrants must advise consumers of any applicable travel advisories before the booking is confirmed
Registrants are required under Ontario Regulation 26/05 to advise consumers of applicable Government of Canada travel advisories before the booking is confirmed.
Ontario Regulation 26/05 includes travel advisory disclosure as a mandatory pre-booking disclosure. Before confirming any international booking, agents must check and communicate applicable Government of Canada travel advisories to the consumer. This applies at all advisory levels, not only Level 4. Agents should document that the advisory was communicated and the consumer acknowledged it.
TICO Ontario Regulation 26/05 2
Ontario Regulation 26/05 was made under which Ontario statute?