TICO Travel Industry Act, 2002 3 — Questions and Answers
Question 1: Under the Travel Industry Act, 2002, what are the consequences of operating as a travel agent in Ontario without being registered with TICO?
- It is an offence under the Act, with fines of up to $50,000 for an individual and $250,000 for a corporation upon conviction (Correct answer)
- There is no penalty unless a consumer complaint is filed
- The person must pay a $500 retroactive registration fee and register within 30 days
- Only the business owner is liable; employees face no consequences
Correct answer: It is an offence under the Act, with fines of up to $50,000 for an individual and $250,000 for a corporation upon conviction
Operating without registration is an offence under the Travel Industry Act, 2002, with significant fines for both individuals and corporations.
The Travel Industry Act, 2002 makes it an offence to carry on the business of a travel agent or wholesaler in Ontario without being registered. Upon conviction, an individual can be fined up to $50,000 and a corporation can be fined up to $250,000. Directors and officers of corporations can also be personally liable if they directed or permitted the offence.
Question 2: A travel agent's registration is suspended by the TICO Registrar. During the suspension, the agent may:
- Take no bookings and make no representations as a travel agent during the suspension period (Correct answer)
- Continue taking bookings but must disclose the suspension to all new clients
- Continue working under a colleague's registration number during the suspension
- Appeal to the courts to obtain a stay of suspension allowing them to continue working
Correct answer: Take no bookings and make no representations as a travel agent during the suspension period
During a suspension, the agent cannot carry on the business of a travel agent. Taking new bookings or representing themselves as a travel agent is prohibited.
When a travel agent's registration is suspended under the Travel Industry Act, 2002, the agent immediately loses the authority to carry on the business of a travel agent. This means they cannot take new bookings, accept new client payments, or represent themselves as a registered travel agent during the suspension period. Using a colleague's registration number is also prohibited.
Question 3: The Travel Industry Act, 2002 provides the TICO Registrar with the authority to issue a 'proposal to refuse' a registration renewal. What right does the registrant have in response?
- The right to request a hearing before the Licence Appeal Tribunal to contest the refusal (Correct answer)
- The right to automatically renew their registration while the refusal is under review
- The right to continue operating without registration for 90 days pending appeal
- The right to transfer their registration to a family member before it is refused
Correct answer: The right to request a hearing before the Licence Appeal Tribunal to contest the refusal
A registrant who receives a proposal to refuse renewal has the right to request a hearing before the Licence Appeal Tribunal.
Under the Travel Industry Act, 2002, when the TICO Registrar proposes to refuse a registration or renewal, the affected registrant must be given notice and an opportunity to request a hearing before the Licence Appeal Tribunal (LAT). The LAT is an independent adjudicative tribunal that can review the Registrar's decision and confirm, vary, or overturn it.
Question 4: The Travel Industry Act, 2002 requires all registrants to notify TICO promptly when which event occurs?
- A change in the registrant's business address, ownership, or key personnel such as the broker of record (Correct answer)
- An increase in the number of travel suppliers the agency has contracted with
- The launch of any new advertising campaign targeting Ontario consumers
- The hiring of additional part-time sales agents during peak travel season
Correct answer: A change in the registrant's business address, ownership, or key personnel such as the broker of record
Registrants must promptly notify TICO of material changes such as address changes, ownership changes, or changes in the broker of record.
The Travel Industry Act, 2002 requires registrants to keep their registration information current and to promptly notify TICO of material changes. These include changes to the business address, changes in ownership or corporate structure, and changes in the broker of record. Failing to update registration information is a violation of the Act.
Question 5: Under the Travel Industry Act, 2002, which individual is specifically designated as having enhanced accountability obligations for the agency's compliance?
- The broker of record, who is the registered individual responsible for the agency's compliance with all legislative requirements (Correct answer)
- The highest-selling travel agent at the agency by annual sales volume
- The agency's accountant who prepares the annual financial statements
- The TICO inspector assigned to audit the agency each year
Correct answer: The broker of record, who is the registered individual responsible for the agency's compliance with all legislative requirements
The broker of record is the registered individual designated under the Act as having primary accountability for the agency's compliance with the Travel Industry Act and regulations.
The Travel Industry Act, 2002 designates the 'broker of record' as the individual registrant who is primarily accountable for ensuring that the travel agency and all its employees comply with the Act and Ontario Regulation 26/05. The broker of record must be individually registered with TICO and is personally responsible for the agency's overall compliance.
Question 6: Under the Travel Industry Act, 2002, which of the following scenarios would trigger the Registrar's authority to revoke a registration?
- A registrant has been convicted of fraud in connection with their travel agency business (Correct answer)
- A registrant has received more than five consumer complaints in a calendar year
- A registrant's annual sales declined by more than 50% due to market conditions
- A registrant changed their business name without obtaining TICO's advance written approval
Correct answer: A registrant has been convicted of fraud in connection with their travel agency business
A criminal conviction for fraud related to the travel business is a clear ground for registration revocation under the Travel Industry Act, 2002.
The Travel Industry Act, 2002 grants the TICO Registrar the authority to revoke a registration on several grounds, including if the registrant or their key personnel have been convicted of an offence involving dishonesty or fraud in connection with the travel business. A fraud conviction demonstrates that the registrant cannot be trusted to handle consumer funds and comply with the Act's requirements.
TICO Travel Industry Act, 2002 3
Under the Travel Industry Act, 2002, what are the consequences of operating as a travel agent in Ontario without being registered with TICO?