Advertising and Pricing Standards Flashcards

A Toronto travel agency advertises a cruise package at 'from $1,299 CAD per person' in a newspaper flyer. When a consumer calls to book, the agent discovers the advertised cabin category is sold out but a higher category is available at $1,499. Which action is the agency REQUIRED to take under TICO advertising standards?

Answer: Disclose the unavailability of the advertised price and offer the available option at its actual price without misrepresenting the original as still accessible

TICO standards require that 'from' prices must be genuinely available for the advertised travel period at time of publication, but when supply is exhausted, the registrant is not required to honour the price — they must instead be transparent about unavailability and present the true available pricing without deception. Honouring the lower price on an upgrade cabin is not required, nor is a public correction mandatory for a sold-out inventory situation (as opposed to a pricing error).

Under TICO's advertising rules, a registrant advertises a flight + hotel package priced in U.S. dollars without any currency identifier. The consumer completes the booking assuming Canadian dollars and disputes the charge. Who bears primary regulatory responsibility, and what standard was violated?

Answer: The registrant, because all advertised prices must clearly identify the currency, and omitting this constitutes a misleading representation

Under TICO's Code of Ethics and the Travel Industry Act, the registered travel agent is the party responsible for ensuring that all advertising they produce or distribute complies with disclosure standards — including unambiguous currency identification. There is no 'industry standard' assumption of USD; the registrant cannot offload responsibility to suppliers for content they publish or present to consumers.

A travel agency runs a digital ad stating 'All-inclusive Cancun resort — $899 per person.' The price excludes a mandatory $74 resort fee collected directly by the hotel at check-out. Under TICO advertising standards, how must this fee be handled in the advertisement?

Answer: It must be included in the advertised price or prominently disclosed as a mandatory additional charge

TICO advertising standards require that all mandatory, non-optional charges — regardless of which party collects them — must either be included in the total advertised price or be clearly and prominently disclosed as additional mandatory costs. A mandatory resort fee is not optional and cannot be omitted simply because payment flows to the hotel rather than the agency. There is no percentage threshold or minimum font-size loophole that permits burying mandatory fees.

A TICO-registered agency advertises a tour package with a price that is 'guaranteed against fuel surcharge increases after deposit.' Three weeks later, the airline imposes a new fuel surcharge. The agency absorbs the cost. A consumer who saw the original ad but has not yet paid a deposit wants to book. What is the agency's obligation regarding the fuel surcharge?

Answer: The guarantee takes effect only upon receipt of deposit; the consumer must pay the deposit under the new total price including the surcharge

A 'guaranteed against fuel surcharge increases after deposit' clause is explicitly tied to the act of depositing — it protects consumers who have already paid a deposit, not those still shopping. A consumer who has not yet deposited is subject to current pricing, including any new surcharges imposed after the advertisement. The advertised guarantee language itself defines the trigger (deposit), and TICO standards require that guarantee conditions be accurately represented — which means they must also be accurately applied.

An Ontario travel agency's website displays a vacation package price that expired two days ago due to a supplier rate change, but the website was not updated in time. A consumer books and pays in full based on the stale price. Under TICO's framework, what is the most accurate characterization of this situation?

Answer: The registrant may have committed a misleading advertising violation and must either honour the displayed price or, if rescinding, provide a full refund and potentially remediation depending on circumstances

Registrants are responsible for ensuring their advertising — including website content — is current and accurate. Displaying an expired price that induces a consumer to complete payment can constitute a misleading representation under TICO's rules. The remedy is not automatically to honour the stale price unconditionally; rather, the registrant must either honour it or rescind the transaction with a full refund. Blaming the supplier for rate changes does not absolve the registrant of the obligation to maintain accurate consumer-facing pricing.

A TICO registrant's print brochure advertises a group departure with pricing structured as: '15 passengers = $2,100/person; 20 passengers = $1,850/person; 25 passengers = $1,650/person.' The brochure does not state what happens to pricing if minimum group size is not met. A consumer books at the 25-person rate; only 18 ultimately register. Under TICO advertising standards, what is the most defensible position?

Answer: The registrant must disclose in the advertisement that pricing is contingent on achieving the minimum group size, and failure to do so creates an obligation to honour the booked rate or offer a full refund

TICO advertising standards require that material conditions affecting pricing be disclosed at the time of advertising — not discovered by consumers only after failing to achieve a threshold. If group pricing is contingent on minimum passenger counts, this condition is material and must be stated in the advertisement. Without that disclosure, the registrant's ability to revise pricing upward after booking is legally and regulatorily compromised — the consumer may be entitled to the booked rate or a full refund if the trip does not operate as advertised.