Consumer Protection Rules Flashcards

A consumer purchases an all-inclusive vacation package from a TICO-registered travel agency. The airline providing the flights for the package declares bankruptcy before the departure date. According to TICO's rules, what is the consumer entitled to claim from the Travel Industry Compensation Fund?

Answer: Reimbursement for the non-provisioned travel services, up to a maximum of $5,000 per person.

The Travel Industry Compensation Fund provides reimbursement for travel services paid for but not received due to the bankruptcy or insolvency of an end supplier, such as an airline or cruise line. The maximum claim is $5,000 per person and covers the non-provision of services, not issues of quality or value.

Under Ontario Regulation 26/05, when must a travel agent disclose any counselling fees or service charges to a customer?

Answer: Prior to providing any advice or selling travel services.

Section 44 of Ontario Regulation 26/05 requires that if a travel agent charges a counselling fee or service charge, it must be disclosed to the client *before* counselling or selling the travel service. The agent must also state whether the fee is refundable and under what circumstances.

A TICO registrant is creating a newspaper advertisement for a resort package. According to the regulations for representations, which of the following is a mandatory requirement for this type of advertisement?

Answer: The price shown must be 'all-in,' including all taxes, fees, and service charges.

Section 33 of Ontario Regulation 26/05 requires that any representation referring to a price must state the total amount a customer will pay, including all fees, levies, service charges, and taxes. This is known as 'all-in pricing'. While using the TICO logo is encouraged, it's the registrant's name, address, and TICO number that are required, not the logo itself in a specific location.

A client books a trip and pays the full amount to their TICO-registered travel agent. The agent then pays the supplier. Three weeks before departure, the price of the trip increases by 10% due to a fuel surcharge. The client's invoice states that price increases are permitted. What are the client's rights in this situation?

Answer: No price increases are permitted after the customer has paid in full.

According to TICO's invoicing rules, even if the contract permits price increases, no increase is allowed after the customer has paid in full. Furthermore, if the price increases by more than 7% (excluding tax increases) before full payment, the customer has the right to cancel and get a full refund.

Which of the following situations would likely NOT be an eligible claim for the Ontario Travel Industry Compensation Fund?

Answer: A consumer is unhappy with the quality of the hotel accommodations, which were not as luxurious as described in the brochure.

The Compensation Fund is designed to protect consumers against financial loss due to the failure of a registrant or end supplier (airline/cruise line), resulting in the non-provision of services. It does not cover claims related to the quality, value, or misrepresentation of travel services; those issues are handled through TICO's complaint resolution process.

After a consumer makes a payment for travel services, a TICO-registered travel agent must promptly provide a receipt or invoice. Which of the following details is NOT a mandatory item to be included on this invoice?

Answer: The travel agent's home phone number for after-hours emergencies.

Section 38 of the Regulation requires the agent's business contact information, including address, phone number, and TICO registration number, but not personal contact details like a home phone number. The invoice must also include key details like service descriptions, supplier names, and confirmation that travel insurance was advised.