TICO Advertising and Pricing Standards 5 — Questions and Answers
Question 1: A registrant advertises a resort vacation and uses photos that depict a beachfront view, but the resort is actually a 10-minute drive from the beach. Under TICO, this is:
- Misleading because the images create a false impression of location (Correct answer)
- Acceptable if a disclaimer states 'photos for illustrative purposes'
- Permitted only if the photos are supplied by the resort
- Acceptable since the text does not explicitly claim beachfront access
Correct answer: Misleading because the images create a false impression of location
Images that create a false impression of a property's location are considered misleading under TICO advertising standards.
Question 2: What is the purpose of requiring registrants to display their TICO registration number in all advertising?
- To allow consumers to verify the registrant is authorized to sell travel in Ontario (Correct answer)
- To track the number of advertisements placed per registrant
- To indicate that the registrant has no outstanding complaints
- To show compliance with federal Canada tourism regulations
Correct answer: To allow consumers to verify the registrant is authorized to sell travel in Ontario
The registration number allows consumers to confirm through TICO that the seller is a legitimate, licensed Ontario travel registrant.
Question 3: An agency advertises a package as 'all-inclusive' but the resort charges additional fees for certain restaurants and activities. The agency's advertisement is:
- Misleading unless the exclusions are clearly disclosed in the advertisement (Correct answer)
- Acceptable because 'all-inclusive' is a general marketing term
- Permitted if the resort's own branding uses 'all-inclusive'
- Acceptable as long as the exclusions are explained at the time of booking
Correct answer: Misleading unless the exclusions are clearly disclosed in the advertisement
Using 'all-inclusive' without disclosing significant exclusions is misleading advertising under TICO standards.
Question 4: Under TICO advertising rules, when a price changes after an advertisement has been published, the registrant must:
- Honour the advertised price or immediately update all active advertising (Correct answer)
- Only update print advertising within 30 days
- Add a general disclaimer that prices may change without notice
- Notify TICO within 48 hours of the price change
Correct answer: Honour the advertised price or immediately update all active advertising
Registrants must either honour the advertised price or promptly update advertising to reflect accurate pricing.
Question 5: A travel retailer's email promotion states a package price of $1,299 but a mandatory destination fee of $150 is listed only in fine print at the bottom. Under TICO pricing standards, this practice is:
- Non-compliant because mandatory fees must be included in the prominently stated price (Correct answer)
- Compliant since the fee is technically disclosed somewhere in the email
- Compliant if the fine print is legible on a standard screen
- Non-compliant only if the consumer actually paid without noticing the fee
Correct answer: Non-compliant because mandatory fees must be included in the prominently stated price
TICO requires mandatory fees to be incorporated into the prominently displayed price, not buried in fine print.
Question 6: Which statement about comparative pricing in travel advertising is consistent with TICO standards?
- Comparisons must be based on accurate, verifiable reference prices (Correct answer)
- Comparisons to competitor prices are prohibited in all circumstances
- Savings claims only need to be accurate at the time of initial publication
- Comparing to a 'regular' price is permitted even if that price was never actually charged
Correct answer: Comparisons must be based on accurate, verifiable reference prices
Comparative price claims must reference real, verifiable prices to ensure consumers are not misled.
Question 7: A registrant running a contest that offers a free trip must ensure the advertising:
- Discloses all material conditions, odds of winning, and any costs the winner must pay (Correct answer)
- Only states the destination and departure date of the prize trip
- Includes TICO registration number but no other mandatory disclosures
- Is exempt from TICO advertising standards because it is a contest, not a sale
Correct answer: Discloses all material conditions, odds of winning, and any costs the winner must pay
Contest advertising involving travel prizes must fully disclose all material conditions, including any costs borne by the winner.
TICO Advertising and Pricing Standards 5
A registrant advertises a resort vacation and uses photos that depict a beachfront view, but the resort is actually a 10-minute drive from the beach.
Under TICO, this is: