TICO Agent and Wholesaler Disclosures 5 — Questions and Answers
Question 1: A travel wholesaler discovers a safety advisory has been issued for a destination after consumers have already booked. What is the wholesaler's obligation?
- Wait for consumers to inquire about the advisory
- Immediately inform registered retail agents so they can notify consumers (Correct answer)
- Cancel all bookings automatically
- Only notify consumers who paid in full
Correct answer: Immediately inform registered retail agents so they can notify consumers
Wholesalers must promptly notify retail agents of safety advisories so agents can fulfill their obligation to inform consumers of risks to their travel plans.
Question 2: Under TICO's disclosure requirements, what information must a travel agent provide regarding travel insurance?
- Nothing unless the consumer requests travel insurance information
- That travel insurance is available, even if the agent does not sell it (Correct answer)
- Only the insurance products offered by their agency
- Insurance information is not part of TICO's disclosure requirements
Correct answer: That travel insurance is available, even if the agent does not sell it
TICO regulations require agents to inform consumers that travel insurance is available, ensuring consumers have the opportunity to protect their investment.
Question 3: A consumer wants to book a tour operated by a non-TICO-registered foreign company through an Ontario travel agent. What must the agent disclose?
- Nothing, since foreign operators are outside TICO jurisdiction
- That the foreign operator is not TICO-registered and the consumer may have limited recourse
- That the consumer will lose TICO compensation fund protection for that component
- Both B and C (Correct answer)
Correct answer: Both B and C
Agents must disclose that non-registered foreign operators fall outside TICO protections and that the consumer may have limited recourse and no access to the compensation fund for that booking.
Question 4: Which statement best describes a travel agent's obligation when a wholesaler provides inaccurate information in a brochure?
- The agent bears no responsibility since the brochure came from the wholesaler
- The agent is still responsible for ensuring disclosures to consumers are accurate (Correct answer)
- The agent can simply reproduce the brochure information without liability
- Only the wholesaler is liable for brochure inaccuracies
Correct answer: The agent is still responsible for ensuring disclosures to consumers are accurate
TICO holds retail agents responsible for accuracy in consumer disclosures; agents cannot shield themselves from liability by citing wholesaler-supplied information.
Question 5: A TICO-registered travel agent is also the owner of a hotel that they frequently recommend to clients. Which disclosure is required?
- No disclosure is needed if the hotel is legitimately good
- The agent must disclose their ownership interest in the hotel (Correct answer)
- Disclosure is only required if the client directly asks about the agent's affiliations
- The agent must stop recommending their own hotel entirely
Correct answer: The agent must disclose their ownership interest in the hotel
Ownership interest in a recommended business creates a direct conflict of interest that must be disclosed to allow consumers to make informed decisions.
Question 6: Under TICO, at what point must a consumer receive a written confirmation detailing their booking terms, conditions, and any applicable restrictions?
- Within 30 days of departure
- At the time of booking or as soon as reasonably possible (Correct answer)
- Only if the consumer requests written documentation
- After final payment is received
Correct answer: At the time of booking or as soon as reasonably possible
TICO requires that consumers receive written confirmation of booking details, terms, and restrictions promptly after booking so they can review what they have purchased.
Question 7: If a travel agent discovers after booking that the cruise line has a pending financial difficulty, what is the agent's disclosure responsibility?
- The agent should wait for official news before alarming the consumer
- The agent must promptly disclose known material risks that could affect the consumer's travel or refund (Correct answer)
- The agent should only disclose if the cruise line goes bankrupt
- Financial difficulties of suppliers are not required disclosures under TICO
Correct answer: The agent must promptly disclose known material risks that could affect the consumer's travel or refund
TICO's consumer protection mandate requires agents to disclose material risks, including supplier financial instability, that could jeopardize the consumer's travel arrangements or ability to get a refund.
TICO Agent and Wholesaler Disclosures 5
A travel wholesaler discovers a safety advisory has been issued for a destination after consumers have already booked.
What is the wholesaler's obligation?