TICO Consumer Protection Rules 4 — Questions and Answers
Question 1: Under TICO regulations, if a travel agent fails to disclose a material change to a trip before departure, the consumer is generally entitled to:
- A full refund without penalty (Correct answer)
- A partial refund based on services used
- A credit note valid for one year
- Compensation only if they purchased trip cancellation insurance
Correct answer: A full refund without penalty
TICO rules require that material changes be disclosed promptly, and if the consumer does not accept the change, they are entitled to a full refund.
Question 2: Which of the following is considered a 'material change' under TICO consumer protection rules?
- A hotel room on a different floor than requested
- A departure time change of more than 24 hours (Correct answer)
- A minor room category upgrade
- A slight change in the meal plan
Correct answer: A departure time change of more than 24 hours
A departure time change of more than 24 hours is a significant alteration that qualifies as a material change under TICO standards.
Question 3: A consumer books a package tour and the supplier becomes insolvent before departure. Under TICO's Compensation Fund, what is the consumer most likely entitled to?
- Compensation up to the registered amount paid, subject to fund limits (Correct answer)
- Full reimbursement from the travel agent personally
- No compensation since insolvency is a business risk
- Compensation only if they purchased separate travel insurance
Correct answer: Compensation up to the registered amount paid, subject to fund limits
TICO's Consumer Protection Fund compensates consumers for losses due to registered travel agent insolvency, up to applicable limits.
Question 4: Under TICO rules, a travel agent's written disclosure to consumers must include all of the following EXCEPT:
- Total price including all fees and taxes
- The agent's TICO registration number
- A personal guarantee from the agent's owner (Correct answer)
- Cancellation and refund policies
Correct answer: A personal guarantee from the agent's owner
TICO requires transparent pricing, registration numbers, and policy disclosures, but does not require a personal owner guarantee.
Question 5: When a consumer files a complaint with TICO against a registered travel agent, TICO's primary role is to:
- Sue the travel agent on behalf of the consumer
- Investigate the complaint and enforce compliance with TICO standards (Correct answer)
- Award financial damages directly to the consumer
- Refer the consumer to civil court without investigation
Correct answer: Investigate the complaint and enforce compliance with TICO standards
TICO investigates complaints and enforces the Ontario Travel Industry Act, but does not act as a legal advocate or court for consumers.
Question 6: A consumer purchases a cruise package and notices the final invoice omits a port fee that was discussed verbally. Under TICO rules, the agent should:
- Honor the verbal agreement and absorb the fee
- Issue a corrected invoice showing all fees before final payment (Correct answer)
- Advise the consumer that verbal agreements are not binding
- Charge the port fee only upon return from the cruise
Correct answer: Issue a corrected invoice showing all fees before final payment
TICO requires that all fees and charges be disclosed in writing before or at the time of sale, so the agent must correct the invoice.
Question 7: Under the Ontario Travel Industry Act enforced by TICO, which scenario would most likely result in disciplinary action against a travel agent?
- Recommending travel insurance to every client
- Failing to remit client funds to the supplier within the required timeframe (Correct answer)
- Charging a service fee disclosed in writing to the consumer
- Booking a consumer on an airline the agent personally prefers
Correct answer: Failing to remit client funds to the supplier within the required timeframe
Failure to remit client funds to suppliers on time is a serious breach of trust account obligations under the Act and can result in disciplinary action.
TICO Consumer Protection Rules 4
Under TICO regulations, if a travel agent fails to disclose a material change to a trip before departure, the consumer is generally entitled to: