TICO Ontario Regulation 26/05 5 — Questions and Answers
Question 1: Under Ontario Regulation 26/05, what action may TICO take if a registrant fails to maintain the required trust account?
- Issue a public warning only
- Suspend or revoke the registrant's certificate of registration (Correct answer)
- Impose a provincial sales tax penalty
- Refer the matter to the federal Competition Bureau
Correct answer: Suspend or revoke the registrant's certificate of registration
Failure to maintain a required trust account is grounds for TICO to suspend or revoke a registrant's certificate of registration under the Regulation.
Question 2: Which of the following is NOT required to be disclosed to a consumer on the written contract under Ontario Regulation 26/05?
- The total price including all fees and charges
- The registrant's TICO registration number
- The internal commission rate paid to the agent by the supplier (Correct answer)
- The cancellation and refund policy
Correct answer: The internal commission rate paid to the agent by the supplier
Internal commission arrangements between the agent and supplier are not required to be disclosed to the consumer on the written contract.
Question 3: Under Ontario Regulation 26/05, how long must a travel agent retain records of each consumer transaction?
- One year
- Two years (Correct answer)
- Three years
- Five years
Correct answer: Two years
Ontario Regulation 26/05 requires registrants to retain transaction records for a minimum of two years.
Question 4: A consumer pays a deposit to a travel agent, who then becomes insolvent before the trip departs. Under Ontario Regulation 26/05, the consumer's deposit should be protected because:
- It is covered by the agent's E&O insurance policy
- It must have been held in a separate trust account (Correct answer)
- TICO's compensation fund automatically reimburses all losses
- Credit-card chargebacks make trust accounts unnecessary
Correct answer: It must have been held in a separate trust account
Trust account requirements ensure consumer deposits are segregated from the agent's operating funds, protecting them in the event of insolvency.
Question 5: Under Ontario Regulation 26/05, a travel wholesaler must register with TICO if it:
- Only sells travel services directly to the general public
- Offers travel services for sale through registered travel agents in Ontario (Correct answer)
- Operates exclusively outside of Ontario with no Ontario clientele
- Only provides airline services as a licensed air carrier
Correct answer: Offers travel services for sale through registered travel agents in Ontario
A travel wholesaler that sells or offers travel services through registered travel agents in Ontario must be registered under the Regulation.
Question 6: Under Ontario Regulation 26/05, if a registrant wishes to operate under a name other than its legal name, what must it do?
- Simply post the trade name on its website
- Register the trade name with TICO as part of its registration (Correct answer)
- File the trade name with the federal CRTC
- Obtain approval from the Ontario Tourism Ministry
Correct answer: Register the trade name with TICO as part of its registration
Any trade name under which a registrant operates must be disclosed to and registered with TICO as part of the registration process.
Question 7: Under Ontario Regulation 26/05, which scenario correctly describes when the consumer's right to cancel without penalty arises due to a material change?
- Only if the price increases by more than 10%
- When the registrant notifies the consumer of a material change before departure (Correct answer)
- When the consumer changes their mind within 24 hours of booking
- When the airline changes the departure time by more than three hours
Correct answer: When the registrant notifies the consumer of a material change before departure
When a registrant notifies the consumer of a material change, the consumer is entitled to cancel the contract and receive a full refund without penalty.
TICO Ontario Regulation 26/05 5
Under Ontario Regulation 26/05, what action may TICO take if a registrant fails to maintain the required trust account?