TICO Travel Industry Laws 4 — Questions and Answers
Question 1: Under the Ontario Travel Industry Act, 2002, what is the primary purpose of the Travel Industry Compensation Fund (TICO)?
- To fund TICO's operational expenses
- To reimburse consumers who suffer financial loss due to a registrant's failure to provide travel services (Correct answer)
- To pay for advertising campaigns promoting Ontario travel agents
- To compensate travel agents who lose money on bookings
Correct answer: To reimburse consumers who suffer financial loss due to a registrant's failure to provide travel services
The Compensation Fund exists to protect Ontario consumers who suffer financial loss when a registered travel agent or wholesaler fails to provide purchased services.
Question 2: A travel agent's registration under the Travel Industry Act, 2002 lapses. What must the agent do before resuming business?
- Send a written notice to all former clients
- Obtain a new registration from TICO before selling any travel services (Correct answer)
- Wait 30 days and then automatically resume operations
- Notify the Ministry of Consumer Services only
Correct answer: Obtain a new registration from TICO before selling any travel services
Operating without a valid registration is prohibited; the agent must apply and be granted a new registration by TICO before conducting any business.
Question 3: Which of the following situations would most likely constitute an offence under the Travel Industry Act, 2002?
- Charging a service fee that is disclosed upfront in writing
- Accepting a deposit and issuing a receipt within 7 days
- Advertising a travel package without disclosing the full price (Correct answer)
- Referring a client to another registered travel agent
Correct answer: Advertising a travel package without disclosing the full price
Advertising without disclosing the total price is a prohibited misleading practice under the Act and its regulations.
Question 4: Under TICO regulations, how long must a registered travel agent retain consumer transaction records?
- 1 year
- 3 years (Correct answer)
- 5 years
- 7 years
Correct answer: 3 years
Registrants are required to keep records of consumer transactions for a minimum of three years.
Question 5: A client cancels a vacation package 30 days before departure. Under TICO's consumer protection framework, what must the travel agent provide?
- A full refund with no deductions regardless of supplier policies
- A written statement outlining any cancellation penalties as disclosed in the original contract (Correct answer)
- A travel credit equal to 50% of the booking value
- Reimbursement from the Compensation Fund automatically
Correct answer: A written statement outlining any cancellation penalties as disclosed in the original contract
The agent must apply and communicate the cancellation penalties that were disclosed in the written contract provided at time of sale.
Question 6: Which body has the authority to conduct inspections of a registered travel agency's premises and records in Ontario?
- The Ontario Provincial Police
- TICO-appointed inspectors (Correct answer)
- The federal Competition Bureau
- The Better Business Bureau
Correct answer: TICO-appointed inspectors
TICO has the statutory authority under the Travel Industry Act, 2002 to appoint inspectors who may enter and examine registrant premises and records.
Question 7: Under the Travel Industry Act, 2002, what must a registrant provide to a consumer at the time of completing a booking?
- A verbal summary of all terms and conditions
- A written contract or receipt that includes key booking details and terms (Correct answer)
- A copy of TICO's annual report
- An insurance waiver signed by the consumer
Correct answer: A written contract or receipt that includes key booking details and terms
The Act requires registrants to provide a written contract or receipt containing all required booking information and terms at the time of sale.
TICO Travel Industry Laws 4
Under the Ontario Travel Industry Act, 2002, what is the primary purpose of the Travel Industry Compensation Fund (TICO)?