TICO Travel Industry Laws 5 — Questions and Answers
Question 1: A travel wholesaler in Ontario sells a package holiday directly to a consumer. Under the Travel Industry Act, 2002, is this permitted?
- Yes, wholesalers may sell directly to consumers without restriction
- No, wholesalers registered as such may only sell to registered travel retailers, not directly to the public (Correct answer)
- Yes, provided the wholesaler holds an additional retail licence
- No, all sales must go through a federally licensed agent
Correct answer: No, wholesalers registered as such may only sell to registered travel retailers, not directly to the public
Travel wholesalers are registered to sell to retail travel agents, not directly to the consuming public, unless they also hold a retail registration.
Question 2: What happens to a registrant's Compensation Fund claim if the consumer did not purchase travel insurance when it was offered?
- The claim is automatically denied
- The lack of insurance does not affect eligibility, but the fund may consider it when calculating the payout (Correct answer)
- The claim is doubled to compensate for the uninsured loss
- TICO requires the consumer to sue the registrant first
Correct answer: The lack of insurance does not affect eligibility, but the fund may consider it when calculating the payout
Declining travel insurance does not disqualify a consumer from the Compensation Fund, but the fund's payout is assessed based on actual eligible losses.
Question 3: An Ontario travel agent wants to operate under a trade name different from their registered business name. What must they do under TICO rules?
- Register the trade name with TICO as part of their registration (Correct answer)
- Simply start using the trade name without notifying TICO
- Obtain separate federal approval for the trade name
- File the trade name only with the Ontario Business Registry
Correct answer: Register the trade name with TICO as part of their registration
Any trade name used by a registrant must be disclosed to and approved as part of their TICO registration.
Question 4: Under Ontario's travel industry regulations, which of the following disclosures is MANDATORY in every consumer travel contract?
- The agent's personal commission rate
- The total price the consumer will pay, including all charges (Correct answer)
- The travel agent's net cost for the services
- The supplier's internal booking reference number
Correct answer: The total price the consumer will pay, including all charges
The total all-inclusive price payable by the consumer must be clearly disclosed in the written contract.
Question 5: A TICO registrant faces financial insolvency and cannot deliver travel services already paid for by clients. What is the FIRST step clients should take?
- File a complaint with the Competition Bureau of Canada
- Submit a claim to the TICO Compensation Fund within the required deadline (Correct answer)
- Contact their credit card company to dispute all charges immediately
- File a lawsuit against the registrant in Small Claims Court
Correct answer: Submit a claim to the TICO Compensation Fund within the required deadline
The TICO Compensation Fund is the primary protection mechanism and clients should submit claims promptly within the deadlines set by TICO.
Question 6: Which of the following is grounds for TICO to revoke a travel agent's registration?
- Temporarily closing the office for renovations
- Making a false statement in the registration application (Correct answer)
- Referring a client to a competing agency
- Charging a credit card surcharge disclosed in the contract
Correct answer: Making a false statement in the registration application
Providing false information in a registration application is a serious violation that can result in revocation of registration under the Travel Industry Act, 2002.
Question 7: Under TICO regulations, if a travel agent changes the location of their business, what must they do?
- Simply update their website and social media
- Notify TICO of the address change within the required timeframe (Correct answer)
- Apply for a completely new registration from scratch
- Only inform the Canada Revenue Agency of the change
Correct answer: Notify TICO of the address change within the required timeframe
Registrants are required to notify TICO of any change in their business address within the time prescribed by regulation.
TICO Travel Industry Laws 5
A travel wholesaler in Ontario sells a package holiday directly to a consumer.
Under the Travel Industry Act, 2002, is this permitted?