Study Guide: Chapter 4 - Registrant Obligations – Before the Sale

Summary:

The Travel Industry Act, 2002, and Ontario Regulation 26/05 establish clear obligations for registrants
concerning advertising travel services and conducting activities before making a sale. The legislation aims
to ensure that customers are provided with all the necessary facts to make informed purchases.

Registrant Obligations:

Understand and apply requirements regarding representations, including written, oral, and social media.

Comply with time and space limitations for representations.

Ensure all-in pricing and clear, comprehensible pricing statements.

Include specific information in written representations, such as deposit requirements, cancellation

terms, and refund policies.

Definitions:

Representation: A presentation of fact made in person, electronically or in print to induce someone to

act or enter into a contract. Examples: oral presentations, advertisements, brochures and websites.
1. Section 31 of the Regulation: Registrants must ensure that any representations made on their behalf comply
with the Act and Regulation. Therefore, all registrants must understand what is acceptable under the
legislation.
2. Written representations obligations: examples such as newspaper advertisements, brochures, or websites,
must contain the registrant's business name, address, and registration number. Residential phone numbers
should not be included in written representations.
3. Oral representations obligations: (for example, a sales presentation) do not have to include the registrant's
business name, address, and registration number. And social media: such as Facebook, Twitter, and
Instagram. The main page MUST include: business name, address and tico registration number.

Time and Space Limitations:

4. Time and space limitations apply to: A representation displayed on a billboard or bus board with large
wording and key phrases.
5. Time and space limitations are not required to:include a registrant's business name, address, and registration
number. Such as Facebook, tweets. However, the main pages do NEED to meet the requirements.
6. TICO requirements available in : one click.
7. TICO recommendations: TICO logo visible on the main page or home page, and all minimum requirements
available in 1 click. Also include comment about any condition that affect or limit the price offered. The
representation must identify the condition. Ex: price cruise may vary the standar accommodation the customer
chooses but the representation refers the customer to a website for more information of the availability.
8. Note: registrants should not assume that something is a limited medium unless TICO has stated that the
medium has time or space limitations.

Section 33 of the regulation: Price in representations: For all forms of representation, any
statement made about price must be:clear, comprehensible, and prominent. The GOAL: is that the consumer
knows the travel service cost. And it’s a fair competition for registrants advertise the price travel services in
provinces. Representation that refers to price: has to set total amount, including all taxes(federal or retail), fees,
service charge, surcharges, taxexs, and other chargers. “All in pricing is required.” (p.25).

Who is responsible to ensure that representations comply with the requirements of any act or regulation under
it in respect of taxes: registrants. Ex: section 40-1-retail taxes: no vendor shall advertise or post or quote a price
that includes the tax imposed by the act unless the vendor specifies separately the amount of the tax payable
under the act. TICO: is unable to provide registrants with legal advice. They have to seek legal advice on their own.

EXAMPLES OF CONDITIONS AFFECTING A TRAVEL SERVICE PRICE: The price of cabin on a cruise ship varies
according to location, room type, and inclusions. The price of a tour packadge varies according to departure date,
room type and inclusions. The price shown is per person based on doble occupancy, but different prices apply to
single, triples, quads and children.

EXAMPLE CORRECT WRITTEN REPRESENTATION:

1. Give customer clear idea of cost. NOT ACCEPTABLE: show price open ended, w/o upper limit bc its
misleading.
2. TICOS: suggests-advertisement: show price range available, conditions that may cause the price to vary to
show the consumer the realistic idea of the cost of service advertised.
3. Description and statement of the travel service discussed and further information available from a travel
agency/website.
4. The price of travel services: must be applicable at the time, in CA currency and must not refer to a
previous price.
5. The registrant shall disclose the names to all customers who entered into the agreement for those travel
services.
Example of the correct advertisement: Name of the company, statement of the service, business name,
full address, email, tico reg. number, airline name, location, price, and dates, and statement: exact
information about the trip, prices include taxes and fees only for dates shown, fares are non-refundable,
more info available from your Greystone travel agent.
Example of adv. Req. showing from to to prices: book now air only special, prices shown of locations,
same as above information.

INFORMATION INCLUDED IN WRITTEN REPRESENTATIONS: ex: brochures and websites.

SECTION 34 OF THE REGULATION: travel services must include:

1. Deposit and final payment requirements: amounts and due dates.

2. Total price, plus taxes and service charges.
3. Cancellation terms and charges, and dates.
4. Availability and costs of trip cancellation insurance and out-of-province health insurance if applicable.
5. Refund policy and penalty provisions.
6. Accommodation and transportation details.
7. Details of any construction or renovation, start date and duration of work.
8. Peroid which representation applies. Validity period printed in a tour operator's brochure.

TIME AND SPACE LIMITATIONS: representations such as, billboards or bus board no not need to include
section 34 reg. Also newspapers need to include: registrants business name, address and tico reg. number.
And if theres a price requires the information in section 33.
 Note: where a medium does not allow for full disclousure, registrants are encouraged to advise customers
where to obtain more detailed information.

PHOTOGRAPHS USED IN REPRESENTATIONS: SECTION 35 OF REG.

- Photos and videos must show what is being represented. If its an illustration it must state that
is not a photograph.

Disclosure: SECTION 36 OF REG.

Disclousre: the need in business transactions to give complete information-whole truth about any
matter that the other party should know to buy or contract. Written materials, sales representation and
disclousure must be included on the constumers invoice.

Requirements:

Provide complete information in sales presentations and written materials.

Inform customers about conditions affecting travel services, cancellation policies, and available insurance
options.

Disclose details of accommodation, transportation, construction or renovation, and validity periods.

What situations should a travel counsellor and travel agency/website disclose information to a
customer? Example: If a acountry celebrates the sabath on a Saturday such as Banks, retail stores,
tourist attractions are closed. The customer should be informed of the fact. Customers should be told
about local laws such as what can be worn in certain countries or circumstance.

Before entering into an agrement or taking credit card infor from a customer the travel counsellor or
agency must diclose the following:

1. If a customer is looking for a golf vacation and the proposed golf course is closed during the
dates considered, we have to inform.
2. We must disclose total Price and travel dates and description of the service, details of
cancellation and refund policies, limitations to transfer or cancellation of the service, such as,
penalties and costo f them and details of non-refundable payments.
3. Must inform terms and conditions of the purchase if the travel service and advise where
customers can find these details.
4. Inform trip cancellation insurance is available and what cancellation policies if they need to
change their travel plans. If insurance: inform the cx if not advise availability of trip
cancellation in the invoice.
5. Advise about out of province health insurance on the invoice, if not advise that the cx was
told.
6. Inform cx travel documnts requierd dor each person travelling. Typical information icnlude:
Passport reuired, valid after date of departure, visa required, required inoculations and if an
affidavit or letter from a second parent is required if one parent travelling with a child. It must
appear in writting in the invoice.

Affidavit: Legal statemnet written ans sworn or affirmed to before someone authorized to
administer an oath such as a notary public.
 7. Advise cx they may be refused entry to other countr, be in writting in the invoice.
8. Inform cx standard accomodations, utilities and services at destination diferente from those of
canada.
9. Advise cx answers any question they have.

SECTION 44 OF REG. : before counselling a customer, inform if they charge fees or service charge.
If refundable and conditions of the refund. This charges must be included as parto f the all in Price
charged to the cx, terms and conditions around this fee. Ex. Refundability.

False Advertising: consumer protection act 2002, prohibits unfare business practices. SECTION 28
TEVAEL INDUSTRY 2002, cx protected against any travel published advrtisemnt that is mileading.

SECTION 32: EXTENDS THIS PROHIBITION TO ANY REPRESENTATION.

SECTION 29: If the registrar consider that a registrant violates the act, the registrar has the power to:
stopped, retracted or correction issued. The orders are immediate. Registrants may appeal and
entitled to a hearing by the licence appeal tribunal.

Prohibition of false, misleading, or deceptive statements related to travel services.

Registrar's powers to order corrective actions for false advertising violations.

Definitions: Appeal: a request for a decisión to be reconsidered by a higher authority-license appeal

tribunal: LAT: independent tribunal to hear appeals and render decisions respecting compensation
claims and licensing activities regulated by TICOS board of directors regarding claims against the Ontario
travel industry compesnation fund. Stay: legal term that refers to a short term delay ordered by a judge
or tribunal .

Pre-Approval of Advertisements:

Requirement for registrants to submit proposed future advertising for approval after a false advertising
order. Duration for submitting advertisements for pre-approval set by the Registrar.No longer tan 90
days.

QUIZ QUESTIONS:

1. In cases where the register issures a false advertising order bc a registrnts advertise violates
the act, when does the order take effect? Immediatly.
2. Abc Agency is promoting a resort oni ts website, it has included and artists drawing od the
resort. Would tico approves this? Yes, as long as the drawing is accurate and the
representation states that the drawing is not a photograph.
3. Whe a travel retailer publishes a Price in an advertise,nt, Ontario reg, 26/05 requires that they
show; a total Price icnluding all fees, levies, serivce charges and taxes.
4. What req. Is the travel counsellor rew. To tel the cx? Details of all , travel documnets, all info
required. = al lof the above.
5. Which is true abou trip cancellation: if the traveler retailer sells insurance, they must indicate
ont eh incoice if the cx purchased trip canxellation insurance.
6. Which is not a req. For t.agnecy webstie: residentail phone number of the travel counsellor.
 7. Which is not comply with the rules for advertisments under the travel industry act, 2002? All
of the above bc they are written as the opposite of the true information.

Key Points to Remember:

Registrants must ensure representations comply with the Act and Regulation, including requirements for
written, oral, and social media representations.

Time and space limitations may exempt certain mediums from including all required information, but
pricing clarity remains essential.

Disclosure obligations extend to providing complete information about travel services, conditions,
cancellation policies, and available insurance options.

False advertising is prohibited, and corrective actions may be ordered by the Registrar.

Registrants may need to submit future advertisements for pre-approval after a false advertising order.
NO longer tan 90 days

Understanding and adhering to these obligations ensure compliance with the law and protect
consumers' interests.

Example Scenario:

A travel agency in Ontario plans to advertise a vacation package on social media. They must ensure that
their advertisement includes the business name, address, and TICO registration number on the main
page or homepage. Additionally, all representations regarding the price of the vacation package must be
clear and include all-in pricing, covering all fees, taxes, and charges. If the advertisement does not
comply with these requirements, the Registrar may issue corrective actions, including immediate
cessation of the advertisement or a requirement to publish a correction equally prominent as the
original publication. It is crucial for the travel agency to understand and follow these obligations to avoid
penalties and maintain compliance with the law.