First look at proposed changes to the Travel Industry Act

First look at proposed changes to the Travel Industry Act

TORONTO — New legislation introduced by Ontario’s Minister of Government and Consumer Services says that a travel salesperson could be required to take educational courses if a complaint is made against them.

TICO’s VP, Operations, Dorian Werda, clarifies that the proposed bill includes enabling provisions for a number of areas, including a new registration category for individual travel counsellors (or salesperson).

TICO does not register individual travel counsellors. Says Werda: “The bill, if passed, proposes that if a complaint was received – for example, lack of disclosure at the time of booking and no invoice issues – in future the Registrar may require a travel salesperson to take a seminar, webinar or some kind of enrichment regarding the requirements in the area of disclosure and invoicing. All this is yet to be determined and nothing is in place.”

The proposed legislation also includes a proviso that travel salespeople would no longer have to register as both a travel agent and a wholesaler. The legislation would also allow the Ontario government to make regulations governing advertising by out-of-province travel sellers who target Ontarians.

A long-awaited review of the Ontario’s Travel Industry Act was given the green light by the provincial government back in 2016. TICO says it received 55 recommendations from the travel industry as part of the government-led Comprehensive Review of the Travel Industry Act, which was first written in the 1970s and last amended in 2002.

“The MGCS has been undertaking a detailed review of TIA to consider how the marketplace has evolved since TIA was last reviewed in 2002 and whether reforms are needed to better protect consumers who purchase travel services in Ontario. Some rules may be outdated and place an unnecessary burden on businesses that sell travel services in Ontario,” said TICO President and CEO Richard Smart at a July 2017 UP Express press conference with Minister of Government and Consumer Services Tracy MacCharles.

TICO says the Ontario government’s review aims to achieve three goals: strengthen consumer protection; reduce the regulatory burden on registrants; and improve regulatory efficiency.

“The new rules being proposed meet the objectives and are aimed at increasing consumer confidence and protection when making travel purchases,” says TICO. “If passed, the Bill would amend the Travel Industry Act, 2002 to recognize changes in the marketplace, such as online purchases and advertising by out of province travel businesses targeting Ontarians. It would also create new registration requirements for individual travel salespersons and introduce new enforcement tools including administrative penalties to assist TICO to effectively administer and enforce Ontario’s consumer protection legislation.”

Smart added: “It is encouraging to have a major bill tabled by the government that enhances consumer protection while reducing burden for businesses and strengthening the marketplace for registrants. The industry has changed significantly since the legislation was introduced and, if passed, these changes should benefit all stakeholders.”

If the bill passes, the ministry will consult with stakeholders on the regulations and additional measures aimed at lessening the burden on small business, including proposed changes to financial requirements.

For more information regarding the proposed legislation click here.

 

With files from The Canadian Press.

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