TICO Module 2 Flashcards
Describe the developments of that lead to having travel legislation in Canada.
Unregulated growth reached crisis levels in the early 1970s with many travel companies going bankrupt and consumers being scammed.
Which provinces have travel legislation?
Quebec, Ontario, BC
When was Ontario and Quebec’s travel legislation enacted?
1974
When was British Columbia’s travel legislation enacted?
1977
What does the Travel Industry Act; 2002 do?
The Travel Industry Act; 2002 sets down the rules by which travel retailers and travel wholesalers must operate in Ontario.
What are the 2 main components of the Travel Industry Act; 2002?
The Act (set of rules) and the regulations (how the rules are enforced).
Staying informed about travel advisories, the need for visas, hazardous conditions, as well as the full disclosure of any and all other relevant information, etc. is part of the ______ _____’s responsibilities.
The travel agent has a responsibility to stay informed of any relevant information and fully disclose it to the clients.
What are the 6 mechanisms do Ontario, Quebec, and British Columbia use to protect consumers?
- a registration system
- posting of security
- a compensation fund
- trust accounting
- truth in advertising
- supervision by licensed staff
What is the importance of a registration system?
A registration system means properly educated individuals licensed to work in a regulated market.
What is the posting of security?
This is when new registrants provide a security deposit of $10,000 as a bond to TICO for two years or until TICO is satisfied with the business’s compliance.
How does trust accounting work?
All consumer money goes into an account that pays for the consumer’s travel products, separate from the general business account.
The _____ __ ___________ mechanism forbids the use of _________ advertising materials.
The truth in advertising mechanism forbids the use of deceptive advertising materials.
What is the supervision/education requirement?
To have a TICO licensed manager overseeing daily operations.
What happens if someone from Ontario purchases a travel product from Manitoba and the travel retailer does not deliver on the product?
The consumer cannot follow up on a claim on a business outside of Ontario through TICO.
What happens if someone from Manitoba purchases a travel product from an Ontario-based retailer, but the retailer files for insolvency?
The Manitoba-based consumer can follow up with TICO about the Ontario-based registrant.
What is the role of the registrar?
The registrar supervises the carrying out of the Act and Regulations.
Who is a registrant?
A registered retailer or travel wholesaler.
What is a non-registrant?
A person operating outside of TICO’s jurisdiction or illegally.
What is an outside sales representative?
A travel counselor who works from a location outside the registered office of the travel agency.
What is the role of the Statutory Director?
The Statutory Director at TICO performs legal functions.
What is the job of the License Appeal Tribunal?
It hears appeals of decisions to suspend, revoke, etc. decisions such around licenses and claims.
