In order to provide you with the best online experience this website uses cookies.
By using our website, you agree to our use of cookies. Learn more.
TICO applauds Ontario's upcoming review of Travel Industry Act
Ontario’s Ministry of Government and Consumer Services announced Tuesday (June 21) that it will conduct a comprehensive review of the Travel Industry Act, 2002 and Ontario Regulation 26/05 – news that was met with applause by members of the Travel Industry Council of Ontario (TICO) at the corporation's Annual General Meeting (AGM) that same day.
“This is the first such review since TICO’s inception in 1997, long requested by the industry and stakeholders over the years,” Richard Smart, president and CEO of TICO, told members at the meeting, which was held in a conference room at the Mississauga Living Arts Centre.
The ministry-led review, which Smart said will evaluate the Travel Industry Act and Ontario Regulation “cover to cover, A to Z,” will address such items as modernizing the Act to reflect today’s business landscape, as well as identifying new parameters for reducing financial burden experienced by small businesses.
“When you think about how the travel industry has changed…The internet, online and e-commerce isn’t even mentioned in the Travel Act or the regulation,” Smart told PAX, calling the government’s review “long overdue.”
As far as accommodating the needs of small businesses are concerned, Smart said the Travel Industry Act applies to all TICO members equally, but acknowledged that regulatory change is due.
“Small business is the backbone of Canada’s economy and in Ontario,” Smart told PAX, noting the feedback TICO has received from its registrants regarding the Act, specifically in terms of how it can be simplified so businesses can better serve their customers.
“We can’t be the regulator everywhere,” Smart told PAX. “We need to look at finding regulations that are balanced with the risks underlying the type of business being conducted.”
This, while at the same time, “without diminishing consumer protection,” Smart said.
Ontario’s Ministry of Government and Consumer Services has already approved some changes to Ontario’s travel laws, such as amending the requirements for businesses that sell one-day tours, modifying security deposits and working capital requirements for low-risk registrants closely tied to government and extending the align claim deadline for Trip Completion Claims to six months.
These changes will come into force July 1, 2016.
Another change on the horizon is a law that will require registered businesses to display a total price to consumers – including all charges, fees, and taxes – when advertising travel services. That rule will come into effect Jan. 1, 2017.
Frank Denton, assistant deputy minister of Ontario’s Ministry of Government and Consumer Services, said the Ontario government’s upcoming review of the Travel Act will be “a very open and transparent process.”
“We know there are things [in the Act] that are aggravating to small businesses that don’t need to be there. There are things that make it difficult for TICO to operate with optimal efficiency. And there are ways we can improve consumer protection in the current marketplace. Those are the themes we’re looking to deliver on,” Denton said.
Frank Denton, assistant deputy minister of Ontario’s Ministry of Government and Consumer Services, speaks at TICO's AGM at the Mississauga Living Arts Centre
Denton attended TICO’s AGM on behalf of Marie-France Lalonde, Minister of Government and Consumer Services, who was scheduled to attend a summit on francophone issues in Newfoundland that same day.
“She is very interested in TICO and this review,” Denton told members.
Other topics of discussion at TICO’s AGM included the corporation’s decision to increase fees to its compensation fund.
TICO will unroll the increase in two phases over two years: phase one will see the contribution rate increase from 15 cents to 20 cents per $1,000 of Ontario sales, effective July 1, 2016; phase two will see an increase from 20 cents to 25 cents per $1,000 of Ontario sales, effective April 1, 2017.
“While fee increases are never popular, the board believes the increase is necessary to ensure that TICO has the resources it needs to execute its consumer protection mandate in an efficient and effective manner,” Jean Hébert, TICO’s board chair, told members, noting that the rates are still lower compared to when TICO assumed delegation in 1997.
The results from TICO’s annual fiscal report were also revealed (click here to view the report), as well as TICO’s law enforcement statistics for 2015-2016.
During that period, TICO launched 19 new investigations, resulting in 105 charges laid and 48 convictions. Fines approaching $1,000,000 in restitution were issued, resulting in 1,520 days of jail time and 2,555 days of probation.
Of all the consumer complaints against registrants, the issue of fraud has risen to the top of the list, it was revealed.
“We’re committed to ensuring a level playing field from all registrants,” Smart said.
For more information on TICO visit tico.ca.