Travel Law & Legislation

Sale of Goods ActThe Act provides that wherever goods are bought they must “conform to contract”.

This means that items sold through eBay by business sellers must be: • of "satisfactory quality"; • "as described"; and • "fit for purpose".

• What this means for companies in the travel and tourism industryHolidays are also regarded as goods, so the Act makes tour operators responsible for the package holidays they sell to the public; they must take care in selecting all the elements of those packages. The Act also states that goods must conform to what has been presented before sale, so tour operators must describe holidays accurately in their brochures. Travel agents also have a responsibility to avoid any misleading statements about resorts or hotels.

• Example in practiceA travel agent pretends to have personal knowledge about a resort or hotel with which he or she is actually totally unfamiliar. This contravenes the Act.

Supply of Goods & Services• What this means for companies in the travel and tourism

industryAs far as tour operators are concerned, this applies not only to transport and accommodation but also to the advice and assistance offered by resort reps. The same standards also apply to advice given by travel agents, who must make sure that their information is correct and regularly updated.

• Examples in practiceA tour operator continues to use a hotel for package holiday accommodation although it received a number of complaints about poor hygiene conditions the previous year. A travel agent gives information about visas which is not up-to-date. These both contravene the Act.

Trades DescriptionWhat the 1968 Act does: Deals with mis-description of goods in general and its particular job is to ensure, as far as possible,

that people tell the truth about goods, prices and services • This Act makes it an offence if a trader –

• a. Applies a false trade description to any goods; or • b. Supplies or offers to supply any goods to which a false trade description is applied;

or • c. Makes certain kinds of false statement about the provision of any services,

accommodation or facilities• What this means for companies in the travel and tourism industry

As far as tour operators are concerned, descriptions of resorts or hotels, for example in their brochures, must be accurate and truthful at the time when they were written. This means that information included in their brochures must be checked each year to make sure that nothing has changed, and if any changes do take place later, tour operators must inform their customers as soon as they can. Travel agents also have a responsibility not to give any information that may mislead customers.

• Examples in practiceA travel agent leaves late availability cards in the window after the holidays have all been booked. A tour operator describes a hotel as a short walk from the beach when in fact it is over a mile away. These both contravene the Act.

Unfair Contracts Terms• What this means for companies in the travel and tourism

industryThis applies to tour operators even if they do not own the airline or hotel providing those services; they are still liable for any accommodation problems because they are responsible for ensuring that the hotels meet acceptable standards. Under the terms of this Act customers would have the right to sue the tour operator for substandard accommodation rather than suing the overseas supplier, which would in practice usually be more complicated. (The tour operator would probably sue its supplier)

• Example in practiceA tour operator claims that it is not responsible for faulty plumbing in a hotel used by its customers. This contravenes the Act.

If you sell goods or services to consumers by:• the internet • digital television • mail order, including catalogue shopping • phone • fax

then you need to know about the Consumer Protection (Distance Selling) Regulations 2000. The key features of the regulations are:

• you must give consumers clear information including details of the goods or services offered, delivery arrangements and payment, the supplier's details and the consumer's cancellation right before they buy (known as prior information)

• you must also provide this information in writing • the consumer has a cooling-off period of seven working days.

Distance Selling Regulations

Consumer Protection

• The CPRs make it an offence for traders to treat consumers unfairly through misleading actions, misleading omissions or aggressive practices.

• What this means for companies in the travel and tourism industryThis Act is particularly important for tour operators, since they have to prepare their brochures long in advance of the holiday dates.

• Example in practiceA tour operator does not make it clear that possible aircraft fuel surcharges are not included in the price of the package. This contravenes the Act.

Data Protection• What this means for companies in the travel and tourism

industryTravel agents and tour operators hold data about individuals on automated systems, so they must register with the Data Protection Registrar. They must also make sure that all data is relevant to their business, accurate and up-to-date, and kept no longer than necessary. They must not sell or give this information to a third party without the customer's consent, although they can use it themselves for purposes that they have declared on the register.

• Examples in practiceA travel agent leaves details of one customer on screen visible to the next customer attended to. A tour operator uses data about its customers for purposes not declared on the official register. These both contravene the Act.

EC Directive of Package Travel

• The other regulations that are really important for both tour operators and travel agents are contained in the EC Directive on Package Travel 1992, which also defines exactly what a package holiday is.

• According to the Package Travel Regulations 1992 a package holiday is a combination of not less than two of the following, when they are offered for sale at an inclusive price and when the service covers a period of more than 24 hours and includes overnight accommodation:

-Transport -Accommodation -Other tourist services which make up a significant proportion of the package

• Examples of these other services would be excursions, transfers to and from the hotel, car hire, and the availability of holiday reps.

• The Directive also makes it clear that package holidays can be offered by travel agents as well as tour operators.

Consumer Credit

• The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend money to consumers to be licensed by the office of fair trading. Trading without a licensing arrangement is a criminal offence and can result in a fine and/or imprisonment.

Important Note

It is vital you understand the laws and acts that affect the travel industry as well as your role within them. On reflection of the laws and legislations stated in this PowerPoint your actions or reports may have an impact on your role and your organisation.Your knowledge and understanding will be tested in this section.