CAA and OFT issue draft guidance for travel agents

Holidaymakers should have access to fair, clear and transparent information at the right time according to draft guidance for travel agents, tour operators and price comparison websites published today for consultation by the Civil Aviation Authority and the Office of Fair Trading.

The new joint guidance, which covers both aviation specific and general consumer protection legislation, is designed to help the travel sector comply with the regulations and raise awareness of their legal responsibilities.

Two versions have been developed: an in-depth guidance document and a shorter version for quick reference, which sets out key requirements that all businesses operating in the travel industry should be aware of.

As part of a 10-week consultation process, the CAA and OFT will be arranging a series of roundtable meetings with industry to take their views on both versions of the guide The final version will then be published in early 2013, after which the CAA and the OFT will commence a review of compliance in the sector and look at whether enforcement action is necessary to ensure the requirements are being met.

The draft guidance sets out the views of the OFT and CAA on what the law means for the travel industry, and provides examples of practices that could breach the law.

It specifically covers the requirement to display prices clearly and transparently up front; to make clear which airline the customer is booking with; to make sure optional extras are displayed on an opt-in basis rather than pre-selected; to provide information in a timely and accurate fashion; and that terms and conditions must be fair and clear.

The document also details the CAA and OFT’s roles if the law is breached, and the approach they will take where enforcement action is necessary.

Iain Osborne, group director of regulatory policy at the CAA said: "Travel agents are required to provide prices and other relevant information to their customers in a clear and transparent way, so they can make an informed choice when booking their holiday.

"In many cases travel agents are already doing this, but we are aware of issues where information has not been displayed clearly and this is misleading for customers. This draft guidance will therefore ensure travel agents understand the requirements, and we’ll be monitoring the situation and taking action where necessary so they comply with the requirements fully and consumers can easily access the information they need."

Cavendish Elithorn, senior director of the OFT’s goods and consumer group, said: "Unfair business practices impact on both industry and consumers. The draft guidance has been designed to help those in the travel sector and their advisers understand what they need to do to comply with the law. Following its work on payment surcharges in the airline industry, the OFT is keen to ensure that the wider travel industry is aware of its responsibilities to its customers."

This draft guidance has been developed separately from the CAA’s guidance to industry on the use of the ATOL certificate.

The short version of the draft guidance is available here, and the full document can be found here.