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OFT ‘disappointed’ at ABTA financial protection scheme changes
The Office of Fair Trading says it is ‘disappointed’ that ABTA has changed its code of conduct.
The OFT says the association is withdrawing its consumer code from the OFT Consumer Codes Approvals Scheme due to a change in its financial protection arrangements.
ABTA is to introduce a new code today together with guidance notes for members.
The new arrangements will not protect consumers’ deposits and prepayments to the same extent as the previous OFT-protected ABTA code.
ABTA’s new code will not have OFT approval.
OFT director of market transformation Colin Brown said: “We are disappointed that ABTA has taken the decision to change its code and withdraw from the scheme.
“The new ABTA code differs from the previous one in a number of ways, including significant changes to its financial protection scheme.
“Our door remains open for future discussions with ABTA. The OFT will ensure that codes and businesses displaying our Approved Code logo meet all of our stringent requirements.”
ABTA chief executive Mark Tanzer said: “Although the new code is not that which was approved by the OFT last year, we’re continuing to work with the OFT and their Consumer Codes Approval Scheme.
“In the meantime, however, members should not be making use of the OFT Approved Code logo.”
He added that the new code and guidance documents aim to be more easily understandable to members in place of the “rather legalistic” wording of the previous code.
“Whilst much of the content of the code remains the same, it has a new format and there is significantly more guidance,” said Tanzer. “The guidance is intended to build up over time as a full guide to best practice in the travel industry, and the new format means that it can be more easily updated to take account of changes in industry practice and technological developments.”
Report by Phil Davies
Phil Davies
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