LATA Package Tour Regulations and General Data Protection Regulation (GDPR) Seminar 16 th March 2018
Important Disclaimer The following slides are provided free and are only a very basic guide to the law. They are designed to be read in conjunction with the associated presentation. They are not intended to reflect the law in full and therefore should not under any circumstances be relied upon when considering particular situations. To the extent permitted by law neither LATA, The Chartered Trading Standards Institute, Mayo Wynne Baxter LLP nor any of their partners or staff shall be liable for any loss suffered as a result of anyone relying on the contents of these notes and readers are strongly advised that they should take specific legal advice as and when particular situations arise.
2018 LATA PRESENTATION THE NEW PACKAGE TRAVEL DIRECTIVE • BRUCE RUCE TREL RELOAR
Trading Standards Ofcers and the current Holiday and Travel Law • The Package Travel Regulatons 1992 • The Consumer Protecton from Unfair Trading Regulatons 2008, and an example of; “a quiet secluded resort” misleading descripton.
Background to current laws and example • Package Travel Regulatins 1992 • Protects all customers who buy tours and • The law does not apply to packages sold holidays sold or ofered for sale in the UK. in other countries by Operators based in the UK. • Covers marketng material, service • If the business is based in another EU delivery and insolvency protecton Member State, targets UK consumers • Applies to combinatons of transport, BUT complies with the rules in that other accommodaton and other tourist services Member State, no additonal security is like car hire needed in the UK. • Businesses selling packages must provide • For businesses based outside the EU and security for customers money in case they UK e.g. Peru, targetng UK consumers on collapse, which includes bringing the Internet should protect their holidays customers back sold • If the holiday includes air transport the business must hold an ATOL • UK approves only three methods of protecton, Bonding, Insurance or Trust Funds
Si, what di EU cinsumers liik fir when buying a hiliday currently? • Q - Is there any insolvency protecton 1) They pay separately for a under current rules? fight, then buy a hotel online • Q - Is this a package and is there any 2) They buy a weekend stay in a hotel in Peru, buying protecton? online 3) They pay online for a fight • Q -Will this be regulated? and hotel at an inclusive price • Q -Is your money protected under 4) They buy a fight online current rules?
Online Dubai Hitel misdescribed! • Misleading ‘material informaton’ relatng to the holiday; “informaton which is unclear, unintelligible or ambiguous” • Investgaton for consumers who had booked with this pictorial representaton and found… • Website investgaton, deliberate atempt to mislead
The new EU Package Travel Directve OVERVIEW • The core piece of regulaton in travel is fnally being overhauled afer 25 years! In 1992 budget airlines and the internet were not as popular! • Airlines will need to protect the holidays they sell (facilitate) through (targeted) website click-throughs. • 3 new responsibilites for Travel Agents • Linked Travel Arrangements (paying separately for holiday elements) If online, all within 24 hours • Business Travel exempt • Standard Informaton Form for consumers (before payment made) • For most LATA members there will not be massive change, but will need to be careful of the new Linked Travel Arrangements
So what will remain in the new PTD? • For fight-inclusive packages and LTA’s, there will stll be ATOL protecton • For non-fight packages and LTA’s, the optons of Bonding, Insurance and Trust Accounts remain. • Package organisers will stll be responsible for all the elements of the package, fnancial protecton and repatriaton • The three major changes causing concern? Linked Travel Arrangements, Place of Establishment and Website “click-throughs”! • The defniton of package has changed but it remains a requirement that the service must cover more than 24 hours or include overnight accommodaton.
PTR’s… a package means the PTD… a package means a combinaton pre-arranged combinaton of at of at least two diferent travel least two of the following services for the purpose of the same components when sold or ofered trip or holiday …… for sale at an inclusive price and “a travel service means: when the service covers a period a) carriage of passengers of more than 24 hrs or includes b) accommodaton (other than for overnight accommodaton;- residental purposes) a) transport c) car rental b) accommodaton d) any other tourist service not c) other tourist services not ancillary to a) b) or c) but forming a ancillary to transport or signifcant proporton or essental accommodaton and accountng feature of the package for a signifcant proporton of the package (Over 24 hours or including overnight accommodaton)
Investgatng misleading descriptons by bedbanks! • Misleading ‘main characteristcs’ of the holiday • e.g. “the hotel has a wonderful sea view”
So, under the New Package Travel Directve • The Defniton of a package is being widened • Separate services sold at an inclusive price • Separate services sold at a tital price • Anything advertsed as a “package” • Website click-through where traveller’s name, email and payment details are transferred • And the New Linked Travel Arrangement (LTA) • Choose and pay for each service separately • Click-through where traveller’s details are nit transferred
And what about these Linked Travel Arrangements? These are NOT packages and do not provide the same protecton! So what are they? 1. The consumer can, through a facilitator (e.g. Travel Agent), combine separate travel services paying the trader SEPARATELY for each service or... 2. The consumer can make bookings within 24 hours from ‘multple traders’, via a facilitator, where the consumer is passed to other traders in a ‘TARGETED’ manner but without their payment data being passed on (eg. airline websites where consumers purchase a fight and are ‘linked’ to other websites for eg. accommodaton or car hire ) Consumers buying Linked Travel Arrangements, will ONLY beneft from fnancial protecton from the person who ‘facilitates’ the arrangement!
Examples of LTAs eg. A Travel Agent facilitates the sale to a Latest BEIS cinsideratins : consumer of a fight and then a hotel in • Afer the frst element of an LTA is separate contracts. purchased online, there should be a The Travel Agent must provide insolvency requirement for an electronic message protecton. If both booked and the Agent then as to whether the consumer is collapses, then the contracts should contnue. If purchasing an LTA or package the airline or hotel collapse, NO refund. • There may be an issue under the new eg. An airline website facilitates the sale of a GDPA next year as to online package fight and links the consumer to a hotel purchases where the consumers website where a hotel is purchased within 24 payment details are automatcally flled hours on the targeted website The airline shall provide insolvency protecton • If the consumer is not told that they and repatriaton . No protecton if only hotel have purchased an LTA it will collapses automatcally become a package eg. A Hotel website facilitates the sale of room • BEIS will issue a GUIDANCE document and links to an airline website where fights are for consumers and business as soon as purchased the Regulatons are passed If the hotel collapses, the consumer will be refunded BUT NOT for the fight!
So what are the important advantages? 1. Consumers will be provided with a ‘Standard Informaton Form’ detailing their arrangements priir ti purchase . 2. The ‘Package Holiday Informaton form’ lists their key rights regarding fnancial protecton and proper performance eg. right to a price reducton in the case of non-performance of the contract 3. The ‘Linked Travel Arrangement form’ will state; a) The consumer will NOT beneft from any of the rights of package holiday travellers b) Each of the individual service providers will be responsible for the proper performance of their service c) Only the facilitatir of the Linked Travel Arrangement shall provide insolvency protecton d) If the facilitator does not provide this ‘standard informaton’ the arrangement will beneft from all the package holiday protectons
Will the Due Diligence defence be relevant? Courts will stll require evidence of a checking system which can be regularly updated, to include; i) Contracts signed-of with suppliers…eg. facilites and pictures, before ofering for sale ii) Clear Terms and Conditons for holiday sales and Special Ofers iii) Instructons to Resort staf to inform of changes before and during the holiday season (errata)
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