O. Reg. 428/01: GENERAL

 

ontario regulation 428/01

made under the

Travel Industry Act

Made: November 21, 2001
Filed: November 22, 2001
Printed in The Ontario Gazette: December 8, 2001

Amending O. Reg. 806/93

(General)

1. Clause 50 (1) (a) of Ontario Regulation 806/93 is revoked and the following substituted:

(a) the customer paid for the travel services and the payment or any part of it  was received by a registered travel agent;

2. Paragraph 1 of subsection 50 (3) of the Regulation is revoked and the following substituted:

1. For a claim arising out of the failure of an end supplier to provide travel services, unless the end supplier is an airline or cruise line.

3. (1) Clauses 51 (1) (a) and (b) of the Regulation are revoked and the following substituted:

(a) the travel agent acted in good faith and at arm’s length with an entity that was  a travel wholesaler, an airline or a cruise line;

(b) the travel agent passed all or part of the customer’s money to the entity referred to in clause (a); and

(2) Subsection 51 (2) of the Regulation is revoked and the following substituted:

(2) The travel agent is entitled to be reimbursed only for the portion of the customer’s money that the travel agent passed to the travel wholesaler, airline or cruise line referred to in clause (1) (a).

(3) Subsection 51 (4) of the Regulation is revoked and the following substituted:

(4) The travel agent is not entitled to be reimbursed for any commission or other remuneration, including a travel service charge, owing on account of the travel services contracted for by the customer.

4. The Regulation is amended by adding the following section:

51.1 (1) A travel wholesaler is entitled to be reimbursed for money paid by the travel wholesaler to reimburse a customer or to provide alternate travel services to the customer if,

(a) the customer paid for the travel services and the payment or any part of it  was received by a registered travel agent;

(b) the travel agent passed all or part of the customer’s money to the travel wholesaler;

(c) the travel wholesaler acted in good faith and at arm’s length with an airline or cruise line;

(d) the travel wholesaler passed all or part of the customer’s money to the airline or cruise line referred to in clause (c); and

(e) the travel services were not provided to the customer due to the failure of an airline or cruise line.

(2) The travel wholesaler is entitled to be reimbursed only for the portion of the customer’s money that the travel wholesaler passed to the airline or cruise line, as the case may be.

(3) The travel wholesaler is entitled to be reimbursed only if the customer would otherwise have had a claim against the Compensation Fund.

(4) The travel wholesaler is not entitled to be reimbursed for any commission or other remuneration, including a travel service charge, owing on account of the travel services contracted for by the customer.

5. Subsection 52 (4) of the Regulation is revoked and the following substituted:

(4) The travel wholesaler is not entitled to be reimbursed for any portion of money owing from the travel agent that represents a commission or other remuneration, including a travel service charge.

6. Section 56 of the Regulation is revoked and the following substituted:

56. If a customer has not received any of the travel services paid for, the registrant shall pay to the Council the amount of all commissions and other remuneration, including travel service charges, for the travel services. 

7. Subsection 57 (1) of the Regulation is revoked and the following substituted:

(1) The maximum amount that may be reimbursed to a customer or registrant for a failure to provide travel services is $5,000 for each person whose travel services were paid for by the customer.

8. Section 59 of the Regulation is amended by adding the following subsection:

(1.1) Despite subsection (1), a customer or registrant is entitled to be reimbursed if the failure to provide travel services is due to the failure of an end supplier, if the end supplier is an airline or cruise line.

9. Subsection 60 (2) of the Regulation is revoked and the following substituted:

(2) A payment under subsection (1) shall be no more than $5,000 per person.

10. This Regulation comes into force on January 1, 2002.