December 13, 2016
Earlier today, the Ontario Government announced that it was introducing new rules to ensure up-front pricing for travel services (amendments to the Ontario Travel Industry Act).
In particular, the Government will require that travel advertising includes taxes and fees as of January 1, 2017. The changes announced today will apply to any advertisement by a registered travel agent or wholesaler that refers to the price of travel services, including any print, television, radio or online advertising.
In making the announcement, the Ontario Government said:
“All-in pricing reduces confusion and prevents surprises for consumers who purchase travel services in the province, such as all-inclusive vacations”.
The Government also announced that it was launching a public consultation to solicit public opinion on ways to strengthen protection for travellers.
This announcement reflects a larger Canadian regulatory trend for companies to clearly disclose total fees for their goods or services upfront.
For example, full upfront price disclosure was one of the federal Competition Bureau’s (Bureau) top advertising priorities in 2016. A few of the issues the Bureau raised in 2016 in this area included allegedly misleading upfront prices, prices that were not available because of additional fees, “drip pricing” (i.e., prices incrementally disclosed through the purchasing or check-out process) and suggestions that some fees charged by private companies were government fees, when in fact they were merely additional fees charged by a company. See for example, Comwave to pay over $300,000 to settle telecom services advertising case, Avis and Budget to ensure prices advertised are accurate and Bell customers to receive up to $11.82 million as part of Competition Bureau agreement.
The Bureau also recently warned consumers to confirm fees for online travel offers and encouraged the reporting of advertising that does not adequately disclose additional fees or conditions. See Traveling for the Holidays? Don’t get wrapped up in surprise fees.
Full upfront disclosure of fees for goods and services remains a top priority for Provincial and Federal regulatory agencies in Canada. As such, companies and other organizations advertising to Canadian consumers are well advised to ensure that price claims are clearly stated upfront (and any additional fees or conditions adequately disclosed).
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