Abta's Code of Conduct is more than a regulatory tool

Abta introduced its Code of Conduct more than 60 years ago, not long after the organisation was founded, to ensure that the Abta badge represented the highest business standards.

 

 

At first glance it may seem that it is simply a regulatory tool and of course there is truth in this, however the Code is much more than that.

 

It contains guidance on consumer law that can be incredibly useful in helping members in the day-to-day running of their travel business.

 

 ‘Assured advice’ by Trading Standards

 

Abta has been in a Primary Authority co-ordinated partnership with Kent County Council Trading Standards since 2019. Primary Authority is a way for businesses to receive assured and tailored advice on meeting regulations through a single point of contact. 

 

Abta runs the partnership with Kent Trading Standards for the benefit of its members and takes part in regular meetings to share information and updates. This means that Trading Standards can understand the regulatory needs and working practices of Abta members and provide advice that fits.

 

Kent Trading Standards described its engagement with Abta through the Covid period: “Our regular meetings meant we were aware of what was happening and able to disseminate information to other Trading Standards, which allowed other regulators to provide advice and guidance with confidence.”

 

The Code of Conduct and Guidance on the Code of Conduct are assured advice under the partnership, which means that Trading Standards agree that they correctly represent the legal rights of consumers. This is a benefit to members as by following the Code they can be confident that they are complying with the law.

 

Assured advice also means that if members abide by the Code and guidance they won’t need to follow conflicting advice from other sources; regulatory uncertainty is reduced and members can proceed with confidence in their practices and procedures.

 

Further, other Trading Standards authorities should respect this advice when regulating member businesses. If members are approached by any other Trading Standards authority they can refer to the Primary Authority arrangement provided by Abta, which will explain how the member is protected.

 

The Primary Authority can block any enforcement action if it conflicts with Primary Authority advice that has been given. Members can be assured that the resources they devote to compliance will be recognised around the country.

 

Kent Trading Standards understands the importance of the Primary Authority partnership with Abta: “Abta is at the forefront of the holiday industry, providing advice and guidance to its members and ensuring consumers using an Abta member are protected.

 

"Abta being in a Primary Authority partnership with Kent Trading Standards for over five years shows its commitment to regulation and its members and consumers.”

 

Guidance in the Code

 

The Code is supported by a guidance document, which provides members with practical advice and a steer through the significant amount of legislation that applies to travel businesses.

 

The Code covers varied consumer law rules and obligations, for example Atol Terms, the Consumer Rights Act and the Unfair Trading Regulations, and seeks to give practical guidance in one place.

 

For example, it covers:

 

• Significant changes

The Package Travel Regulations (PTR) contain important rules but are light on detail as to how the rules apply. The Code can help to fill in some of these gaps. A common example is that although the PTR say what organisers must do when a significant change occurs, crucially, they don’t say what a significant change is. The Code has rules of thumb that have become well used in the industry, for instance that a significant change is a flight time change of more than 12 hours, or a change of accommodation to a lower standard, etc.

 

• Customer documents

Giving your customers the correct documentation is fundamental to having a properly run business. There are rules on this in the PTR and the ATOL Regulations, as well as other sources such as contract law. The guidance brings all of these together and sets out what receipts, invoices, certificates etc. must be issued and when. There is also important information on what agents must do to show they act as agent, essential if they are to avoid liability for something that in reality is outside their control.

 

• Travel advertising

With bodies such as the Advertising Standards Authority policing this area, plus the importance of not misleading customers, getting advertising right is fundamental.

 

However, the law can be pretty broad. Still, there are particular issues that are important in travel, such as what needs to be included in prices, how to advertise optional extras, how to deal with charges such as resort fees and if you have a promotional price, whether you are advertising it fairly and correctly. The Code guidance covers these issues.

 

• This article was first written for Abta’s Travel Law Today magazine (issue 19), which will be published at the upcoming Travel Law Seminar on May 12-13. MacFarlane will be providing a look at this year’s consumer law changes at the event. To find more information and register, click here.