Agents warned they risk incurring fines over new advertising rules

By Ian Taylor and Juliet Dennis

Travel agents risk incurring fines from the Competition and Markets Authority (CMA) if they fail to identify organisers of package holidays in all advertising, a leading travel marketer has warned.

The requirement to identify tour operators in all ‘invitations to purchase’, including window cards, websites, social posts, emails and print promotions, came into force last year under the Digital Markets, Competition and Consumers (DMCC) Act, which imposed new rules on pricing.

Writing in Travel Weekly, Steve Rushton, director of Travel Marketing Systems, warned: “The travel industry has spent a lot of time focusing on CMA guidance regarding pricing transparency. But the requirement to make clear who the customer is buying from deserves more attention.”

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Until now, agents have typically left details of the holiday provider “in the background until the quote or booking stage”, said Rushton, but this is no longer permitted.

He said: “Many businesses do not appear to have fully adapted their marketing. You still see [window] offer cards showing a destination, hotel, departure date and price, but nothing identifying the principal behind the offer.”

Industry lawyer Farina Azam, partner at Fox Williams, confirmed: “The DMCC Act makes it an offence to omit ‘material information’ from an invitation to purchase.

This includes the identity of the trader and any other person on whose behalf the trader is acting. A retail agent acting on behalf of a principal [operator] must include the principal’s name, business address and email address.” 

Azam cited agent concerns around fitting all the information into an advert and consumers contacting the operator direct, but warned: “Failing to provide this information is automatically unlawful and could result in enforcement action.”

Agency consortia said they were advising members on the issue.

Advantage Travel Partnership marketing director David Forder said the reputational and financial risks of non-compliance were “significant” and encouraged a “proactive approach”. 

The consortium has hosted a CMA webinar, updated member guidance and ensured marketing materials for members are compliant. 

“We’ve focused on helping members turn complex regulation into practical action,” said Forder.

The Travel Network Group said materials created for members were reviewed. Marketing director Ross East added: “Where offers are presented as packages provided by one of our business partners, this is clearly signposted, with relevant partner information transparently included in the associated terms and conditions.

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