Trading Standards has called for new powers to prosecute travel companies while adding its voice to demands to scrap or reform the Linked Travel Arrangement (LTA) provisions of the Package Travel Regulations (PTRs).
The Chartered Trading Standards Institute (CTSI) demanded it be brought in line with proposals to enhance the powers of the Competition and Markets Authority (CMA) and CAA in a document, ‘Wish You Were Clear’, addressed at PTRs reform.
However, Abta has expressed concern at regulators gaining powers to impose fines without going through the courts. Speaking in March, Abta director of legal affairs Simon Bunce noted proposals to grant the CMA powers to rule on breaches of consumer law and impose fines, saying: “We’re concerned it may not result in fair outcomes. The CMA’s mission is to ensure consumers get a fair deal. That is good but should not be the basis for interpreting the law. Courts interpret the law.”
The government proposes similar powers for the CAA and Bunce warned Abta members: “If you disagree with the CAA, you must be mindful it’s your regulator.”
Does anyone – businesses, consumers, regulators – understand LTAs?
The CMA enforces general consumer protection, the CAA runs Atol protection and Trading Standards oversees the PTRs.
The Department for Business and Trade has promised a consultation on PTRs reform, leading the CTSI to call for action on LTAs and simplified PTR information rules after a survey of 1,000 consumers found three in four barely read booking terms.
Trading Standards lead officer for travel Bruce Treloar told Travel Weekly: “Does anyone – businesses, consumers, regulators – understand LTAs? My feeling is: ‘No one is selling them, let’s get rid of them’. But we need some way to protect a holiday that is not a package.”
The CTSI also wants a sector-specific offence for travel businesses of providing incorrect, false or misleading information to consumers.
Alan Bowen, advisor to the Association of Atol Companies, described this as “sensible”, saying: “It would be easier to prosecute.”
Bunce noted: “This is already part of Abta’s code of conduct.”
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