Travellers can soon say goodbye to some misleading ads that offer cheap vacations but don't reveal hidden costs that can boost the price substantially when it comes time to pay.
New rules taking effect in Ontario this week make it illegal for travel agents and travel wholesalers to promote low prices without disclosing fuel surcharges, security taxes, airport improvement fees and other add-ons that can boost a ticket's cost by hundreds of dollars.
But airlines, railways and other transportation companies that are federally regulated will still be able to offer what one consumer advocate calls "absurdly low prices" like the $1 airfares once offered by defunct Jetsgo.
"It is certainly a huge gap in consumer protection," said Michael Janigan of the Public Interest Advocacy Group in Ottawa, which is pushing federal Transport Minister Jean Lapierre for improvements.
Consumer and Business Services Minister Jim Watson is to announce the changes — in the form of amendments to the Travel Industry Act that will take effect on Friday— today at Toronto's Union Station.
Travel agents will also be obligated to tell customers what types of documents they'll need to successfully get to their destinations, such as passports, visas and letters authorizing single parents to travel with children.
"It's definitely a victory for consumers," said Michael Pepper, head of the Travel Industry Council of Ontario.
Travellers must also be told of the availability and cost of trip-cancellation service and any out-of-province health insurance.
Hidden fees have exploded since this aspect of the law was last reviewed a decade ago, Pepper added.
The rising price of oil, for example, has prompted airlines to occasionally announce fuel charges. And, after 9/11, the federal government imposed an airport security tax.
But consumers will still have to take into account federal and provincial sales taxes when looking at advertised prices — travel agents and wholesalers won't have to detail them.
Low-price ads can trick people into buying travel services they might not purchase otherwise.
That is "less than consumer-friendly," Janigan said.
The lack of federal regulations on this front could, however, leave travel agents at a disadvantage, Janigan said.
"The big problem is the travel agents will now be subject to these regulations but the airlines will not. They will still be able to advertise the $2 fares or whatever with absurdly large ads and be able to attract clientele from travel agents."
He said more people still book airfares with travel agents than do so on their own.
What a load of crap!! Why don't the car dealerships have to add all the taxes, delivery fees registration fees etc etc when they list the price of a car? Typical govenment BS!!!
You got to love our government. They tell the airlines to not mislead the public by not only showing what the airline charges, but what the governments collects. Its your damn taxes that raise the bill so high!
Good on you government let the people know how much you like to screw them!
I agree that the article applies to all carriers. I remember Westjet making an announcement about including the fuelsurcharge in the price so it did not pop up as a surprice when you went to pay for it.
DA900 wrote:You got to love our government. They tell the airlines to not mislead the public by not only showing what the airline charges, but what the governments collects. Its your damn taxes that raise the bill so high!
Good on you government let the people know how much you like to screw them!
DA900
The airline has to detail all fees and surcharges but does NOT have to detail what the govt charges. Read the article again.
consumers will still have to take into account federal and provincial sales taxes when looking at advertised prices — travel agents and wholesalers won't have to detail them.
DA900 wrote:You got to love our government. They tell the airlines to not mislead the public by not only showing what the airline charges, but what the governments collects. Its your damn taxes that raise the bill so high!
Good on you government let the people know how much you like to screw them!
DA900
The airline has to detail all fees and surcharges but does NOT have to detail what the govt charges. Read the article again.
consumers will still have to take into account federal and provincial sales taxes when looking at advertised prices — travel agents and wholesalers won't have to detail them.
"security tax" would be a gov't charge...
Hey, aren't Monopolies illegal in Canada??? So how come NavCanada exsists?
EI-EIO where do you think those surcharges and fees go? The Nav Canada fees, airport improvement fees, and as cyyz said security tax are all government fees in one way or another. They are collected directly by the government or by a third party. The government did not just give them the airports or ATC facilities the still own them but just have another party operate them.
NavCanada and Airport charges are paying for use of facilities - the money does not go to general revenue - the airport rents do but that's the price of doing business. The security charges are I agree more dubious because CATSA doesn't publish accounts!
I was pointing out that government is still hiding the money that goes directly to them and that's a hypocrisy on their part. But coming from Europe where you have to show the tax included price I would say that wouldn't I?
