| General Travel Information
Law protects Albertans who join travel clubs
Albertans who join travel clubs will benefit from a new consumer
protection law that came into force this spring.
The new Travel Clubs Regulation, included in the Fair Trading
Act, spells out cancellation rights, licensing conditions
and requirements for a bond or other security.
“The Travel Clubs Regulation will help ensure fair
treatment for consumers and make it easier for us to crack
down on any unscrupulous operators,” said David Coutts,
minister of Alberta Government Services. The regulation was
established after a consultation with more than 1,000 Albertans.
Travel clubs, which can cost thousands of dollars to join,
advertise that members obtain deals on the future purchase
of transportation, accommodation or other services related
to travel. Consumers have said that, in some cases, they felt
pressure to sign a contract after a sales presentation and
were then unable to cancel lifetime contracts.
A 10-day cooling off period, during which purchasers can
cancel contracts without giving a reason, addresses that issue.
Consumers may also cancel: up to one year from the date the
contract was signed if the travel club wasn’t licensed
at the time, the contract didn’t include the required
information, the consumer didn’t receive a copy of the
contract within 15 days of signing it, or if both the business
and the consumer didn’t sign the contract.
In addition, consumers have a right to cancel at any time
if the goods, services, discounts or other benefits become
unavailable because a travel club goes out of business or
substantially changes its operation.
There is a licensing and security requirement for travel
club operators. After a contract is cancelled, consumers may
make a claim against the security if money paid in advance
isn’t refunded within 15 days.
Travel club operators must also follow a code of conduct.
They are required to identify themselves as a travel club
operator; indicate that their goal is to enter into a contract
with the consumer; use legible print on the contract; and
commit an unfair practice as defined by the Fair Trading Act.
A five-year limit has been placed on the length of travel
club contracts.
The penalty for violating the regulation is a jail term of
up to two years, a fine of up to $100,000 or a combination
of both.
The new rules do not apply to contracts signed before the
regulation took effect on May 17. It is also not applicable
if the total amount paid to enter the contract is less than
$200 for a single , or $400 for a household containing two
or more adults.
In an Alberta Government Services release consumers are advised
to:
* Never sign a contract unless they have read and understood
it;
* Take their time - don’t be rushed into making a decision;
* Shop around - compare prices offered by other businesses;
* Check to see if the travel club is licensed;
* Know their rights and obligations.
A tip sheet on the Travel Clubs Regulation is available from
the Alberta Government Services Web site (www.gov.ab.ca/gs)
or by calling 1-877-427-4088.
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