Regulatory Compliance

Transcription

1 U.S. Travel Agency Regulatory Compliance ASTA Members-Only 2015 HANDBOOK A concise analysis of the federal regulations that impact travel agencies NOTICE TO USERS OF THIS INFORMATION: Copyright 2015 American Society of Travel Agents (ASTA). All rights reserved. ASTA owns the federal copyrights in the information which it has created below. If you are a dues-paid member of ASTA you may, as a privilege of ASTA membership, use the information below in that business and may share the information with the management and staff, BUT you MAY NOT REDISTRIBUTE OR DISCLOSE BY ANY METHOD the information to ANY PERSON OR FIRM THAT IS NOT AN ASTA MEMBER. Your use of this information constitutes your agreement that if you violate the distribution restriction set out above, you will be liable to ASTA, as liquidated damages, in the amount of $7,500. (IA-Rev )

2 Table of Contents ry ok Table of Contents... 1 Chapter 1 Introduction & Applicability... 2 Chapter 2 Advertising / Price... 3 Chapter 3 Baggage Fees... 7 Chapter 4 Code-Share... 8 Chapter 5 Cooling Off Rule Chapter 6 Disability (Web-Only Offers) Chapter 7 E-Ticket Expiration Chapter 8 Hazardous Materials Chapter 9 Insecticide Chapter 10 Opt-Out Chapter 11 Price Increase Chapter 12 Secure Flight Chapter 13 Compliance Checklists ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

3 Chapter 1 Introduction & Applicability Introduction To help ASTA members fulfill their regulatory obligations, ASTA has created this plain English document to provide citation and interpretation of the major federal statutes and regulations that directly impact travel agents. It is updated from time to time to reflect major changes that have occurred. ASTA understands that these statutes can be confusing, especially since they are often written in a bureaucratic style using words that have very specific and narrow meanings that may not always be apparent to the reader. Adding even more complexity, regulatory entities, such as the Department of Transportation (DOT), have the power to interpret statutes by issuing guidance letters and Advisory Circulars. Enforcement orders against airlines and ticket agents can also be used to further define a statute. As background, federal regulations come from two sources. When Congress passes a law, it is recorded in a set of books known as the United States Code (USC). Regulatory agencies, such as DOT, implement these laws through regulations in a set of books called the Code of Federal Regulations (CFR). Included in this handbook you will find links to the relevant USC, CFR, guidance letters and Advisory Circulars issued by the regulating government agency. Applicability In addition to anyone who sells air transportation to consumers, virtually any entity that lists or provides air travel information likely falls under the same regulatory scrutiny. DOT s statutes and regulations often refer to ticket agent, yet the term ticket agent is not limited to those that sell airline tickets. The government s ticket agent definition includes a person that as a principal or agent sells, offers for sale, negotiates for, or holds itself out as selling, providing, or arranging for air transportation. The U.S. Court of Appeals has interpreted this to include entities, such as Sabre Travel Network, that may only provide information, rather than sell air tickets. Subsequently, in enforcement orders against TripAdvisor and Travelzoo, the Department of Transportation (DOT) has found non-ticketing information brokers to also be ticket agents. The Department is currently considering adding meta search engines to its list of ticket agents. 2 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

4 Chapter 2 Advertising / Price Rules 1) Travel agents are prohibited from displaying, advertising or offering airfares that do not state the full and final price. The rule applies to airfares alone and to tour and cruise packages that contain an air component. All government fees and taxes, as well as travel agency fees, must be included in the price presented to the consumer. While charges included within the single total price listed (e.g., government taxes/fees and agency fees) may be listed separately, the total price must be displayed more prominently than the separately listed components. Prominence is achieved by using larger font size and bolding or other steps that draw the consumer s attention to the all-in price. Travel agents are prohibited from displaying, advertising or offering airfares that do not state the full and final price. The rule applies to tour and cruise packages that contain an air component. 2) One-way fare advertising is prohibited if roundtrip travel is required to get the fare. Each-way may be used as long as the disclosure of the roundtrip purchase condition is clearly and prominently noted and stated next to the each-way fare amount. Supplemental Guidance Group Contracts: Since group contract fares may be subject to a carrier-imposed price increase, such as a fuel surcharge increase, DOT has provided ASTA with the following language to disclose the possibility of additional carrier charges that may occur before any payment is collected from the consumer. In such cases, DOT requires the display of this notice be prominent and next to the advertised price. This disclosure is only needed if you want to reserve the right to pass on a carrier-imposed price increase that might occur before a payment is made by the customer. Prices in this brochure were effective on [date]. At the time you purchase your tour, prices may be higher because of an increase in carrier charges. For current prices, please [pick one] see our website at [or] call us at. Note: you must obtain signed written consent at time of deposit if you want to reserve the right to pass on a carrier- or government-imposed price increase to your customer while the transaction is under deposit. For additional details, see Chapter 11. Travel agents outside the US: The advertising rules apply to travel agents, regardless of location, that advertise in the U.S., including via the Internet, for air transportation within, to or from the United States. When enforcing the rule, DOT will look at a number of factors such as whether the fares are displayed in U.S. dollars and whether sales can be made to persons with addresses or telephone 3 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

5 numbers in the U.S. to determine if an advertisement via the Internet is being marketed to the general public in the U.S. and thus occurred in the U.S. Price Breakouts: Breaking out the charges contained within the total price is optional. If a breakout is provided, then the total price must be more prominent (larger font size) than the components. In addition, breakout components should not be described under a general heading such as taxes and fees that commingles government, carrier and ticket agent-imposed charges. Instead, travel agents must clearly distinguish between the type of charges, such as: taxes and government fees, agencyimposed fees and/or airline-imposed fees. Supplier Co-op Advertising: If a supplier and travel agent engage in co-op advertising in which the agency applies a fee not collected by the supplier, DOT offers the following guidance: Instead of advertising only $928 or $928, the ad can state from $928 and include the telephone number/website of the supplier in addition to the agency or agencies identified in the ad. According to DOT, the advertised price must be available from one or more of the sources cited in the advertisement. DOT also suggests that there be a statement in the ad that notifies consumers that an agency may charge a service fee. Consortium Advertising: According to DOT, when multiple travel agencies are named in an ad, it would be a violation to use from pricing, as allowed with supplier co-op advertising, unless the consortium is certain that the advertised fare without add-on agency or supplier fees is available from at least one of the sources cited in the advertisement. Corporate Booking Tools: DOT has confirmed to ASTA that as a matter of enforcement policy, DOT would not take action against entities that do not automatically include the agent s transaction fee (and thus the full price) on booking engines that are only accessible to private customers. Variable Price Advertising: In advertisements that highlight a destination, but allow the passenger to choose their gateway city, in which the taxes and fees will vary based on the passenger s selected origin city, the advertisement must specify the full fare for a specific origin city that is available to the consumer for purchase, and give conspicuous notice that the price is for departure from that city. Rounding: Online displays must display the exact fare or round up to an amount greater than the exact fare. Rounding down is not allowed. Free Advertising: When advertising airfare as free, ticket agents cannot charge the consumer any amount when the consumer attempts to obtain the free travel. DOT allows the use of free of carrier charges or without carrier charges if government imposed charges are to be collected, provided that taxes and government fees are properly disclosed. For additional details, see DOT s Guidance Letter on using free in advertising, which is cited below. Authority and Guidance Code of Federal Regulations 14 CFR a/b 4 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

6 DOT Frequently Asked Questions (See section IX) DOT General Guidance Letter - February 21, 2012 DOT Guidance Letter on Rounding Airfares Letter - February 28, 2012 DOT Guidance Letter Using Free in Advertisements - May 17, 2012 Regulating Entity U.S. Department of Transportation's (DOT) Aviation Enforcement Office Risk Assessment Since the new advertising rules became effective January 2012, DOT has issued several enforcement orders to ticket agents of various sizes with penalties in the tens of thousands of dollars. Recommendations Ensure that your front-line agents include all fees and charges, including travel agency fees, when offering airfares or packages including an air component. Review all collateral materials you produce to ensure that the full price, including your agency fees, is stated. If a breakout of the fare components is made, ensure that the full price is prominently listed (i.e., displayed in a larger font size than any broken out component). Don t use one-way in advertisements of airfares that require roundtrip travel. Full-Price Advertising Examples The following two examples are acceptable as long as $958 is the full price to be paid by the consumer: $958 $829 fare + $100 government taxes/fees + $29 agency fee = $958 5 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

7 The following two examples are not acceptable: $829 + $129 taxes and fees = $958 USD per person $829 + $129 taxes and fees = $958 USD per person This is not acceptable as it shows the base fare in larger font than the total price. This is not acceptable as it shows the full price in the same font as the broken out components. Variable Price Advertising Examples The following two variable pricing advertisements are acceptable: Experience the Joys of Lima, Peru from $999* *package price is $999 based on departure from Los Angeles, price will vary for other departure cities Note that variable pricing details follow immediately below the advertised price and are prominent The last example above shows a range that represents the full fare to be paid by a consumer from multiple destinations. 6 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

8 Chapter 3 Baggage Fees Rules 1. With online transactions, travel agents must inform the purchaser on the first screen where a fare quotation for a specific itinerary appears that additional fees for bags may apply and where the purchaser can go to see these fees. This disclosure must be prominent, and cannot, for example, require the purchaser to scroll to the bottom of a web page. 2. On all e-ticket confirmations, travel agents must include one of the following: a) the standard free baggage allowances and/or fees for carry-on, first and second checked bags; b) a direct link to a page on the agent s website where the applicable airline s baggage allowance and fee information is maintained; or, c) a direct link to the applicable airline s baggage allowance and fee information. Additional Considerations Corporate Booking Tools: DOT has confirmed to ASTA that the rule only applies to ticket purchases made through booking engines that are accessible to the general public in the U.S. It does not apply to corporate booking engines that are only accessible to private customers. Authority / Citation Code of Federal Regulations 14 CFR b/c Regulating Entity U.S. Department of Transportation's (DOT) Aviation Enforcement Office Risk Assessment Since the January 2012 effective date, several airlines and one online travel agent have been fined for failure to comply with the rules. Recommendations If you operate an online consumer-booking tool that offers airfare and/or tour/cruise packages that contain an air component, you should consult with your GDS and online booking tool provider to ensure that your online displays provide the required disclosure. You should review your e-ticket confirmations to ensure they contain the required baggage fee information. Likewise, with all tour/cruise packages sold containing an air component, ensure that the e-ticket confirmation for the air ticket that you pass on to your customer contains the required information. 7 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

9 Chapter 4 Code-Share Rule In any direct (oral, written or electronic) communication with a consumer concerning a flight that is part of a code-share arrangement, the ticket agent must: disclose the marketing carrier s name, the operating carrier s name (corporate identity) and any other name under which the flight is held out to the public; and, This disclosure must be made even if the inquiry is informational and no request to book is made. The rule applies to: Ticket agents doing business in the U.S., which includes those located outside the U.S. that provide travel services within the U.S. ; and, All transactions, including public and private (corporate and government) transactions. In conjunction with the listing of any flight segment on which the designator code is not that of the transporting carrier, there must be a legend that states operated by followed by the corporate name of the transporting carrier and any other name in which that service is held out to the public. With online displays, disclosure must be made on the first display of the website following a search of a requested itinerary in a format that is easily visible to a viewer and must be included on the same screen and next to the itinerary. Disclosure should not, for example, be provided through a hyperlink or when one passes the cursor over a link. Written notice is required at the time of purchase. The written notice must clearly identify the specific segment(s) that apply. The following notice, whether included as part of the itinerary or through some other method, will satisfy DOT's requirement Important Notice: Service between XYZ City and ABC City will be operated by Jane Doe Airlines d/b/a QRS Express. Your GDS has likely automated this process. If you have any doubt at all about whether a flight is a code share, investigate before the customer makes payment. The rule applies to you as a travel agent regardless of what the GDS does. In advertisements, a code-share relationship must be prominently disclosed (plainly visible next to the itinerary) and an abbreviated notice must be included in any radio or television advertisement, such as "Some services are provided by other airlines." Supplemental Guidance Selling a tour/cruise package that contains an air ticket when carrier details, such as flight numbers, are not disclosed/known until after purchase: In such cases, DOT requires travel agents to give the consumer the following notice: the identity of the carrier, which may include the carrier s code-share 8 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

10 partner, will be assigned and disclosed at a later date. This same disclosure must also be put on the customer s invoice/itinerary. Once flight details are disclosed by the tour/cruise company, the travel agent should provide all flight details, including all code-share names, in writing to the consumer. Authority and Guidance U.S. Code Code of Federal Regulations 14 CFR 257 DOT Guidance Letter of Jan. 14, 2011 Regulating Entity U.S. Department of Transportation's (DOT) Aviation Enforcement Office Risk Assessment This rule was originally adopted in March 1999, and a few years later DOT issued several enforcement orders to airlines and travel agents for failing to provide oral disclosure. In the years that followed, enforcement orders remained dormant. This changed dramatically following the 2009 Colgan Air crash near Buffalo after which Congress applied pressure on DOT through amendment to the Federal Aviation Act to step up enforcement of the rule. As a result, DOT issued an industry guidance letter in 2011 and began actively enforcing compliance with fines against airlines and travel agents running into the hundreds of thousands of dollars in total. In 2013 DOT even began a series of calls to agents to test compliance with the rule during telephone reservations. Recommendations Review your GDS and online booking tool to confirm that they identify the operating carrier s corporate name and marketing name with all code-share flight displays. Your tools should also provide written disclosure when code-share flights are identified in an itinerary or invoice. While your GDS, as well as your online booking tool provider, must comply with the rule too, DOT has determined that you are ultimately responsible for ensuring that the tools you use are compliant. Train your front-line agents to orally disclose both the marketing and operating carriers identities when providing itinerary information to consumers. Emphasize that the disclosure must be made the first time a carrier name or itinerary is revealed to the customer. Record the oral disclosure in the Passenger Name Record (PNR). Include a reference to code-share flights in any advertisement that may involve a code-share flight. 9 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

11 Chapter 5 Cooling Off Rule Rule In connection with sales made at any place other than your designated place of business, you must provide your customer with a fully completed receipt and notify him of his cancellation rights at the time of sale, which, at a minimum, requires he be given three days (until midnight of the third business day) after the sale to cancel a purchase of $25 or more. In addition, you also must provide your customer with a Notice of Right to Cancel message on the invoice or contract. On the front page of the invoice/contract you are required to include the following notice in font size 10 or larger: You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right. In addition, you must provide the buyer with the Notice of Cancellation form in duplicate at the time of purchase. See below. Notice of Cancellation New Chapter [ENTER DATE OF TRANSACTION] You may CANCEL this transaction, without any Penalty or Obligation, within THREE BUSINESS DAYS from the above date. If you cancel, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within TEN BUSINESS DAYS following receipt by the seller of your cancellation notice. To cancel this transaction, mail, or deliver a signed and dated copy of this Cancellation Notice or any other written notice to [Name of seller], at [address of seller's place of business] NO LATER THAN MIDNIGHT OF [date]. I HEREBY CANCEL THIS TRANSACTION. (Date) (Buyer's signature) 10 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

12 Supplemental Guidance The Cooling-Off Rule does not apply to transactions you accept in your permanent (home or retail) office location or by mail or telephone. It only applies to sales transactions made in public places, such as a coffee shop or a trade show. In addition, it does not apply if the transaction is the result of a prior negotiation that was done at your permanent business location. Since many travel transactions, especially last minute transactions, are non-refundable, it s important that you understand your risks when making a sale in your customer s home or in a public place. One option might be to ask the travel supplier to hold the inventory without payment for three days or more to give you the time you need to meet your obligation should the customer request a cancellation. Authority Code of Federal Regulations 16 CFR 429 Regulating Entity U.S. Federal Trade Commission (FTC) Risk Assessment We are not aware of any FTC enforcement actions against travel agents, yet FTC has enforced against Online Travel Agents on other grounds. The rule is designed to protect consumers against deceptive practices of some salesmen that operate door-to-door and/or in public places, such as in hotel meeting rooms. 11 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

13 Chapter 6 Disability (Web-Only Offers) Rule Effective June 10, 2014, large ticket agents must disclose and offer webonly discounts/fares (when offered) to prospective purchasers who: New Rule 1. contact them through other channels (e.g., by telephone or in the ticket agent's place of business); and, 2. indicate they are unable to use the agent's website due to a disability. Large ticket agents are defined as those that are not considered a small business under the Small Business Administration's size standard. SBA defines small business travel agencies as those that do less than $19 million in total revenue (not sales) annually. Authority and Guidance Code of Federal Regulations 14 CFR (s) Regulating Entity U.S. Department of Transportation's (DOT) Aviation Enforcement Office Risk Assessment We are not yet aware of any enforcement actions with this new rule. Recommendations Ensure that any web-only prices you offer will be made available through your indirect channels when requested by anyone that identifies themselves as being disabled. Train your telephone/face-to-face sales staff to offer web-only prices to anyone who self-identifies as being disabled. Since the risk of noncompliance is steep, it may make sense to not challenge purchasers identifying themselves as being disabled and requesting the web-only discount/fare. 12 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

14 Chapter 7 E-Ticket Expiration Rule Travel agents must notify the purchaser of the ticket s expiration date, if any. Authority and Guidance United States Code 49 USC b Regulating Entity U.S. Department of Transportation's (DOT) Aviation Enforcement Office Risk Assessment We are not aware of any enforcement actions. While the statute is currently on the books, DOT has not issued a rulemaking to develop formal regulations. Nonetheless, the statute could still be enforced. Recommendation Ensure that your GDS includes the ticket expiration date with your tickets and/or invoices. 13 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

15 Chapter 8 Hazardous Materials Rule On or before Jan. 1, 2016, ticket agents must: for assisted (e.g., telephone, face-to-face, , etc.) transactions provide a written hazardous materials disclosure statement on the passenger s invoice; and, Major Changes for online transactions provide the hazardous materials disclosure and obtain the purchaser s acknowledgement of understanding. Assisted Transactions With all assisted reservations, ticket agents must make the hazardous materials disclosure prior to check-in, which can be fulfilled by including the disclosure notice on the e-ticket receipt. DOT has not yet provided official disclosure language for fulfilling the new requirement with assisted transactions, but it will likely do so in mid In the absence of specific language, ASTA recommends that you include the following disclosure statement on all ticket receipts beginning on or before Jan. 1, You can program your reservation system to automatically include your hazardous materials message with all invoices. Federal law forbids the carriage of certain hazardous materials, such as aerosols, fireworks, and flammable liquids, aboard the aircraft. If you do not understand these restrictions, contact your airline or go to [INSERT LINK TO HAZARDOUS MATERIALS INFORMATION SOURCE, SEE BELOW.] Sources of Hazardous Materials Information Pack Safe: Safe Travel: If you would prefer not to link your customers to an external website, you can create your own hazardous materials safety resource on your website using the resources found on the two websites referenced above. Online Transactions Prior to online ticketing, information on hazardous materials restrictions must be provided and the passenger or a person acting on the passenger s behalf must give an indication of his understanding. A stand-alone message that displays the hazardous materials restrictions either through text or pictorial form may be used. Alternatively, the notification may be part of the general terms and conditions that 14 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

16 are displayed before the ticket is purchased; however, information on hazardous materials restrictions should be prominently displayed. With online purchases, the following recommended message and acknowledgement (check-box) can be used in lieu of the formal text found in rule: I have read and understand the following notice: Some everyday products, such as aerosol spray starch, can be dangerous when transported on the aircraft in carry-on and/or checked baggage. Changes in temperature or pressure can cause some items to leak, generate toxic fumes or start a fire. Carriage of prohibited items may result in fines or in certain cases imprisonment. Please ensure there are no forbidden hazardous materials in your baggage such as: Some Lithium batteries (e.g. spares in checked baggage, batteries over a certain size) Explosives / Fireworks Strike anywhere matches/ Lighter fluid Compressed gases / Aerosols Oxygen bottles/ Liquid oxygen Flammable liquids Pesticides/ Poison Corrosive material There are special exceptions for small quantities (up to 70 ounces total) of medicinal and toilet articles carried in your luggage, spare lithium batteries for most consumer electronic devices in carryon baggage, and certain smoking materials carried on your person. Certain items are required to be carried with you onboard the aircraft. For example, spare lithium batteries for portable electronic devices and cigarette lighters must be removed from checked or gate-checked baggage and carried onboard the aircraft. Traveling with medical oxygen, liquid oxygen, mobility aids and other assistive devices may require airline pre-approval or be restricted from carriage entirely. Passengers requiring these items should contact the airline operator for information on use of such devices. The FAA prefers, but does not require, that you provide pictorials with your message. However, the FAA has not provided any royalty-free artwork. You must create or license your own pictorials. Authority / Citation Code of Federal Regulations 49 CFR Recommendations for FAA Advisory Circular (AC): ormation/documentid/ ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

17 Note: the Advisory Circular referenced above will be updated in mid-2015 to reflect the elimination of the requirement to provide verbal disclosures with assisted reservations. Regulating Entities The FAA and DOT Pipeline and Hazardous Materials Safety Administration (PHMSA) Risk Assessment Enforcement begins January 1, The FAA has indicated that it only has direct enforcement authority over the carriers. Any FAA enforcement action against a travel agent will be directed at an individual carrier. As a result of this, some carriers have updated their supplemental ARC agreements to expressly mandate agency compliance with DOT s Hazardous Materials rule. Actionable Recommendations: Ensure that your online booking tool includes a check-box at the point of purchase that requires the purchaser to read and affirmatively agree to understanding the Hazardous Materials notice. Have employees review FAA s Pack Safe website so they can assist clients that may have questions. With assisted reservations, be certain you include the sample disclosure notice with all invoices. 16 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

18 Chapter 9 Insecticide Rule Ticket agents must refer ticket purchasers to the Department of Transportation s (DOT) disinsection (insecticide) website when selling travel to countries that require aircraft to be treated with insecticides prior to flight or while occupied. This referral must be made prior to ticket purchase. Additional Considerations Disclosure is only required if travel is to/from one of the countries listed on DOT s disinsection website. Authority / Citation Modernization and Reform Act of 2012 P.L , Feb. 14, 2012 DOT Guidance Letter April 19, 2012 Regulating Entity U.S. Department of Transportation's (DOT) Aviation Enforcement Office Risk Assessment DOT plans to address the Act s requirements in a future rulemaking. While specific guidance will be provided once a rule is issued, travel agents should do all possible to comply with the requirements of this statute. Actionable Recommendations Train front-line agents to recognize the countries listed on DOT s disinsection web page at: With all applicable face-to-face or telephone transactions, provide an oral referral to DOT s web page using the following sample script: The flight itinerary you have chosen is subject to insecticide spraying prior to a flight or while you are on the aircraft. Federal law requires that I refer you to DOT s disinsection website at: airconsumer.dot.gov/spray.htm. While not required by the statute, it is a good practice to also include this information on the invoice. See sample text that follows. 17 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

19 Some countries require insecticide spraying of aircraft prior to a flight or while you are on the aircraft. In such cases, federal law requires that I refer you to DOT s disinsection website at With online purchases that include travel to or through one of the countries listed on DOT s disinsection web page, you should refer the purchaser to DOT s web page. If you are unable to dynamically identify applicable flights, you should include a check box disclosure with all international flights or, at a minimum, include the disclosure in your click-through agreement. Below you will find a sample script: Some countries require insecticide spraying of aircraft prior to a flight or while you are on the aircraft. In such cases, federal law requires that I refer you to DOT s disinsection website at 18 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

20 Chapter 10 Opt-Out Rule Ticket agents may not automatically include optional products and services, such as travel insurance, in connection with air transportation or a tour/cruise package that contains an air component. In other words, optional products and services may not be added by default whereby the consumer must opt-out or deselect them. It is, however, acceptable to offer optional products and services in a way that requires the consumer to affirmatively select them by, for example, checking a box. Authority and Guidance Prior to this rule s effective date some airlines and travel agents would automatically include (pre-select/pre-check) optional ancillary products, such as travel insurance, forcing the buyer to opt-out of (deselect/uncheck) the product at check-out. Code of Federal Regulations 14 CFR c DOT Frequently Asked Questions (See section IX) Regulating Entity U.S. Department of Transportation's (DOT) Aviation Enforcement Office Risk Assessment DOT has not issued any enforcement orders against travel agents since the effective date of the rule. Recommendation Do not automatically include (i.e., bundle, pre-select or pre-check) optional products and services when selling air tickets and cruise/tour packages containing an air component. This rule applies to online and offline offers. If you offer an online booking tool to consumers, ensure that optional products and services are not pre-selected. 19 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

21 Chapter 11 Price Increase Rules Once a transaction is under deposit, a price increase can only be passed on to the consumer if the agent disclosed the potential for the increase and obtained the consumer s written consent to the potential for the increase prior to accepting the deposit. Once full payment is made, only a government-imposed tax or fee increase can be passed on to the consumer; this can only occur if the agent disclosed and obtained the consumer s written consent to the increase prior to acceptance of any payment. Additional Considerations For online transactions, DOT has indicated that a check box is an acceptable method of obtaining consent. For all other transactions (e.g., face-to-face and telephone), DOT s guidance is very specific. Only signed or recorded oral consent is acceptable. DOT suggests that travel agents put transactions on hold for a specific period of time to give consumers time to forward signed written consent to the travel agent. If you choose to record oral consent, you must first obtain the purchaser s consent to the recording. Authority / Citation Code of Federal Regulations 14 CFR and 14 CFR Regulating Entity U.S. Department of Transportation's (DOT) Aviation Enforcement Office Risk Assessment DOT has not issued any enforcement orders against travel agents since the effective date of the rule. Recommendations NOTE: Consumer consent is only required if you want to reserve the right to pass on an increase to your customer. Travel agents are not required to obtain written consent if they are willing to absorb any increase themselves. With online transactions, include a check-box that requires the purchaser to affirmatively agree to before completing the transaction. Sample language follows: I understand that the airline tickets or air tours I am purchasing are subject to supplemental price increases after the date of purchase due to 20 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

22 additional charges imposed by a supplier or government. I acknowledge that I may be charged additional sums by [your travel agency name] to offset increased fees, fuel surcharges, taxes, fluctuations in foreign exchange markets or any combination thereof. I hereby consent to any post-purchase price increases and authorize [your travel agency name] to charge my credit card for such additional amounts. For all non-online transactions, obtain your customers signed written consent for a potential price increase. This is especially important when selling contracted group tickets and tour/cruise packages containing an air component, as post-deposit price increases do occur from time-to-time. ASTA s Supplier Waiver Agreement contains sample language that you should consider incorporating into your supplier waiver agreement. The specific paragraph related to a potential price increase follows below: I understand that the airline tickets or air tours I am purchasing are subject to supplemental price increases after the date of purchase due to additional charges imposed by a supplier or government. I acknowledge that I may be charged additional sums by [your travel agency name] to offset increased fees, fuel surcharges, taxes, fluctuations in foreign exchange markets or any combination thereof. I hereby consent to any post-purchase price increases and authorize [your travel agency name] to charge my credit card for such additional amounts. 21 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

23 Chapter 12 Secure Flight Rule Travel sellers must provide Secure Flight Passenger Data (SFPD) for every passenger so that the Department of Homeland Security (DHS) can perform pre-flight screening of passengers against government watch lists. SFPD is defined as the passenger s full name, date of birth and gender. Optional SFPD data elements include a Redress Number and Known Traveler Number, which are explained below. The rule applies to all flights that fly to, from or overfly the U.S. and U.S. territories. Rule Purpose Identify known and suspected terrorists, prevent individuals on the No Fly List from boarding an aircraft, identify individuals on the Selectee List for enhanced screening, and, in general, help expedite the airport security screening process. Requirements Travel agents are required to collect and provide the passenger s Full Name, Gender and Date of Birth (DOB) in the Supplemental Remarks (SR) field in the formats identified by the agent s Global Distribution System (GDS). In addition, if the passenger has a Redress Number or Trusted Traveler Number, it should be provided. Ticket agents ARE REQUIRED to collect and provide the passenger s Full Name, Gender and Date of Birth (DOB) Full Name: The Secure Flight name must match the government-issued identification the passenger intends to present at the airport prior to boarding. Travel agents and automated booking tools should prompt customers for the traveler s name exactly as it appears on the government ID the traveler intends to present at the airport. The SR field should only include first, middle and last names. Prefixes and suffixes are not part of the Secure Flight rule and should not be collected in the SR field. Travel agents are not required to verify or validate the accuracy of the information provided by the customer. Note: Every PNR carries two name fields the PNR name field, which drives the name that appears on the ticket and boarding pass, and the Supplemental Remarks (SR) name field, which is the name that is sent to TSA to comply with the Secure Flight Rule. Date of Birth: The Date of Birth (DOB) given should match the DOB shown on the identification the traveler plans to present at the airport. Gender: The gender given should match the gender shown on the identification the traveler plans to present at the airport. 22 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

24 Redress or Known Traveler Number: A Redress Number is a TSA-issued code given to certain passengers whose names have triggered "false positive" matches to watch lists in the past. A Known Traveler Number is the PreCheck Number or Global Entry Number. Both are optional. Minors: Minors (even those without an ID), must comply with the Secure Flight Rule. Note: TSA does not require minors (17 and under) to present a photo ID to pass through security. The rule states that if the individual is under 18 years of age and does not have a verifying identity document, TSA may, on a case-by-case basis, authorize the minor or an adult accompanying the minor to state the individual s full name and date of birth in lieu of providing a verifying document. Passenger Refusals: Providing Secure Flight data is mandatory. If a passenger refuses to provide full name, date of birth, and gender, a boarding pass will not be issued to the passenger and the passenger will not be permitted to enter a sterile area or board an aircraft. In addition, if you issue a ticket and fail to comply with the Secure Flight Rule, you may be at risk of receiving a debit memo and/or the traveler may be at risk of having his reservation canceled by the operating airline. SFPD Submission Deadline: If a reservation is ticketed prior to 72 hours of a flight s scheduled departure, then Secure Flight data must be included in the PNR at least 72 hours in advance of the scheduled departure. If a reservation is ticketed within 72 hours of the flight s scheduled departure, then Secure Flight data must be included in the PNR at the time of ticketing. Authority and Guidance Code of Federal Regulations 49 CFR 1560 Regulating Entity Department of Homeland Security (DHS) Risk Assessment DHS has indicated that it is monitoring travel agency compliance. However, enforcement action would likely come from an airline rather than directly from DHS. Since the effective date of the rule, we have not received a report of enforcement action by DHS or an airline. Recommendations Train front line agents to collect Secure Flight date elements with all reservations. Ensure that your online booking tools collect and transmit Secure Flight data to the GDS. Ensure that your paper and online customer profile forms collect Secure Flight data elements. 23 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

25 Perform a pre-ticketing audit of all PNRs for Secure Flight Passenger Data (SFPD). This could be as simple as a visual check of the PNR or as complex as updating your automated Quality Control software to restrict ticketing unless SFPD is found in the PNR. If you have an online booking engine, be certain to include TSA s privacy notice when collecting Secure Flight data elements. The privacy rule requires specific language, as set forth below, to be displayed. As an option, the requirement can be satisfied by posting a link to TSA s website You are not required to provide the privacy notice in telephone, personal or other non-internet-based contacts with prospective air travelers. Privacy Notice (TSA Update: August 13, 2009): The Transportation Security Administration (TSA) requires you to provide your full name, date of birth, and gender for the purpose of watch list screening, under the authority of 49 U.S.C. section 114, the Intelligence Reform and Terrorism Prevention Act of 2004 and 49 C.F.R parts 1540 and You may also provide your Redress Number, if available. Failure to provide your full name, date of birth, and gender may result in denial of transport or denial of authority to enter the boarding area. TSA may share information you provide with law enforcement or intelligence agencies or others under its published system of records notice. For more on TSA privacy policies, or to review the system of records notice and the privacy impact assessment, please see the TSA website at 24 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

26 Chapter 13 Compliance Checklists When making an airline reservation or a tour/cruise reservation that contains an air component, travel agents should follow the following checklists: Front Line Checklist Disclosed code-share flights with first reference of flight details Noted code-share disclosure in PNR Presented the TOTAL price, including the agency s fee, to the purchaser Referred the purchaser to DOT's disinsection web page with applicable itineraries (those that include travel to/from a destination listed on DOT s disinsection website) Informed the purchaser of a possible price increase, and obtained written or recorded oral consent Included the Hazardous Materials notice on the invoice. [Optional until Jan. 1, 2016] Collected Secure Flight Passenger Data elements Ticketing Quality Control Checklist The standard baggage allowances and fees are either shown on the e-ticket confirmation or a direct link to the information is provided on the e-ticket confirmation Written disclosure of the marketing and operating carriers' names are included on the invoice/itinerary For all applicable itineraries, a referral to DOT's insecticide website is included The hazardous materials notice is included on the invoice [Optional until Jan. 1, 2016] The ticket expiration date is printed on the e-ticket confirmation 25 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015

27 Online Booking Tool Checklist On the first screen where a fare quotation for a specific itinerary appears, purchasers are notified that additional fees may apply and are given information on how to find them The marketing and operating carriers identities are disclosed whenever flights are presented The TOTAL price, including the agency s fee, is presented Purchasers are not required to uncheck a box to opt-out of optional products/services Purchasers are required to check a box to acknowledge their understanding of the Hazardous Materials notice [Optional until January 1, 2016] Baggage information is displayed during the shopping process, and is found on the e-ticket receipt Purchasers with applicable itineraries are referred to DOT's insecticide web page Purchasers are required to check a box to consent to a potential price increase, or this information is included in the terms & conditions All Secure Flight Passenger Data elements, including Trusted Traveler number, are collected at the time of booking 26 ASTA U.S. Travel Agency Regulatory Compliance Handbook 2015