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(Consolidated up to 75/2009)
ALBERTA REGULATION 56/2002
Fair Trading Act
TRAVEL CLUBS REGULATION
Table of Contents
1 Definitions
2 Non‑application of Regulation
Travel Club Licence
3 Class of licence established
4 Term of licence and renewal
5 Fee
6 Security
7 Representations
8 General Licensing and Security Regulation
Travel Club Contract
9 Contents of contract
10 Contract to be signed
11 Contract to be provided to consumer
12 Term of contract
13 Right to cancel within 10 days
14 Right to cancel within one year
15 Additional cancellation rights
16 Method of cancellation
17 Effect of cancellation of contract
18 Return of consideration after cancellation
Code of Conduct for Travel Club Operators
19 Code of conduct
General Provisions
20 Offences
21 Consequential amendment
22 Expiry
23 Coming into force
Schedule
Definitions
1 In this Regulation,
(a) “licensee” means the holder of a travel club licence;
(b) “travel club” means an organization that provides its members with access to goods, services, discounts or other benefits on the future purchase of transportation, accommodation or other services related to travel;
(c) “travel club business” means the business of soliciting, negotiating, concluding and performing travel club contracts;
(d) “travel club contract” means an agreement between a travel club operator and a consumer under which the consumer purchases a membership in a travel club, and includes any collateral agreement between the consumer and the travel club operator;
(e) “travel club operator” means a person who engages in the travel club business.
Non-application of Regulation
2 This Regulation does not apply where the total consideration paid by a consumer to enter into a travel club contract, including any ongoing periodic fees, is less than
(a) $200, where there is only one adult member of a household, or
(b) $400, where there are 2 or more adult members of a household.
Travel Club Licence
Class of licence established
3(1) The class of licence to be known as the travel club licence is established.
(2) The holder of a travel club licence is authorized to engage in the travel club business at the location for which the licence is issued.
Term of licence and renewal
4 A travel club licence expires on the last day of the 12th month after it is issued or renewed.
Fee
5 The fee to issue or renew a travel club licence is $200.
Security
6(1) No travel club licence may be issued or renewed unless the applicant submits to the Director security in the form and amount approved by the Director.
(2) Before the term of a travel club licence expires, the Director may, where the Director considers additional security to be necessary, require the licensee to submit additional security in the amount specified by the Director.
Represent-ations
7(1) A licensee must not represent, expressly or by implication, that a travel club licence is an endorsement or approval of the licensee by the Government of Alberta.
(2) Subsection (1) does not preclude a licensee from representing that the licensee is licensed under this Regulation.
General Licensing and Security Regulation
8 The General Licensing and Security Regulation (AR 187/99) applies to the travel club business.
Travel Club Contract
Contents of contract
9(1) A travel club contract must be in writing and must include
(a) the consumer’s name and address;
(b) the travel club operator’s name, business address, telephone number and, if available, facsimile number and e‑mail address;
(c) where the travel club operator employs a salesperson to solicit, negotiate, conclude or perform travel club contracts on its behalf, the salesperson’s name;
(d) the date and place at which the travel club contract is entered into;
(e) the period in which the travel club contract is to have effect;
(f) a description of the goods, services, discounts or other benefits offered under the travel club contract that is sufficient to identify the goods, services, discounts or other benefits;
(g) the total consideration to be paid by the consumer to enter into the travel club contract, including any ongoing periodic fees;
(h) the terms of payment;
(i) where credit is extended,
(i) a statement of any security taken for payment, and
(ii) the disclosure statement required under Part 9 of the Act.
(2) A travel club contract must include on the front of the contract
(a) a statement about the consumer’s right to cancel the contract, as set out in the Schedule, or
(b) a notice, in not less that 12‑point bold type, indicating where in the contract a statement about the consumer’s right to cancel the contract, as set out in the Schedule, is located.
(3) In the statement referred to in subsection (2) the heading and the statement of cancellation rights must be printed in not less than 12‑point type.
Contract to be signed
10 A travel club contract must be signed by the consumer and the travel club operator.
Contract to be provided to consumer
11(1) The travel club operator must provide the consumer with a copy of the signed travel club contract in writing or electronic form within 15 days after the contract is signed by the consumer.
(2) For the purposes of subsection (1), a travel club operator is considered to have provided the consumer with a copy of the travel club contract if the copy is
(a) sent by e‑mail to the e‑mail address provided by the consumer to the travel club operator for the provision of information related to the contract,
(b) sent by facsimile to the facsimile number provided by the consumer to the travel club operator for the provision of information related to the contract,
(c) mailed or delivered to an address provided by the consumer to the travel club operator for the provision of information related to the contract,
(d) transmitted to the consumer in a manner that ensures that the consumer is able to retain the copy, or
(e) provided to the consumer in any other manner by which the travel club operator can prove that the consumer has received the copy.
Term of contract
12 The term of a travel club contract must not exceed 5 years.
Right to cancel within 10 days
13 A consumer may cancel a travel club contract at any time after the date the contract is entered into until 10 days after the consumer receives a copy of the signed contract.
Right to cancel within one year
14(1) In addition to the right of cancellation under section 13, a consumer may cancel a travel club contract within one year of the date the contract is entered into
(a) if the travel club operator does not hold the licence at the time the travel club contract is entered into, or
(b) if section 9, 10 or 11 is not complied with.
(2) A notice of cancellation under this section must state the reason for cancellation.
Additional cancellation rights
15(1) In addition to the right of cancellation under sections 13 and 14, a consumer may cancel a travel club contract at any time if the goods, services, discounts or other benefits to be delivered under the contract become unavailable or substantially unavailable as provided in the travel club contract as a result of
(a) the travel club operator’s discontinuance of operations,
(b) substantial change in the operation of the travel club.
(2) A notice of cancellation under this section must state the reason for cancellation.
Method of cancellation
16(1) A travel club contract is cancelled on the giving of a notice of cancellation in accordance with this section.
(2) The notice of cancellation may be given by any means, including personal service, registered mail, courier or telecopier or by any other method, including orally, that indicates the intention of the consumer to cancel the travel club contract and enables the consumer to provide evidence of the date that notice of cancellation is given.
(3) Where the notice is given other than by personal service or orally, the notice of cancellation is deemed to be given when sent.
(4) The notice of cancellation may be sent or delivered to the travel club operator at the address set out in the travel club contract or, if the consumer did not receive a copy of the travel club contract or the address of the travel club operator was not set out in the travel club contract, the consumer may send or deliver the cancellation notice
(a) to an address of the travel club operator on record with the Government of Alberta,
(b) to an address of the travel club operator known by the consumer, or
(c) where the travel club operator employs a salesperson to solicit, negotiate, conclude or perform travel club contracts on its behalf, to an address of the salesperson known by the consumer.
(5) If the consumer does not know or is unable to locate an address referred to in subsection (4), the consumer may send or deliver the notice to the office of the Director of Fair Trading.
Effect of cancellation of contract
17(1) The cancellation of a travel club contract in accordance with this Regulation operates to cancel the contract as if the travel club contract had never existed.
(2) A cancellation of a travel club contract in accordance with this Regulation also operates to cancel
(a) any related sale,
(b) any guarantee given in respect of money payable under the contract, and
(c) any security given by the consumer or a guarantor in respect of money payable under the contract,
as if the travel club contract had never existed.
(3) Where credit is extended or arranged by the travel club operator, the credit contract is conditional on the travel club contract whether or not the credit contract is a part of or attached to the travel club contract, and if the travel club contract is cancelled, that cancellation has the effect of cancelling the credit contract as if the travel club contract had never existed.
Return of consideration after cancellation
18(1) Within 15 days after a travel club contract is cancelled under section 13, the travel club operator must refund to the consumer the total consideration paid by the consumer to enter into the contract.
(2) Where a travel club contract has been cancelled under section 13 and the consumer has received goods or services under the contract, the travel club operator is entitled to reasonable compensation from the consumer for the goods or services provided by the travel club operator, but the travel club operator’s right under this subsection does not arise until the travel club operator complies with subsection (1).
(3) Within 15 days after a travel club contract is cancelled under section 14 or 15, the travel club operator must refund to the consumer a pro‑rated portion of the total consideration paid by the consumer to enter into the contract, based on the percentage of the term of the contract remaining after the date of cancellation.
Code of Conduct for Travel Club Operators
Code of conduct
19(1) In this section, “travel club operator” includes every individual who acts on behalf of a travel club operator in the travel club business.
(2) A travel club operator must comply with the following code of conduct:
(a) when first contacting a consumer, a travel club operator
(i) must truthfully inform the consumer of the travel club operator’s identity, and
(ii) must indicate that the travel club operator is soliciting the consumer for the purpose of entering into a travel club contract with the consumer;
(b) a travel club operator must not use print that due to its size or other visual characteristics is likely to materially impair the legibility or clarity of documents the travel club operator provides to a consumer;
(c) a travel club operator must not commit an unfair practice.
(3) Where a contravention of subsection (2) occurs in the course of inducing a consumer to enter into a travel club contract, the contravention is a breach of the code of conduct even if the travel club contract is not entered into.
General Provisions
Offences
20 For the purposes of section 162 of the Fair Trading Act, a contravention of section 7(1), 9, 12, 18(1) or (3) or 19 of this Regulation is an offence.
Consequential amendments
21 The General Licensing and Security Regulation (AR 187/99) is amended
(a) in section 18(4) by striking out “or, the Electricity Marketing Regulation or the Natural Gas Direct Marketing Regulation” and substituting “, the Electricity Marketing Regulation, the Natural Gas Direct Marketing Regulation or the Travel Clubs Regulation”;
(b) in section 22(1) by striking out “or” at the end of clause (a), adding “or” at the end of clause (b) and adding the following after clause (b):
(c) the claim is based on the cancellation of a travel club contract under section 13, 14 or 15 of the Travel Clubs Regulation.
Expiry
22 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on March 31, 2011.
AR 56/2002 s22;191/2006;75/2009
Coming into force
23 This Regulation comes into force 45 days after it is filed under the Regulations Act.
Schedule
Consumer’s Right to Cancel
a Travel Club Contract
The Travel Clubs Regulation specifies that a consumer who enters into a travel club contract may cancel the contract from the day it is entered into until 10 days after the consumer receives a copy of the signed contract. A consumer does not need a reason to cancel the contract.
If a consumer cancels a travel club contract within the 10‑day period described above, the travel club operator has 15 days to refund the consumer’s money. To cancel, the consumer must give a notice of cancellation to the travel club operator by any means that enables the consumer to prove that notice was given, including registered mail, facsimile, courier or personal delivery.
A consumer may be entitled to additional cancellation rights in accordance with the Travel Clubs Regulation.
A consumer who wishes more information about cancelling a travel club contract or who feels unfairly treated with regard to a travel club contract may contact Service Alberta at 427‑4088, or toll‑free at 1‑877‑427‑4088 if calling from outside Edmonton.
AR 56/2002 Sched.;35/2007
