What consequences does a travel agency face if it misrepresents travel products?

Misrepresenting travel products can lead to significant consequences for a travel agency, primarily because it undermines consumer trust and can cause financial and legal liabilities. The correct response highlights that agencies risk penalties from the Travel Industry Council of Ontario (TICO) as well as facing potential legal action. TICO is responsible for regulating the travel industry in Ontario and ensures that agencies abide by the established standards and regulations. If an agency is found to be misrepresenting its products, TICO can impose penalties, including fines, the suspension of the agency’s registration, or even revocation of its license to operate.

Legal action may arise as clients who feel deceived can file complaints or pursue lawsuits against the agency for damages resulting from the misrepresentation, thereby further complicating the agency's situation and potentially leading to additional financial consequences and reputational damage. Therefore, being aware of the importance of accurate representation of travel products is critical for compliance and maintaining trust within the industry.