What is a requirement for travel agencies regarding customer deposits?

For travel agencies, it is essential to handle customer deposits in a manner that ensures the funds are protected and that the consumers' interests are prioritized. The requirement is that deposits must be placed in trust accounts or secured with the Travel Industry Council of Ontario (TICO). This practice is designed to safeguard customer payments, ensuring that the funds are not misused or diverted for agency expenses and that they remain accessible to the customer in the event of cancellation or other issues.

Placing deposits in trust accounts means that the funds are segregated from the agency's operational funds, providing additional financial security for customers. This requirement reinforces trust between customers and travel agencies, enhancing consumer confidence in the services offered.

Other options do not align with the regulatory framework established to protect consumer deposits. For example, keeping deposits in personal accounts or using them for agency expenses would pose a risk to the customer’s funds, which is why these practices are not acceptable under the regulations set forth by TICO. Additionally, while deposits may be returned due to certain conditions, the stipulation for immediate return does not hold, as it must comply with the specific terms and conditions under which the deposit was made.