Abta Travel Law Seminar: Legal experts discuss changes to UK’s Continued from page 48


trading. However, it closed an investigation into whether British Airways and Ryanair broke the law on refunds during lockdowns in October, saying: “The law does not provide a sufficiently clear right . . . to justify continuing.” Mason told Travel Weekly:


“That stance sits ill with the CMA pushing so hard against tour operators. It was just hitting the easiest target. The CMA obtained undertakings from Tui, Virgin Holidays, companies like that. Did it think they weren’t going to pay? These companies were overwhelmed. “It pressed companies to


make repayments when they were saying ‘We don’t accept the money is due in some cases’” – where a claim was potentially fraudulent, or airlines gave vouchers for flights or a cancellation was premature. “The CMA did nothing to


clarify [such instances].” He pointed out Truly was


the only company the CMA took to court – it won a High Court ruling in February – and asked: “What was the point when the company had already ceased trading?” Teletext and parent Truly were wound up in December 2021. Mason argued: “The


CMA loves publicity. A company attacked by the CMA must consult lawyers and accountants, then the CAA looks at its bonding, merchant acquirers do the same regarding credit card conditions – a business can’t survive.” He suggested: “The CMA


could have said ‘We understand your problems. Let’s work together to minimise problems for consumers.’”


Griffiths: Sales of LTAs are ‘just not regulated’


A leading travel industry lawyer has claimed Linked Travel Arrangements (LTAs), which are regulated under the Package Travel Regulations (PTRs) and offer partial financial protection for consumers, are “just not regulated”. Rhys Griffths, partner and


head of travel at City law firm Fox Williams, compared selling LTAs to “doing 75mph on the motorway”,


suggesting: “No one ever gets pulled over for it.” LTAs were introduced under


the 2018 PTRs, in line with the EU Package Travel Directive, to offer more-limited protection than a package if a business sells flights and accommodation completely separately or sells a flight and then offers a link to an accommodation platform on the booking confirmation – a ‘targeted cross-sale’. Griffiths said: “Linked Travel


Arrangements just aren’t regulated. I can’t remember a single occasion when a regulator has challenged a client over an LTA. I don’t think regulators have any interest in them.


Rhys Griffiths


These things are not regulated.” Most travel firms have steered


clear of selling LTAs since 2018 and neither the CAA nor Abta has officially estimated the number of LTAs sold. However, Griffiths said: “There are a huge number of sites selling LTAs and no one cares.”


UK and EU package travel rules set to diverge – Abta


Package travel rules in the UK and EU look set to diverge, Abta warned, after the government confirmed limited changes to the Package Travel Regulations (PTRs) when the EC plans a “fundamental” review of the European Package Travel Directive (PTD). Luke Petherbridge, Abta head


of public affairs, described the EC’s review of the PTD as “very broad” and Abta lead solicitor Paula Macfarlane told Abta’s Travel Law conference: “The UK is looking to simplify [the PTRs]. The EU is looking at a fundamental review.” Macfarlane noted the Department


for Business (BEIS) reported in April there would be “no wholesale change” to the PTRs but merely “small improvements” and warned: “It could lead to divergence.” BEIS issued an extensive report


on ‘Reforming Competition and Consumer Policy’ last month. It spelled out changes to the PTRs will be restricted to amending


46 19 MAY 2022 Luke Petherbridge


the information requirements, “improving the flexibility of insolvency protection provisions”, simplifying the definition of Linked Travel Arrangements (LTAs), which are rarely used, clarifying when a travel service other than a flight forms a package and issuing guidance for consumers. An EC consultation on PTD


reform which closed last week proposes not only a possible revision of the definition of a package,


but also a series of proposals on cancellations and refunds including whether “organisers have the right to a refund against . . . airlines”. It considers whether the directive


should “specify that organisers may issue vouchers instead of a refund provided travellers agree”, “regulate the consequences of official travel warnings” and restrict pre-payments. Petherbridge told the conference:


“The EU comes at the issue from a very pro-consumer stance.” He noted: “The 14-day refunds


timeframe was a big challenge. It was accepted by enforcement bodies and regulators that 14 days was not realistic, but that enraged consumer bodies.” The EC intends to adopt new


proposals by the end of this year. Ordinarily, the legislative process would take 18 months but European elections are due in May 2024 and Petherbridge said: “I would expect the Parliament and EC attempt to show a win for consumers before the election.”


travelweekly.co.uk


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52