Requires travel consultants to furnish written travel agreements to consumers

Title of bill

An act to amend the general business law, in relation to travel agreements

Purpose or general idea of bill

To require travel agencies to be more transparent about the terms of their services and to hold them accountable when causing financial harm to consumers.

Summary of specific provisions

Section 1 amends subdivision 1 of section 157-a of the general business law by requiring travel promoters to provide written or electronic disclosure of terms of purchase at the time or prior to receipt of payment. Currently, travel promoters must provide written disclosure within five business days.

Section 2 amends Article 10-A of the general business law by adding a new section 157-b requiring travel consultants to provide written or electronic disclosure of terms of purchase at the time or prior to receipt of payment. Currently, only travel promoters are required to provide such disclosure.

Section 3 amends subdivisions 1 and 2 of section 159 of the general business law by establishing a Class E felony when a travel agency causes a consumer financial loss of five thousand dollars or more.

Section 4 amends subdivision 4 of section 159 of the general business law by allowing a court to impose a civil penalty based on the amount of financial loss to the consumer.

Section 5 establishes the effective date.

Justification

This legislation comes in response to the recent exploitation of hundreds of would-be travelers and their relatives in Chinatown which resulted in losses totaling more than $1 million. Community members expressed difficulty proving they were victims due to lack of service documentation. Current law requires only "travel promoters" to give written disclosure of terms of agreement in five business days. This bill requires all travel agents, "travel promoters" and "travel consultants," to provide written or electronic receipts at the time of purchase for services like travel tickets, so consumers have proof of purchase to help combat fraud.

This legislation also makes penalties more appropriate for the level of fraud when travel agents violate existing law. Deception that leaves consumers, especially those facing language barriers, stranded cannot be tolerated. New York State law must provide greater protections against the fraudulent activities of dishonest travel agencies.