What does the law say about false, misleading or deceptive statements in travel advertising?
TICO Certification: Advertising and representations
- 12 questions
- Topic drill
Preparing your questions…
Study reference: TICO study notes from the Travel Industry Act, 2002 and O. Reg. 26/05 (Oct 2026), Ch. 5 Advertising — Act ss. 28–29; O. Reg. 26/05 ss. 30–35, 49
All 12 questions in this test
Every original question, with optional answers, explanations and official references. Open an answer to study, or take the test above for instant feedback.
What does the law say about false, misleading or deceptive statements in travel advertising?
- They are allowed in social media posts only
- Registrants must not make them in any ad or material
- They are allowed if the ad runs for less than one week
- They are allowed if the supplier wrote the text
Show answer and explanation
Correct answer: Registrants must not make them in any ad or material
No registrant may make false, misleading or deceptive statements in any advertisement, circular, pamphlet or material published by any means relating to travel services.
Based on: Act s. 28; O. Reg. 26/05 s. 32; checked 2026-10-24
Official reference ↗The registrar orders an agency to stop a misleading ad and publish a correction. When does the order take effect?
- When the agency's registration is renewed
- Only after a Licence Appeal Tribunal hearing
- After 30 days, if no appeal is filed
- Immediately, though the Tribunal may stay it
Show answer and explanation
Correct answer: Immediately, though the Tribunal may stay it
The registrar's order to cease, retract or correct takes effect immediately, but the Tribunal may grant a stay until it disposes of a hearing. A correction must be of equal prominence to the original.
Based on: Act s. 29; checked 2026-10-24
Official reference ↗An ad uses an artist's drawing of a hotel pool. What must it do?
- Get the hotel's written consent from TICO
- Nothing, since drawings are never considered misleading
- Use the drawing only in radio ads
- Depict it accurately and say clearly it is not a photo
Show answer and explanation
Correct answer: Depict it accurately and say clearly it is not a photo
A picture that is not a photograph must accurately depict what is represented and the ad must clearly say it is not a photograph; a photograph must be accurate and identified as a photograph of the thing advertised.
Based on: O. Reg. 26/05 s. 35; checked 2026-10-24
Official reference ↗An agency publishes an ordinary written web advertisement, without the billboard-style space exception. What identifying details must appear?
- Its business name, address and TICO registration number
- The owner's personal cell phone and home address
- The commission it earns from the supplier of the advertised package
- The names of staff who will answer questions
Show answer and explanation
Correct answer: Its business name, address and TICO registration number
Section 31 normally requires the business name, address and registration number in non-oral advertising, and prohibits a residential phone number. The identification exception concerns media such as billboards or bus boards with similar space/time limits; it is not a general exemption for online advertising.
Based on: O. Reg. 26/05 s. 31(2); checked 2026-10-24
Official reference ↗Which transport details must a written ad for a specific package describe?
- The principal carrier, class of service and departure and arrival points
- The seat numbers and meals assigned to each passenger
- The exact baggage weight allowed for every bag carried
- The names of the pilots and the aircraft's year of manufacture and model
Show answer and explanation
Correct answer: The principal carrier, class of service and departure and arrival points
A fair and accurate description includes details of transportation — the name of the principal carrier, the class of service and all departure and arrival points — and details of any accommodation.
Based on: O. Reg. 26/05 s. 34(1); checked 2026-10-24
Official reference ↗An ad shows a price for a Cuba package. What must the price include?
- The airfare and hotel, but not the fuel surcharge
- All fees, levies, service charges, surcharges and taxes
- Only the base fare, with taxes and fees listed in fine print
- Whatever the supplier quoted before any taxes
Show answer and explanation
Correct answer: All fees, levies, service charges, surcharges and taxes
A price in a representation must be the total amount the customer will pay, including all fees, levies, service charges, surcharges, taxes and other charges, shown clearly and prominently.
Based on: O. Reg. 26/05 s. 33(2); checked 2026-10-24
Official reference ↗When may an ad show a price for a trip?
- At any time, as long as the price is marked as approximate
- Whenever at least one seat sold at that price last year
- Only if the price is lower than all competitors' prices
- Only if the trip is available at that price while the ad runs
Show answer and explanation
Correct answer: Only if the trip is available at that price while the ad runs
A representation may not refer to a price unless the travel services are available at that price during the time the representation applies.
Based on: O. Reg. 26/05 s. 33(5); checked 2026-10-24
Official reference ↗An ad promoted a package before the airline and hotel were confirmed. What must the registrant do when it learns their names?
- Tell every customer who booked the package
- Post them only on the agency's website
- Tell customers only if they ask in writing
- Keep them private to protect supplier deals
Show answer and explanation
Correct answer: Tell every customer who booked the package
When the names of air carriers, hotels and wholesalers become available, the registrant must disclose them to all customers who have entered into an agreement for those travel services.
Based on: O. Reg. 26/05 s. 33(8); checked 2026-10-24
Official reference ↗An ad shows prices without naming a currency. Which currency is it taken to be in?
- Canadian dollars
- US dollars
- Euros
- The destination's currency
Show answer and explanation
Correct answer: Canadian dollars
Prices in a representation must be in Canadian currency unless the ad clearly, prominently and comprehensibly indicates a different currency.
Based on: O. Reg. 26/05 s. 33(7); checked 2026-10-24
Official reference ↗Which price statement is NOT allowed in a travel ad?
- "Prices in Canadian dollars"
- "Was $1,899, now $1,499"
- "$1,499 per person, all taxes included"
- "More information from your travel agent"
Show answer and explanation
Correct answer: "Was $1,899, now $1,499"
A representation shall not refer to a previous price for travel services. Total prices, the currency and a note that more information is available from a travel agent are allowed or required.
Based on: O. Reg. 26/05 s. 33(6); checked 2026-10-24
Official reference ↗A brochure advertises a specific resort package. Which detail must it include?
- The travel agent's personal reviews of each restaurant
- The resort owner's annual revenue for the past year
- The names and ages of guests booked for the same dates
- Any construction likely to affect use of the accommodation
Show answer and explanation
Correct answer: Any construction likely to affect use of the accommodation
Section 34 requires the period, payment and cancellation terms, price, insurance availability and cost, refund policy and accurate service description in ordinary specific-service written ads. Relevant construction must include its anticipated start and duration. Billboard-style limited media have a specific exception.
Based on: O. Reg. 26/05 s. 34(1); checked 2026-10-24
Official reference ↗After a false advertising order, for what maximum period can TICO's registrar require ads to be pre-approved?
- 90 days
- 30 days
- One year
- Two years
Show answer and explanation
Correct answer: 90 days
For the Travel Industry Act, the prescribed period for pre-approval of advertising after a false advertising order is 90 days.
Based on: O. Reg. 26/05 s. 49; checked 2026-10-24
Official reference ↗
Advertising and representations: key rules to remember
Our summary of what the official handbook says on this topic, in our own words. Read it before or after the practice questions above, then check the original chapter. Read the official chapter ↗
Representations
- Representations: Representations include ads and other statements about travel services; the registrant is responsible for those made on its behalf.
- Identification: Except for oral representations, they include the business name, address and TICO registration number, and never a residential phone number (billboards and similar limited media are exempt from the name/address/number rule).
False advertising
- No misleading ads: No registrant may make false, misleading or deceptive statements in any ad, circular, pamphlet or material.
Prices in representations
- Total price: Any price shown must be the total the customer pays, including all fees, levies, service charges, surcharges, taxes and other charges, shown clearly, comprehensibly and prominently.
- Price conditions: It must also state conditions that limit availability at that price, reasonably describe the services and say more information is available from a travel agent.
- Availability: No price may be shown unless the services are available at that price for the period of the ad; no reference to a previous price.
- Currency: Prices are in Canadian dollars unless another currency is clearly indicated.
- Supplier names: When the names of air carriers, hotels and wholesalers become available, they are disclosed to customers who have booked.
Written ads for a specific travel service
- Specific-service terms: For a specific travel service, show the deposit and final-payment terms, total price, cancellation charges, available insurance and its cost, and the refund policy. The stated billboard/similar-media exception is limited.
- Service description: Describe the principal carrier, service class, departure/arrival points and accommodation fairly. Include relevant construction or renovation with its expected start and duration, and the period covered by the advertisement; preserve the stated limited-media exception.
Pictures
- Images: A photograph must accurately show the thing advertised and be clearly identified as a photograph of it; a drawing or other picture must be accurate and clearly identified as not a photograph.
Orders
- Corrective orders: If the registrar believes on reasonable grounds an ad is false, misleading or deceptive, it can order the material stopped and/or a retraction or correction of equal prominence; the order takes effect immediately (the Tribunal may stay it).
- Pre-approval: The registrar may require ads to be pre-approved; the prescribed maximum pre-approval period under the Travel Industry Act is 90 days.
Study the Advertising and representations rules as flashcards →
Other topics
- TICO, the Act and who must registerWhat TICO does, the legal definitions of travel agent, travel wholesaler and travel services, who must be registered and which businesses and groups are exempt.
- Certification and office staffingThe 2026 TICO Certification Program, who must be certified to sell or give travel advice, supervisor/manager rules for each office, certified counsellors on duty and records of staff certificates.
- Registration requirements and noticesEligibility to register, grounds for refusal, proposals and Licence Appeal Tribunal hearings, immediate suspension, $10,000 security for new applicants, business names, home offices, branches, certificates and the notices registrants must give.
- Financial requirements, trust accounts and recordsFinancial filings, positive working capital, bank accounts, the Travel Industry Act trust account and its rules, security instead of a trust account and six-year business records.
- Disclosure before the saleWhat a travel agent must tell the customer before an agreement and before taking payment or card details, advice for travel outside Canada, insurance advice and counselling fees.
- Invoices and travel documentsWhat the customer's statement, invoice or receipt must show, price increase wording, wholesaler statements, numbering, document delivery timelines and checking documents.
- Changes, refunds and alternativesTelling customers about changes, verifying accommodation, the events that require an offer of a full refund or comparable alternative, price increase limits and the files registrants must keep.
- Resale, supplier failure and liabilityJoint liability for customer money, written supplier agreements, duties when a supplier fails, rules on air carriers, refunding commissions and when registrants must repay the Fund.
- Compensation Fund claimsWho can claim from the Travel Industry Compensation Fund, the demand and eligibility rules, what is not covered, the six-month deadline, documents, registrant claims and hearings.
- Fund limits, trip completion and major eventsThe $5,000 per-person limit, event caps, trip completion and immediate departure payments, and major event rules.
- Complaints, inspections and offencesHow complaints are handled, inspections, discipline, receivers and freeze orders, offences and penalties, limitation periods and the information TICO publishes.