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Consumer Authority wins legal case against travel providers

The Court of Appeal in The Hague recently ruled in favour of the Consumer Authority in a number of legal proceedings instituted with it. The Consumer Authority had brought the actions in question against tour operators that had failed to arrange travel compensation measures required by law when providing package tours. The Court of Appeal ruled that the companies were to take steps to arrange the travel compensation measures required or stop providing package tours. The court also imposed penalties on these companies in order to force them to arrange compensation measures and to announce these measures.

This applies to the following companies:

  • Byblos Reizen, Amsterdam
  • Akwaaba Tours, Maastricht
  • 4WD Travel Club, Groenekan
  • Club Travel, Breda
  • Jero Reizen, Bemmel
  • Cimarron in Eindhoven
  • Best of Britain in Delft
  • Dynamic Holland in Haarlem
  • Opvakantie in Rotterdam

Consequences of the judgment

The judgment for the first three companies was made on 19 January 2010. On 23 March, the Consumer Authority won cases against the other six companies.

Following the judgment, the companies have three months to implement the required travel compensation measures or cease offering package tours. Within two weeks of the judgment, they must also announce the court's judgment on their website.

The actions taken by the Consumer Authority focus upon summoning tour operators that have not arranged the required compensation measures to appear in court. This has led to a number of companies taking measures in the meantime in order to comply with the law.

Guarantees within the Travel Sector

Tour operators that provide package tours are required by law to put measures in place to assist travellers in the event that they were to go into liquidation. These measures culminate in what is known as travel compensation. Under travel compensation measures, travellers who have already paid for the cost of their trip will have their money refunded if the tour operator goes into liquidation. Travellers who are already travelling will be repatriated. Most tour operators have arranged their travel compensation via the Travel Bookings Compensation Fund (Stichting Garantiefonds Reisgelden (SGR)).

Consumers must therefore be alert and check which measures the travel provider has put in place to protect them should it go into liquidation. Tour operators are obliged to publicly state which measures they have taken. Consumers can find further information about travel compensation measures at ConsuWijzer.nl.

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