NSW disclosure

TRAVEL agents in NSW will be forced to disclose any commission, incentive or referral arrangements with suppliers, under new regulations which come into effect from 01 Jul.

The aim of the reforms is to “improve transparency for consumers without overly burdening businesses,” according to an update from the NSW Department of Fair Trading.

“Intermediaries must take reasonable steps to make customers aware of any commission or referral arrangements where the business receives a financial incentive from another supplier,” the Department said, with an explanatory note on its website saying “This means that customers will need to be informed that an arrangement exists, however intermediaries do not need to disclose the nature or value of the financial incentive”.

There are no exemptions from the requirement, with travel agents specifically noted as being subject to the new rules.

Disclosures can be made on quotations provided to customers, in plain English summaries in terms & conditions, in online pop-up boxes and by directing customer attention to appropriate signage.

The Department said it would take an “educational approach to compliance and enforcement” including educating businesses and raising consumer awareness for the first six months of the new arrangements, however agents must take appropriate steps to inform clients and commence changes to their operations - see fairtrading.nsw.gov.au.