(a)Brochures. Regulation 5 provides that brochures must
contain certain specified information, e.g. the destination,
the means of transport, the type of accommodation, its
location, main features and category, inclusive meals
and the itinerary. It is an offence for an organiser to
make available a brochure which does not comply with
the requirements. It is also an offence for a retailer to
make a brochure available to a possible consumer which
he knows or has reasonable cause to believe does not
comply with the requirements. The penalties are a max-
imum fine of £5,000 in the magistrates’ court or an
unlimited fine in respect of a Crown Court conviction.
sumer before the contract is made and that the contract
contains specified elements, e.g. travel destination(s),
travel dates, accommodation, the itinerary, inclusive
meals and excursions, the price and payment schedule
and time limits for complaints (reg 9).
6 Transfer of bookings.If the consumer is prevented
from going ahead with the package, he has the right
under reg 10 to transfer the package to a third party if he
gives reasonable notice. However, a transfer may involve
extra costs and the transferor and transferee are jointly
and severally liable for the price of the package.
7 Surcharges. Price variation clauses will be void
under reg 11 unless they comply with the following
requirements:
■the clauses provide for both upward and downward
revision; and
■the contract states precisely how the revised price is to
be calculated; and
■the variation is solely due to changes in the cost of
transportation; or dues, taxes or fees for services, such
as landing taxes; or exchange rates.
A price increase cannot be made within 30 days of
departure or where the increase is less than 2 per cent of
the price.
8 Alteration of the terms.Regulation 12 incorporates
an implied term into every contract that the organiser
will inform the consumer of a significant alteration of
any of the essential terms of the contract, e.g. price,
so the consumer can decide whether to cancel, or accept
the alteration. If the consumer decides to cancel, he
or she is entitled to a substitute package of the same or
superior quality, or a lower quality package with an
adjustment of price, or a full refund (reg 13).
9 Significant proportion of services not provided.
Regulation 14 provides that there is an implied term that
where after a departure a significant proportion of the
services contracted for are not provided, the organiser
must make suitable alternative arrangements for the
consumer to continue the package, at no extra cost. If
there is a difference in the services supplied under the
alternative arrangements, the consumer must be com-
pensated. If it is impossible to make alternative arrange-
ments or the consumer reasonably refuses to accept the
alternative offered, the consumer must be provided with
equivalent transport back to the departure point or
another place agreed by the consumer.Part 3Business transactions
414
Inspirations East Ltdv Dudley
Metropolitan Borough Council(1997)
Inspirations, an organiser of package holidays, included
a statement in its ‘Inspirations Cyprus’ brochure that
a certain hotel in Limassol was very suitable for people
who use a wheelchair. A customer booked a holiday at
the hotel but discovered on arrival that there was no
access to the swimming pool for people in wheelchairs.
Inspirations’ conviction was upheld. The magistrates
were entitled to find that the indication that the hotel was
suitable for the disabled was a misdescription about a
main feature of the package in breach of reg 5.Regulation 6 provides that particulars in the brochure
have the status of implied warranties, unless the parties
agree otherwise. If the brochure contains an express
statement that particulars are subject to change and any
changes are clearly communicated to the consumer
before the contract is concluded, then no liability for
breach of warranty will arise.
(b)Before the package starts. Regulation 7 requires the
organiser and retailer to provide the consumer with
information about matters such as passport and visa
requirements, health formalities and arrangements for
security of money paid and arrangements for repatria-
tion. Regulation 8 requires the organiser and retailer to
provide the consumer in good time before the journey
starts with information about transport arrangements
and local representatives. Both regulations create crim-
inal offences with maximum penalties of £5,000 on con-
viction in the magistrates’ court and an unlimited fine in
the Crown Court.
5 Content of the contract. It is an implied condition
of the contract that the organiser or retailer supplies a
written copy of the terms of the contract to the con-