TICO’s Role in Handling Consumer Complaints
(TICO Supervisor/Manager Level Study Guide — Chapter 9.1)
When consumers are unhappy with a travel service, TICO (Travel Industry Council of Ontario) ensures there is a fair, transparent process to handle their complaint.
This process protects consumers and also gives registrants (travel agencies or wholesalers) a fair chance to resolve issues directly before TICO steps in.
🧭 Overview
TICO’s complaint handling system encourages resolution at the business level first.
Only if the issue cannot be resolved between the consumer and the registrant does TICO get directly involved.
Here’s a visual guide to the process:
Step-by-Step Process
Step 1: Consumer Has a Complaint
The consumer experiences a problem or is unhappy with a travel service purchased through a TICO registrant.
Step 2: Complaint to the Registrant
The consumer must first contact the travel agency or tour operator directly to try to resolve the issue.
If the registrant resolves the complaint to the consumer’s satisfaction, the matter is closed.
Step 3: Consumer Approaches TICO
If the consumer is not satisfied with how the registrant handled the complaint, they can contact TICO for help.
TICO will first refer the consumer back to the registrant, giving the business another chance to resolve the issue before TICO intervenes formally.
Step 4: Filing a Complaint with TICO
If the consumer remains dissatisfied, they can file a formal complaint with TICO against the registrant.
TICO then starts an official review process.
Step 5: TICO Requests Response from the Registrant
TICO contacts the registrant and requests a written response to the complaint.
This letter will reference any applicable laws or regulations under the Travel Industry Act, 2002 or Ontario Regulation 26/05.
The registrant must then provide a detailed, written explanation of their position to TICO.
Step 6: TICO Assesses the Complaint
TICO’s Complaints Staff review all the evidence and correspondence to determine:
- Whether the registrant addressed the issue properly
- Whether there are any apparent breaches of the Travel Industry Act or its Regulations
- Whether the case should be referred to the Compliance Department for further investigation
Step 7: TICO Communicates the Outcome
Once the review is complete, TICO writes to the consumer to explain:
- TICO’s findings and position
- Any refund or compensation (if applicable)
- Whether the file will be referred to the Compliance Department for separate review
After this, the complaint process is complete.
⚖️ Important Notes
- TICO’s goal is to ensure that complaints are resolved fairly and consistently.
- TICO does not force a registrant to pay compensation unless there’s a proven breach.
- TICO may take disciplinary or compliance action if it finds evidence of regulatory violations.
- The consumer may still seek civil remedies (e.g., Small Claims Court) if unsatisfied with TICO’s resolution.
📘 Study Tip for the TICO Exam
TICO exam questions about this topic often test your understanding of the order of steps in the complaint process.
Memorize the sequence:
Consumer → Registrant → TICO referral → TICO complaint → Registrant response → TICO review → Outcome to consumer
✅ Summary
TICO’s complaint process gives travel businesses every opportunity to resolve customer problems internally before formal investigation.
This ensures fairness for both sides and keeps Ontario’s travel industry accountable and transparent.
9.1 The Complaint Handling Procedure
TICO has a formal process for handling consumer complaints. Figure 9.1 (below) shows the complaint flow from start to finish.
Let’s break it down into clear steps so you can easily remember it for your exam.
Step 1: The Consumer Contacts the Registrant
Before TICO gets involved, the consumer must first contact the travel retailer or wholesaler directly to try to fix the problem.
Consumers are asked to:
- Put the complaint in writing.
- Explain why they are unhappy.
- Suggest how the issue could be resolved.
The complaint must be against an Ontario-registered travel retailer or wholesaler, or someone acting as an unregistered travel retailer in Ontario.
If the registrant resolves the complaint to the consumer’s satisfaction, the process ends here.
Step 2: The Consumer Files a Formal Complaint with TICO
If the problem is not solved, the consumer can then submit a complaint to TICO.
Here’s what happens:
- TICO sends the consumer a complaint form.
- The consumer fills it out and returns it with supporting documents such as:
- Receipts
- Tickets
- Emails or messages between the consumer and registrant
- Photos or other proof
By signing the form, the consumer gives TICO permission to share their information with:
- The registrant involved
- Other government or non-government sources (if necessary)
Step 3: TICO Requests the Registrant’s Response
Once TICO receives the complaint, it sends a copy to the registrant and asks for a written response.
TICO also points out any parts of the Act or Regulation that apply to the issue.
If TICO suspects a possible breach of the law, it may ask the registrant to address specific concerns.
Section 16 of the Act
All registrants who receive a written request for complaint information from the Registrar must respond in writing as soon as possible.
Step 4: TICO Reviews the Complaint
TICO staff carefully review the entire complaint to decide:
- Did the registrant respond properly and completely?
- Are there any apparent breaches of the Act or Regulation?
- Is more information needed (from the registrant or a third party)?
- Should the case be referred to Compliance or the Registrar?
- Has the registrant offered any compensation or goodwill gesture?
If TICO finds a potential compliance issue, it refers the file to the Compliance Department or Registrar for further review.
⚠️ Important:
Even if the Compliance Department gets involved, TICO’s complaint process is separate from compliance actions.
TICO does not update the complainant about compliance outcomes.
Step 5: TICO Communicates the Outcome
After TICO finishes its review, the consumer receives a letter outlining:
- Confirmation that the registrant responded
- A summary of the registrant’s position
- Details of any compensation or goodwill offer
- Whether the complaint revealed any breaches of the Act or Regulation
- References to the specific legal sections that apply
- Notice if the file was referred to the Compliance Department
- An explanation that compliance reviews aim to fix breaches, not to get extra compensation for the complainant
- A reminder that TICO cannot force a registrant to pay compensation or impose a settlement
If the consumer is still unhappy, TICO explains they may choose to:
- Pursue legal action (e.g., Small Claims Court)
- Consult a lawyer for further advice
TICO also notifies the registrant that the complaint file has been closed.
When Resolution Isn’t Possible
If a complaint cannot be resolved, TICO provides information on other options the consumer can explore, such as pursuing the issue through legal or other dispute resolution channels.
9.2 TICO’s Role in Handling Registrant-to-Registrant Complaints
Usually, TICO does not handle disputes between registrants (such as one agency vs. another).
However, there are exceptions — specifically when there are financial or compliance concerns under the Act.
In these cases, TICO’s goal is to protect consumers and the integrity of the industry, not to act as a debt collector.
Example Scenario
Let’s say Registrant A stops working with Registrant B because B issued several bad cheques for travel services.
Registrant A must:
- Notify the Registrar in writing
- Explain the reason for ending business with Registrant B
TICO may investigate and perform a financial inspection on Registrant B to ensure:
- Consumer funds are not at risk
- Proper trust accounting is maintained
- There is enough working capital
Section 21 of the Regulation
If a registrant stops dealing with another registrant because of apparent financial irresponsibility, they must notify the Registrar in writing and explain the reason.
9.3 Complaints Against TICO
TICO also has a process for handling complaints about TICO itself.
These complaints are reviewed by the Governance and Nominations Committee, which is part of the TICO Board.
Committee’s Mandate
The committee ensures that TICO operates with:
- Fairness
- Transparency
- Accountability
Its responsibilities include:
- Reviewing and resolving complaints about TICO’s own conduct or service
- Recommending improvements to complaint procedures
- Setting standards for how complaints are handled
- Tracking complaint trends to identify issues
Conduct and Conflicts of Interest
Committee members must act honestly and impartially.
If a member has (or may have) a conflict of interest, they must disclose it and withdraw from any related discussions.
Types of Complaints the Committee Handles
The Governance and Nominations Committee looks at complaints such as:
- Alleged abuse of process (e.g., unfair targeting or favoritism)
- Consumer concerns about TICO not taking proper action against a registrant
- Poor service or communication from TICO staff
- Alleged breach of TICO’s access-to-information policy
Complaints the Committee Does Not Handle
The committee will not deal with:
- Disputes about Compensation Fund decisions
- Disputes about Notices of Proposal to Revoke Registration
- Claims that the Act or Regulations are unfair or ineffective (unless tied to a specific complaint)
Standard of Review
Each complaint is reviewed based on a set of standards.
The committee looks to:
- Resolve the issue if possible
- Identify broader problems that might need attention
While the committee cannot interfere with the Registrar’s legal duties, it can review how those duties are carried out to ensure fairness and accountability.
🧠 Study Tips for the Exam
- Memorize the five main complaint steps (consumer → registrant → TICO → review → outcome).
- Remember that TICO cannot force compensation — it ensures compliance, not settlements.
- Understand when TICO will or won’t handle registrant-to-registrant complaints.
- Know the role of the Governance and Nominations Committee in complaints against TICO.
✅ Summary
TICO’s complaints process is all about protecting consumers and maintaining industry integrity.
It encourages direct resolution first, ensures fair review of all complaints, and keeps both consumers and registrants accountable under Ontario law.
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