Government of Canada moves forward with changes to airfare advertising
OTTAWA, Dec. 16, 2011 /CNW/ - The Government of Canada will proceed with regulations requiring Canadian air carriers to include all fees and taxes in their advertised prices.
The Honourable Steven Fletcher, Minister of State (Transport), and Pierre Poilievre, Parliamentary Secretary to the Minister of Transport, Infrastructure and Communities, today announced the coming into force of clause 27 of An Act to Amend the Canada Transportation Act and The Railway Safety Act and to Make Consequential Amendments to Other Acts (the Act). The Canadian Transportation Agency will now proceed with developing regulations regarding airfare advertising.
"Our government is committed to enhancing consumer protection while promoting fair competition by ensuring greater transparency of advertised airfares for Canadian travellers," said Minister Fletcher. "This will allow consumers to easily determine the full cost of airfares in order to make informed choices."
Clause 27 of the Act provides for the making of regulations requiring a carrier to include in the price advertised all costs to the carrier of providing the service and to indicate in the advertisement all fees, charges and taxes related to the service that are collected by the carrier on behalf of another person .
The Canadian Transportation Agency will begin the process of drafting regulations, including consultations with stakeholders. The regulatory process is expected to take approximately one year.
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Backgrounder Information
AN ACT TO AMEND THE CANADA TRANSPORTATION ACT AND THE RAILWAY SAFETY ACT AND TO MAKE CONSEQUENTIAL AMENDMENTS TO OTHER ACTS
With the exception of clause 27, An Act to Amend the Canada Transportation Act and The Railway Safety Act and to Make Consequential Amendments to Other Acts came into force on June 22, 2007. The Act strengthened the Canada Transportation Act to protect the rights of air travellers.
Clause 27 contained provisions that require the Canadian Transportation Agency to develop regulations governing airfare advertising in Canada. The airfare advertising clause generated substantial debate as the bill went through the parliamentary process. As a result, the Senate Standing Committee on Transport and Communications added clause 64 to the bill, providing that the airfare advertising clause would come into force separately on a day fixed by Order of the Governor in Council. Clause 64 subsequently became part of the bill that received Royal Assent.
Airfare advertising has evolved internationally, particularly in the European Union and the United States. Since 2007, other jurisdictions have implemented similar legislative requirements. The European Parliament has had legislation in place since 2008. The United States currently imposes some requirements, but is further strengthening regulations requiring all-in airfare advertising. The proposed American changes are scheduled to come into effect on January 24, 2012.
December 2011
For further information:| Brayden Akers Press Secretary Office of the Honourable Steven Fletcher Minister of State (Transport), Ottawa 613-991-0700 | Media Relations Transport Canada, Ottawa 613-993-0055 Media Relations Canadian Transportation Agency 819-934-3448 |