Person A fractured the bone in the left thumb after slipping on a metal staircase while taking a boat during a package trip to Kota Kinabalu, Malaysia. After returning home, Person A underwent a bone graft at a hospital, but a permanent disability that limits motor function remained. Person A demanded medical expenses from the travel agency that put together the package, but the agency evaded responsibility, saying it was not liable. In the end, Person A filed a damages suit against the travel agency, and the case is currently underway.
Like Person A, consumers who bought travel agency products are expected to face less burden of having to sue the agency to be compensated for accidents suffered during travel. This is because, going forward, travel agencies must include in their contracts with agents a clause stating that the agency bears liability for accidents consumers suffer during travel.
The Fair Trade Commission said on the 20th that it will establish and implement a "standard agency contract for the travel industry" reflecting these provisions. Until now, contracts between travel agencies and agents were not standardized, but this time the Fair Trade Commission created one.
According to the Fair Trade Commission, the standard agency contract for the travel industry includes a clause stating that "if consumer harm occurs due to matters under the travel agency's purview, such as hosting local events, rather than the agent's duties, the travel agency bears liability for compensation."
The contract also includes provisions to prevent travel agencies from abusing agents. A representative example is banning agencies from coercing agents to provide economic benefits or forcing sales targets. Interference in agents' management activities by travel agencies ▲ retaliatory measures ▲ and providing false or exaggerated advertisements are also prohibited.
The contract also states that sales commissions paid by travel agencies to agents should, in principle, be paid in cash. The Fair Trade Commission required travel agencies and agents to specify details such as the types of commissions, calculation methods, and payment procedures in a supplemental agreement. It also barred travel agencies from entering into unilateral terms unfavorable to agents without reasonable cause.
The Fair Trade Commission also barred travel agencies from forcing agents to use a specific company for interior construction of their business premises. It also prohibited requesting rework unless five years have passed since the original construction.
The Fair Trade Commission required travel agencies to grant agents the right to request a two-year contract renewal. If a travel agency does not express an intention to refuse renewal or to change transaction terms by 60 days before the contract with the agent expires, the contract is automatically extended under the same terms as before.