Agency agreement
An ATOL holder that sells flight-only or packages through agents is required to have a written agency agreement with each of its agents. If the correct agency agreement is not in place the ATOL holder and the agent are in breach of the ATOL Regulations.
Here are the key points:
- Agency Agreement: ATOL holders issue a written agency agreement to each of their agents. This agreement must include the Schedule of Terms published by the CAA, the names of the ATOL holder and agent, and be dated.
- ATOL Certificate: Agents must issue an ATOL Certificate to consumers immediately upon payment, regardless of the booking method (shop, phone, internet).
- Documentation Compliance: Agents must ensure all documentation complies with the terms of their agency agreement and ATOL Standard Term 1. This includes identifying protected and non-protected money on receipts (Agency Term 2.3 and ATOL Standard Term 1.5).
- Consumer Claims: In case of an ATOL holder's failure, agents must provide a copy of a compliant agency agreement to the CAA for processing consumer claims.
Schedule of Agency Terms
Section 1.4 of the Official Record Series 3 includes the Terms to be included in agreements between ATOL holders and their agents. Section 1.4 can be found on page 29 of Official Record Series 3.
For Agency Term 10 you should include the wording from either 10A or 10B, not both.
ATOL Certificate
When an agent makes a booking on behalf of an ATOL holder, the agent must ensure an ATOL Certificate is issued to the consumer immediately any payment is taken. This applies irrespective of whether the booking is made in a shop, by telephone or on the internet. ATOL holders and their agents should agree between them who is going to produce the ATOL Certificate and how it is going to be issued to the consumer.
More information on ATOL Certificates
Documentation
Agents should be aware that where they issue documentation to consumers in addition to the ATOL Certificate, it needs to comply with the terms of their Agency Agreement and the ATOL Standard Terms. Failure to do so may be considered a breach of the ATOL Regulations, which can result in a consumer claim being refused, thus being referred back to the agent for a refund.
Agency Term 2.3
Where an agent produces a receipt for money paid by a consumer, the agent must identify which part of that money is protected by the principal ATOL holder's and which, if any, is not. This means that any booking fees charged by an agent must be separately identified on receipts.
ATOL Standard Term 1.5
Any receipts or invoices supplied by the ATOL holders (or it's agent) for a licensable transaction must contain the ATOL holders name, ATOL number and the following statement:
“Your Financial Protect. When you buy an ATOL protected flight or flight inclusive holiday from us you will receive an ATOL Certificate. This lists what is financially protected, where you can get information on what this means for you and who to contact if things go wrong.”