Travel Packages

(1) This rule is authorized by Subsection 13-11-8(2). The purpose of this rule is to define one type of conduct that violates Subsection 13-11-4(1). (2) It shall be a deceptive act or practice for a supplier to offer, knowingly or intentionally, a reduced rate travel package which: (a) is tendered to a consumer as an incentive for the performance of some act the consumer has no legal obligation to perform; (b) is subject to redemption rules the violation of which will result in a default which discharges the supplier's obligation to perform under such rules; and (c) is structured so that the supplier will only realize a profit if a majority of the consumers who receive reduced rate travel package default. (3)(a) For a supplier to be held liable under this rule, it is not necessary that he contract directly with a consumer for a reduced rate travel package. It is a sufficient basis for liability for the supplier to offer such a package to any person knowing that a consumer eventually will look to him for performance. (b) A supplier acts deceptively required by Subsection 13-11-4(2) when he consciously engages in conduct which constitutes a deceptive act or practice, even if he is unaware that such conduct is unlawful. (4) The definitions appearing in Section 13-11-3 shall apply to this rule, with the following additional definitions: (a) "reduced rate" means the payment of funds, whether styled as fees, taxes, a discounted payment, or otherwise, which is less than the fair market value of the travel package offered by a supplier; and (b) "travel package" means air, land, or sea transportation, with or without lodging, for pleasure or business purpose within the scope of the term "consumer transaction". KEY: advertising, bait and switch, consumer protection, negative options Date of Enactment or Last Substantive Amendment: February 7, 2011 Notice of Continuation: March 19, 2021 Authorizing, and Implemented or Interpreted Law: 63G-3-201; 13-2-5; 13-11