Thursday, October 15, 2009

USA: passenger rights group sues Delta for alledged email hacking

FlyersRights.org sued Delta and an FAA contractor on Tuesday, alleging that the companies conspired to derail the group’s efforts to persuade Congress to enact a passenger rights bill that would limit tarmac delays to three hours.

The lawsuit, filed in U.S. District Court in Houston, alleges that Delta and the contractor, Metron Aviation of Dulles, Va., used "hacked" emails in an attempt to discredit the group and to fire a Metron employee who had been passingFAA data on delays to FlyersRights.org.

Source: Travel Weekly; find article here>>.

Tuesday, October 13, 2009

Austria: misrepresentation by agent attributable to timesharing contractor

Plaintiff had entered into a timesharing contract through an agent whom he (also) had assigned himself. The agent had falsely stated plaintiff's usage rights would be safeguarded by registration in the land register. Trusting the agent, plaintiff didn't read the contract carefully. As there was no registration of his rights he contested the validity of the contract based on deception. Austrian Supreme Court in decision 6 Ob 109/09m of July 2, 2009 confirmed judgements of the lower instances attributing the misrepresentation by the agent to the timeshare contractor.

Supreme Court decision available for download in German here>>.

Monday, October 12, 2009

USA: DOT warns airlines to follow lost luggage-rules

In a newly issued notice, the U.S. Department of Transportation (DOT) reminded airlines that they may not arbitrarily limit compensation for passengers who purchase necessities because their baggage is lost or delayed. A number of carriers have policies stating that they will reimburse passengers only for buying necessities purchased more than 24 hours after arrival and limiting such reimbursements to the outbound legs of trips. This is in violation of DOT regulations which require that airlines cover all expenses caused by lost or delayed baggage up to $3,300 per passenger on domestic flights.

Source: DOT Office of Public affairs; read message here>>; DOT Guidelines on Reimbursement of Passenger Expenses incurred as a result of lost, damaged or delayed baggage available for download in pdf here>>.

Sunday, October 11, 2009

Bust airlines

MEPs back compensation for grounded passengers:


If your airline goes bankrupt and leaves you stranded what are your legal rights? Members of the Parliament's Transport Committee want grounded passengers to have access to a special compensation fund. In the last decade almost 100 airlines across the European Union have gone bankrupt - leaving thousands of holiday makers and business flyers out of pocket and stuck at a foreign airport.

Sabena, Sky Europe and Olympic Airlines are just three of the large carriers that have gone bankrupt due to a combination of high fuel costs, competition and new security measures after 9/11.


Transport Chair Brian Simpson speaks of "clear loophole"


On 7 October during the plenary session in Brussels, the Chair of the all-party Transport Committee, Brian Simpson (Labour, North West of England), formally asked the European Commissioner for Transport Antonio Tajani to set up "a reserve compensation fund" and consider updating passengers' rights legislation.


He told fellow MEPs that "here we have a clear loophole and it would be preferable for all if we could work together and fill it in".


He added: "We have also floated the idea of establishing a reserve compensation fund, but this must not be seen as a demand. We merely wish to open up the debate as to what mechanism will help us best solve this problem."


Transport Commissioner Tajani backs compensation


Commissioner Tajani told Members that "passengers should indeed receive compensation. We are working on specific measures to find the best solution. One solution is a compensation fund derived from airlines' contributions. Another would be changes in bankruptcy law in the member states".


There is a consensus across the Parliament's main political groups that the European Union needs to do more to help passengers stranded by bankrupt airlines. A Parliamentary resolution is due to be tabled later in the autumn.


Source: 20091002STO61739

Tuesday, September 22, 2009

Alaska: Cruise Association files law suit over passenger head tax

The Alaska Cruise Association filed a federal lawsuit challenging Alaska's head tax on the approximately 1 million cruise-ship passengers who arrive in the state each year. The lawsuit is seeking relief from the $50 fee imposed on each passenger arriving aboard large cruise ships, a fee which was approved by Alaska voters in 2006.

The association argues that the head tax by far exceeds the expenses of services and facilities provided to cruise ships, and in some cases the money is going to fund projects that do not directly benefit cruise-ship passengers.

Source: The Seattle Times; find article here>>.

Friday, September 18, 2009

Addendum: Links

You can find the press release in German over here (The judgement has not been published yet!):



and a translation in English over here:

Airlines can not claim fees of 50 eur for a reversal booking operation

Germans Highest Court (Bundesgerichsthof) decided yesterday on the complaint of a consumer organisation (Verbraucherzentrale Nordrhein-Westfalen)against the airline Germanwings, with the omission of the use of a clause within general terms and conditions.

Citation: BGH 17.09.2009, Xa ZR 40/08

The "charging order" ("Entgeltordnung") stated, inter alia:

"Fee for a reversal booking operation is: € 50.00 per booking"

As Germanwings tried to get the ticket prize by direct debiting but due to the lack of balance of the passenger's account, the debiting failed.

You can find the press release in German over here (The judgement has not been published yet!):

and a translation in English over here:

Kind regards from Cologne!

Stephan





Thursday, September 17, 2009

USA: railroad passengers allowed to transport guns in checked bags

The Senate voted Wednesday to permit passengers on the Amtrak passenger railroad to transport handguns in their checked baggage. The proposal, approved by a 68-30 vote, seeks to give Amtrak riders rights comparable to those enjoyed by airline passengers, who are permitted to transport firearms provided that they declare they are doing so and that the arms are unloaded and in a securely locked container.

Source: USA Today; find article here>>.

Wednesday, September 16, 2009

Panic on an Aer Lingus flight to Paris

Passengers on the Aer Lingus flight from Dublin to Paris began shouting out and crying as they thought their plane was about to ditch. The crew accidentally played out a recorded emergency landing warning in French as the plane headed south over the Irish Sea. Around 70 French passengers were reported to be "freaked out" on hearing the warning. The cabin crew quickly realised their mistake and swiftly apologised in French.

Source: SkyNews; find article here>>.

IATA: Airline Losses at $11 Billion in 2009

The International Air Transport Association (IATA) announced a revised global financial forecast predicting airline losses totaling $11 billion in 2009. This is $2 billion more than the previously projected $9 billion loss due to rising fuel prices and exceptionally weak yields. Industry revenues for the year are expected to fall by $80 billion to $455 billion, a 15 percent drop from 2008 levels. IATA also revised its loss estimates for 2008 from a loss of $10.4 billion to a loss of $16.8 billion. This revision reflects restatements and clarification of the accounting treatment of very large revaluations to goodwill and fuel hedges. IATA industry profit figures strip-out such extraordinary items which are not realized in cash terms.

Source: IATA press release 37 of Sep. 15, 2009

Monday, September 14, 2009

USA: continuing debate on passenger rights

While the legal debate is continued, the National Business Travel Association last month switched its position and now supports federal legislation on airline passenger rights. Two airline CEOs speaking in August at NBTA's convention in San Diego disagreed with the need for such laws, which have been proposed by the U.S. Department of Transportation and Congress.

The Airline Passengers Bill of Rights would require airlines during lengthy delays to provide food, drinking water, clean restrooms and comfortable cabin conditions; airports to develop federally approved contingency plans for long delays; and DOT to establish a consumer complaint hotline.

Source: Management Travel; find article here>>.

Iraq: new focus on religious tourism

Hundreds of thousands of Shia Muslims, particularly from Iran, visit the city of Najaf, which hosts the tomb of Ali bin Abi Talib, cousin and son-in-law of the Prophet Muhammad. Though religious tourism brings millions of dollars of revenue every year, local merchants have complained that Iranian companies have monopolised the industry.

Source: eTurboNews; find article here>>.

European Commission hosts Global Health Security conference on Influenza A(H1N1)

Health ministers from the G7 countries (Canada, France, Germany, Italy, Japan, UK, US), Mexico and the World Health Organisation meet today in Brussels for a special ministerial meeting of the Global Health Security Initiative (GHSI) hosted by the European Commission. The meeting will focus on effective public health measures to respond to the influenza A (H1N1) virus. The timing of this meeting is crucial with respect to the potential for a more virulent wave of the virus in the months ahead. A common statement (or communiqué) setting out the common approaches adopted by the G7 countries plus Mexico and next steps of joint work on pandemic (H1N1) 2009 will be adopted at the meeting followed by a press conference.

Source: EU press release IP/09/1306 of Sept. 11, 2009

Wednesday, September 09, 2009

EU protests against fees imposed on tourists by new US travel bill

The European Union is upset about plans by the United States to implement new travel fees for visa-waiver tourists. The $10 fee is part of the Travel Promotion Act which would be put in place in order to help fund a world tourism project that would increase the number of visitors to the US by better communicating America's security policies and competing for visitors. EU is considering retaliatory stances if this new fee is put into place.

Source: examiner.com; find article here>>.

Wednesday, September 02, 2009

21st IFTTA Annual Conference: Brazil - Sao Paulo/Ilhabela


Again this year, IFTTA is organizing its “21st International annual Conference on Travel and Tourism Law” with the themes “”1.Accidents in travel and tourism sector: prevention, risk management and liability, 2.Recent national and international developments in travel and tourism law, and 3.Tourism and its impact on the environment". The conference will happen on October 3rd - 6th, 2009 at Parque do Ibirapuera, São Paulo-Brazil and Pier 151, Ilhabela. Held in a pleasant environment, the IFTTA's conferences became a traditional center of reference on travel and tourism law worldwide among its members. Also, it provides a good opportunity for networking with the global professionals of these industries. The conference will offer outstanding infrastructure of services and will be available simultaneous translation Portuguese/English/Portuguese. In the last edition in Beijing the international IFTTA conference on travel and tourism attracted participants from different countries and was one of the appealing encounters of the academics, authorities, experts and professionals in the areas travel and tourism, distinguishing itself by promoting debates and pointing high important questions about the sector growth and development.Please visit the conference website http://www.ifttabrasil.org/ where you will find the conference program, hotel information, and online registration.

Monday, August 31, 2009

Kenya: new tourism law

Kenyan government is said to have agreed on the text of a new tourism law, which will, when passed and made operational, provide for the formation of new bodies as a new Tourism Authority, likely to be a licensing and inspection platform, and a Tourism Finance Corporation, likely a successor to the Kenya Tourist Development Corporation.

The new law would also provide for regional tourist offices to be opened to facilitate a greater spread of tourism activities across the country. The cabinet also gave the thumbs up for a new comprehensive tourism policy, which will, when passed, guide the sector over the next decade and beyond.

Source: eTurboNews; find article here>>.

USA: questions remaining about NewYork's hotel remarketer’s tax

The hotel remarketer tax will require any reseller of a New York hotel room to remit a tax based on the full amount paid by the customer, including service fees and charges. A representative of the city’s law department said a statement of audit procedure will provide more information about the law and give guidance related to more specific business models, including guidance on unbundling packages.

According to the memorandum, the tax on net and additional hotel room rent will apply to New York hotel rooms booked on or after Sept. 1. Hotel room resellers must complete and file a "certificate of registration" with the finance department by Sept. 3.

Source: Travel Weekly; find article here>>.

Samoa: protests against upcoming side switch of road traffic

The small Pacific island country of Samoa is due to change from driving on the right-hand side to the left on September 7, in the first switch since Nigeria, Ghana and Yemen shifted to the right in the 1970s and Sweden did so in 1967.

Since the government announced the plan in 2007, huge protest marches have been held, more than a sixth of the population of around 180,000 people has signed a petition calling for the changeover to be reversed, and a court is expected to rule on its legality later this week.

Source: AFP; read article here>>.

Friday, August 28, 2009

USA: Lawsuit on Border Laptop Searches

The American Civil Liberties Union (ACLU) has filed a lawsuit in the U.S. District Court for the Southern District of New York demanding that U.S. Customs and Border Protection (CBP) release details of its policy that allows the agency to search travelers' laptops at U.S. borders without suspicion of wrongdoing. The law suit is an effort to get CBP to respond to a Freedom of Information Act (FOIA) request that the civil liberties group filed in June about the laptop-search policy. Though the FOIA law requires it to give a response within 30 days the agency has not supplied information.

Source: The New York Times; find article here>>.

Thursday, August 27, 2009

USA: Scotland boycott threat following al-Megrahi release

Protesters in the USA angered by the release of the Libyan Basset Ali al-Megrahi, the only man convicted of the 1988 bombing of Pan Am flight 103 over Lockerbie launched a "Boycott Scotland" campaign in the internet. The website BoycottScotland.com is an anonymous Internet protest calling upon Americans to avoid Scotland and Scottish products in protest at al-Megrahi’s release.

The anonymous Internet protest is receiving wide publicity in the US media, including the New York Times, Bloomberg, CNN and Forbes magazine. ETOA, the European Tour Operators Association, has announced to closely monitor the campaign and advises against any tourism boycott of Scotland.

Source: ETOA Briefing of Aug. 26, 2009; find full text here>>.

Friday, August 21, 2009

Austria: no liability for depressive mood following massive flight delay

Plaintiff had booked a package tour to Turkey together with his wife and their two children. Because of technical problems, the outward flight to Turkey was delayed for 26 hrs. Plaintiff claimed that because of a depressive psychosis he was suffering from, the fligth delay had caused a depressive mood which had prevented him from enjoying his holidays. Even his wife had not been able to enjoy the holidays as she had to look after him. Both of them had hardly left the hotel room.

Back home in Austria he sued for compensation for loss of holiday enjoyment and some minor expenses he had had becuase of the flight delay.

Upon defendant's appeal Regional Court (Landesgericht Innsbruck) in judgement 2 R 170/09b of June 19, 2009 for the most part dismissed the claim: plaintiff had not mentioned his disease when booking the package tour and same had not been offered as being specifically suitable for mentally ill persons. The depressive mood therfore could not be regarded an adequate consequence of the flight delay. Plaintiff also had failed to explain why he needed specific care.

Bangladesh: new tourist police

Bangladesh has formed a police unit to better protect local and foreign tourists and tourism spots. Another main task for this particular unit will be to look after the nature and wildlife in the tourist spots.

Due to the country's National Tourism Authority (NTA), a total of 349,837 foreign tourists visited Bangladesh in 2008, about 21 percent more than in 2007.

The lack of security and poor infrastructure were largely blamed for lower tourist arrivals in the country's remote tourism spots. It is the purpose of the new police unit to change that.

Source: www.xinuanet.com; find article here>>.

Thursday, August 20, 2009

Austrian Supreme Court addresses excessive term of timesharing contract

In July 2003 plaintiffs had acquired timesharing rights (right to use an appartement one week per year) in defandants' hotel at CHF 10.000 and a yearly contribution of CHF 490. The contract term was scheduled until 20.01.2050 (!). In their law suit filed in 2008, plaintiffs sought for termination of their contract by 20.01.2015 and refund of EUR 5.297. They claimed that due to settled case-law the term of a timesharing contract must not exceed 10 to 15 years. As thus their contract therefore was partly void they were entitled to the refund claimed for.

The claim was dismissed by all levels of jurisdiction: Supreme Court (OGH) confirmed the view of the lower instances that it was not the excessive term of contract itself that had to be regarded void but the lack of a right to terminate the contract after expiration of a reasonable term. Even if notice of termination can be given long time in advance, the legal consequences of termination will only become effective at the time of termination. Thus there was no claim to the declare the contract void "pro futuro" and no due claim for refund.

OGH judgement 8 Ob 147/08p of April 4, 2009 available in German here>>.

Tuesday, August 18, 2009

Austria: hotel entitled to compensation for bitumen dirt

Defendant, a local community, had repaired a street in front of plaintiff's hotel. As the bitumen used was defective, particles came off and were brought into the hotel through the shoes of the guests and caused dirty spots on carpets and furniture.

Austrian Supreme Court (OGH) held that such dirt particles had to be regarded an "immission" due to sec. 364 par 2 Civil Code (ABGB) and constituted a claim for compensation, irrespective of fault. There was a sufficient causal connection even if hotel guests had acted carelessly.

Judgement 2 Ob 216/08s of March 25, 2009 avialable for download in German here>>.

Monday, August 17, 2009

Austria: duty to warn at dry toboggan run

Plaintiff, a man of about 110 kilogramme took a dry toboggan ride with his daughter. Even though the toboggan run complied with technical standards and relevant laws, braking efficiency was poor at steep parts if total weight exceeded 120 kilogramme. When arriving at such steep part, plaintiff tried to slow down the toboggan by using the brakes. As he saw no effect he paniced and screamed. The man at the toboggan in front heard the scream and stopped. Few moments later plaintiff's toboggan drove against the one of the man in front and plaintiff was injured severely.

Austrian Supreme Court (OGH) held that even though plaintiff could have had a safe ride despite low braking efficiency, the operating company was liable for the injury caused by plaintiff's panic reaction and improper attempt to assistance by the man in front because of not having warned of limited braking efficiency.

Judgement 5 Ob 52/09x of April 28, 2009 available in German here>>.

Tuesday, August 11, 2009

21st IFTTA Conference in Brazil - Preliminary Programme.


Dear IFTTA members,


The 21st IFTTA Conference in Brazil is getting close. Toward that end the organizers would like to invite the IFTTA community to attend this annual meeting in Sounth America. About 22 experts from 10 countries are going to present papers, all of them with backgrounds in, or a strong interest in travel and tourism issues. The preliminary programme is already online into the Conference Website.
Moreover, the UNWTO representative will deliver a message on behalf of the UNWTO Secretary-General a.i. at the opening ceremony and talk about the "Current joint activities and future prospects " regarding IFTTA/UNWTO cooperation project.
To additional information about the Preliminary Programme click here.


Friday, July 17, 2009

USA: no testimony of FBI agents regarding 9/11 probes

In an order relating to three wrongful death cases and 19 property-damage cases following the 9/11 attacks, U.S. District Judge Alvin Hellerstein in Manhattan denied a motion by the airlines to question six current and former FBI agents. The airline defendants had hoped to show at trial that the government's failure to apprehend the terrorists and stop the attacks was so considerable that it mitigates and excuses any alleged faults of the airlines.

The judge wrote that the government's failures to detect and abort the terrorists' plots would not affect the aviation defendants' potential liability. The judge also denied a motion to admit the 9/11 Commission report as a whole as evidence in the case, instead only admitting the chronology provided in the report.

Source: Dow Jones Newswires; find article here>>.

Thursday, July 16, 2009

German Supreme Court (BGH): no price reduction for delayed flight

Plaintiff had booked a flight from Frankfurt/Main (FRA) to Phoenix (PHX) via Washington, D.C. (DCA). The flight from FRA to DCA was scheduled for departure on Oct. 7, 2006, 13:25 hrs. Departure was delayed to 17:00 hrs and plaintiff missed his conneting flight to PHX. He claimed for compensation under Reg. 261/2004 as well as price reduction.

As in case Xa ZR 78/08, BGH held that missing a connecting flight due to a delay of the feeder would not constitute "denied boarding" under Reg. 261/2004.

BGH furthermore held that a contract for flight carriage normally could not be regarded a contract whereas time is of absolute essence in a meaning that the whole contract would lapse if the scheduled time was missed. Neither could a flight delay be regarded as deficient service entitling passengers to a price reduction. Plaintiff therefore could only have sued for any damages caused by the delay.

BGH 28.05.2009, Xa ZR 113/08; judgement avialable in German here>>.

Thursday, July 09, 2009

European Court of Justice: court of place of departure or arrival compentent for compensation claims under Reg. 261/2004

In a judgement rendered today (Case C-204/08, Rehder v. Air Baltic), ECJ held that neither the location of the head office of the company operating the flight nor the place where the air transport contract was entered into is conclusive with regard to the choice of the court having jurisdiction in regard to claims for flat-rate compensation under Reg. (EC) 261/2004.

The place of the head office or the principal place of establishment of the airline concerned does not have the necessary close link to the contract. The operations and activities undertaken from that place, such as, in particular, the provision of an adequate aircraft and crew, are logistical and preparatory measures for the purpose of performing the contract relating to air transport and are not services the provision of which is linked to the actual content of the contract. The same is true with regard to the place where the contract for air transport is concluded and the place where the ticket is issued.

The only places which have a direct link to those services, provided in performance of obligations linked to the subject-matter of the contract, are those of the departure and arrival of the aircraft, the ‘places of departure and arrival’ having to be understood as those agreed in the contract of carriage in question, made with one sole airline which is the operating carrier.
Each of those two places has a sufficiently close link of proximity to the material elements of the dispute and, accordingly, ensures the close connection between the contract and the court having jurisdiction. Consequently, a claim for compensation following the cancellation of a flight may be brought, as a matter of choice on the part of the passenger concerned, before the court having territorial jurisdiction over the place of departure or of arrival.

Source: ECJ press release No 62/09;
Full text of judgement avialable here>>.

Israel: Netanyahu stops VAT on tourism

To the dissatisfaction of the Treasury, Prime Minister Netanyahu cancelled the recommendation for the imposition of a 16.5 percent VAT on the purchase of foreign tourist services in Israel. The heads of the tourism industry said that the Prime Minister has made the correct decision at a time when the number of foreign tourists coming to Israel was falling.

Source: eTurboNews; find article here>>.

UK: new departure tax detrimental to tourism?

ETOA, which represents inbound European tour operators warns UK government to go ahead with plans to increase Air Passenger Duty (APD) next November while the Netherlands and Belgian governments have this month abolished departure taxes in an effort to give a stimulus to tourism through their international airports. ETOA fears that APD could make the UK an expensive destination for the start and end of group tours to Europe and the country would be looking increasingly like an optional add-on than a key element of a visit to Europe for many in-bound long-haul travelers.

Source: eTurboNews; find article here>>.

Wednesday, July 08, 2009

USA: cruise industry supports proposed safety legislation

Contrary to its previous position, on Monday the U.S.cruise ship industry supported proposed federal safety legislation, which would provide cruise ships with increased security.

The bill aims to make reporting crime aboard ships mandatory and require ships to install security latches and peepholes in cabin doors. Along with security precautions, ship physicians would also have to be trained in sexual assault examinations.

Source: TravelAgentCentral; find article here>>.

Tuesday, July 07, 2009

European Court of Justice: Penalty on Greece for Non-Recovery of illegal State Aid to Olympic Airways

In 2002, the Commission took the view that certain aid granted by Greece to Olympic Airways was incompatible with the common market for failing to comply with certain conditions initially laid down. The aid had to be recovered without delay. Faced with inertia from Greece, the Commission first made an application to the Court in 2003. A judgment holding that Greece had failed to fulfil its obligations was delivered in 2005.

Following difficulties encountered by Greece in implementing that judgment, the Commission brought a new action before the Court, seeking a declaration that Greece had not complied with the Court's judgment and the imposition of a periodic penalty payment and a lump sum penalty payment against Greece.

The Court today delivered a second judgment on failure to fulfil obligations, accompanied by a dual financial penalty: a periodic penalty payment and a lump sum penalty payment.

The Court found that Greece's failure to fulfil obligations has lasted for more than four years. It concerns the common market, the establishment of which is an essential task of the European Community. Moreover, the control of aid to air transport is of considerable importance, since that market is, by its nature, a cross-border market. However, the amounts of aid in respect of which Greece has not proved repayment constitute only a relatively small part of the total sum.
The Court therefore imposed upon Greece a periodic penalty payment of EUR 16 000 per day of delay in implementing the judgment of 2005, counting from one month after the delivery of the present judgment, in order to allow Greece to demonstrate that it has ended the failure to fulfil obligations.

The Court recalled that cumulation of the two penalties in based on the capability of each to fulfil its own objective and depends on the circumstances of each case. The Court, on a just assessment of the circumstances of this case, determined the amount of the lump sum penalty payment at EUR 2 million.

Source: ECJ press release 59/09 of July 7, 2009; find full text here>>.

Monday, July 06, 2009

France: passenger demonstrations following Yemenia crash

In France potential passengers –mostly from the Comores community - are refusing to fly again with Yemen flag carrier, denouncing the poor quality. They ask French authorities to ban the airline from French and even EU skies. It is an unprecedented move against an airline with serious potential consequences for the airline industry: Passengers forcing an airline to out of a market could create a precedent open a new era in the relations between airlines and their customers.

Following demonstrations Yemenia announced to “temporarily” suspend its flights to and from Marseille-Provence airport and finally announced to also suspend its flights from Paris until conditions are improving. Anyway, Yemenia will be forced to dramatically improve its safety.

Source: eTurboNews; find Article here>>.

UNWTO: international tourism down by 8%

According to the June edition of the UNWTO World Tourism Barometer international tourism declined by 8% between January and April compared to the same period last year. Destinations worldwide recorded a total of 247 million international tourist arrivals in those four months, down from 269 million in 2008. Given the changes in the outlook UNWTO has revised its forecast for the full year 2009. Taking account of the results for the first four months of the year and the current market conditions, international tourism is now forecast to decrease by between -6% and -4% in 2009, as the pace of decline is expected to ease during the remainder of 2009.

Source: UNWTO press release of July 2, 2009; find full text here>>.

Thursday, July 02, 2009

European Union: Commission to strengthen systems to enforce consumer law

Today the European Commission adopted a "consumer enforcement package" to strengthen the EU-wide enforcement of consumer rules. The package consists of: a Communication setting out five priority areas for action, and a report on the first two years of application of the Consumer Protection Cooperation (CPC) Regulation1, which established an EU wide network of public authorities enforcing consumer rules in the Member States ("CPC Network"), for example, with EU wide investigations into websites selling airline ticket or ringtone subscriptions for children. Effective enforcement of consumer law is major priority for EU consumer policy - both in terms of ensuring that consumers feel the full benefits of their consumer rights in their daily lives, as well as establishing a level playing field for firms in a competitive single market.

Source: EU press release IP/09/1080 of 2 July 2009; find full text here>>.

USA: lawmakers seek assurance on privacy of passenger data

U.S. Federal lawmakers want to know what will happen to sensitive data of more than 150,000 travelers after the country’s leading airport secruity fast-lane company ceased operation last week. The House Homeland Security committee asked the TSA in a letter last Thursday to explain what it knows about the privacy of the data of the 165,000 customers of the privately-issued Clear pass. That data trove left a lot of unanswered questions after Clear suddenly closed.

Source: wired.com; find article here>>.

Utah: entrance to bars simplyfied to boost toursim

For 40 years, Utah required customers to become a member of a private club before they were allowed to set foot in a bar. Now this requirement was eliminated in an effort to boost the state's $7 billion-a-year tourism industry and make the state appear a little less quirky to outsiders.

Source: USA today; find article here>>.

Cancellation or Delay - some 'Highlights' of Advocate General Sharpston's Opinion

...

31.
In the explanatory memorandum to its original proposal for a regulation, the Commission noted, at point 20, that ‘[c]ancellation by an operator … represents a refusal to supply the service for which it has contracted, except in exceptional circumstances beyond its responsibility, such as political instability, severe weather conditions, inadequate security and unexpected safety failures. For the passenger, cancellation in ordinary circumstances, for commercial reasons, causes unacceptable trouble and delay, particularly when not warned in advance.’ At point 23, it stated: ‘Although passengers suffer similar inconvenience and frustration from delays as from denied boarding or cancellation, there is a difference in that an operator is responsible for denied boarding and cancellation (unless for reasons beyond its responsibility) but not always for delays ...

32. It is not all that easy to discern the logic behind the distinction that the Commission was there drawing ...

...

35. In the course of the legislative process, however, there does not appear to have been a strong focus on that distinction, particularly once the levels of compensation had been reduced. In the text as finally adopted, it is difficult to deduce the criteria for distinguishing between ‘cancellation’ and ‘delay’.

...

38. The Regulation has the considerable merit of granting automatic compensation to passengers whose flights have been cancelled. However, as the Polish Government notes in its written observations, the distinction the Regulation introduces between cancellation and delay may lead to passengers who find themselves in objectively similar situations being treated differently.

...

47. In the IATA and ELFAA judgment, the Court stated unequivocally that the objective of Articles 5 (cancellation) and 6 (delay) of the Regulation is apparent from the first and second recitals in the preamble, according to which action by the Community in the field of air transport should aim, inter alia, at ensuring a high level of protection for passengers and should take account of the requirements of consumer protection in general, inasmuch as cancellation of, or long delay to, flights causes serious inconvenience to passengers.

...

51. However, regardless of the seriousness of the inconvenience caused, the Regulation provides that the cancellation of a flight automatically triggers a right to compensation (under Article 7) while a delay never does. As the order for reference in Sturgeon suggests and as the Commission indicated at the hearing, the Regulation therefore appears to be based on the assumption that a cancellation necessarily causes more inconvenience to passengers, and hence merits a stronger form of protection, than a ‘mere’ delay.

52. It is wholly unclear to me why this should be so ...

...

60. It seems to me that the underlying logic (again, against the background of enhanced consumer protection) must have been that, where the operator is not responsible for the inconvenience (whether caused by cancellation or long delay), he should not have to pay compensation; and that, conversely, where he is responsible, he should pay. Put another way, the criterion for compensation is not causation, but fault (broadly defined) on the part of the operator.

61. If that is right, it still does not explain why passengers suffering the inconvenience of a cancellation and passengers suffering the inconvenience of a long delay are treated differently. ...

62. The difference in treatment therefore appears to fall foul of the principle of equal treatment.

...

68. Factors that have been cited before the Court and in national case-law and legal writing as providing possible indications that a flight has been cancelled include: change of air carrier, change of aircraft, change of flight number, change of airport of departure or arrival, giving baggage back to passengers, new check-in for passengers, new seating assignment, allocation of all passengers to one or more other aircrafts, issuing new boarding passes, and the fact that the flight is described as ‘cancelled’ by the pilot (or other air carrier staff) or on the departures board.

69. Common sense suggests that all of these factors could be indications that a flight has been cancelled rather than merely delayed. The more factors that are present together, the more likely it becomes that there has indeed been a cancellation. By the same token, I do not think that any individual factor can be conclusive.

...

72. The Commission, supported at the hearing by counsel for Mr Böck and Ms Lepuschitz, for Condor, and for the Greek Government, suggests in its written observations that a change of flight number is a strong indication that a flight has been cancelled. I agree.

...

75. Since none of the factors cited can be conclusive on its own, national courts must assess the importance of each of them, when they are present in combination, in each individual case. That may lead to significant problems with legal certainty.

...

81. As a matter of common sense, time is obviously a factor in identifying whether a flight has been cancelled. If a number of the factors listed above are present in combination and/or the flight has been delayed for an inordinate period of time, that is a very strong indication that the flight has in fact been cancelled.

...

83. ... However, there are two difficulties with this approach. First, what is meant by ‘inordinate delay’? Second, is it permissible to interpret the Regulation in a way that classifies inordinate delay as de facto cancellation?

...

87. It seems to me impossible to identify, with any acceptable degree of precision, exactly what period of time must elapse before a delay become ‘inordinate’.

88. It would therefore be a matter for the national court, in each individual case, to evaluate the facts and reach a view – based on some mixture of national legal tradition, good sense and instinct rather than any precise Community legal norm – as to whether the delay in that instance had been ‘inordinate’ and should therefore be regarded as a de facto cancellation. ...

...

96. It seems to me that, in seeking to avoid Scylla (obvious discrimination against passengers whose flights are inordinately delayed when compared to passengers who obtain automatic compensation for their cancelled flight), one is immediately swept into Charybdis (legal uncertainty). ...

European Court of Justice: Advocate General Sharpston suggests reopen oral procedure on whether Articles of Regulation 261/2004 (EC) are invalid

In Cases C-402/07 -Sturgeon and C-432/07 - Böck both related to the destinction of cancellation and (extra) long delay according to Reg. 261/2004, Advocate General Sharpston in her opinion delivered this morning pointed out that in the course of the legislative process, regardless the importance there does not appear to have been a strong focus on that distinction, particularly once the levels of compensation had been reduced. In the text as finally adopted, it was difficult to deduce the criteria for distinguishing between ‘cancellation’ and ‘delay’.

She suggested that

  • Before ruling on the questions posed by the Bundesgerichtshof and the first and second questions posed by the Handelsgericht Wien, the Court should reopen the oral procedure pursuant to Article 61 of the Rules of Procedure and invite submissions from the Member States, the Commission, the European Parliament, and the Council on whether Articles 5 and 7 and Article 6 of Regulation (EC) No 261/2004 of the European Parliament and of the Council of 11 February 2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights, and repealing Regulation (EEC) No 295/91, inasmuch as they draw a distinction between cancellation and delay (irrespective of length), are invalid in the light of the principle of equal treatment.
In regard to the excuse of extraordinary circumstances and technical problems she re-affirmed:

  • Article 5(3) of Regulation No 261/2004 must be interpreted as meaning that a technical problem in an aircraft which leads to the cancellation of a flight is not covered by the concept of ‘extraordinary circumstances’ within the meaning of that provision, unless that problem stems from events which, by their nature or origin, are not inherent in the normal exercise of the activity of the air carrier concerned and are beyond its actual control.

Full text of opinion available here>>.

European Union: Regulation on travelling with pets

On 16 June the European Commission adopted a proposal according to which transitional animal health requirements applicable to the movement of pet animals travelling with their owners to Finland, Ireland, Malta, Sweden and the United Kingdom are to be extended until 31 December 2011. The proposal will be discussed by the European Parliament and the Council, with a view to formal adoption through the co-decision procedure.

In accordance with the current rules laid down in Regulation (EC) 998/2003 (known as the "Pet Regulation"), pet dogs, cats and ferrets travelling with their owner for non-commercial movements to another Member State must be accompanied by a passport or, when imported from a third country, by a certificate providing proof of a valid anti-rabies vaccination.

The Regulation also grants a transitional period expiring 30 June 2010 to Finland, Ireland, Malta, Sweden and the United Kingdom to make the entry of pet animals into their territory subject to compliance with certain additional requirements in relation with rabies, the tapeworm Echinococcus multilocularis or ticks (the "transitional regime").

The Commission considers that the conditions for moving to a fully harmonised set of rules throughout the EU that would avoid unnecessary burden for travellers are almost entirely fulfilled.

Source: European Commission, DG Health and Consumers, Health & Consumer Voice July 2009 Edition

More information at:
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/277&format=HTML&aged=0&language=EN


UK: chaos to be expected from new electronic passport checks?

The e-borders programme, which is due to be fully in force by 2014, is aimed at tackling terrorism, crime and illegal immigration and allows passenger details to be checked against watch lists. However, travel operators from the rail, shipping and travel industries told MPs that the Home Office had not consulted them properly and warned that the system could lead to unacceptable delays: Travellers could face chaos during this year's school holidays if airlines are forced to implement new electronic passport checks.

The government said the e-borders scheme was already a proven success.

But travel operators warned it could breach EU laws on data collection. And they said the flagship £750m programme to collect electronic records of everyone who enters and leaves the UK will also miss Home Office deadlines.

Source: BBCNews; find article here>>.

European Uniton: Commission alerts consumers to the importance of sun protection

At the start of the holiday season, the European Commission alerts consumers to the importance of adequate protection from the sun this summer and reminds them to look out for the clearer labelling regime on sunscreen bottles. The new labels - including a new UV-A logo or seal on bottles and a ban on misleading terms such as "sun blocker" or "total protection" - are a response to a Commission recommendation on sunscreen products adopted in September 2006. The Commission is also seeking to remind consumers that there are several reasons why sunscreen products should be only one out of a number of measures which are necessary to protect from the UV radiation of the sun.

Source: European Commission press release; find full text here>>.

Tuesday, June 30, 2009

Twitter Technology and the Revolution in Iran

The Revolution Will Be Microblogged: Iran's Election and the Power of Twitter
By Kevin Fayle on June 25, 2009 12:30 PM | No TrackBacks

http://blogs.findlaw.com/technologist/2009/06/the-revolution-will-be-microblogged-irans-election-and-the-power-of-twitter.html

The events that have unfolded in Iran following the contested
presidential election have transfixed the world. Much of the
information that has come out of (and into) the country has traveled
over social media services as a result of censorship and blocking of
communications systems by the government.

The crisis in Iran has allowed Twitter, the microblogging service, to
mature into a legitimate and important communication tool. Twitter
has played such a prominent role in allowing mobilization and
documentation of the Iranian opposition that the US State Department
at one point even asked the company to put off a scheduled maintenance
so that Iranians could continue using the service.
Iconic images and videos, such as the shooting of Neda Agha-Soltan
(warning: the video is graphic and disturbing), have flooded out of
Iran and the protesters have used the service to organize rallies and
spread information. Twitter has also been instrumental in allowing
outsiders to read real-time reports about the events in Iran, all
despite the fact that the government has actively attempted to block
communication of the turmoil to the outside world.

Twitter has become the default method of communication about the
Iranian situation because of one primary characteristic: openness.
Despite the fact that the government has blocked the Twitter site
itself, there are many websites that utilize the Twitter Application
Programming Interface (API) and allow users to read others' tweets and
post their own. The Iranian authorities don't always know about these
sites in order to block them, which allows Iranian citizens to
continue to tweet about the events as they occur.

Those interested in following the unfolding events or tweeting about
something related to the Iranian election can also utilize another
feature of Twitter, called hashtags, in order to read reports on the
election and direct their comments to the right conversation. A
hashtag is basically a keyword with a hash symbol in front of it.
People place hashtags in their tweets in order to make it easier for
others to locate posts on a particular topic, and users of the Twitter
search function can search for those hashtags in order to easily find
the conversation threads they're after.

For example, the two most popular hashtags used to identify a tweet
about the Iran election are #iranelection and #gr88. A message using
one of those hashtags might look something like this: "more protests
in the streets of Tehran #iranelection".

Twitter has definitely had an overall positive influence in the midst
of the Iranian tragedy, but there is also a possibility that the site
could become a tool for the security forces to track down and suppress
those posting to the service. Since data on the internet can live
forever, and since people communicating over the internet leave traces
that they might not be aware of, those Iranians using Twitter should
be cautious, lest they inadvertently identify themselves or those
around them as members of the opposition protest movement.

The success of Twitter in keeping communication flowing in and out of
Iran despite the governments attempts at censorship reveals that
technology can be a powerful tool against oppressive regimes. The
metadata about tweets and the publicity of the messages can also
create danger for those actively using the service to spread news and
organize political protests, however. Like most things in life,
Twitter is a double edge sword that, when used properly, can be a
great benefit. When used carelessly, however, it can lead to woe and
misfortune.

Regimes like those in China and Iran try very hard to control what
their citizens see and do online. Some argue that this violates the
right to freedom of expression guaranteed by several international
treaties, as well as the laws governing international trade. Tools
like Twitter that are difficult for the regimes to control can help to
keep citizens of the countries connected to the outside world, and
give them a voice when the government tries to silence them. This in
turn can help ensure that all individuals can enjoy the rights
guaranteed to them under international law.

See Also:
Tyranny's new nightmare: Twitter (LA Times)
Cyberwar guide for Iran elections (Boing Boing)
HOW TO: Track Iran Election with Twitter and Social Media (Mashable)
Unrest in Iran raises profile for Twitter (MercuryNews.com)

Sunday, June 28, 2009

European Court of Justice: national courts required to examine, of their own motion, unfairness of terms in consumer contracts

Upon reference for preliminary ruling instituted by a Hungarian District Court (Budaőrsi Városi Bíróság), ECJ held that the protection which Directive 93/13/EEC on unfair terms in consumer contracts confers on consumers extends to cases in which a consumer who has concluded with a seller or supplier a contract containing an unfair term fails to raise the unfairness of the term, whether because he is unaware of his rights or because he is deterred from enforcing them on account of the costs which judicial proceedings would involve.

As a consequence, the role of the national court in the area of consumer protection is not limited to a mere power to rule on the possible unfairness of a contractual term, but also consists of the obligation to examine that issue of its own motion, where it has available to it the legal and factual elements necessary for that task, including when it is assessing whether it has territorial jurisdiction.

Where the national court considers such a clause to be unfair, it must not apply it, unless the consumer, after having been informed of it by the court, does not intend to assert its unfairness and non-binding status.

Source: ECJ press release 46/09; full text of judgement C-243/08 - Pannon GSM of June 4th, 2009 available here>>.

Friday, June 26, 2009

USA: Al Anolik discussing cruise-safety on the radio

In an interview with Sandy Dhuyvetter of Travel Talk Radio, Al Anolik, founding member and president emeritus of IFTTA, shared his views on the Cruise Vessel Security and Safety Act currently pending before the US Congress.

The interview can be read at eTurboNews here>>.

Thursday, June 25, 2009

Austria: visit of traditional Krampus event at own risk

At traditional Krampus events in Austria (Krampus = Santa's devilish helper, the guy that punishes the bad kids on St. Nicholas day) -mainly in the western provinces - the the young men of the villages walk and dance through streets disguised as Krampus wearing birchs scaring and incidentally whipping visitors.

Plaintiff who participated in such event as a visitor was hit at her left eye by the stem of a birch dangling from the wrist of a dancing "Krampus". She sued the organizer of the event for compensation for pain and suffering.

Austrian Supreme Court (OGH), however, dismissed the claim: there had been no fault on part of the organizer as the general duty to maintain saftey must not be overdrawn. It would not be reasonable to require the organizer to provide a minder to each of the (250!) Krampusses while it was part of the event that the
Krampusses would mingle with the visitors and have fun scaring them. The risk had been forseeable for plaintiff as visitors usually participate to enjoy the thrill of playing the 'victims' of the Krampus. As the Krampus did not deliberately injure plaintiff but the accident happend as a consequence of his dancing moves it would have been up to herself to care for her safety.

Supreme Court decision 10 Ob 15/08s of 17.03.2009 available in German here>>.

Tuesday, June 23, 2009

Ireland: Non-extension of compulsory licensing to internet sites

The Irish state regulator for tour operators and travel agents has advised the Irish government against extending the statutory compulsory licensing and bonding scheme to internet sellers of travel services.

Report available at http://www.transport.ie/viewitem.asp?id=11263&lang=ENG&loc=432

Reported to IFTTA by Marc Mc Donald

Wednesday, June 10, 2009

USA: travel agents' class action against YTB partly dismissed

Although the U.S. District Court in Illinois did not dismiss the case outright, it granted parts of YTB’s motion to dismiss a class action brought against the multilevel marketing travel company by former referring travel agents, who charged that YTB operated an illegal pyramid system.

The court dismissed allegations against YTB subsidiary Rezconnect and its CEO, Michael Brent, on grounds that the court did not have jurisdiction over the New Jersey-based business.

Source: Travel Weekly; find article here>>.

Spain: refrence for preliminary ruling on Montral Convention in regard to non-material damages

Commercial Court Barcelona (Juzgado de lo Mercantil 4, Barcelona) filed a reference for preliminary ruling to the European Court of Justice on whether the limit of liability referred to in Article 22.2 of the Convention for the Unification of Certain Rules for International Carriage, signed in Montreal on 28 May 1999, included both non-material damage and material damage resulting from the loss of baggage.

Case C-63/09; Reference published OJ C 102 of 01.05.2009, p.11.

Tuesday, June 09, 2009

Austria: another reference for preliminary ruling in regard to jurisdiction and website advertising

Plaintiff, a hotel company, is running a hotel in Austria and a related website, the latter also indicating plaintiff's email address. Defendant, a German consumer, had made a room reservation through email. Plaintiff is claiming for payment of room rate and filed a law suit at the Austrian court where the contract was performed. Defendant pleaded there was no jurisdiction in Austria: due to him being a consumer the law suit should have been filed in Germany. The first instance court (BG St. Johann/Pongau) and the court of appeal (LG Salzburg) both dismissed the claim as in their view plaintiff via the website - even though not interactive (and thus not allowing online booking) - had directed commercial l activities to the Member State of the consumer's domicile and as a consequence the claim was subject to German jurisdiction solely.

Upon further appeal of plaintiff, Austrian Supreme Court (OGH) had sufficient doubts to institute a reference for preliminary ruling asking whether Art. 15 of Reg. 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters must be interpreted in a way that a website accessable in the Member State of the consumer's domicile and advertising the entrepreneur's commercial activities would suffice to regard these commercial activities being directed to this member state.

OGH's reference for preliminary ruling 6 Ob 24/09m of March 26, 2009 is available for download in German here>>.

Germany: no insurance protection for accident due to excessive sun exposure

During her holidays on the beach, plaintiff doze off under an umbrella. As the shadow moved she got exposed to sunshine for several hours. When she got up she suffered a circular collapse, fell and banged her head against the concrete border of a flowerbed.

Her claim against the accident insurance was dismissed by German Supreme Court (BGH) as due to General Conditions of the insurance contract an exemption apllied to accidents caused by reduced conciousness.

German text of decision IV ZR 219/07 of Sep. 24, 2008 available for download at http://www.bundesgerichtshof.de/.

European Court of Justice: national courts required to examine unfairness of contract terms of their own Motion

Council Directive 93/13/EEC on unfair terms in consumer contracts provides that unfair terms used in a contract concluded with a consumer by a seller or supplier are not binding on consumers. In a decision of June 4th, 2009 (Case C—243/08 - Pannon GSM Zrt. v. Erzsébet Sustikné Győrfi) ECJ held that the protection which the Directive confers on consumers extends to cases in which a consumer who has concluded with a seller or supplier a contract containing an unfair term fails to raise the unfairness of the term, whether because he is unaware of his rights or because he is deterred from enforcing them on account of the costs which judicial proceedings would involve.

As a consequence, the role of the national court in the area of consumer protection is not limited to a mere power to rule on the possible unfairness of a contractual term, but also consists of the obligation to examine that issue of its own motion.Where the national court considers such a clause to be unfair, it must not apply it, unless the consumer, after having been informed of it by the court, does not intend to assert its unfairness and non-binding status.

Source: ECJ press release No 46/09

Friday, June 05, 2009

Action against Italy (ECJ Case C-121/09) re Art 7 PTD

Form of order sought a declaration that the Italian Republic has failed to fulfil its obligations under Article 7 of the ptd

Pleas in law and main arguments

1. By fixing a period of three months from the foreseen date of the end of travel for the purpose of making an application for action by the Guarantee Fund for package travel consumers, the Italian Republic has failed to fulfil its obligations under Article 7 of Directive 90/314.

2. Article 7 of Directive 90/314 provides that the organiser and/or retailer party to the contract is to provide sufficient evidence of security for the refund of money paid over and for the repatriation of the consumer in the event of insolvency. According to the interpretation given in Community case-law, that provision imposes an obligation of result on the Member States, which entails affording the purchaser of package travel the right to effective protection against the risks of the organisers' insolvency and, in particular, the refunding of sums paid over and repatriation.

3. Next, Article 8 allows Member States to adopt more stringent provisions, but only if the latter offer greater consumer protection.

4. In the instant case, the object of the Italian legislation in question, according to information sent by the national authorities during the infringement procedure, is to ensure that the State budget has the opportunity of recovering sums paid to consumers and so of preserving the State's financial interests instead of ensuring greater protection for the purchasers of package travel.

5. Although the Commission understands that Italy has an interest in ensuring the proper balanced running of the Guarantee Fund, making it easier for the latter to bring an action for indemnity against the tour operator, it takes the view that such a measure, by imposing an absolute limit on the presentation of the application for action by the Fund, introduces a condition capable of depriving the consumer of the rights guaranteed by Directive 90/314.

6. It is true, as the Italian authorities maintain, that consumers may make their application for action by the Fund as soon as they are aware of circumstances that threaten to prevent the performance of the contract. However, in order to avail themselves of that opportunity they must be aware of those circumstances. Excluding those cases in which the travel organiser's insolvency is obvious, by reason of a declaration of insolvency, in most cases consumers do not know the exact financial situation of the operator. It is therefore reasonable that they should in the first place turn to the operator to obtain repayment of sums paid, sending it a letter, perhaps a reminder, and finally an order to pay. In that manner there is a risk that the period of three months fixed by Article 5 of Ministerial Decree No 349/1999 may already have long elapsed when the application is made for action by the Fund, with the result that consumers are deprived of the right to obtain the refund of the sums paid.

7. To remedy the infringement alleged in these proceedings, the Italian authorities declared, first, that they wished to extend from three to 12 months the period in which the application may be made and then that they intended to abolish it.

8. In addition, they published in the Official Gazette of the Italian Republic a communication informing potentially interested persons that, pending abolition of the period in question, for the purposes of ensuring consumer protection applications may be made to the Guarantee Fund at any time.

9. The Commission considers that such measures, while a laudable attempt to make good the consequences of the infringement complained of, do not do enough to eliminate the risk that purchasers of package travel may be deprived of their right to effective protection in the event of the organiser's insolvency.

Wednesday, June 03, 2009

USA: State Department Alert Signals Hurricane Season

The U.S. State Department has issued its annual alert on the coming of the Hurricane Season in the Atlantic and Pacific oceans, the Caribbean and the Gulf of Mexico. The official Atlantic Hurricane Season runs from June through November. The alert expires on Dec. 4, 2009. It cites officials at the National Weather Service and at the National Oceanic and Atmospheric Administration (NOAA) who predict a 50 percent chance that activity during the 2009 Atlantic Hurricane Season will be near-normal this year, forecasting nine to 14 named storms, with four to seven becoming hurricanes and one to three becoming major hurricanes.

For further information see www.travel.state.gov

Germany: another Supreme Court decision on a missed connecting flight

Following its decision of April 30, 2009, German Supreme Court(BGH) in a recent decision of May 28, 2009 (Xa ZR 113/08) confirmed that the miss of a connecting flight due to a delay of the feeding flight does not constitute "denied boarding" under Reg. 261/2004.

Furthermore there was no claim for price reduction based on the delay as a delayed fligth could not be regarded "defective". Plaintiffs therefore could only have sued for compensation of damages caused by the delay, which they, however, had not claimed for.

BGH therefore upheld the dismissal of the claim by the lower courts.

Source: BGH press relase of 28.05.2008; find full text in German here>>.

Tuesday, May 19, 2009

Illinois: another law suit aganist YTB

The Califonia law suit was barely setteled when Illinois Attorney General Lisa Madigan filed a similar law suit against YTB: again YTB is charged with operating an "unlawful pyramid sales scheme." Illinois charged that YTB violates the state’s Consumer Fraud Act by misrepresenting that it is a travel agency "when in fact the primary function of the business is building a downline." Illinois is seeking civil penalties of $50,000 for each violation of the Consumer Fraud Act.

Source: Travel Weekly; find article here>>.

Friday, May 15, 2009

South Korea: specific Visa for Medical Tourists

South Korean government is introducing a new category of visa for tourists who visit the country for medical purposes. The foreign medical tourist visa, M, is adopted in a bid to boost the nation's medical tourism industry as local hospitals and medical institutes have strongly requested the government to simplify the visa issuance process. According to the Ministry for Health, Welfare and Family Affairs, the new visa will be issued from Monday in two forms, C3 (M), a 90-day visa for those with short-term treatment purposes, and G1 (M), a one-year visa for those who need long-term care.

Source: www.xihunaet.com; find article here>>.

European Union: Airlines move to clean up ticket selling websites

New EU results published yesterday show a "step change" in airline ticket selling websites across Europe in terms of compliance with consumer protection rules. The findings feature in a final report on an 18 month EU-wide process to crackdown on misleading advertising and unfair practices. As a result of an EU enforcement investigation started in September 2007 – with 15 EU national authorities and Norway - 115 airline websites out of the 137 websites investigated have been corrected. Following an additional "health check" process involving independent mystery shopping in March 2009 on 67 major airlines, 52 airlines have either been given a "clean bill of health" and undertaken to maintain the same standards or immediately responded to the Commission's consultation with undertakings to remedy outstanding issues. The health check process checked websites against a comprehensive 14 point checklist, which was previously agreed with the airline industry. The Commission is now working to put in place an industry wide agreement to provide a level playing field for airlines across the EU and to maintain sites to a high standard.

Source: EU press release IP/09/783; find full text here>>.

California: YTB case settled

The state of California's lawsuit against the multilevel marketing travel company YTB and its founders (see posting of Jan. 8, 2009) has been settled.

In addition to paying $1 million in penalties costs and restitution, YTB will have more difficulty selling websites to prospective travel sellers. Plus, limits were imposed on recruiters’ earning potential. YTB also has to register with California as a franchise business.

Source: Travel Weekly; find article here>>.

Thursday, May 14, 2009

Australia: holiday makers warned on using unlicensed travel agents

The Australian Travel Compensation Fund says booking with a licensed agent is “more important than ever'”as more businesses struggle in the tough economic climate. The TCF has exceeded $50 million in payments to Australian travellers who have been left out of pocket after their travel agencies collapsed. However, travellers are eligible for financial protection only if they used a licensed agent. The TCF was set up in 1986 to provide a safety net for travellers who would lose money if a travel agency collapsed or became insolvent.

Source: news.com.au; find article here>>.

USA: FlyersRights.org accuses some airlines of trapping passengers during diversions

As the U.S. Department of Transportation (DOT) released its sixth monthly data installment for diverted commercial airline flights – flights that make unscheduled stops before they reach their final destinations, either to refuel, or because of a weather problem or some other in-flight emergency - a FlyersRights.org analysis shows that some airlines routinely denied passengers the opportunity to deplane at a diverted airport, while others almost always gave passengers the option to wait out the diversion in the comfort of an airport terminal.

FlyersRights.org is lobbying Congress to adopt a rule that would allow passengers the opportunity to deplane if delayed on the ground for 3 hours or more for any reason, including flight diversions.

Source: FlyersRights.org

Monday, May 11, 2009

European Union: airline take-off slot rules to be changed

Current rules force airlines to use the time slots at busy airports at least 80 percent of the time or face losing them the following season. After the European Parliament agreed to loosen these "use-or-lose rules", airlines will gain more flexibility in how they use take-off and landing slots: They will be entitled to the same series of slots during the summer 2010 season as were allocated in 2009, regardless of how much they use them.

Source: AEA information


UNWTO: Taleb Rifai to be Secretary-General 2010-2013

The 85th session of the UNWTO Executive Council, meeting in Mali, recommended Taleb Rifai for the post as Secretary-General for the four-year-period starting January 2010. The candidature of Mr. Rifai (Jordan) was supported by the Executive Council, in accordance with the UNWTO statutes. The recommendation will be presented for ratification by the UNWTO General Assembly, meeting the first week of October in Astana, Kazakhstan.

Mr. Rifai has an extensive background in international and national public service, the private sector and academia.

Source: UNWTO press release of May 7, 2009

German Supreme Court: No Compensation under Reg. 216/2004 if Connecting Flight is Missed due to Delay of Feeder

In a judgment of April 30, 2009 (Xa ZR 78/08), German Supreme Court (BGH) held that the miss of a connecting flight due to a delay of the feeder (both flights operated by the same airline and jointly booked as parts of one and the same contract for carriage) would not constitute "denied boarding" under Reg. 261/2004.

BGH reasoned that a right to compensation would require the passenger to
  • prove confirmed booking
  • have appeared at check-in in time and
  • a refusal of carriage against the passenger's will despite him being present at the gate.
These requirements were not fulfilled if the passenger due to the delay of the feeder did not present himself for check-in and/or boarding in time.

Despite of the different view of some other German courts (LG Berlin, RRa 2008, 42; OLG Hamburg, 6 U 94/07; LG Leipzig 6 S 319/08), BGH regarded the issue as "non-ambiguous" and therefore saw no reason to make a reference fo preliminary ruling of the European Court of Justice.

Source: press release 93/2009 by BGH; available in German here>>.