An urge for simplification

In June, there is a steady rise in the demand for travel bureaus, and in July, there is an increase in consumer cases relating to travel! A fleet of consumer cases is now being filed against travel agencies. Tour operators and consumers taking excursions now play a significant role in the economy of our country. The legislature should aim for easier legislation, tax regimes, social security schemes, and procedures that may allure even more foreign companies to invest in India. Moreover, we are already one of the predominantly popular countries when it comes to travel. According to global reports, tourism stocks play a pivotal role, apart from creating jobs, etc. Since it's a business with great potential, many entrepreneurs look forward to investing.

Taking a look at the legal provisions, the erstwhile Consumer Protection Act of 1986 came to the aid of both consumers and, to some extent, travel agents, as there were provisions for malicious and false cases. However, the Consumer Protection Act of 2019 excludes an express provision for vexatious complaints. Consumers, in cases of deficiency in services, can approach consumer courts, among other things, for false portrayal, denied check-ins, ads, ticket cancellation refunds, false promises, misbehaviour by personnel, bad conditions, fraud, being charged for services under inclusive packages, etc. Consumers, being individuals, suffer more financial losses and mental harassment due to unethical terms in consumer contracts that lead to lengthy legal battles. The Consumer Protection Act of 2019 now takes care of unfair consumer contracts. Any unreasonable charge, obligation, or condition that puts the consumer at a disadvantage is considered an unfair agreement and must be strictly dealt with by the courts. Travel agencies may approach the usual civil/criminal court for damages, malicious prosecution, etc., in case of false complaints. There are also cases wherein misguiding middlemen have pre-ordained shares in amounts received as compensation from customers. Tour operators may take strict legal action, including criminal prosecution, against such erratic elements, creating a deterrent to such fraudulent practices.

The Ministry of Tourism has provided rules and regulations governing the conditions of travel agents. The Travel Agents Association of India (TAAI) is the organization formulated to govern the travel industry in India in accordance with acceptable business ethics. Apart from this, there are clear regulations under aviation laws pertaining to civil aviation standards and ensuring consumer privileges and safety.

While there are many ambiguous laws, implementation and awareness have been bleak. It is often evident that despite diligently following all duties and regulations, there is a toll on the finances of clients as well as the goodwill and social status of agencies.

There is a need for a separate, well-balanced, simplistic law governing various issues vis-à-vis consumers and agencies. On one hand, deleting provisions of false, vexatious complaints jeopardizes the interests of trip agencies, and on the other hand, long-drawn legal battles make it absolutely paltry for consumers. Both parties have been at a disadvantage due to the absence of a specialized law to curb unfair terms as well as practices. Lengthy litigations on petty issues result in excessive litigation costs, mental agony, loss of goodwill, etc. Sometimes the real culprits are employees of these junket businesses, owing to their non-performance and miscommunications — issues that can be tackled by resorting to prompt and strict disciplinary procedures.

Courts have opined in various judgments that consumers often have wavering minds. In certain dictums, the apex court has held that travel establishments cannot illegally retain the money paid by consumers, particularly when they have not availed of services or there is apparent deficiency. In cases of refund, courts have allowed tour agencies to retain money on account of the fees spent on applications such as visas, etc., and other administrative expenses.

While there have been provisions/Bills floated for tour operators and agencies, those are currently on hold. The Indian legal process is cumbersome and lengthy. It is time for the legislature to promulgate a central act to regulate everyday issues of this nature. There should be provisions and mechanisms for time-bound complaint resolution, making use of technology. Faster, less costly resolutions, easier tax regimes, and simplistic procedures may attract more foreign companies to invest in India, as we otherwise have an abundance of travel and hospitality resources.

The writer is a practising Advocate in Supreme Court and High Court of Delhi. Views expressed are personal