Newsroom

ABTA withdraws from OFT Consumer Codes Approval Scheme

127/06    31 August 2006

The Association of British Travel Agents (ABTA) will be withdrawing its consumer code from the OFT Consumer Codes Approval Scheme (CCAS) from tomorrow, 1 September 2006.
 
The withdrawal follows ABTA's decision to change its financial protection arrangements. The new arrangements will not protect consumers' deposits and prepayments to the same extent as the existing OFT approved ABTA code. The changes are included in a new consumer code, to be issued by ABTA tomorrow. This new code replaces the existing code and will not be OFT approved.

The CCAS is designed to help consumers identify businesses that promote consumer interests beyond the basic requirements of the law. The scheme consists of two stages - Stage One is completed when a consumer code meets the OFT's core criteria in principle. To achieve Stage Two code sponsors have to provide evidence demonstrating that the code delivers on that initial promise. If successful, the code then gains OFT approval. Subsequent changes to a code have to be agreed with the OFT, to ensure that the core criteria are still met.

Colin Brown, OFT Director of Market Transformation, said:

'We are disappointed that ABTA has taken the decision to change its code and withdraw from the scheme. The new ABTA code differs from the previous one in a number of ways, including significant changes to its financial protection scheme. Our door remains open for future discussions with ABTA. The OFT will ensure that codes and businesses displaying our Approved Code logo meet all of our stringent requirements.'

NOTES

1. The ABTA Code of Conduct was approved by the OFT on 29 September 2005.

2. ABTA represents the majority of UK travel agents and tour operators. ABTA members account for around ninety per cent of package holidays sold in the UK. They also provide a range of independent travel options.

3. The Enterprise Act 2002 (Part 1, Section 8) gives the OFT powers to approve and promote consumer codes of practice that meet the OFT's core criteria. The OFT's Consumer Codes Approval Scheme (CCAS) aims to promote and safeguard consumers' interests by helping consumers identify better businesses and to encourage those businesses to raise standards of customer service. See press release 31/01 for further details.

4. The OFT has approved four other codes of practice under the CCAS. The Society for Motor Manufacturers and Traders (SMMT) received approval on 27 September 2004 (see press release 153/04), the Vehicle Builders and Repairers Association Ltd (VBRA) received approval on 13 October 2004 (see press release 169/04), the Direct Selling Association (DSA) received approval on 16 December 2004 (see press release 209/04) and the Ombudsman for Estate Agents Company Ltd received approval on 8 September 2005 (see press release 170/05). Code sponsors that have completed stage one and are working towards approval of their code are: the MVRA Ltd (see press release 09/05), the Debt Managers Standards Association (see press release 121/05), the Carpet Foundation (see press release 158/05), the British Association of Removers (see press release 18/06), SafeBuy (see press release 37/06), Robert Bosch Ltd (see press release 40/06) and the British Healthcare Trades Association (see press release 108/06).

Back to:2006