New York Again Wants To Regulate Travel Agencies

The skyline of New York’s state capitol, Albany. Photo: Britney357

A New York State senator has reintroduced a bill that would require travel agents to register with the state and be more heavily regulated by consumer protection laws.

The bill, sponsored by Sen. Jose Peralta (D, 13th District), would require travel agencies across New York to register with the Department of State (DOS), pay an annual $100 fee and be subject to fines of as much as $1,000 for violating consumer protection laws.

The bill is the latest version of an effort in New York to license travel agents. The American Society of Travel Agents (ASTA) said it is “aware of this legislation and is monitoring the situation, though we have not seen the latest version of the bill.”

Peralta told the media his bill is “all about protecting consumers, and protecting good travel agents,” citing two cases in New York City’s borough of Queens where residents were dramatically overcharged for a trip.

“We share Senator Peralta’s interest in protecting the traveling public from bona fide scams and other unethical behavior. When they join ASTA, our members pledge to conduct their business principles according to a comprehensive Code of Ethics, and ASTA actively encourages consumers to inform its Consumer Affairs department of any fraud or other ethical violations by its members,” ASTA said, noting how earlier this year the organization launched a travel agency ethics course.

“While we have no objection to the concept of registration or to efforts to weed out unscrupulous individuals masquerading as bona fide travel agents, we question the justification for additional regulation in the current climate,” ASTA said.

ASTA said it is “not aware of massive fraud in travel being committed and current law seems to cover the few cases that do exist. Further, we are concerned about adding yet another state/local Seller of Travel law to the 16 that exist today. This would increase regulatory burdens and concerns for agencies across the country, especially those that do business in multiple states, as many do.”

Once part of a DOS database, where consumers could review an agents’ public record, the agents would be subject to having their state license revoked and suspended, as well as face financial penalties, in the event they were found guilty of violating state laws.

ASTA is concerned about how any new regulation will justify “imposing new burdens and government mandates on professional, ethical travel agents and agencies in New York and across the country. ASTA and its members would welcome the opportunity to work with the Senator to craft a bill that is fair to both consumers and travel agents, but we respectfully request that consideration of the bill be delayed until the appropriate balance can be struck.”