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On December 15, 2011, amendments to the Canada Transportation
Act that permit the government to issue regulations with respect to
the advertising of airfares came into force. The amendments require
the creation of new regulations to apply to airfare advertising in
all media, including the Internet. Following the coming into force
of the amendments, Transport Canada issued a press release stating
that the Canadian Transportation Agency would develop regulations
for airfare advertising.
Draft regulations are not yet available. However, the amendments
to the Act require the eventual regulations to specify that air
carriers who advertise a price must include in that price all
costs, fees, charges and taxes collected by the carrier, whether
charged by the carrier or collected by the carrier on behalf of
another person. The disclosure will be required to be sufficient to
permit the purchaser to readily determine the total amount that
he/she will be required to pay for the service.
While it is not possible to give a precise timeline for the
coming into force of the anticipated regulations, Transport Canada
estimates that the regulatory process will take one year.
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