To resolve consumer disputes during overseas study tours and protect consumer rights and interests, the Consumer Protection Committee (CPC) of the Executive Yuan reviewed and passed the "Mandatory and Prohibitory Provisions of Standard Contracts for Study Tours (draft amendment)" drafted by the Ministry of Education (MOE). The Provisions were later ratified by the Executive Yuan on November 15, 2022 and enforced after being enacted by the MOE on December 16, 2022.
The reason and key points of the amendment are as follows:
I. Businesses are required to provide contact information of the 24-hour overseas emergency contact person
Students participating in overseas study tours often encounter emergencies such as losing personal property to pickpockets and not knowing how to seek help, or getting injured and not knowing where or how to seek medical attention.
The amended Mandatory and Prohibitory Provisions of Standard Contracts for Study Tours requires businesses to provide the name, telephone number, or e-mail of a 24-hour emergency contact person, or other contact information for consumers to quickly and effectively contact someone in the standard contract. If a business is found in violation, consumers may require the business to provide the information within 3 days, and may terminate the contract if the business fails to provide the information within the time limit.
II. Prescribes Effect of the contents of advertisements, promotional documents, and itinerary
The advertisements of study tour businesses often exaggerate. The contents of the itinerary or briefing are inconsistent before and after contract signing, such as the locations of study tour activities, contents of courses, teaching progress, itinerary, and meals and accommodations (e.g. the agency claimed that consumers will stay at a five-star hotel before contract signing, but changed it to a three-star local hotel during the pre-departure briefing), resulting in a consumer dispute.
The amended Mandatory and Prohibitory Provisions of Standard Contracts for Study Tours thus stipulates as follows:
(I) Businesses are obligated to ensure the truthfulness of advertisements: The obligation towards consumers may not be lower than the contents advertised. Furthermore, attachments of the contract, advertisements, promotional documents, itinerary, or contents of briefings are all an integral part of the contract.
(II) If the contents of attachments, itinerary, or briefing after contract signing are inconsistent with documents (e.g. locations of study tour activities, contents of courses, teaching progress, itinerary, accommodations, meals, and transportation), advertisements, and promotional documents provided before contract signing, the contents that are most beneficial to consumers shall prevail.
III. Clearly defines the responsibilities of businesses when consumers are stranded overseas
To resolve the issue of expenses and compensation when consumers are stranded overseas, businesses are required to:
(I) Arrange suitable meals, accommodations, and transportation for consumers.
(II) Calculate liquidated damages to compensate consumers on a daily basis.
Formula for calculating liquidated damages on a daily basis: [(Total Meal and Total accommodation expenses + Total Transportation expenses) ÷ Total number of days]. (Total number of days are limited to the total number of days stranded.) Consumers may seek compensation from the business if any other damages occurred.
IV. Increases the minimum insured amount for medical expenses
Because medical expenses are very high overseas and accidents do happen to young students, the minimum insured amount for medical expenses is increased to NT$200,000 to prevent situations where young students are not able to afford high medical expenses if an accident occurs.
As the pandemic subsided, travel agencies were allowed to offer overseas group tours starting on October 13, 2022, and restrictions on study tours were also lifted. Winter vacation this year (2023) will bring about long-awaited study tours. The DCP reminds consumers to pay attention to the following matters before signing the contract:
I. Pay attention to the businesses’ reputation and ratings, extensively collect relevant information, and do not immediately sign a contract just because a promotion ends today.
II. Fully utilize the 5-day contract review period for study tours.
III. Reference the Mandatory and Prohibitory Provisions of Standard Contracts for Study Tours and review the contract contents.
The DCP reminds those in the study tour industry that the contents of the study tour contracts they provide must comply with the Mandatory and Prohibitory Provisions of Standard Contracts for Study Tours. Those in violation and have not made corrections within the time limit prescribed by the agency-in-charge, may be imposed a fine between NT$30,000 and NT$300,000 in accordance with Article 56-1 of the Consumer Protection Act. Those who do not make corrections after being ordered to do so a second time within a specified time period shall be imposed a fine between NT$50,000 and NT$500,000, and may be fined per offense. Furthermore, should consumers encounter study tour-related consumer disputes, they can protect their rights and interests by filing a complaint with the consumer service centers of local governments, or online at the CPC website (https://cpc.ey.gov.tw).