News

OFT launches ABTA probe

(23 February 2006)

The OFT is investigating a complaint that ABTA broke its own code of conduct when dealing with the collapse of independent agency Mossley Travel in August 2003.

If the OFT rules against ABTA, then the trade body is at risk of losing the OFT consumer codes approval scheme status, which is aimed at improving consumer confidence in companies that do more than stick to the letters of consumer protection laws.

ABTA was one of the first UK trade associations to gain OFT accreditation in a scheme launched last September.

To lose the accreditation would mean members would no longer be able to display the OFT-approved sign in shops, on brochures and other promotional and marketing material.

ABTA greater London regional chairman John Dellaway said ABTA members would lose out in the long term if the accreditation is taken away.

"It would be a real tragedy because in two to three years' time, the public will recognise the logo and it will mean something to them," he said.

Johnson Stevens Travel general manager Peter Cansick agreed. "The OFT logo alongside the ABTA logo gives agents a lot of credibility. To lose it could seriously harm us," he said.

Mossley Travel managing partner Bob Green called for the investigation. In a letter to Green, David Micklefield from the OFT consumer codes approval team said: "ABTA achieved OFT approval for its code of practice on September 29, 2005. We value information of the sort you have provided as it assists us in our independent monitoring of a code sponsor's performance and their suitability for retaining OFT code approval."

An OFT spokesman told Travel Weekly: "We only follow up complaints if there is reasonable ground."

ABTA confirmed it had received a letter but a spokesman said: "We have drafted a reply but there isn't a case to answer."