The Competition and Markets Authority (CMA) has recently updated its guidance on unfair commercial practices to reflect reforms introduced by the Digital Markets, Competition and Consumers Act (DMCC). Among the changes, one stands out for the travel industry: a significant shift in when and how travel agents and intermediaries must disclose their principals’ details.
A new duty of disclosure
The law now requires that whenever a business makes an “invitation to purchase” – putting a holiday, flight, or package before a consumer with a price and description – it must provide all the material information a customer needs to make an informed decision. Crucially, this includes:
- the identity of the principal,
- the principal’s business address, and
- an email contact for the principal.
The duty applies at the moment the invitation to purchase is presented. It is no longer sufficient to disclose the contracting party’s details at confirmation or later in the booking process. Each time a consumer sees an invitation to purchase – whether on a website, in a brochure or in an advert – these details must be included. Failure to do so is automatically unlawful.
Why this is a major change
Historically, many intermediaries in the travel sector kept the identity of the principal in the background until the very end of the booking process. For example, a consumer might only discover at the point of confirmation that they were contracting with a particular airline, hotel or villa owner. That approach is no longer permitted under the DMCC.
The requirement is designed to enhance transparency. From the CMA’s perspective, consumers must always know who they are contracting with, before they make their decision to buy.
Practical examples
It may be helpful to illustrate the point with the following examples:
- A travel agent promotes a seven-night holiday in Spain in a newspaper or on a poster. The package involves flights with one airline and accommodation with a separate hotel provider. The advert must clearly identify the airline, the hotel, and the agent, together with each party’s business address and email.
- A website lists a villa in Tuscany but is acting only as an agent. The website must disclose details of the website operator and also who owns or manages the villa (i.e. the principal), with their business details and contact email, because that is the entity with whom the consumer will actually contract.
Compliance challenges
For many intermediaries, these requirements will feel burdensome. They necessitate changes to systems, templates scripts and marketing materials. Agents will need to ensure that disclosure of the principal’s details are consistently made wherever an invitation to purchase is made. This includes digital adverts, print media and in point-of-sale materials.
From a legal standpoint, the rule is strict. The omission of principal details is automatically unlawful, regardless of whether the consumer has suffered any detriment. With the CMA now holding significant fining powers, the risks of non-compliance are high.
Why it matters
The CMA frames this reform around fairness and trust. Consumers should always know:
- what they are buying,
- who they are buying it from, and
- how they can contact that business.
This clarity helps consumers make informed choices and creates a level playing field among businesses. It also reduces the scope for disputes when consumers discover, only after purchase, that they have contracted with an unexpected or unknown party.
Key takeaway for travel businesses
Travel agents and intermediaries should act now to ensure compliance. In practice, this means:
- auditing all booking flows and advertising templates;
- embedding principal disclosure fields into sales systems;
- training staff to explain the change to customers; and
- coordinating with principals to ensure details are accurate and up to date.
While the reforms may feel disruptive, the direction of travel is clear. Transparency about contracting parties is no longer optional. For the CMA, this is a matter of consumer rights. For businesses, it is a compliance priority that demands immediate attention.
