Norwegian Travel Guarantee Fund

A new Package Tour Act came into force by July 1st 2018. An English translation is expected to be in place by September/October 2018. Please contact Reisegarantifondet either by e-mail se@adv-friestad.no or by telephone 004751859940 for further guidence.

Extracts from Act no. 57 of 25 August 1995 Relating to Package Travel and Travel Guarantee , is replaced by a new Packagae Tour Act, see above. ("the Package Tours Act" or "the Act")

(Unauthorized translation)

Chapter 1. Scope and Mandatory Character of the Act

Section 1-1. Scope of the Act

The Act shall apply to offers of package tours and to contracts in respect to package tours concluded between a customer and an organizer or a retailer of package tours. Chapter 10 and 11 and Section 3-1 shall also apply to other travels as referred to in Section 11-1, first subsection, second sentence and third subsection.

The King determines the degree to which the Act shall apply to the territories of Svalbard and Jan Mayen, and may hereunder issue special provisions in consideration of local conditions.

Section 1-2. Mandatory Character of the Act

Unless otherwise provided, the provisions of the Act cannot be derogated from to the detriment of the customer when the package tour is intended mainly for the customer's personal use.

The provisions relating to travel guarantee shall apply irrespective of any concluded contract between the parties.

Chapter 2. Definitions

Section 2-1. Package Tour

A package tour means an arranged combination of not fewer than two of the following elements when sold or offered for sale at an inclusive price and when the services cover a period of more than twenty-four hours or includes overnight accommodation:

1) transport;

2) accommodation not ancillary to transport;

3) other tourist services accounting for a significant proportion of the arrangement which are not ancillary to transport or accommodation.

An arrangement falling under first subsection shall be considered a package tour even if the various components are billed for separately.

Subsection one above shall also apply when the organizer prepares for the customer to choose the components of the package tour, but where the components appear fit to be combined.

Section 2-2. Organizer and Retailer

By an organizer is meant the one who arranges package tours and offers or sells these, whether directly or through a retailer. The organizer concerned is not considered to be an organizer when such activity is only performed occasionally and does not form a regular part of its business line.

By a retailer is meant the one who offers or sells package tours put together by an organizer.

Section 2-3. Customer

By a customer is meant the one who enters into an agreement to purchase a package tour, or the one on whose behalf the contract to purchase the package tour is entered into. If the package tour is transferred to someone else according to Section 4-4, the transferee is regarded to be a retailer.

Chapter 3. Marketing, Entering into and Content of Contract

Section 3-1. Conditions for Advertising and Marketing

Advertising and other form for marketing of package tours or other travels as referred to in Section 11-1, first subsection, second sentence and third subsection, can only take place when the mandatory guarantee has been provided and the annual fee is paid according to Section 11-1.

Catalogues, brochures and other information materials provided by the organizer shall state that the mandatory guarantee has been provided. If a package tour is marketed under a name different from that of the guarantor according to Section 11-1, the name of the guarantor must be stated.

Chapter 11. Package Tour Guarantee

Section 11-1. Package Tour Guarantee Requirements

The organizer of package tours is required to provide a travel guarantee. The organizer of package tours is also required to provide such guarantee for transportation that takes place together with a package tour, provided that the transportation is mainly for the customer’s personal use.

A travel guarantee has also to be provided by the retailer of package tours by a foreign organizer if it is not proved that the foreign organizer has provided such guarantee.

A travel guarantee shall further be provided for travel arrangement that consists of separate transportation and accommodation services that together bear a substantial resemblance to a package tour, provided that the travel is mainly for the customer’s personal use.

By travel guarantee means an individual guarantee provided by a bank or insurance company in favor of the Travel Guarantee Fund. The Travel Guarantee Fund may accept other sufficient security. The guarantor shall on demand pay an amount to the Travel Guarantee Fund that equals the turnover at any time. Further an annual fee shall be paid to the Travel Guarantee Fund, which mainly shall cover the administration costs of the Travel Guarantee Fund.

A guarantee provided according to regulations of another EEA Member State shall replace a security according to the previous paragraph when it relates to package tours sold directly by a business in such Member State or through an independent retailer in Norway.

The organizer shall on request of the Travel Guarantee Fund certify that satisfactory guarantee has been provided.

Section 11-2. The Travel Guarantee Fund

The Travel Guarantee Fund shall administer the Travel Guarantee Arrangement. The Travel Guarantee Fund may issue the necessary orders to ensure that the travel guarantee provisions are complied with.

The Travel Guarantee Fund is organized as a foundation pursuant to the Act of Foundations. The operating costs of the Travel Guarantee Fund shall be covered by the Fund.

The Board of the Travel Guarantee Fund shall within three months after the end of each calendar year submit the accounts together with an annual report to the Ministry.

Section 11-3. Scope of the Travel Guarantee

The guarantee serves as security for the repayment of the customer’s compensation if a travel is cancelled and the organizer is declared insolvent or taken into receivership, or if the customer can prove that the claim unsuccessfully has been advanced to the organizer. Likewise the travel guarantee serves as security for the repayment of the customer’s compensation if the organizer refuses to fulfill its contractual obligation due to illegal behavior from anyone acting on his or her behalf.

By a break of a journey, the guarantee serves as security for repayment of that part of the compensation which corresponds to the services not being fulfilled towards the customer. It further serves as security for living costs and other necessary expenses prior to repatriation. If transportation is a part of the travel, also costs related to bringing the customer back to place of departure or to any other destination as may be agreed by the parties.

The Travel Guarantee Fund will only refund claims against its member organizers who have provided the mandatory guarantee.

Section 11-4. Procedures for Claims against the Package Travel Guarantee Fund

Claims for compensation under the travel guarantee must be submitted to the Travel Guarantee Fund within six months after the date on which the package tour should have terminated. If the claim is uncontested, payment shall be made without undue delay. If the claim is contested, no payment shall be made before the dispute has been legally resolved. If there are reasons to believe that claims will be presented in excess of the amount of the guarantee, payments can be made first when the Board of the Travel Guarantee Fund has obtained full details of the claims.

By a break of a journey, the Board of the Travel Guarantee Fund may, notwithstanding the provisions of subsection one above, use the guarantee to the extent it deems fit to look after the customers' interests, including returning them to the place of departure or to any other place by mutual agreement.

Section 11-5. Complaints

Orders issued by the Board of the Travel Guarantee Fund pursuant to Section 11-2, subsection one, may be appealed to the Ministry.

Section 11-6. Regulations

The Ministry shall issue specific provisions of the Fund and its bylaws, including provisions regarding the size of the guarantee and the annual fee. The Ministry may also issue provisions for supplementing and implementing the Travel Guarantee System.

Section 11-7. Penalties

Anyone who willfully or negligently violates or assists in the violation of Section 3-1 and the provisions given in this Chapter or in pursuance of Section 11-6, shall be punished by fines or by imprisonment of up to three months.