COMPETITION Citation, commencement and interpretation 1 1 This Order may be cited as the Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001 and shall come into force on 20th August 2001. 2 In this Order— “accommodation” means the provision of place to sleep, including the provision of a site for the erection of a tent or a parking place for a caravan, mobile home or other similar vehicle, but does not include the provision of sleeping accommodation in a means of transport unless that accommodation represents a substantial proportion of the accommodation for the holiday; “foreign package holiday” means services, accommodation and facilities provided under a contract, made within the United Kingdom, by a tour operator for a holiday outside the United Kingdom provided transport to or from the United Kingdom and accommodation outside the United Kingdom (whether or not for the duration of the holiday) are included; “inducement” means a benefit, whether pecuniary or not, offered by a travel agent as an incentive to acquire a foreign package holiday through him; “most favoured customer requirement” means a requirement contained within an agreement between a travel agent and tour operator which obliges the travel agent, when supplying or offering to supply foreign package holidays of that operator, to offer inducements at least equal in value to or marginally less in value than the inducements which the travel agent applies when supplying or offering to supply the foreign package holidays of another tour operator; “tour operator” means a person who, otherwise than occasionally, organises foreign package holidays and supplies or offers them for supply, whether directly or through a travel agent; “travel agent” means a person who supplies or offers for supply a foreign package holiday organised by a tour operator; and “travel insurance” means any policy of insurance against the risks to any person arising during or in connection with a foreign package holiday. Price reductions and travel insurance 2 It shall be unlawful for a travel agent or a tour operator (where the tour operator and travel agent are interconnected bodies corporate and when the tour operator is supplying or offering to supply foreign package holidays directly to the public or any class of persons) to discriminate either in respect of the price charged for a foreign package holiday or by requiring payment of an additional charge against a person who does not acquire travel insurance in respect of that holiday from that travel agent or, as the case may be, tour operator. “Most favoured customer” requirements and related conduct 3 It shall be unlawful for a tour operator to make or carry out an agreement (whenever made) with a travel agent which obliges the travel agent to comply with a most favoured customer requirement except in circumstances where the tour operator is required to compensate the travel agent for the value of the inducements required to be offered by the travel agent as a result of a most favoured customer requirement. 4 It shall be unlawful for a tour operator to withhold or threaten to withhold supplies of foreign package holidays from, or to discriminate in respect of the supply of foreign package holidays to, a travel agent as a result of the failure of the travel agent to enter into or comply with an agreement which is or would be unlawful under Article 3. Revocation 5 The Foreign Package Holidays (Tour Operators and Travel Agents) Order 1998 is hereby revoked. Melanie J Johnson, Parliamentary Under-Secretary of State for Competition, Consumers and Markets Department of Trade and Industry 12th July 2001