Partner Sydney
"Once the regime is finalised and the enabling legislation is enacted, airlines will need to update their terms and conditions, passenger handling and care procedures and processes and consumer disclosure."
Further to our update, the Australian government launched a four week consultation period, which deals with the structure and implementation of a passenger protection regime, that will close this month. The Transport Minister has indicated that the new scheme should be in operation next year. It is anticipated that the regime will implement minimum levels of support and assistance for passengers on delayed and cancelled flights, new disclosure requirements and regulations setting out when affected passengers are entitled to a refund of their fare and/or compensation. There is some pressure from consumer organisations and advocates to implement a compensation scheme which mirrors EC261/2004. Given the issues and challenges with aspects of EC261/2004, it remains to be seen whether the Australian regime will closely follow the EU model.
Why is this important?
- compensation and assistance for passengers on delayed and cancelled flights is not currently regulated, other than some limited remedies under the Australian Consumer Law;
- once the regime is finalised and the enabling legislation is enacted, airlines will need to update their terms and conditions, passenger handling and care procedures and processes and consumer disclosure; and
- OTAs and other intermediaries offering flights should understand the scope and impact of the new regime and whether they are subject to it or can refer to the airline all claims for compensation presented to OTAs and intermediaries.
SAUDI ARABIA
"Companies in the travel sector with properties in Saudi Arabia or exposure to the Saudi market should exercise care and caution when reposting images posted from their Saudi properties and/or on aircraft in and flying to and from the Kingdom."
In September, the Saudi General Authority of Media Regulation implemented new rules on social media content. These rules are intended to regulate content which can be uploaded and shared and the consequences of breaching these rules include orders to remove content, suspending accounts, fines and legal action. Although there have been no reported cases of investigation or prosecution, enforcement appears likely based on how the General Authority will assess the severity of the breach. The focus of these rules appears to be on Saudi citizens, but their application is not restricted to Saudi citizens, residents and platforms and websites which are located in the Kingdom. Online platforms which allow users in the Kingdom to post and share content would appear to fall within the scope of the rules. It is unclear how the General Authority could directly order an offshore platform to remove content or suspend or cancel user accounts. However, the Saudi authorities may seek to block platforms and websites for users with a Saudi ISP address and this may prove an effective means of ensuring compliance by offshore platforms.
Under these rules, the following are prohibited:
- ostentatious displays of wealth and luxury;
- images of people in sheer or tight clothing; and
- images of people which expose their bodies between their shoulders and legs.
Uploaded and shared images of suites and luxury rooms at Saudi hotels and resorts, of people in swimming pools and in business and first class would appear to breach the rules. It is unclear to what extent using geotags and hashtags to identify hotels and resorts will constitute a breach by the hotel or resort. Reposting such images would also appear to breach the rules.
Key takeaways:
- hotels and resorts in Saudi Arabia should advise foreign guests of these rules and that they apply equally to visitors to the Kingdom and their posts in and about the Kingdom; and
- companies in the travel sector with properties in Saudi Arabia or exposure to the Saudi market should exercise care and caution when reposting images posted from their Saudi properties and/or on aircraft in and flying to and from the Kingdom.
THAILAND
"Whilst this is limited to ridesharing, the ETDA is likely to investigate regulating other online platforms and marketplaces and their dealings with Thai consumers and users."
From October, the Thai Electronic Transactions Development Agency (“ETDA”) will enforce new regulations, under the Digital Platform Services Act, in relation to ride-sharing operators. To comply, ride-sharing operators operating in Thailand, including Bolt, Grab and Indrive, must:
- only permit registered public vehicles to be used, which requires registration under Ror Yor 18, a specific ride-sharing category;
- identify driver and passengers with their full names and national ID;
- require drivers to clearly display their details, including full name, GPS location and fare display;
- allow drivers the right to accept, cancel or reject fares;
- prevent and enforce penalties for account-sharing and impersonation; and
- report regularly to the ETDA and Dept of Land Transport.
The biggest challenge is obtaining the Ror Yor 18 registration as only the vehicle owner can apply. This will prevent registration where the vehicle is being financed and the lender is named as the owner, where the vehicle is part of a larger fleet or is a family-owned vehicle. Once registered, the costs of insurance are higher than for private vehicles registered in other categories, which may serve to deter drivers from complying. The ride-sharing operators will now be responsible for ensuring the vehicles used by their drivers comply and are properly registered and are responsible for non-compliant drivers.
"The Accommodation Bill also contemplates regulating intermediary booking platforms by introducing certain consumer protections measures for both guests and accommodation providers and mechanisms to promote and support responsible tourism and local communities."
Key takeaways:
- this is one of the first key regulations introduced by the ETDA; and
- whilst this is limited to ridesharing, the ETDA is likely to investigate regulating other online platforms and marketplaces and their dealings with Thai consumers and users.
Thailand plans overhaul to Hotel Act
Thailand’s Office of the Council of State (“OCS”) recently held a public hearing on a new Accommodation Bill to replace the Hotel Act which came into force in 2004.
The proposed Accommodation Bill seeks to address various issues present in the current Hotel Act and to modernise the law in line with evolving trends in tourism and the travel industry. A key change focusses on regulating new forms of accommodation which currently fall outside the scope of the current Hotel Act. These include short-term rentals in residential buildings, homestays and camping providers.
Unlike the current one-size-fits-all licensing requirement, the new bill proposes differentiated entry requirements for various types of accommodation. Specifically, smaller and less formal accommodation providers would be subject to notification or registration requirements, rather than being required to obtain a full hotel licence.
The Accommodation Bill also contemplates regulating intermediary booking platforms by introducing certain consumer protections measures for both guests and accommodation providers and mechanisms to promote and support responsible tourism and local communities.
In parallel to the OCS’ bill, two other proposed amendments to the Hotel Act tabled by members of the House of the Representatives are also under the consideration of the Thai Parliament. Accommodation providers in Thailand are advised to monitor the developments closely.
"Passengers on US carriers will remain subject to the contractual terms and conditions for delayed or cancelled flights, except where this is overridden by a foreign law, such as EC261/2004."
UNITED STATES
In December 2024, the Biden Administration proposed an airline passenger compensation scheme similar to the EC261/2004 compensation regime in the EU. The Department of Transportation (“DoT”) proposed an increasing scale of compensation based on the duration of the delay, as well as stipulating the assistance and support to be provided to affected passengers. Sean Duffy, the current Transportation Secretary, has announced that no such compensation regime will be introduced during the Trump Administration. The effect of this is that passengers on US carriers will remain subject to the contractual terms and conditions for delayed or cancelled flights, except where this is overridden by a foreign law, such as EC261/2004.
Key takeaways:
- Travel platforms and intermediaries who offer flights in the US may face an increase in claims by users for compensation for delayed and cancelled flights. While these claims should be presented to the airline, users are increasingly presenting their claims to the platform/intermediary through which the booking was made. Responding to such claims will require an understanding of the contractual liability of the US carrier for delayed or cancelled flights.
Key contacts
Partner Sydney
Senior Associate Bangkok
