Measures on Nevada travel, tour companies aim to protect consumers

Thursday, Aug. 23, 2001 | 11:05 a.m.

The state Department of Business and Industry's Consumer Affairs Division plans to address the concerns of both consumers and Nevada small businesses when it drafts final regulations for two tourism measures scheduled to take effect Oct. 1.

The state recently conducted public hearings on Assembly Bills 627 and 245, approved by the Nevada Legislature earlier this year to protect consumers who travel from fraud.

Assembly Bill 627 requires travel agencies to register with the Consumer Affairs Division and requires some travel agencies to post a $50,000 bond, letter of credit or certificate of deposit to protect consumers from agents that collect money in advance for tickets, but fail to deliver on the trips. Violators of the provision can be fined up to $10,000.

The other bill, AB 245, is a truth-in-advertising law that requires tour brokers and operators who offer sightseeing tours to register with the state and requires them to deliver tours for advertised prices and honor coupons or face fines of up to $2,500. The bill requires brokers and operators to post a $10,000 bond with the division.

Patricia Jarman-Manning, commissioner of the Consumer Affairs Division, said her office is consulting with the Legislative Counsel Bureau to develop regulations that would protect consumers while incorporating concerns of small business people who believe the cost of the bonds is prohibitive.

Jarman-Manning said her office received 1,000 complaints about travel agencies and spoiled trips in the first six months of 2001. During that period, 15 travel agencies went out of business and Nevada consumers lost $250,000.

But she also said her office heard complaints from about 55 people attending hearings in Las Vegas and seven in Reno saying that the high cost of acquiring a bond or letter of credit could put them out of business.

Jarman-Manning would not speculate on how regulations would be drawn to satisfy the complaints of the small businesses.

"Consumer protection is our foremost thought and the problem (of travel-related fraud) has been escalating," Jarman-Manning said in an interview. "We're leaning toward helping the consumers, but we're also attempting to address small-business concerns."