I conclude that the requirement for an opportunity to be heard prior to taking an action has been met.

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July 26, 2018 Island Fever Travel Inc 991 Alder St Suite 100 Campbell River, BC V9W2R1 Important Notice RE: Notice of Licence Suspension Travel Agent Licence #2282 Annual Financial Report On July 10,

1 July 26, 2018 Island Fever Travel Inc 991 Alder St Suite 100 Campbell River, BC V9W2R1 Important Notice RE: Notice of Licence Suspension Travel Agent Licence #2282 Annual Financial Report On July 10, 2018 Island Fever Travel Inc ( the licensee ) was provided with notice advising that this office was taking action respecting the above noted licence for allegedly violating section 12 (1) the Travel Industry Regulation ( TIR ). The notice provided you with the opportunity to respond prior to the director proceeding with a decision. I have not received your response relating to the notices, please find below the results of my decision. Issue: (1) The failure to provide the required annual financial report within 90 days of your fiscal year ending March 31, 2018, contrary to section 12(1) of TIR Opportunity to be Heard: The Business Practices and Consumer Protection Act (the Act) requires that director provide an opportunity to be heard (respond) to a person that may be subject to an action under Parts 9 and 10 of the Act. On July 10, 2018, I issued a notice of pending action to you which included an outline of the allegations and a request for a response. The notice provided until July 24, 2018 for a response. A response was not provided. I conclude that the requirement for an opportunity to be heard prior to taking an action has been met. Facts: On April 6, 2018 and June 11, 2018, you were sent a notice indicating that March 31, 2018 was the end of your fiscal year and that the financial report for that period was due within 90 days (June 30, 2018). The notice included your financial disclosure requirements and that a financial report form was to be completed and submitted prior to June 30, The notice further advised that a late filing charge would apply for financial reports received after the due date. A completed financial report was not received by the filing due date. On July 10, 2018, I issued a notice of pending action to you indicating that administrative action would be taken for failing to provide the required financial report. You were also advised that a late filing charge had been applied. To date, the financial report and the late filing charge have not been received by our office. CONSUMER PROTECTION BC # Canada Way Burnaby, B.C. V5G4H7 P F TF E businesspractices@consumerprotectionbc.ca W

2 Island Fever Travel Inc Suspension 2 Relevant Legislation The provisions of the Act and TIR directly applicable to the allegations are reproduced below. Business Practices and Consumer Protection Act Part 9 Actions by director respecting licence 146 (1) The director may (a) refuse to issue or renew a licence, (b) suspend or cancel a licence, or (c) amend, impose or rescind conditions on a licence. (2) Without limiting the authority of the director under subsection (1), the director may make a decision under subsection (1) if the applicant or licensee does any of the following: (a) contravenes this Act or the regulations; (b) fails to meet or no longer meets the minimum requirements for a licence as specified in the regulations; (c) contravenes a condition of a licence; (d) engages in a pattern of conduct that shows, in the director's opinion, that the person is unfit to have a licence; (e) is convicted of an offence under (i) this Act or any other enactment, or (ii) a law enacted by the government of Canada, another province of Canada or a foreign jurisdiction for conduct that shows, in the director's opinion, that the person is unfit to have a licence. (3) Without limiting the authority of the director under subsection (1), the director may make a decision under subsection (1) if the applicant or licensee is an employer, employee, officer, director or agent of a licensee against whom the director has made a decision under subsection (1). (4) A licensee must immediately give a cancelled licence to the director. Part 10 Administrative penalties 164 (1) After giving the person an opportunity to be heard, the director may impose an administrative penalty on the person if the person contravenes (a) a prescribed provision of this Act or the regulations, (b) a condition of a licence, (c) a compliance order, (d) a direct sales prohibition order, (e) a property freezing order, or (f) an undertaking. (2) Before the director imposes an administrative penalty on a person, the director must consider the following: (a) previous enforcement actions for contraventions of a similar nature by the person;

3 Island Fever Travel Inc Suspension 3 (b) the gravity and magnitude of the contravention; (c) the extent of the harm to others resulting from the contravention; (d) whether the contravention was repeated or continuous; (e) whether the contravention was deliberate; (f) any economic benefit derived by the person from the contravention; (g) the person's efforts to correct the contravention. (3) If the director imposes an administrative penalty on a person, a prosecution for an offence under this Act for the same contravention may not be brought against the person. (4) A person who has been charged with an offence under this Act may not be subject to an administrative penalty in respect of the circumstances that gave rise to the charge. (5) If a corporation contravenes (a) a prescribed provision of this Act or the regulations, (b) a condition of a licence, (c) a compliance order, (d) a direct sales prohibition order, (e) a property freezing order, or (f) an undertaking, an officer, director or agent of the corporation who authorized, permitted or acquiesced in the contravention is also liable under this section, whether or not an administrative penalty is imposed on the corporation. Travel Industry Regulation Qualifications for licence 3 An applicant for a licence must meet the following qualifications: (a) if the applicant is an individual, the individual is at least 19 years of age; (b) to (d) Repealed. [B.C. Reg. 369/2008, Sch. 2, s. 3.] (e) in the opinion of the director, the person has sufficient working capital to reasonably be expected to be able to operate as a travel service business. Annual financial statement 12 (0.1) [ ] (1) A licensee must submit a financial statement to the director (a) for the licensee's previous fiscal period, within 90 days of the end of the fiscal period, (b) when requested by the director and for the period requested by the director.

4 Island Fever Travel Inc Suspension 4 Analysis: Annual financial reports are required to be submitted to the director 90 days following the licensee s fiscal year end, consistent with section 12 (1) of the TIR. The financial report was not received by our office. I therefore find that the licensee failed to submit the required financial report by the required deadline, in contravention of section 12 (1) of the TIR. Due Diligence The licensee is entitled to a defence to the allegations if it demonstrates due diligence in attempting to comply with the relevant requirement and prevent the contravention. However, the licensee has not shown that it took all reasonable steps to prevent the contravention from occurring. The licensee did not respond to the initial notice sent on April 6 and June 11, 2018, nor, did they respond or make any contact with our office after the notice of pending action was sent on July 10, 2018.There has been no explanation or reasons given why they have not met the requirement as outlined in the legislation. Consequences As the decision maker determining that the violations occurred, I may take one or more of the following actions: Impose an administrative monetary penalty ( AMP ) of up to $5,000 on an individual, or up to $50,000 on a corporation (under section 164 of the Act), since each of the violated provisions of the Act are prescribed (under the Business Practices and Consumer Protection Regulation) Take licencing action such as: o o Suspend or cancel a licence, Amend, impose or rescind conditions on a licence. I have considered each of these possible enforcement actions. I have decided that the suspension of licence and the imposition of an AMP are warranted. I address these in my reasons below. Suspension The submission of an annual financial statement allows the director to discharge the statutory duty of ensuring the licensee meets a basic licence requirement of having sufficient working capital to reasonably be expected to operate a travel service business. It would be an abdication of this responsibility and contrary to the protection of the public interest to allow the business to continue operating when as assessment cannot be made as to its financial stability. Accordingly, the licence will remain suspended until such time as the required financial statement is submitted AND the director is satisfied on review of the financial statement that sufficient working capital exists for the licensee to conduct business as a travel agent. Pursuant to section 146(1) of the Act, I hereby serve a notice of suspension upon Island Fever Travel Inc., licence #2282. I also place a condition on the licence to not engage in the business or occupation of travel agent and/or travel wholesaler or, to sell or otherwise provide travel services in the province of British Columbia while the licence remains suspended. This suspension is being imposed for violation of section 12 (1) of the TIR. This suspension and the condition on licence will remain in effect until rescinded by the director. Administrative Penalty Framework The Act sets out the following non-exhaustive list of factors that must considered before imposing an AMP (under section 164(2) of the Act): (a) previous enforcement actions for contraventions of a similar nature by the supplier (b) the gravity and magnitude of the contravention (c) the extent of the harm to others resulting from the contravention (d) whether the contravention was repeated or continuous (e) whether the contravention was deliberate (f) any economic benefit derived by the person from the contravention (g) the person's efforts to correct the contravention

5 Island Fever Travel Inc Suspension 5 For each violation that I have determined occurred, I consider all of these factors to decide whether an AMP should be imposed. If after considering all of these factors I decide an AMP amount should be imposed, I consider all of these factors to determine the amount that should be imposed. ( the AMP amount ). I also apply the policy of Consumer Protection BC: Calculation of Administrative Monetary Penalties Policy and Procedures (the policy ). I set out the explanation and analyses of my considerations in these regards below. The policy sets out the general rule on how the AMP amount is calculated, including the base penalty amount. The policy is routinely applied by Consumer Protection BC. This helps to ensure that calculations of AMP amounts are consistent, transparent, flexible, and that the AMP amount is responsive and proportionate to the non-compliant activity. Applying the policy also helps ensure that businesses or suppliers who may be subject to an AMP know how Consumer Protection BC normally interprets the Act and analyses its criteria for calculating AMP amounts. Consumer Protection BC has developed the policy from its experience and expertise in applying consumer protection law and meeting its mandate to apply the Act in the public interest. The policy says that a contravention for which an AMP is to be imposed is first categorized into Type A, Type B, or Type C, following a table set out in the policy. That table assigns one of these Types to each contravention under the Act if prescribed for the purposes of an AMP. Consumer Protection BC makes these category assignments based on its purpose and experience in applying consumer protection law in the public interest, considering two factors: (i) the inherent severity of harm specific to the contravention (ii) the probability that a person will suffer, or experience harm from the commission of the contravention. After categorization of the contravention, the policy says that the decision maker should consider a set of adjustment factors laid out in the policy. These adjustment factors are the factors set out in section 164(2) of the Act. The policy says that the decision maker should assess a gravity value for each adjustment factor, with that choice being based on the decision maker s consideration of the relevant circumstances, which may include the presence or absence of aggravating or mitigating circumstances. When applying the policy, the decision maker considers all the factors under section 164(2) of the Act in his or her calculation of the AMP amount that should be imposed. Following application of policy, the decision maker continues to exercise his or her discretion by then deciding whether the guideline amounts from application of the policy should be imposed or, different amounts should be imposed based on consideration of the factors under section 164(2) of the Act, any other relevant legislative criteria, and any other the relevant factors. The licensee has received notice identifying the policy and advising that it would be applied as part of the decision-making to calculate any AMP amount. This notice was given in the notice I provided on July 10, This notice further advised the licensee that the policy could be viewed on our website or would be provided to the licensee in paper form upon its request. Therefore, the licensee has had an opportunity respond to the policy, including an opportunity to make submissions on its application or its consistency with the criteria under the Act, in this case. I have not received any submissions from the licensee in these regards. Decision on whether to impose AMPs Based on my consideration of the factors in section 164(2), which I explain and analyse in the paragraphs below, I have determined that AMPs should be imposed for the following: i) For failing to submit a financial report for the fiscal year ending March 31, 2018, contrary to section 12 (1) of the TIR Calculation of the AMP amounts I first apply the policy to calculate an AMP base amount. I then decide whether that amount or a different amount should be imposed when I consider of the factors under section 164(2), any other relevant legislative criteria, and all other relevant circumstances. The contravention of failing to submit a financial report, as required under section 12(1) of the TIR, is a Type B contravention under the Policy. I agree with this categorization given the particular circumstances of this violation. There is an inherent severity to the contravention and a harm that has resulted to the marketplace. This is explained in the table below. The following table sets out my assessment of the adjustment factors under the Policy for this specific contravention:

6 Island Fever Travel Inc Suspension 6 Adjustment Factor Effect on Gravity Analysis 1. Previous enforcement actions for contraventions of a similar nature 4 Beginning in 2008 and for every licensing year that followed (10 years), Island Fever Travel Inc has failed to submit the required financial information within 90 days of the fiscal year end period. In 2011, 2014 and 2017, Island Fever Travel was suspended as a result of failing to submit the required financial by the required due date. In 2010, 2011, 2012, 2013 and 2017, AMPs were imposed for the contravention. The licensee has a long standing history of previous contraventions and enforcement actions taken for this exact contravention. 2. The gravity and magnitude of the contraventions 3. Extent of the harm to others resulting from the contraventions 4. Whether the contraventions were repeated or continuous 5. Whether the contraventions were deliberate 6. Any economic benefit derived by the person from the contraventions 7.Whether the person made reasonable efforts to mitigate or reverse the contravention s effects 1 The submission of an annual financial statement allows the director to discharge the statutory duty of ensuring licensees meet the basic licence requirement of having sufficient working capital to reasonably be expected to operate a travel service business. There is a financial risk to the marketplace and consumers that have conducted business with any licensee. This financial risk cannot be assessed properly because of the licensee s failure to provide the required financial statements. Finally, there is a reasonable expectation from the marketplace and consumers that a licensed travel business will have undergone a financial review by the Director. This has not happened because of the licensee s failure to submit the financial statements for the period of April 1, 2017 to March 31, There is no evidence of harm being suffered by others. 0 I make a distinction between proven repeated contraventions of a similar nature (adjustment factor 1) and repeated or continuous activities or behaviour that make up the contravention. For me, the nature of the contravention is not of a repeated or continuous nature. I cannot determine if the failure to provide the financial report this year, 0 and for the past ten years, within 90 days of the FYE has been deliberate act by the licensee. 0 1 I do not believe there is economic benefit derived from the failure to submit the financial report within 90 days of the licences FYE. -- As noted in the financial report form, licensees who are unable to provide the required document in time due to extenuating circumstances may contact our office before the submission due date requesting for an extension. The licensee did not contact our office to request for an extension prior to June 30, If the timing of the financial reporting does not align with the business accounting cycle, an alternative solution is to change the business fiscal year end with Canada Revenue Agency. To date, we have not received

7 Island Fever Travel Inc Suspension 7 any notice of change from the licensee notifying that this is the case. The fiscal year end of the business remains March 31. The licensee has still not submitted the required financial statement, in spite of the notices advising of this action to be taken. 8.The person s efforts to correct the contravention to prevent recurrence 1 I have no evidence from the licensee that corrective action has been taken to prevent recurrence of the contravention. Contravention Type B Base penalty $4,000 Adjustment factors applied Item 1: 4 Item 2: 1 Item 3: 0 Item 4: 0 Item 5: 0 Item 6: 0 Item 7: 1 Item 8: 1 Total: 7 Total penalty calculation $7,000 Conclusion AMP Amounts Exercising my discretion, I must decide what amounts should be imposed as an AMP for the contraventions based on the factors under section 164(2), any other relevant legislative criteria, such as the consideration of the public interest, and all of the relevant circumstances. For each of the contraventions, I have reviewed my analysis and explanations in the tables above related to the factors based on section 164(2) of the Act, and I have considered the absence of submissions from the licensee as well as the evidence and other relevant circumstances. I determine that the AMP amounts set out above are consistent with all the criteria under the Act for imposition of AMPs and the calculation of the amounts. For this licensee, there is a long history of non-compliance for this exact same contravention (every year for the last ten years). There have been five previous occasions where an AMP had been imposed and three occasions where the licence was suspended. The suspension in 2017 lasted five months. It does not appear that the licensee has made any attempts to change their operations or availed themselves of any other remedies available to a licensee. I am also influenced by the risk of the licensee s failure to submit financial statements poses to the marketplace. There does not seem to be any active interest on the part of the licensee to submit their financial statements and avoid the same noncomplaint activity from happening in the future. I enclose a Notice of Administrative Penalty, pursuant to section 166 (1) of the Act. This penalty must be paid no later than 30 days from the date on which this notice is served or, if the person requests reconsideration, within 30 days after the date on which the decision of the director respecting the reconsideration is served, pursuant to section 167 of the Act. RECONSIDERATION

Island Fever Travel Inc Suspension 8 If the licensee wishes to request reconsideration in this matter within 30 days of receiving these reasons, in accordance with

ca; - or by mail or courier to the address below: Consumer Protection BC Attention: Shahid Noorani, VP of Regulatory Services 200 4946 Canada Way Burnaby, BC V5G 4H7

8 Island Fever Travel Inc Suspension 8 If the licensee wishes to request reconsideration in this matter within 30 days of receiving these reasons, in accordance with sections 181 and 182 of the Act, they may apply to Consumer Protection BC: - by fax to ; - by electronic mail to shahid.noorani@consumerprotectionbc.ca; - or by mail or courier to the address below: Consumer Protection BC Attention: Shahid Noorani, VP of Regulatory Services Canada Way Burnaby, BC V5G 4H7 Considered on August 8, 2018 in Burnaby, BC. Heather McCurdy Manager, Business Services Consumer Protection BC Enclosed: Notice of Administrative Penalty, Notice of Suspension

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