Disney pushing looser contract law for dealing with travel agents

[Wilt Dasney]

This is kind of a wonky story, but the bottom line is Disney is lobbying to end a Florida law requiring them to have written contracts with outside agents who sell their products (i.e., travel agents).

The law also gives the agents the right to sue for big damages if they aren't paid properly.

Disney appears to currently be in violation of the law, because they make their packages available to travel agents online, with all the contract stipulations set up on the web site.

Disney says the law is out-of-date in the internet age and places a needless burden on businesses.

Last legislative session, they tried to obtain a general exemption to the contract requirement for travel companies like themselves, but failed.

This session, they appear to be going for the whole apple by lobbying to repeal the law completely. That would eliminate not just the contract requirement, but also the stipulation that agents can sue for legal costs and triple damages if contracts aren't met.

Universal and SeaWorld don't like the law either, but Disney appears to be doing the heavy pitching.

The law dates back to 1984, and apparently was born out of complaints that companies outside of Florida were stiffing agents within the state.

The Florida House approved a repeal of the law last week. The state Senate has not yet acted.

More details:

http://blogs.orlandosentinel.com/ne...by-disney-to-repeal-obscure-contract-law.html

http://articles.orlandosentinel.com...6_1_travel-agents-disney-vacations-businesses

http://blogs.orlandosentinel.com/bu...e-a-contract-law-advances-in-state-house.html

 

[jakeman]

Interesting.

I wonder if anyone from Kingdom Konsultant would feel comfortable weighing in.

 

[DisneyJoe]

I'm researching now, so far I can't tell if it applies to legal entities that exist completely outside the State of Florida; in other words, since KK is a NJ business, unless they have agents that are Florida residents, it may not apply to them.

I will let you know if I find an answer. I'm curious for my own business as well.

The law dates back to 1984, and apparently was born out of complaints that companies outside of Florida were stiffing agents within the state.

 

[njDizFan]

Interesting no replies from any of our KK consultants. I know Master Yoda lives in FLA so the NJ exception might not hold water.

 

[DisneyJoe]

Interesting no replies from any of our KK consultants. I know Master Yoda lives in FLA so the NJ exception might not hold water.

I'm reading all of the legal documents - it's not an easy read - and I'm usually good with this type of research. One of my agents lives in Florida too and she was required to register with the state as an independent contractor.

What type of comment are you looking for? Only an agency owner such as Pam or myself may have the info to make a comment - and I am researching so that I can possibly make an intelligent comment based on the bill.

Currently a travel agency registers with Disney to be able to receive commission for selling travel, but there is no contract stating how or when commission is paid (this is true with every travel supplier that I can think of!). At least in my case, it is very rare that we need to do any kind of commission investigation for a missing or late payment.

Authorized Disney Vacation Planners or Earmarked Agencies have another contract, but that only specifies the nature of the Earmarked agreement which is mainly a marketing arrangement.

 

[Wilt Dasney]

I will definitely defer to the professionals on this, but my impression from the Sentinel reporting is that the law applies if either the provider (i.e., Disney) or agent are located in Florida.

DisneyJoe (or anyone else), does the mention of an online clearinghouse for agents with payment stipulations on the web site ring a bell? The Sentinel says this is Disney's current set up, and I guess they consider it the equivalent of a contract.

 

[Wilt Dasney]

Currently a travel agency registers with Disney to be able to receive commission for selling travel, but there is no contract stating how or when commission is paid (this is true with every travel supplier that I can think of!).

Wow. That's interesting to me. I guess it's fortunate that the issue doesn't come up very often, but on the occasions it does, I would think your recourse is limited by not having a contract to point to.

 

[Master Yoda]

Interesting no replies from any of our KK consultants. I know Master Yoda lives in FLA so the NJ exception might not hold water.

I would love to comment on the matter but this is actually the first I have ever heard of it. I am also about as far from a legal expert as you can get when it comes to matters like this.

 

[Kingdom Konsultant]

I actually read this article on a site about a month ago. I have been watching to see what transpires with Disney and the other suppliers mentioned. I have never had an issue getting our commissions paid so until something comes of this I am not going to worry about it.

I do know that with the law as it stands that if you have no written contract that for some reason you terminate your relationship with that company they have 30 days to pay all commissions to the agency. If they do not you can go after them for 3 times the damages, plus court costs and attorney fees.

I'm not sure what kind of a reply that you are expecting but unless something is changed within the bill that will cause an issue with my agency there is nothing more I can do but watch and wait.

Pam

 

[Kingdom Konsultant]

Wow. That's interesting to me. I guess it's fortunate that the issue doesn't come up very often, but on the occasions it does, I would think your recourse is limited by not having a contract to point to.

Disney is very good about getting the agencies paid. They do have a department for us to call in case we are either missing a commission of there is any type of issue with it.

Pam

 

[DisneyJoe]

I'm not sure what kind of a reply that you are expecting but unless something is changed within the bill that will cause an issue with my agency there is nothing more I can do but watch and wait.

I was about to post the same thing, Pam.

 

[Kingdom Konsultant]

Here is the lastest that I found with the house.

http://myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=45046&

 

[Kingdom Konsultant]

I was about to post the same thing, Pam.

Great minds think alike...LOL

Pam

 

[jakeman]

I think that answers my question.

Given that my interaction with you guys is limited to the boards here and is fairly positive and I know nothing about the travel agent business, I wasn't sure how this would reflect your relationship with Disney, if at all.

Thanks for your insight! :wave:

 

[Kingdom Konsultant]

I think that answers my question.

Given that my interaction with you guys is limited to the boards here and is fairly positive and I know nothing about the travel agent business, I wasn't sure how this would reflect your relationship with Disney, if at all.

Thanks for your insight! :wave:

Not a problem. It's just one of those things that there really is no answer for at this time. We won't know exactly how it will effect us until something happens unfortunately.

Pam

 

[Wilt Dasney]

I do know that with the law as it stands that if you have no written contract that for some reason you terminate your relationship with that company they have 30 days to pay all commissions to the agency. If they do not you can go after them for 3 times the damages, plus court costs and attorney fees.

If the law is repealed, this provision would also vanish. I'm guessing Disney is just as eager (more eager?) to get rid of this potential liability as they are the contracting requirement.

That's really the only part of this that doesn't sit well with me. Even though this law was probably intended for more "sketchy" companies and Disney seems to have no problem paying its agents based on the testimony here, I'm opposed in principle to removing protections for the less powerful to make life easier for corporations.