Q: In last week's column, you discussed four new clauses in American Airlines' new "Addendum to the Governing Travel Agency Agreements" that goes into effect if we issue an American ticket after June 12. What are some of the other surprises in the addendum?
A: American asserts the right to control your activities to an unprecedented extent. Here are some examples:
First, your American appointment "does not include any authority for Agent to act as an intermediary for further distribution of American's products and services via other intermediaries and sales agents." The term "other intermediaries and sales agents" is undefined but certainly must include agencies that you host and that do not have their own appointments to sell American.
I don't know whether American is aware that there are hundreds of agencies that have hosted independent contractors for decades. If you host independent contractors, you should consider asking American for written consent to continue to allow them to sell AA.
Second, you cannot "offer or distribute American products and services as part of a service provided by Agent that is rebranded so that it appears to customers to be a search, booking or ticketing service from a third party." So you cannot, without American's consent, operate a separately named division of your agency, such as a tour operator, online agency, wholesaler or consolidator, if the division appears to be a third party.
Third, you cannot "display American's products and services via electronic means directly to customers without American's prior written approval. However, any Agent with an incentive agreement in effect with American as of June 12 may continue any existing electronic display for the remainder of the then-current term of the agreement, not including any future extensions of the term, but thereafter will need written approval from American."
The "electronic means" exception for agencies that have an "incentive agreement" is very strange, as one thing has nothing to do with the other, except perhaps that agencies getting AA commissions or overrides are somehow vetted to the extent that they can be trusted to sell online.
Fourth, you must give American "all the contact information offered by customers including but not limited to phone fields and [email addresses]. ... Agent may not substitute any contact information or provide Agent's contact information in lieu of such customer information without the consent of American and the customer."
Fifth, you are required to agree that American owns all data related to American that is in your computers or your hard-copy files, including anything that "identifies American [or] relates to a transaction between a customer and American, including booking and payment data, or ... is passed by Agent to American through a PNR or similar booking/sale record (collectively, 'American Data')."
Sixth, "Agent will ... use technical and organizational safeguards against the unauthorized disclosure ... of American Data ... including encryption of all records and files ... when Agent transmits such records and files across public networks or any wireless network or stores such records and files on laptops, thumb drives or other portable devices or transfers such records and files for storage." This is beyond the capability of most agencies, which will need to retain cybersecurity experts immediately.
Mark Pestronk is a Washington-based lawyer specializing in travel law. To submit a question for Legal Briefs, email him at [email protected].