The Government is
moving to strengthen consumer protection around holiday timeshares
with its new consultation.
The Department for Business is seeking views from businesses,
consumers, enforcement authorities, and other interested parties
on the transposition of the European Commission’s new Timeshare
Directive into UK law. This will introduce common rules across the
European Community by February 2011 and set the conditions for
fair trading in timeshares.
Action at a European level was necessary because of the
cross-border nature of the sale of these products, and the
exposure to detriment that consumers can face in this market.
Consumer Minister Edward Davey said:
“Tourism plays an increasingly important role in the economies of
Europe and introducing common rules will benefit vulnerable
consumers and the people who currently fall prey to bogus
operators while they are on holiday. Implementing these
regulations will boost consumer confidence in the genuine
timeshare industry, and help eliminate the rogue traders that
bring the industry into disrepute and cause consumers problems.
We intend to provide a simpler, more easy to understand framework
within which genuine operators in the UK can thrive.”
The proposed regulations include a range of provisions to improve
UK consumer protection in a number of areas. For example:
Long-Term Holiday Products, also known as
Holiday Clubs cause by far the most consumer detriment in
this sector and are covered by regulations for the first time.
Timeshare coverage is extended to any
overnight accommodation, which includes, for example, timeshare in
caravans and boats and rights to access accommodation in a pool of
accommodation.
Timeshare Resale is an area rife with
operators who seek payment up-front on the bogus promise of a
sale. This is covered by regulations for the first time.
Timeshare Exchange is covered for the first
time and important pre-contractual information, such as any
restrictions on the choice offered under the exchange scheme, must
be provided.
Notes to editors:
1) The full title of the consultation is: CONSULTATION ON THE
PROPOSED TIMESHARE, HOLIDAY PRODUCTS, RESALE AND EXCHANGE
CONTRACTS REGULATIONS 2010. You can find the consultation here: http://www.bis.gov.uk/Consultations/timeshare-holidays-exchange-resale?cat=open
2) The consultation is open for 12 weeks and closes on 1 October
2010. The Government shall aim to respond by the end of October
2010.
3) The consultation is on the transposition of the European
Commission’s Timeshare Directive, which was adopted by the UK in
February 2009. This looks at:
· Long-Term Holiday Products, also known as Holiday Clubs -
contracts of more than one year in duration by which a
consumer acquires access to promised discounts on accommodation
and other travel services. Sellers will have to provide
standardised information about the product as part of the
contract. The contract will then be subject to a 14-day
“no-strings” cooling-off period during which no payment is
permitted. And the seller can only take yearly payment throughout
the contract agreement, with the consumer able to terminate the
contract as each payment becomes due.
· Timeshare - contracts of more than one year in
duration by which the consumer acquires the right to use overnight
accommodation for more than one period of occupation.
Pre-contractual information provision is extended and
substantially standardised and the cooling-off period extended
from 10 days to 14 days Europe-wide. The ban on up-front payments
is retained.
· Timeshare Resale - contracts by which the trader
assists a consumer to sell or buy timeshare or a long-term holiday
product. The new regulations require the trader to provide
important pre-contractual information, a 14-day cooling-off
period, and disbars the trader from accepting any payment until
the sale of the timeshare is complete or the contract is otherwise terminated.
· Timeshare Exchange - contracts by which, via
membership of an exchange scheme, consumers in exchange for
providing temporary access to their timeshare rights acquire the
right to access other overnight accommodation or other services.
Most memberships are sold at the same time as a timeshare purchase
and the consumer will have the 14-day cooling-off period attached
to the timeshare sale in which to reconsider. When exchange
membership is bought separately from a timeshare purchase the
consumer has a separate 14-day cooling-off period.
4) BIS' online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom
for more information
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Olivia Campbell
Phone: 02072155363
olivia.campbell@bis.gsi.gov.uk