THE EUROPEAN Commission yesterday amended the timeshare directive to protect consumers from the ever-increasing substitutes such as bogus holiday clubs.
Loopholes in the timeshare regulations allowed operators to morph into other forms of timeshare, without using the term.
However, yesterday’s decision aimed to close the gaps and impose stricter rules on such operations.
The aim of the new Directive is to boost consumer confidence in the legitimate timeshare industry, which is worth over €10.5 billion and is responsible for more than 40,000 jobs across the EU.
It aims to eliminate rogue traders who cause problems for consumers and bring legitimate operators into disrepute.
Up to now, EU rules on timeshare have given consumers basic rights with regard to clear information, the right to withdraw and change their mind, and a ban on deposits. The new Directive, approved by the European Parliament yesterday, tackles loopholes in the current rules.
Most importantly, it will extend the scope of the 1994 EU Timeshare Directive to cover new products which have emerged on the market – like discount holiday clubs, and “timeshare-like” holidays on cruise boats, canal boats and caravans.
It will also extend protection to important areas like timeshare resale and exchange clubs. The new rules ensure that consumers are equally well protected across the EU and will create a level playing field in the market for timeshare and certain other holiday-related products.
“I warmly welcome Parliament’s support for this Directive, which will allow consumers real peace of mind when they sign up for their dream holiday deal. The new rules will ensure that the best possible protection is in place for consumers in the modern holiday market, and that rogue traders will no longer be able to exploit loopholes in the law,” the EU’s Consumer Commissioner Meglena Kuneva said.
The new Directive provides for shorter term contracts, and also covers canals, boats and caravans.
For long-term holiday products, traders will not be able to ask for the entire payment, but will have to ask for yearly instalments. It also covers the rules for reselling or exchanging a timeshare product.
“The lack of regulation of long-term holiday products, re-sale and exchange schemes meant that they [consumers] are not covered by rules on cooling-off periods, deposits and consumer information,” the Commission said.
“Consequently, consumers who sign up under pressure have little scope to change their mind. The new Directive will enhance consumer rights in the market for timeshare and long-term holiday products, and create a level playing field for the sellers of these products.”
The earlier legislation gives buyers the right to information in a prospectus before signing a contract, seeks to prevent ‘pressure selling’ by allowing for a cooling-off period of at least 10 days, and prohibits operators from taking deposits from buyers during the cooling-off period.
