EU steps up protection for holiday makers against timeshare rogues

Consumers across the EU will benefit from tougher holiday protection - when they buy and resell timeshare holidays, timeshare-like holidays on cruise boats, canal boats or caravans and popular "discount holiday clubs" - under new rules proposed by the European Commission today.

The aim is to further boost consumer confidence in the Timeshare industry (worth over €10.5 billion and responsible for more than 40,000 jobs across the EU) and to eliminate the rogue traders which can bring legitimate operators into disrepute and cause consumers problems.

The 1994 EU Timeshare Directive gives consumers basic rights to clear information, a ban on deposits and right to withdraw and change their mind. The new proposals published today aim to tackle loopholes in the current rules. Most importantly they 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 - and extend protection to important areas like timeshare resale and exchange clubs.

The new rules should 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.

"The existing Directive has worked well within its own limits," said Consumer Commissioner Mrs Meglena Kuneva. "However, these holiday products remain a high-pressure sales environment and many new products have come onto the market that are not covered by existing laws. Consumers are being denied their rights, and the practices of rogue traders bring legitimate business operators into disrepute. With these new rules we want to create a level playing field for business, providing clear and simple rules for the reputable part of the industry and give consumers real peace of mind when they sign up for their dream holiday deal."

Susan Marks, Consumer Policy Officer, Citizens Advice, said: "These proposals will close many of the loopholes in the law which have allowed rogue practices to flourish in the timeshare market, leaving many people thousands of pounds out-of-pocket. We are particularly pleased about plans to ban upfront payments, and to widen the scope of timeshare legislation to include boats, holiday clubs and resales - all areas where we see a lot of problems. However, people still need to be very much on their guard in the three years before the new rules come into effect.

"Any new legislation for timeshare and timeshare-like products must also work with other EU consumer legislation such as the Unfair Commercial Practices Directive, designed to tackle rogue trading practices, including pressure selling, which has remained common in the timeshare and holiday club marketplace."