New Timeshare Directive to come into force

New regulations giving greater consumer protection across the European Union for holiday timeshare and other long-term holiday products will come into force in February.

The Government has therefore published guidance for the industry so that they have time to prepare for the February implementation date.

The Government consultation on the transposition of the European Commission's new Timeshare Directive into UK law closed on 1 October earlier this year. The new common rules across the European Community will be in place by February 2011 and set the conditions for fair trading in timeshares.

Consumer Minister Edward Davey said: "These products are often sold across borders, so it's only right that we have protections in place for consumers that also cross borders. Knowing these regulations are in place will boost consumer confidence and boost business for legitimate traders."

The regulations will provide a range of benefits to business:

A simplification of the UK legislative regime - the new single set of regulations will replace the old Timeshare Act and a series of subsequent regulations which amended the Act. Those affected will have a simpler regime to understand with a standardised way of providing key information.

A level playing field for business - since the adoption of the old regime new products (often referred to as "holiday clubs") which offer a similar promise to that of timeshare, but which are not covered by law, have been developed. These products will now be subject to substantially the same regime as timeshare. The new regime should help to put an end to rogue activity in this sector.

Improved consumer confidence - aside from attacking rogue activity in the sector, consumers will be provided with key information in good time before they enter any agreements and will have new rights in respect of those areas which have emerged as being most damaging to consumers - holiday club sales and timeshare resale services. Increased consumer confidence should drive improvements across the industry, helping the market to work better through encouraging participation and competition.

Rogue traders will be dealt with by a combination of offences on the face of these regulations and offences under the Consumer Protection from Unfair Trading Regulations 2008 which will apply where provisions of the new regulations are not met.