Timeshare protection for Irish consumers reviewed
Statement by Minister for Enterprise, Trade and Employment, Micheál Martin, TD, Monday, 30th July 2007
A review of the regulations to protect Irish consumers from falling victim to rogue holiday timeshare products and other long term holiday schemes has begun with the launch of a public consultation by the Minister for Enterprise, Trade and Employment, Micheál Martin, TD.
The Minister is inviting public submissions over the next four weeks on how to improve the protection of consumers at both a national and European level.
"This consultation is timely as it comes at a time when the minds of people are focused on holidays, and when they give consideration to future holiday plans."
"The European Commission has recently published a directive on this issue, and is anxious to work towards EU wide protections against those who are trying to con people out of their money."
"While there is already a Timeshare Directive dating back to 1994, there have been many changes in the industry and our regulations must reflect this. We need regulations for 'holiday clubs' which offer holiday discounts in return for a subscription fee. In addition the Directive needs to deal with new products such as timeshare on cruise ships."
"Advertisements have been placed in the National Newspapers inviting submissions from the public. The timeframe for the consultation is tight with a deadline of August 31st and this underlines our determination to ensure we have the best possible protections for Irish consumers."
"The new Consumer Act which came into law earlier this year provided a range of new protections at National Level, however the emergence of the internet and the expansion of the EU raises new issues. Consumer protections need to operate in a single market and Irish people should be confident that they are getting a fair deal no matter where in the EU they are doing business."
“The consultation document can be viewed at http://www.djei.ie/consumer/issues.htm. I would urge all interests to study it and make submissions so as we can ensure that Irish consumers can continue carrying out business in a transparent and fair way", concluded Minister Martin.
ENDS/ETE 1770
For more details contact: Press Office, Department of Enterprise, Trade and Employment. Ph: +353 1 631 2200
Notes for Editors
Micheál Martin, TD, Minister for Enterprise, Trade & Employment has announced that he is holding a public consultation on the EU Commission’s proposal for a Directive of the European Parliament and the Council on the protection of consumers in respect of certain aspects of timeshare, long-term holiday products, resale and exchange.
This proposed Directive will replace Timeshare directive 94/47/EC as transposed by S.I No. 204/1997 – European Communities (Contracts for Time Sharing of Immovable property – Protection of Purchasers) regulations 1997 as amended by S.I. No. 144/2000 European Communities (Contracts for Time Sharing of Immovable property – Protection of Purchasers) (Amendment) Regulations 2000
The new proposal will replace the old Directive with a modern, simplified and coherent framework covering timeshare and long-term holiday products, as well as exchange and resale. The proposal will extend the scope of current rules to cover:
- Shorter term contracts – contracts of less than three years will now be covered.
- Moveable property – the rules will cover contracts for timeshare on property such as canal boats, caravans or cruise ships.
- Long-term holiday products – these include holiday discount clubs, where consumers pay for instance 3,000 euro to get a password to a website, where they are promised "huge discounts" which are often misleading, on holiday accommodation, flights and rental cars.
- Resale of timeshare products – many timeshare owners are approached by commercial agents who ask for a fee in return for selling their timeshare.
- Exchange of timeshare products – some timeshare owners pay an additional fee to join an exchange club, where they can swap their week in e.g. the Canaries for a week in the Alps. Additional information requirements should ensure they get a realistic picture of the offer and they do not end up being disappointed.
The lack of regulation of long-term holiday products, resale and exchange schemes means that they are not covered by rules on cooling-off periods, deposits and consumer information. Consequently, consumers who sign up under pressure have little scope to change their mind. The new proposal 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 proposal is included in the Commission’s rolling programme for the up-dating and simplification of the Consumer Acquis.
If you wish you can post your comments to the postal address below or email conspol@entemp.ie by 31 August 2007.
A copy of the Consultation Paper and the Impact Assessment is available on the Department of Enterprise, Trade and Employment website via the following link: http://www.djei.ie/commerce/consumer/issues.htm or from the postal address below on request.
Timeshare Directive - Competition and Consumer Policy Section
Department of Enterprise, Trade and Employment
Earlsfort Centre
Dublin 2
Last modified: 30/07/2007
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