Revision of the Timeshare Directive
On 7 June 2007 the Commission adopted a proposal for a new Directive which will enhance consumer protection by extending the scope of the current rules to also include the new products which have emerged in the market, such as holiday clubs. Resale and exchange will also be covered. 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 other holiday-related products.
Timeshare, within the meaning of the current Timeshare Directive, is the right to spend a period of time (e.g. one or more weeks) in a holiday property for a specified or specifiable period of the year for three years or longer.
The Timeshare Directive was adopted in 1994 in order to protect consumer's interests including:
- Giving purchasers the right to information in a prospectus before signing a contract and requirements for the content of the contract.
- Once the contract is signed, the consumer has a cooling-off period of at least 10 days, during which he can withdraw from the contract without giving any reason;
- A ban on advance payments throughout the cooling-off period
The Directive has been implemented in all Member States. Since the adoption of the Directive, however, new products and contracts have been developed, which are not covered by the legislation. These new products include those which can be called "timeshare-like products" (such as timeshare in canal boats, cruise-ships and caravans or contracts for less than 3 years) as well as the so-called "holiday discount clubs". Resale and exchange of timeshare schemes are not covered either by the existing legislation. Some of the new products and some transactions related to timeshare, in particular resale, cause large detriment to consumers, as witnessed by a significant number of complaints, and unfair competition to honest traders, since they are not covered by the Directive.
Recognising the problems that timeshare consumers are facing, the proposal adopted by the Commission aims at closing these regulatory gaps, by replacing the Timeshare Directive with a set of clear, modern and simplified rules.
Proposal
for a Directive on the protection of consumers in respect of certain aspects of timeshare, long-term holiday products, resale and exchange. Updated 20-06-2007
