The Timeshare, Holiday Products, Resale and Exchange Regulations 2010 - A Quick Start Guide for Business
This document provides an overview of the changes to help business initially determine whether the regulations apply to their operations. For further information, you should look at the regular guidance which contains more information about obligations under the Regulations.
Overview
On 23 February, 2011 the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010 (the Regulations) came into force and will apply across the UK. The Regulations transpose into UK law EU Directive 2008/122/EC on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts (the Directive). They contribute to the important objectives of boosting consumer confidence in the timeshare industry and eliminating the operations of rogue traders which bring legitimate traders into disrepute and cause considerable problems for consumers.
The Directive replaces Directive 94/47/EC on the protection of purchasers in respect of certain aspects of contracts relating to the purchase of the right to use immovable property on a timeshare basis.
The Regulations:
- implement the Directive and replace entirely the old regime in the UK by repealing the Timeshare Act 1992 and revoking the Timeshare Regulations 1997. Ancillary regulations and orders such as the Timeshare (Repayment of Credit on Cancellation) Order 1992 will fall when the Act and the regulations are removed
- the Regulations apply to the sale and marketing of the following types of contract:
'Timeshare contract’ - a contract of a duration of more than one year under which a consumer, for consideration, acquires the right to use one or more overnight accommodation for more than one period of occupation
‘Long term holiday product contract’ - a contract of a duration of more than one year under which a consumer, for consideration, acquires primarily the right to obtain discounts or other benefits in respect of accommodation in isolation or together with travel or other services
‘Resale contract’ - a contract under which a trader, for consideration, assists a consumer to sell or buy a timeshare or a long term holiday product;
‘Exchange contract’ - a contract under which a consumer, for consideration, joins an exchange system which allows that consumer access to overnight accommodation or other services, in exchange for granting to other persons temporary access to the benefits of the rights deriving from that consumer’s timeshare contract.
- make provisions relating to the advertising of regulated contracts
- require important key information to be provided in advance of a contract being agreed and in a standardised form
- make provisions relating to the form and content of the regulated contract
- make provisions relating to the language of the regulated contract and the pre-contractual information
- provide a consumer with a right to withdraw from a regulated contract within a standard 14 day withdrawal period, and the additional right to withdraw from a long-term holiday product contract when payment of each instalment becomes due
- ban any payment in advance of the completion of the withdrawal period of the regulated contract
- set out provisions for payment for a long-term holiday product contract by way of yearly instalments
- provide for the automatic cancellation of a related credit agreement and other ancillary contracts
- include sanctions and, where appropriate, criminal offences for non compliance. The Regulations also provide for contractual remedies for consumers
- set the penalty for offences to a fine not exceeding the statutory maximum
