EN Official Journal of the European Union CE 78/328

(2004/C 78 E/0346)

WRITTEN QUESTION E-3867/03

by Richard Corbett (PSE) to the Commission

(16 December 2003)

Subject: Timeshare and holiday club study

Is the Commission aware of the UK Citizens' Advice Bureau's study entitled ‘Paradise Lost’ on citizens' experiences of timeshare and holiday clubs?

Is the Commission willing to review the Timeshare Directive with a view to including purchases of holiday club scheme membership and timeshare in boats, removing the 36-month minimum contract criteria, increasing the minimum cooling-off period to 14 days and requiring all companies engaged in the timeshare market or resale of timeshares to register in the Member States in which they operate?

Answer given by Mr Byrne on behalf of the Commission

(15 January 2004)

The United Kingdom Citizens' Advice Bureau was kind enough to send the Commission a number of copies of the study ‘Paradise Lost’. The study, in fact, is based on the report ‘The Problems of Products Resembling Timeshare in Europe; the experience of European Consumer Centres’, which was made public in November 2002 by the European Consumer Centres.

The Commission is aware that despite the adoption of Directive 94/47/EC of the Parliament and of the Council of 26 October 1994 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 (1) and its subsequent transposition by Member States, consumer complaints still arise. Complaints have been sent to the Commission directly by the complainants, via the Parliament, by the European Consumer Centres (2) or the European Extra Judicial Network (3).

A Commission Report (4) identifying a number of these problems was published in 1999. It drew conclusions on possible adaptations or amendments to the Directive. A Parliament Resolution (5) and Council Conclusions (6) were adopted pursuant to this report.

The Member of the Commission responsible for Health and Consumer protection outlined a broad strategy to tackle outstanding problems in the timeshare sector in the debate in the Parliament in July 2002 on the adoption of the Resolution.

In order to address the most urgent problems, links between leading consumer associations and members of the Timeshare Industry have been established to make self-regulation more effective. The Industry is currently developing a Code of Conduct which will be used to raise standards and to address those unfair and opaque practices not caught by the Directive. Negotiations are currently under way so that consumers' views are taken into account in the development of this code.

In addition to this, the Commission has drawn on the experience of the European Consumer Centres and has worked with the newly established Clearing Houses of the European Extra-judicial Network, as well as with the International Consumer Protection Enforcement Network (7) (ICPEN) to address current outstanding problems and to encourage a more systematic co-operation between the industry and the relevant contact points in the Member States.

Furthermore, two legislative proposals aiming at protecting consumers' interests have recently been adopted by the Commission.

First, a proposal for a framework Directive concerning unfair business-to-consumer commercial practices (8) was adopted by the Commission in June 2003. Certain unfair marketing practices which are commonly used by rogue traders operating in the timeshare industry (e.g. practices involving the use of coercion), are included in the proposal.

A second proposal for a Regulation on cooperation between national authorities responsible for the enforcement of consumer protection laws (9) was adopted by the Commission in July 2003. This proposal aims to establish effective and rapid cooperation between national authorities responsible for the enforcement of consumer protection laws.

Furthermore in accordance with the Consumer Policy Strategy 2002-2006, the Commission is reviewing existing Community legislation relating to consumer protection. This review will cover a number of directives, including Directive 94/47/EC on timeshare. The Commission plans to present the strategy for the review of the consumer protection ‘acquis’ in the 2nd quarter of 2004.

(1) OJ L 280, 29.10.1994.

(2) The role of the ECC Network (or ‘Euroguichets’) is to help European consumers understand better how to make the Internal Market work for them and to provide advice if they encounter a problem.

(3) The role of the EEJ-Net, a network of contact points or ‘Clearing Houses’, is to provide consumers with information on available Alternative Dispute Resolution schemes, as well as practical help in pursuing a complaint by this means.

(4) SEC(1999) 1795 final.

(5) European Parliament Resolution on the monitoring of Community policy on the protection of purchasers of the right to use immovable properties on a timeshare basis (Rapport Medina Ortega), adopted on 4 July 2002 (Doc PE 298410).

(6) 2255th Council meeting of 13.4.2000 (point 9.2).

(7) The International Consumer Protection Enforcement Network is a worldwide network of national authorities with the aim of strengthening and improving the enforcement of consumer protection legislation. (except product safety and the prudential regulation of financial institutions). It meets to discuss these enforcement issues, exchange information and improve international cooperation between the countries involved. A sub-group ‘Europe’ has been set up by the Commission to improve European co-operation and prepare for the global meetings.

(8) COM(2003) 356 final.

(9) COM(2003) 443 final.