WRITTEN QUESTION E-1068/98

by Allan Macartney (ARE) to the Commission

(6 April 1998)

Subject: Timeshare resales and implementation of the Timeshare Directive

Is the Commission aware of the continuing problems being experienced by holiday-makers at the hands of the so-called "timeshare touts"? In particular, has any evidence been gathered on the abuse of verbal or written "promises" to buy back ownership from clients who wish to take advantage of resale services, and what further regulation is under consideration?

What is the level of implementation and enforcement of the Timeshare Directive?

Answer given by Mrs Bonino on behalf of the Commission

(11 June 1998)

The Commission is well aware of the continuing problems being experienced by tourists with timeshare companies. In fact, the Commission receives complaints regularly from European citizens. Moreover, the Commission is constantly kept informed of aggressive and abusive sales methods used by timeshare operators through a number of consumer organisations receiving Commission grants to tackle transborder consumer problems and which report a high volume of cases related to timeshare.

The information gathered on this subject during the past years led the Commission to propose a directive on the protection of purchasers in respect of certain aspects of contracts relating to the purchase of the right to use immovable properties on a timeshare basis. The Parliament and the Council adopted it on 26 October 1994(1) (Directive 94/47/EC).

Directive 94/47/EC does not deal with general sales and marketing methods, such as incentives, inducements and other forms of persuasion, like promises of buying back ownership from clients wishing to take advantage of resale services, which is an area which goes far beyond the question of timeshare alone. There is as yet no European legislation covering these issues, which remain within the competence of the individual Member States.

The aim of Directive 94/47/EC is to establish a minimum basis of common rules relating to certain aspects of timeshare contracts in order to give timeshare purchasers a high level of protection. In fact, the Directive covers only those aspects concerning contractual transactions that relate to information on the component parts of a contract and the arrangements for the communication of that information and to the procedures and arrangements for cancellation and withdrawal. This Directive, which does not affect the basic principles of contract law prevailing in Member States, sets out the minimum protection to which consumers in all Member States are entitled. The national authorities may adopt more stringent measures if they think there is a need for them.

According to Article 1.2 of the Directive, it had to be implemented by Member States by 29 April 1997. So far, six Member States have not communicated their national measures implementing Directive 94/47/EC. The Commission opened procedings under Article 169 EC Treaty for non-communication against Belgium, Greece, Spain, France, Italy and Luxembourg and sent them reasoned opinions at the beginning of 1998.

A first evaluation of the national measures communicated by the other nine Member States in the light of Directive 94/47/EC revealed possible elements of non-conformity in some of them. The Commission is presently examining these cases.

(1) OJ L 280, 29.10.1994.