Proposal for a Directive of the European Parliament and of the Council on the protection of consumers in respect of certain aspects of timeshare, long-term holiday products, resale and exchange {SEC(2007) 743} {SEC(2007) 744}
Date: 2007-06-07
Institutions: European Commission
Subjects: acquisition of property, consumer protection, holiday, ownership, real property, sale, time-sharing

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.6.2007 
COM(2007) 303 final 

2007/0113 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the protection of consumers in respect of certain aspects of timeshare, long-term 
holiday products, resale and exchange 

(presented by the Commission) 

{SEC(2007) 743} 
{SEC(2007) 744} 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

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•  Grounds for and objectives of the proposal 

The proposal is a result of a review of Directive 94/47/EC of the European Parliament 
and  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 
properties on a timeshare basis.  

Since the adoption of Directive 94/47/EC there have been major developments in the 
market place, the most significant being the offer of new products, similarly marketed 
and economically broadly similar to timeshare, in the sense that there is a substantial 
payment  upfront,  followed  by  payments  linked  to  the  later  actual  use  of  holiday 
accommodation (on its own or in combination with travel). These products fall outside 
the  scope  of  Directive  94/47/EC.  The  evasion  of  regulation  by  these  products  has 
created substantial problems for consumers and legitimate businesses, as evidenced by 
the  number  of  complaints  submitted  to  European  Consumer  Centres,  consumer 
organisations and other public authorities. 

Data  suggests  that  complaints  relating  to  timeshare  are  declining.  This  is  a  strong 
indication  that  many  of  the  problems  consumers  faced  before  the  adoption  of  the 
Directive  have  been  solved.  Nonetheless,  a  large  number  of  consumer  complaints 
remain, most of which relate to the new products, such as holiday discount clubs and to 
resale contracts.  

120 

•  General context 

On  13  April  2000,  the  Council  adopted  Conclusions  on  the  implementation  of 
Directive  94/47/EC.  In  order  to  assist  the  Commission  in  submitting  a  proposal 
amending  the  Directive,  the  Conclusions  listed  a  number  of  elements  that  could 
usesfullly be taken into consideration in reviewing the Directive.  

The  European  Parliament  in  its  Resolution  of  4  July  2002  recommended  that  the 
Commission takes action to resolve the problems of consumers of timeshare products, 
while guaranteeing them the highest level of protection.  

The Conclusions and the Resolution have been taken into consideration in the proposal. 

The  Commission,  in  its  Communication  on  the  "Consumer  Policy  Strategy  2002  - 
2006"  foresaw  the  review  of  Directive  94/47/EC.  The  proposal  is  included  in  the 
Commission's  rolling  programme  for  up-date  and  simplification  of  the  acquis 
communautaire and its Work and Legislative Programme (COM (2006)629 Final under 
the reference 2006/SANCO/038.  

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•  Existing provisions in the area of the proposal 

Directive 94/47/EC of the European Parliament and the Council of 26 October 1994 on 
the  protection  of  purchasers  in  respect  of  certain  aspects  of  contracts  relating  to  the 

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purchase of the right to use immovable properties on a timeshare basis.  

This  proposal  is  complementary  to  existing  EU  law,  in  particular  the  Unfair 
Commercial  Practices  Directive  (2005/29/EC)  (UCP)  which  will  be  applicable  by  12 
December  2007.  The  problems  generated  by  aggressive  or  misleading  marketing 
practices are expected to be curbed by UCP. However UCP does not provide for a right 
of withdrawal or a ban on deposits, which are key elements of the protection provided 
by Directive 94/47/EC. Such contractual rights can only be conferred to consumers by 
extending Directive 94/47/EC's scope.  

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•  Consistency with the other policies and objectives of the Union 

The  Commission  has  launched  a  comprehensive  review  of  the  Consumer  Acquis 
comprising 8 directives including Directive 94/47/EC. A Green Paper was adopted on 
8  February  2007.  The  Green  Paper  sets  out  several  options  for  the  reform  of  the 
consumer acquis. These options include a mixed approach based, on the one hand, on a 
horizontal instrument that would update in a systematic fashion the common aspects of 
the acquis (e.g. definitions) and, on the other hand, the vertical revision of some sector 
specific aspects of the directives. As regards timeshare, this vertical revision involves 
essentially a modification of the definitions and scope of Directive 94/47/EC in order 
to  cover  new  holiday  products  as  well  as  clarifying  and  updating  the  provisions  on 
requirements  for  the  content  and  language  of  the  consumer  information  and  the 
contract. 

Given  the  urgency  of  the  problems  faced  by  consumers,  in  particular  in  relation  to 
resale and the new products, the revision of Directive 94/47/EC has become a priority 
and is the subject of the present proposal. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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Consultation methods, main sectors targeted and general profile of respondents 

The main stakeholders were consulted in meetings in 2004-2006 and  in three  written 
consultations  in  2006.  In  February  2006  a  comprehensive  questionnaire  of  both 
regulatory and data-related issues was circulated to Member States and stakeholders.  

The  issues  subject  to  consultation  were  also  discussed  in  the  meeting  of  the  standing 
working group of Member States experts on the Review of the Acquis in March 2006.  

The Commission published a consultation document on its website on 1 June 2006 and 
invited interested parties to contribute by 15 August 2006. The Commission received 
more than 100 contributions from all relevant parties, including 14 Member States, one 
EEA  EFTA  State,  industry  and  consumer  stakeholders,  enforcement  authorities  and 
website 
lawyers. 
http://ec.europa.eu/consumers/cons_int/safe_shop/timeshare/index_en.htm  

available 

replies 

The 

the 

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at 

On 19 July 2006 the Commission organised a workshop with broad participation from 
stakeholders and Member States.  

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In July 2006, a second questionnaire, which sought views on the impacts of a possible 
vertical  revision  and  data  on  administrative  burden,  was  published  on  SANCO's 
website. 

Throughout  the  consultation,  the  Commission  minimum  standards  for  stakeholder 
consultation were upheld. 

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Summary of responses and how they have been taken into account 

The consultation confirmed that there are serious consumer problems related to long-
term holiday products and resale mediation and to a lesser extent related to timeshare 
and exchange.  

There are, however, divergent views on the scale of the problems and how to address 
them.  Most  Member  States,  consumers  and  other  stakeholders  support  a  revision.  By 
contrast,  most  of  the  organised  European  timeshare  industry  opposes  a  revision  of 
Directive  94/47/EC,  arguing  that  that  Directive  is  not  the  right  place  to  regulate  the 
new  products,  or  that  better  enforcement,  self-regulation  and  consumer  information 
would address the problems.  

The Commission considers that in general the consultation has confirmed the need to 
tackle the problems and that it is appropriate to extend the scope of the Directive.  

A majority of stakeholders was in favour of an update of the information requirements 
in  the  prospectus  and  contract  and  the  introduction  of  provisions  ensuring  that  the 
consumer's  attention  is  drawn  to  the  right  of  withdrawal.  The  proposal  provides  for 
such provisions. 

Article  6  of  the  Directive  bans  advance  payments  during  the  withdrawal  period.  The 
Member States have transposed this provision, although the consequences arising from 
infringements of the provision differ from country to country, and some Member States 
allow,  to  some  degree,  third-party  deposits.  Also,  different  interpretation  of  the 
provision in the Directive, has lead to divergence in national legislation regarding the 
situation  where  the  withdrawal  period  is  extended.  In  some  Member  States  the  ban 
only applies to the normal withdrawal period.  

The  timeshare  industry  advocates  the  lifting  of  this  ban,  arguing  that  it  hampers 
business,  that  it  dissuades  international  brand-name  hotel  chains  from  investing  in 
timeshare and that it triggers the creation and sale of products which fall outside of the 
scope  of  the  Directive.  The  timeshare  industry  believes  that  the  consumer's 
commitment to the contract would become stronger as a result of the deposit (i.e. the 
consumer  would  be  more  reluctant  to  withdraw).  This  would  allow  timeshare 
businesses  to  organise  their  enterprise  better  with  fewer  consumers'  withdrawing. 
Alternatives to a ban put forward by industry include third-party mechanisms to protect 
consumer funds, such as escrow accounts, trustee arrangements, third party guarantees, 
letters of credit etc. 

Other  stakeholders  argue  that  a  relaxation  of  the  ban  on  deposits  would  in  practice 
undermine  the  right  of  withdrawal.  Obtaining  reimbursement  can  prove  difficult 
because of the administrative procedure this entails, because of the lack of familiarity 
of the consumer with the various third party mechanisms put in place by the Member 

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States,  or  simply  because  at  the  time  of  signing  of  the  contract  the  consumer  is  in 
unfamiliar surroundings. The task of obtaining reimbursement for advance payments is 
virtually  impossible  in  the  case  of  rogue  traders.  Additionally,  the  same  stakeholders 
have  argued  that  it  would  be  very  difficult  to  make  sure  that  the  third  party  is  truly 
independent  of  the  timeshare  company,  and  to  ensure  that  similar  measures  for  third 
party  mechanisms  are  introduced  across  the  EU  (e.g.  some  Member  States  might 
introduce  mechanisms  allowing  payments  through  notaries,  others  through  financial 
institutions, and so forth). 

Consumer  organisations  have  consistently  supported  the  view  that  the  ban  on  any 
deposit  is  an  efficient  way  of  allowing  the  consumer  to  exercise  his/her  right  of 
withdrawal.  In  their  view,  with  deposits,  it  would  become  more  cumbersome  for  the 
consumer to withdraw. The consumer could decide not to withdraw not because he is 
convinced by the deal, but because of the paperwork and the procedures that he would 
have to follow to get his money back. A ban on deposits constitutes a clear rule, easy to 
understand for consumers, whereas if alternatives like  allowing deposits paid to third 
parties  were  accepted,  it  would  be  difficult  for  consumers  to  judge  whether  the  third 
party is reliable and independent from the seller. 

For these reasons, the ban on all deposits during the withdrawal period is maintained. 
The maintenance of the ban responds to overwhelming evidence that consumers need a 
period to reflect on whether they want to keep a contract which in the vast majority of 
cases they were not looking for to conclude. The nature of these products, often sold 
with high pressure sales techniques, justify a level of consumer protection appropriate 
to  the  context..  The  ban  is  clarified  in  the  new  proposal,  to  ensure  that  all  kinds  of 
considerations  to  the  trader  or  any  other  third  party  is  prohibited  and  that  the  ban 
applies not only for the normal period, but also where the period is extended because 
not all the required information has been given in the contract. 

The  possibility  of  introducing  criminal  sanctions  was  supported  by  consumer 
stakeholders.  Member  States  and  the  industry  were  generally  against,  arguing  that  it 
should be left to Member States to decide the appropriate mix and nature of sanctions. 
The consumer protection enforcement cooperation network established by Regulation 
2006/2004 EC has been operational since 31 December 2006. The Commission expects 
that  this  Regulation  will  enhance  cross-border  action  against  consumer  protection 
infringements. The effectiveness of this new tool should be assessed before introducing 
a provision at EU level requiring Member States to introduce criminal sanctions. 

An open consultation was conducted over the internet from 01/06/2006 to 15/08/2006. 
The  Commission 
results  are  available  on 
http://ec.europa.eu/consumers/cons_int/safe_shop/timeshare/index_en.htm. 

response(s).  The 

received  100 

•  Collection and use of expertise 

There was no need for external expertise because comprehensive data was gathered 
from Member States, stakeholders and European Consumer Centres through 
questionnaires and public consultation. The information was subsequently analysed 
and additional information was retrieved where necessary.  

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•  Impact assessment 

The impact assessment combines the outcome of the consultation process on specific 
issues, around the three more likely policy options. The results of the analysis indicate 
that the status-quo option (Option 1) would have negative consequences on a majority 
of  stakeholders,  and  that  few  stakeholders  would  benefit  from  maintaining  Directive 
94/47/EC as it is.  

The same applies for the non-legislative option (Option 3).  

The impact analysis of the option to vertically revise Directive 94/47/EC (Option 2), on 
the other hand, suggests that this option would ensure improved market outcomes for 
the  majority  of  stakeholders  involved.  The  main  advantages  of  this  option  are  that  it 
extends  the  protection  timeshare  consumers  have  to  consumers  of  other  long-term 
holiday  products,  resale  mediation  and  exchange;  that  a  more  level  playing  field  is 
created for businesses; and that legal clarity is achieved through updated and flexible 
product definitions and a fully harmonised withdrawal period of 14 days across the EU. 
Option  2  is  therefore  proposed  as  the  most  appropriate  solution  to  the  problems 
identified. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

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•  Summary of the proposed action 

The  main  aim  of  the  revision  of  the  Directive  is  to  provide  consumer  protection  in 
relation to resale and the new products which have come onto the market place, such as 
holiday discount clubs. The proposal will replace Directive 94/47/EC with a modern, 
simplified and coherent framework covering timeshare, long-term holiday products, as 
well as exchange and resale. 

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•  Legal basis 

Article 95 of the Treaty 

•  Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Community. 

The  objectives  of  the  proposal  cannot  be sufficiently  achieved  by  the  Member  States 
for the following reason(s). 

The  objective  of  the  proposal  is  to  enhance  consumer  protection  as  well  as  to  help 
consumers and traders to take as much advantage as possible of the Internal Market in 
a  sector  where  contracts  often  are  of  a  cross-border  nature.  This  objective  cannot  be 
adequately  achieved  by  the  Member  States;  the  disparities  between  the  national 
legislations create barriers to the proper operation of the Internal Market, distortions of 
competition and legal uncertainty.  

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324 

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Community action will better achieve the objectives of the proposal for the following 
reason(s). 

A Community act applies in all Member States, covers aspects which are not covered 
by  national  law  and  provides  a  high  level  of  consumer  protection  for  cross-border 
contracts.  

The overwhelming majority of consumer complaints are of a cross-border nature. 

The  proposal  regulates  an  issue  that  is  already  regulated  at  Community  level.  It  will 
replace Directive 94/47/EC. As the transactions are very often of cross-border nature, 
cross-border standards are required, i.e. the act should have a Community scope. 

National legislation should be used to deal with the internal aspects which are already 
covered by legislation and traditions firmly rooted in the Member States. For example, 
the  proposal  does  not  impose  a  common  legal  nature  of  the  timeshare  rights;  on  the 
contrary,  the  Member  States'  views  on  how  the  legal  nature  should  be,  are  fully 
respected;  as  is  the  case  in  regard  to  the  management  and  maintenance  of  the 
properties.  The  proposal  only  deals  with  those  aspects  that  should  be  regulated  at 
Community level. 

The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The proposal, like Directive 94/47/EC, does not cover all aspects of timeshare but only 
certain  aspects,  which  have  been  identified  as  the  most  problematic,  and  hence 
necessitating  Community  action.  The  remaining  aspects  will  be  covered  by  national 
legislation.  For  instance,  the  national  general  contract  law  provisions  and  national 
provisions regarding authorisation regimes and licensing will be applicable. 

Therefore a Directive is the appropriate instrument and thus the proposal complies with 
the proportionality principle.  

•  Choice of instruments 

Proposed instruments: directive. 

Other means would not be adequate for the following reason(s). 

The solution to the problems that the proposal aims to overcome can only be reached at 
Community level. Moreover the Commission considers that national legislation should 
deal with those internal aspects which are covered by legislation and traditions firmly 
rooted in the Member States.  

Consequently, the adequate instrument is a Directive. A Regulation would be too rigid 
and  would  not  allow  Member  States  the  necessary  freedom  to  regulate  the  matter 

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adequately  and  determine  the  legal  nature  of  the  rights  which  are  the  subject  of  the 
contracts covered by this Directive; a Decision would not cover all Member States and 
a  Recommendation  has  not  the  binding  nature  required  for  regulating  this  matter 
effectively. 

4)  BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

5)  ADDITIONAL INFORMATION 

•  Simplification 

The proposal provides for simplification of legislation. 

It  contributes  to  simplification  by  employing  clearer  and  more  transparent  legislative 
language;  by  clarifying  definitions  and  the  scope  of  application  of  the  Directive, 
ensuring  legal  certainty  for  stakeholders;  by  updating  and  simplifying  information 
requirements  so  as  to  ensure  effectiveness  and  minimise  administrative  costs;  and  by 
containing  a  review  clause,  which  will  prevent  obsolescence  and  ensure  that  the 
Directive remains future-proof. 

The  proposal  is  included  in  the  Commission's  rolling  programme  for  up-date  and 
simplification of the acquis communautaire and its Work and Legislative Programme 
under the reference 2006/SANCO/038. 

•  Repeal of existing legislation 

The adoption of the proposal will lead to the repeal of existing legislation. 

•  Review/revision/sunset clause 

The proposal includes a review clause. 

•  Correlation table 

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The  Member  States  are  required  to  communicate  to  the  Commission  the  text  of 
national  provisions  transposing  the  Directive  as  well  as  a  correlation  table  between 
those provisions and this Directive. 

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•  European Economic Area 

The proposed act concerns an EEA matter and should therefore extend to the European 
Economic Area. 

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570 

•  Detailed explanation of the proposal 

Article 1 "Scope" 

The proposal will replace Directive 94/47/EC with a modern, simplified and coherent 
framework  covering  timeshare,  long-term  holiday  products,  as  well  as  exchange  and 
resale  mediation.  The  provisions  of  the  Directive  will  be  applicable  to  all  of  these 
products,  as  defined  in  Article  2,  unless  otherwise  specified.  In  particular  the  list  of 
items to be included in the prospectus and the contract is tailored to suit the different 
products. 

Horizontal  issues  will  be  addressed  in  the  overall  review  of  the  Acquis.  Therefore, 
Article  1  (2)  contains  a  derogation  from  the  full  harmonisation  approach  for  these 
issues.  Furthermore,  this  provision  clarifies  that  the  Directive  is  without  prejudice  to 
national legislation providing the right to terminate  the contract.  This  means that, for 
instance, national provisions on early termination of a contract or the right to terminate 
a contract if the consumer has been misled, can be maintained. 

Article 2 "Definitions" 

Article 2 (1) (a) defines the notion of "timeshare". In addition to the products covered 
by  Directive  94/47/EC,  the  proposal  includes  products  which  are  equivalent  to 
timeshare, but where  one or more  of the  criteria in  the current definition  (contract of 
more  than  3  years,  related  to  "immovable  property")  are  not  fulfilled.  Since  the 
definition  is  no  longer  exclusively  linked  to  immovable  property,  contracts  for 
accommodation  in  canal  boats,  caravans  or  cruise-ships  will  also  be  covered.  Other 
contracts which do not provide for accommodation, such as rental of caravan pitches, 
storage space for recreational crafts etc will not be covered. Also arrangements such as 
seats in lounges for sports events will not be covered, since the term "accommodation" 
implies overnight stays. The definition covers contracts for a period of more than one 
year,  which  includes  "trial  packs"  for  accommodation  of  35  months  duration.  On  the 
other hand, prepaid accommodation in a hotel for two stays within a year will not be 
covered since the duration of the contract is less than one year. Nor will multi-annual 
reservations  of  a  hotel  room  be  covered,  provided  they  are  not  "contracts",  but 
reservations which are not binding on the consumer. Since the accommodation must be 
for "more than one period", ordinary lease contracts will not be included, even if their 
duration is more than one year. The definition requires that the right is acquired against 
"consideration",  which  could  be  for  instance  payment  by  cash,  card  or  trade-in  of  a 
timeshare.  There  is  no  requirement  for  the  whole  consideration  to  be  provided  at  the 
initial phase of the contract in order for a contract to be covered by the definition. Also 
contracts  where  the  consumer  pays  an  initial  sum  to  acquire  the  right  and  then 
additional payment for each use of the accommodation are covered.  

The  definition  of  "long-term  holiday  product"  in  Article  2  (1)  (b)  captures  products 
such as discount holiday clubs. The core of this product is that the consumer acquires 
"the  right  to  obtain  discounts  or  other  benefits  on  accommodation,  in  isolation  or 
together  with  travel  or  other  services".  Only  contracts  where  the  right  is  obtained 
against  consideration  are  covered.  Hence,  ordinary  loyalty  schemes,  providing 
discounts on future stays in the hotels of a hotel chain will not be covered. Discounts 
provided  over  a  shorter  time-period  or  one-off  discounts  will  not  be  covered.  This 
could  be  for  instance  if  a  hotel  chain  sells  a  "Summer  discount  pass"  where  the 

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consumer pays 100 euro for a card which entitles him to 10% discount on stays in the 
hotels in the chain during a summer season. Contracts whose primary purpose is other 
than the offer of discounts or allowances, are not included. This means that for instance 
a  credit  card  will  not  be  a  "long-term  holiday  product"  even  if  the  card  company 
provides offers for discounts in hotels and the consumer has to pay a fee to establish 
the card and annual fees,  since  providing discounts is not the primary purpose of the 
contract. 

"Resale"  is  defined  in  Article  2  (1)  (c)  to  cover  contracts  for  mediation  concluded 
between the consumer who wishes to sell or buy a timeshare/long-term holiday product 
and a resale agent. The sales contract between two consumers will not be regulated, as 
the proposal only regulates business to consumer practices. On the other hand, where a 
trader  does  not  act  as  an  intermediary  but  buys  a  timeshare  and  then  resells  it  to  a 
consumer,  the  contract  will  be  a  contract  for  sale  of  timeshare  under  point  (a)  and 
covered, as the scope is not limited to first hand sale. 

The  definition  of  "exchange"  in  Article  2  (1)  (d)  is  designed  to  cover  contracts  for 
membership in an exchange system. It does not refer to the individual exchanges in the 
course of the contract. A contract should be deemed to fall under the definition even if 
a  free  introductory  period  is  granted  or  the  fee  for  the  first  period  is  paid  by  a  third 
party, for instance the trader selling the timeshare to which the exchange is linked.  

The  definitions  of  "trader"  and  "consumer"  in  Articles  2  (1)  (e)  and  (f)  replace  the 
definitions of "vendor" and "purchaser" in the Directive. The term "purchaser" is not 
suitable  for  a  consumer  selling  his  timeshare  (in  case  of  resale).  The  new  definitions 
correspond to those in the UCP.  

The  definition  of  "ancillary  contract"  -  Article  2  (1)  (g)  -  is  a  contract  which  is 
subordinate to another contract, as for instance exchange in relation to timeshare 

Articles  3  and  4  "Precontractual  information  and  advertising"  and  "The  contract" 
broadly reproduce the corresponding Articles in Directive 94/47/EC. Article 3 ensures 
that  the  consumer  receives  the  information  which  is  necessary  in  order  to  make  an 
informed  decision.  As  in  the  current  Directive,  the  trader's  duty  to  provide  the 
information  is  triggered  by  the  consumer  showing  interest  in  the  product  and  asking 
about  it.  In  addition,  Article  4  includes  a  provision  to  ensure  that  the  consumer's 
attention is drawn to the right of withdrawal, and the rules on language are simplified. 
The  possibility  in  Directive  94/47/EC  for  the  Member  States  to  require  additional 
languages is not maintained.  

Article  5  "Right  of  withdrawal"  corresponds  broadly  to  the  provision  in  Directive 
94/47/EC, but the withdrawal period is extended to 14 days and harmonised across the 
EU. Also, the provision in Article 5 (2) on extension of the withdrawal period in case 
of lack of fulfilment of the requirements in Article 4 has been clarified; the additional 
information has to be provided in writing in order for the withdrawal period to start.  

Article 6 "Advance payment" 

The  proposal  in  Article  6  (1)  broadly  reproduces  the  ban  on  deposits  during  the 
withdrawal  period  in  the  corresponding  Article  in  Directive  94/47/EC.  Moreover,  it 
aims  at  clarifying  the  ban.  The  ban  includes  not  only  payments,  but  all  kinds  of 

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considerations  from  the  consumer's  side,  and  not  only  to  the  trader,  but  to  any  other 
recipient.  The  ban  applies  as  long  as  the  withdrawal  period  has  not  expired;  if  the 
withdrawal period is extended due to non-fulfilment of the information requirements, 
the ban is also extended. The proposal also clarifies this.  

Article  6(2)  provides  for  a  ban  on  advance  payment  for  resale.  This  ban  extends 
beyond  the  withdrawal  period,  until  the  actual  sale  has  taken  place  or  the  resale 
contract is otherwise terminated.  

Article 7 "Termination of ancillary contracts"  

Article  7  (1)  prescribes  the  cancellation  of  any  ancillary  contract  if  the  consumer 
withdraws  from  the  main  contract.  As  explained  before,  an  ancillary  contract  is  a 
contract which is subordinate to another contract, as for instance exchange in relation 
to  timeshare.  For  certain  linked  credit  agreements,  Article  7  (2)  applies.  The  right  of 
withdrawal  for  exchange  contracts  following  from  Article  5  has  independent  value 
where the right of withdrawal for the main contract has expired.  

Article  7  (2)  reproduces  the  rule  in  Directive  94/47/EC,  providing  for  termination  of 
certain  linked  credit  agreements  if  the  consumer  uses  his  right  of  withdrawal  for  the 
main contract. 

The obligation in Article 7 (3) on the Member States to lay down arrangements for the 
termination  of  credit  agreements  reproduces  the  corresponding  provision  in  Directive 
94/47/EC, but is extended to cover ancillary contracts. 

Article 8 largely reproduces the corresponding provision of Directive 94/47/EC.  

Articles 9- 11 provide provisions on sanctions, enforcement, consumer information and 
redress  similar  to  the  ones  in  recent  consumer  protection  directives.  The  European 
Consumer  Centres  assist  in  transmitting  cross-border  complaints  to  the  relevant 
alternative dispute resolution bodies, provided such bodies exist. One of the aims of the 
provision in Article 10 is to encourage the setting up of such bodies.  

Articles  12-  16  contain  technical  changes  or  standard  provisions  and  formulae  and 
require no special comment. 

E-10179 

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2007/0113 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the protection of consumers in respect of certain aspects of timeshare, long-term 
holiday products, resale and exchange 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 95 thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Acting in accordance with the procedure laid down in Article 251of the Treaty3, 

Whereas: 

(1) 

(2) 

(3) 

Since the adoption of Directive 94/47/EC of the European Parliament and 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  properties  on  a 
timeshare  basis4,  timeshare  has  evolved  and  new  holiday  products  similar  to  it  have 
appeared on the market. These new holiday products and certain transactions related to 
timeshare,  such  as  resale  and  exchange,  are  not  covered  by  Directive  94/47/EC.  In 
addition, experience with the application of Directive 94/47/EC has shown that some 
points already covered need to be updated or clarified. 

The  existing  regulatory  gaps  create  appreciable  distortions  of  competition  and  cause 
serious problems for consumers, thus hindering the smooth functioning of the internal 
market. Directive 94/47/EC should therefore be replaced by a new up to date directive. 

In order to enhance legal certainty and fully achieve the benefits of the internal market 
for  consumers  and  businesses,  the  relevant  laws  of  the  Member  States  need  to  be 

1 
2 
3 
4 

OJ C […], […], p. […] 
OJ C […], […], p. […] 
OJ C […], […], p. […] 
OJ L 280, 29.10.1994, p. 83. 

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12 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

approximated further.  However,  for  certain aspects Member States  should  be able to 
continue to apply stricter rules. 

This Directive should be without prejudice to national rules relating to registration of 
immovable or movable property, conditions of establishment or authorisation regimes 
or licensing requirements, determination of the legal nature of the rights which are the 
subject of the contracts covered by this Directive. 

The  different  products  covered  by  this  Directive  should  be  clearly  defined  and  the 
provisions concerning pre-contractual information and the contract should be clarified 
and updated.  

The  consumer  should  have  the  right  to  choose  the  language  to  be  used  for  the  pre-
contractual information and in the contract.  

In order to give the consumer the possibility to fully understand what his obligations 
and rights are under the contract he should be allowed a period during which he may 
withdraw  from  the  contract  without  having  to  justify  it.  Currently  the  length  of  this 
period varies between Member States, and experience shows that the length prescribed 
in Directive 94/47/EC is not sufficiently long. The period should therefore be extended 
and harmonised.  

The prohibition on advance payments to the trader or any third party before the end of 
the withdrawal period  should  be clarified in order to improve consumer's  protection. 
For resale, the prohibition of advance payment should apply until the actual sale has 
taken place or the resale contract has been terminated.  

In the event of withdrawal from a contract where the price is entirely or partly covered 
by credit granted to the consumer by the trader or by a third party on the basis of an 
agreement  between  that  third  party  and  the  trader,  the  credit  agreement  should  be 
terminated without any penalty. The same should apply to ancillary contracts, such as 
contracts for membership in exchange systems.  

(10)  The consumer should not be deprived of the protection granted by this Directive. This 
should also be the case where the law of a non-Member State is the law applicable to 
the contract.  

(11) 

(12) 

(13) 

It  is  necessary  that  Member  States  lay  down  effective,  proportionate  and  dissuasive 
sanctions for infringements of this Directive. 

It  is  necessary  to  ensure  that  persons  or  organisations  having,  under  national  law,  a 
legitimate interest in the matter have legal remedies for initiating proceedings against 
infringements of this Directive.  

It  is  necessary  to  develop  suitable  and  effective  redress  procedures  in  the  Member 
States for settling disputes between consumers and traders. To this end, Member States 
should  encourage  public  or  private  bodies  established  for  settling  disputes  out-of-
court.  

(14)  Member States should ensure that consumers are effectively informed of the national 
provisions transposing this Directive and encourage traders to inform about their codes 
of practice that exist in the field. 

EN 

13 

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(15)  Since the objectives of this Directive cannot be sufficiently achieved by the Member 
States and can therefore be better achieved at Community level, the Community may 
adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 
of  the  Treaty.  In  accordance  with  the  principle  of  proportionality,  as  set  out  in  that 
Article, this Directive does not go beyond what is necessary in order to eliminate the 
internal market barriers and achieve a high common level of consumer protection. 

(16)  This Directive respects the fundamental rights and observes the principles recognised 
in  particular  by  the  European  Convention  on  Human  Rights  and  Fundamental 
Freedoms and the Charter of Fundamental Rights of the European Union, 

HAVE ADOPTED THIS DIRECTIVE: 

Article 1 
Scope 

1. 

2. 

This Directive shall apply to the protection of consumers in respect of certain aspects 
of the marketing and sale of timeshare and long-term holiday products. It shall also 
apply to the resale of timeshare and long-term holiday products, and the exchange of 
timeshare. 

This Directive applies to trader-to-consumer transactions. 

This  Directive  is  without  prejudice  to  national  legislation  providing  for  general 
contract law remedies enabling the consumer to terminate the contract. 

Member States may continue to apply national provisions in the field approximated 
by  this  Directive  which  are  more  stringent  to  ensure  a  higher  level  of  consumer 
protection, and which relate to: 

(a) 

the starting point for the right of withdrawal; 

(b) 

the modalities of exercising the right of withdrawal; 

(c) 

the effects of exercising the right of withdrawal. 

Article 2 
Definitions 

1. 

For the purposes of this Directive the following definitions shall apply: 

(a) 

(b) 

’timeshare’ means a contract of a duration of more than one year by which a 
consumer  acquires  against  consideration  the  right  to  use  one  or  more 
accommodation for more than one period of occupation;  

’long-term  holiday  product’  means  a  contract  of  a  duration  of  more  than  one 
year by which a consumer acquires against consideration primarily the right to 
obtain  discounts  or  other  benefits  on  accommodation,  in  isolation  or  together 
with travel or other services;  

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14 

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(c) 

(d) 

(e) 

(f) 

(g) 

’resale’  means  a  contract  by  which  a  trader  against  consideration  helps  a 
consumer to sell or buy a timeshare or long-term holiday product;  

’exchange’ means a contract by which a consumer against consideration joins a 
scheme which allows him to modify the location and/or time of his timeshare 
interest through an exchange; 

’trader’ means a natural or legal person who is acting for purposes relating to 
his trade, business or profession and anyone acting in the name of or on behalf 
of a trader; 

’consumer’  means  a  natural  person  who  is  acting  for  purposes  which  are 
outside his trade, business craft or profession; 

'ancillary  contract'  means  any  contract  which  is  subordinated  to  another 
contract.  

In order to calculate the duration of the contract, as defined in points (a) and (b) of 
paragraph 1, any time extension resulting from tacit renewal or prolongation shall be 
included. 

Article 3 
Precontractual information and advertising 

Member States shall ensure that any advertising indicates the possibility of obtaining 
the written information referred to in paragraph 2 and where it can be obtained. 

The trader shall provide a consumer requesting information with written information 
which, in addition to a general description of the product, shall provide at least brief 
and accurate information on the following items, where applicable: 

(a) 

in the case of timeshare, the information set out in Annex I and, if the contract 
concerns accommodation under construction, the information set out in Annex 
II; 

(b) 

in the case of a long-term holiday product, the information set out in Annex III; 

(c) 

in the case of resale, the information set out in Annex IV; 

d) 

in the case of exchange, the information set out in Annex V. 

In case of resale the trader's obligation to provide the information under paragraph 2 
applies towards the consumer who may enter into the resale contract.  

The information referred to in paragraph 2 shall  be  drawn  up  in  one  of  the  official 
languages of the Community, as chosen by the consumer. 

2. 

1. 

2. 

3. 

4. 

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15 

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1. 

2. 

3. 

1. 

2. 

3. 

4. 

5. 

Article 4 
The contract 

Member States shall ensure that the contract is in writing and drawn up in one of the 
official languages of the Community, as chosen by the consumer.  

The written information referred to in Article 3(2) shall form an integral part of the 
contract and shall not be altered unless the parties expressly agree otherwise or the 
changes result from circumstances beyond the trader’s control.  

Changes  resulting  from  circumstances  beyond  the  trader’s  control  shall  be 
communicated to the consumer before the contract is concluded.  

The contract shall expressly mention any such changes. 

Before  the  signing  of  the  contract,  the  trader  shall  explicitly  draw  the  consumer’s 
attention to the existence of the right of withdrawal and the length of the withdrawal 
period referred to in Article 5 and the ban on advance payment during the withdrawal 
period referred to in Article 6.  

The corresponding contractual clauses shall be signed separately by the consumer.  

Article 5 
Right of withdrawal 

Member States shall ensure that, after entering into a contract, the consumer has the 
right  to  withdraw,  without  giving  any  reason,  within  fourteen  days  of  both  parties' 
signing the contract or of both parties' signing a binding preliminary contract. If the 
fourteenth day is a public holiday, the period shall be extended to the first working 
day thereafter. 

If the contract does not include all the information referred to in points (a) to (p) of 
Annex I and (a) and (b) of Annex II, but the information is provided in writing within 
three months after the signing of the contract, the withdrawal period shall start from 
the day the consumer receives that information. 

If the information referred to in points (a) to (p) of Annex I and (a) and (b) of Annex 
II  has  not  been  provided  in  writing  within  three  months  after  the  signing  of  the 
contract,  the  right  of  withdrawal  shall  expire  after  three  months  and  fourteen  days 
from the signing of the contract. 

If the consumer intends to exercise the right of withdrawal he shall, before the expiry 
of the deadline, notify the person whose name and address appear in the contract for 
that purpose pursuant to point (p) of Annex I. The deadline shall be deemed to have 
been observed if the notification, if it is in writing, is dispatched before the deadline 
expires.  

Where  the  consumer  exercises  the  right  of  withdrawal,  he  is  required  to  reimburse 
only those expenses which, in accordance with national law, are incurred as a result 
of  the  conclusion  of  and  withdrawal  from  the  contract  for  legal  formalities  which 

EN 

16 

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have to be completed before the deadline referred to in paragraph 1. Such expenses 
shall be expressly mentioned in the contract.  

6. 

Where the consumer exercises the right of withdrawal provided for in paragraph 3, 
he shall not be required to make any reimbursement. 

1. 

2. 

1. 

2. 

3. 

1. 

2. 

Article 6 
Advance payment 

Member  States  shall  ensure  that  any  advance  payment,  provision  of  guarantees, 
reservation of money on a credit card, explicit acknowledgement of debt or any other 
consideration to the trader or to any third party by a consumer before the end of the 
period,  during  which  he  may  exercise  the  right  of  withdrawal  in  accordance  with 
Article 5 (1) to 5 (3), is prohibited. 

Any  payment,  provision  of  guarantees,  reservation  of  money  on  credit  cards, 
acknowledgement  of  debt  or  any  other  consideration  to  the  trader  or  to  any  third 
party by the consumer for resale before the actual sale has taken place or the resale 
contract otherwise is terminated, is prohibited. 

Article 7 
Termination of ancillary contracts 

Member States shall ensure that, if the consumer exercises his right to withdraw from 
the  contract  for  timeshare  or  long-term  holiday  product,  any  ancillary  contracts, 
including exchange, are automatically terminated, without any penalty.  

If  the  price  is  fully  or  partly  covered  by  a  credit  granted  to  the  consumer  by  the 
trader, or by a third party on the basis of an agreement between the third party and 
the  trader,  the  credit  agreement  shall  be  terminated,  without  any  penalty,  if  the 
consumer exercises his right to withdraw from the main contract, as provided for in 
Article 5. 

The  Member  States  shall  lay  down  detailed  rules  on  the  termination  of  such 
contracts. 

Article 8 
Imperative nature of the Directive 

Member States shall ensure that, if the law applicable to the contract is the law of a 
Member  State,  any  contractual  clauses  whereby  the  consumer  waives  his  rights,  as 
provided for in this Directive, shall not be binding.  

Whatever  the  applicable  law,  the  consumer  shall  not  be  deprived  of  the  protection 
granted by this Directive, if the immovable property concerned is situated within the 
territory of a Member State or the contract has been entered into in a Member State.  

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1. 

2. 

1. 

2. 

1. 

2. 

1. 

Article 9 
Judicial and administrative redress 

Member  States  shall  ensure  that  adequate  and  effective  means  exist  to  ensure 
compliance with this Directive in the interests of consumers. 

The means referred to in paragraph 1 shall include provisions whereby one or more 
of  the  following  bodies,  as  determined  by  national  law,  may  take  action  in 
accordance with national law before the courts or competent administrative bodies to 
ensure  that  the  national  provisions  for  the  implementation  of  this  Directive  are 
applied: 

(a) 

public bodies or their representatives; 

(b) 

consumer organisations having a legitimate interest in protecting consumers; 

(c) 

professional organisations having a legitimate interest in acting. 

Article 10 
Consumer information and out-of court redress 

Member  States  shall  take  the  appropriate  measures  to  inform  the  consumer  of  the 
national  law  transposing  this  Directive  and  shall  encourage,  where  appropriate, 
traders to inform consumers of their codes of conduct. 

Member  States  shall  encourage  the  setting  up  or  development  of  adequate  and 
effective  out-of-court  complaints  and  redress  procedures  for  the  settlement  of 
consumer disputes under this Directive. 

Article 11 
Sanctions 

Member States shall provide for appropriate sanctions in the event of the failure of 
the trader to comply with the national provisions adopted pursuant to this Directive.  

These sanctions must be effective, proportionate and dissuasive.  

Article 12 
Transposition 

Member States shall adopt and publish, by […] at the latest, the laws, regulations and 
administrative  provisions  necessary  to  comply  with  this  Directive.  They  shall 
forthwith  communicate  to  the  Commission  the  text  of  those  provisions  and  a 
correlation table between those provisions and this Directive. 

They shall apply those provisions from […]. 

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18 

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When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

Article 13 
Review 

The  Commission  shall  review  this  Directive  and  report  to  the  European  Parliament  and  the 
Council  no  later  than  five  years  after  the  date  of  application  of  the  national  provisions 
transposing this Directive.  

If necessary, it shall make further proposals to adapt it to developments in the area.  

The  Commission  may  request  information  from  the  Member  States  and  the  national 
regulatory authorities. 

Directive 94/47/EEC is repealed. 

Article 14 
Repeal 

References  to  the  repealed  Directive  shall  be  construed  as  references  to  this  Directive  and 
shall be read in accordance with the correlation table in Annex III. 

Article 15 
Entry into force 

The Directive shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 16 
Addressees 

This Directive is addressed to the Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

ANNEX I (timeshare) 
Information referred to in Article 3 (2) 

The  identity  and  residence  of  the  parties,  including  specific  information  on  the 
trader’s legal status at the time of the conclusion of the contract, the signatures of the 
parties and the date and the place where the contract is concluded;  

the exact nature of the right which is the subject of the contract and a clause setting 
out  the  conditions  governing  the  exercise  of  that  right  within  the  territory  of  the 
Member  States(s)  in  which  the  property  or  properties  concerned  are  situated  and  if 
those conditions have been fulfilled or, if they have not, what conditions remain to be 
fulfilled; 

where the contract concerns a specific immovable property, an accurate description 
of that property and its location; where the contract concerns a number of properties 
(multi-resorts), an appropriate description of the properties and their location; where 
the contract concerns accommodation other than immovable property, an appropriate 
description of the accommodation and the facilities; 

the  services  (e.g.  electricity,  water,  maintenance,  refuse  collection)  to  which  the 
consumer has or will have access to and under what conditions;  

the common facilities, such as swimming pool, sauna, etc, to which the consumer has 
or may have access, and, where appropriate, under what conditions; 

how  maintenance  and  repairs  to  the  accommodation  and  its  administration  and 
management are arranged, including whether and how consumers may influence and 
participate in the decisions regarding these issues;  

an accurate description of how all costs will be allocated to the consumers and how 
and when such costs may be increased; where relevant, information on whether there 
are any charges, mortgages, encumbrances or any other liens recorded against title to 
the accommodation;  

the exact period within which the right which is the subject of the contract may be 
exercised and, if necessary, its duration; the date on which the consumer may start to 
exercise the contractual right; 

the  price  to  be  paid  by  the  consumer,  an  estimate  of  the  amount  to  be  paid  by  the 
consumer for the use of common facilities and services; the basis for the calculation 
of  the  amount  of  charges  relating  to  occupation  of  the  property,  the  mandatory 
statutory charges (for example, taxes and fees) and the administrative overheads (for 
example, management, maintenance and repairs);  

a clause stating that the consumer shall not bear any other costs or obligations other 
than those specified in the contract; 

whether  or  not  it  is  possible  to  join  a  scheme  for  the  exchange  or  resale  of  the 
contractual rights, information about the relevant schemes and an indication of costs 
related to resale and exchange through these schemes;  

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(l) 

(m) 

(n) 

(o) 

(p) 

(q) 

indication of the language(s) available for post-sale communication in relation to the 
contract, for instance in relation to management decisions, increase of costs and the 
handling of queries and complaints; 

information  on  the  right  to  withdraw  from  the  contract  and  the  consequences  of 
withdrawing  from  the  contract,  including  a  precise  indication  of  the  nature  and 
amount  of  the  costs  which  the  consumer  will  be  required  to  reimburse  pursuant  to 
Article 5 (5) if he exercises his right to withdraw; where appropriate, information on 
the  arrangements  for  the  termination  of  the  credit  agreement  and  the  ancillary 
contract  linked  to  the  contract  in  the  event  of  withdrawal  from  the  contract; 
information about the consequences of such withdrawal;  

information about the ban on advance payments during the period during which the 
consumer has a right to withdraw from the contract in accordance with Article 5 (1) 
to 5 (3)  

indication to whom and how the withdrawal notification is to be sent;  

the existence, content, control and enforcement of codes of conduct; 

the possibility for out-of-court dispute resolution. 

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ANNEX II (timeshare) 
Additional requirements for accommodation under construction, as referred to in 
Article 3 

(a) 

(b) 

(c) 

(d) 

the  state  of  completion  for  the  accommodation  and  the  services  rendering  the 
accommodation fully operational (gas, electricity, water and telephone connections); 

a reasonable estimate of the deadline for completion of the accommodation and the 
services  rendering  it  fully  operational  (gas,  electricity,  water  and  telephone 
connections); 

where it concerns a specific immovable property, the number of the building permit 
and the name(s) and full address(es) of the competent authority or authorities; 

a  guarantee  regarding  completion  of  the  accommodation  or  a  guarantee  regarding 
reimbursement  of  any  payment  made  if  the  accommodation  is  not  completed  and, 
where appropriate, the conditions governing the operation of such guarantees.  

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ANNEX III (long-term holiday products) 
Information referred to in Article 3 (2)  

The  identity  and  residence  of  the  parties,  including  specific  information  on  the 
trader’s legal status at the time of the conclusion of the contract, the signatures of the 
parties and the date and the place where the contract is concluded;  

the exact nature of the right which is the subject of the contract;  

the exact period within which the right which is the subject of the contract may be 
exercised and, if necessary, its duration; the date on which the consumer may start to 
exercise the contractual right; 

the price to be paid by the consumer; 

a clause stating that the consumer shall not bear any other costs or obligations other 
than those specified in the contract; 

indication of the language(s) available for post-sale communication in relation to the 
contract, for instance in relation to the handling of queries and complaints; 

information  on  the  right  to  withdraw  from  the  contract  and  the  consequences  of 
withdrawing  from  the  contract,  including  a  precise  indication  of  the  nature  and 
amount  of  the  costs  which  the  consumer  will  be  required  to  reimburse  pursuant  to 
Article 5 (5) if he exercises his right to withdraw; where appropriate, information on 
the  arrangements  for  the  termination  of  the  credit  agreement  and  the  ancillary 
contract  linked  to  the  contract  in  the  event  of  withdrawal  from  the  contract; 
information about the consequences of such withdrawal;  

information about the ban on advance payments during the period during which the 
consumer has a right to withdraw from the contract in accordance with Article 5 (1) 
to 5 (3);  

indication to whom and how the withdrawal notification is to be sent;  

the existence, content, control and enforcement of codes of conduct; 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

the possibility for out-of-court dispute resolution. 

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ANNEX IV (resale) 
Information referred to in Article 3 (2) 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

The  identity  and  residence  of  the  parties,  including  specific  information  on  the 
trader’s legal status at the time of the conclusion of the contract, the signatures of the 
parties and the date and the place where the contract is concluded;  

the price to be paid by the consumer for the resale services; 

a clause stating that the consumer shall not bear any other costs or obligations other 
than those specified in the contract; 

indication  of  the  language(s)  available  for  communication  with  the  trader,  for 
instance in relation to the handling of queries and complaints; 

information  on  the  right  to  withdraw  from  the  contract  and  the  consequences  of 
withdrawing  from  the  contract,  including  a  precise  indication  of  the  nature  and 
amount  of  the  costs  which  the  consumer  will  be  required  to  reimburse  pursuant  to 
Article 5 (5) if he exercises his right to withdraw.;  

information about the ban on advance payments until the actual sale has taken place 
or the resale contract otherwise is terminated;  

indication to whom and how the withdrawal notification is to be sent;  

the existence, content, control and enforcement of codes of conduct; 

the possibility for out-of-court dispute resolution 

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ANNEX V (exchange) 
Information referred to in Article 3 (2) 

The  identity  and  residence  of  the  parties,  including  specific  information  on  the 
trader’s legal status at the time of the conclusion of the contract, the signatures of the 
parties and the date and the place where the contract is concluded;  

the exact nature of the right which is the subject of the contract  

an  appropriate  description  of  the  properties  and  their  location;  where  the  contract 
concerns accommodation other than immovable property, an appropriate description 
of the accommodation and the facilities; 

the exact period within which the right which is the subject of the contract may be 
exercised and, if necessary, its duration; the date on which the consumer may start to 
exercise the contractual right; 

the  price  to  be  paid  by  the  consumer,  an  estimate  of  the  amount  to  be  paid  by  the 
consumer for the use of common facilities and services; the basis for the calculation 
of  the  amount  of  charges  relating  to  occupation  of  the  property,  the  mandatory 
statutory charges (for example, taxes and fees) and the administrative overheads (for 
example, management, maintenance and repairs);  

a clause stating that the consumer shall not bear any other costs or obligations other 
than those specified in the contract; 

indication  of  the  language(s)  available  for  communication  with  the  trader  ,  for 
instance in relation to the handling of queries and complaints; 

explanation of how the exchange system works; the possibilities and modalities for 
exchange, as well as an indication of the number of resorts available and the number 
of  members  in  the  exchange  system  and  a  set  of  examples  of  concrete  exchange 
possibilities;  

information  on  the  right  to  withdraw  from  the  contract  and  the  consequences  of 
withdrawing  from  the  contract,  including  a  precise  indication  of  the  nature  and 
amount  of  the  costs  which  the  consumer  will  be  required  to  reimburse  pursuant  to 
Article 5 (5) if he exercises his right to withdraw; where appropriate, information on 
the  arrangements  for  the  termination  of  the  credit  agreement  and  the  ancillary 
contract  linked  to  the  contract  in  the  event  of  withdrawal  from  the  contract; 
information about the consequences of such withdrawal;  

information about the ban on advance payments during the period during which the 
consumer has a right to withdraw from the contract in accordance with Article 5 (1) 
to 5 (3)  

indication to whom and how the withdrawal notification is to be sent;  

the existence, content, control and enforcement of codes of conduct; 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

(m) 

the possibility for out-of-court dispute resolution 

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ANNEX VI 

CORRELATION TABLE 

Directive 94/47/EC 

This Directive 

Article 1, first paragraph 

Article 1 (1), first and second paragraph 

Article 1, second paragraph 

Article 1, third paragraph 

Article 1(1), third paragraph 

Article 2, first indent 

Article 2 (1), point a)  

Article 1(2) 

- 

- 

- 

Article 2 (1), point b) (new) 

Article 2 (1), point c) (new) 

Article 2 (1), point d) (new) 

Article 2, second indent 

Article 2, third indent  

Article 2 (1), point e) 

Article 2, fourth indent 

Article 2 (1), point f) 

- 

- 

Article 3 (1) 

Article 3 (2) 

Article 3 (3) 

Article 2 (1), point g) (new) 

Article 2 (2) 

Article 3 (2) 

Article 4 (2) 

Article 3 (1) 

Article 4, first indent 

Article 4 (1), Article 4(2) 

Article 4, second indent 

Article 4 (1) 

- 

Article 4 (3) (new) 

Article 5 (1), introductory sentence 

Article 1 (1) third paragraph 

Article 5 (1), first indent 

Article 5 (1), second indent 

Article 5 (1), third indent 

Article 5 (1) 

Article 5 (2) 

Article 5 (3) 

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Article 5 (2) 

Article 5 (3) 

Article 5 (4) 

Article 6 

- 

- 

Article 7, first paragraph 

Article 7, second paragraph 

Article 8 

Article 9 

Article 10 

Article 11 

- 

- 

Article 12 

- 

- 

- 

Article 13 

Annex I 

Annex, point a) 

Annex , point b) 

Annex , point c) 

Annex , point d) (1) 

Annex , point d) (2) 

Annex , point d) (3) 

Annex , point d) (4) 

Article 5 (4) 

Article 5 (5) 

Article 5 (6) 

Article 6 (1) 

Article 6 (2) (new) 

Article 7(1) (new) 

Article 7(2) 

Article 7(3) 

Article 8 (1) 

Article 8 (2) 

Articles 9 and 11 

Article 1(2) 

Article 10(1) (new) 

Article 10(2) (new) 

Article 12 

Article 13 (new) 

Article 14 (new) 

Article 15 (new) 

Article 16 

Annexes I and II 

Annex I, point a) 

Annex I, point b) 

Annex I, point c) 

Annex II, point a) 

Annex II, point b) 

Annex II, point c) 

Annex II, point a) 

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Annex , point d) (5) 

Annex , point e) 

Annex , point f) 

Annex , point g) 

Annex , point h) 

- 

Annex , point i) 

Annex , point j) 

Annex , point k) 

- 

- 

Annex , point l) 

Annex , point m) 

- 

- 

- 

- 

Annex II, point d) 

Annex I, point d) 

Annex I, point e) 

Annex I, point f) 

Annex I, point h) 

Annex I, point g) (new) 

Annex I, point i) 

Annex I, point j) 

Annex I, point k) 

Annex I, point l) (new) 

Annex I, points m) and o) 

Annex I, point a) 

Annex I, point o) (new) 

Annex I, point p (new) 

Annex I, point q (new) 

Annexes III to V (new) 

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