EU to tighten rules on time-share holidays

(BRUSSELS) - The European Commission proposed Thursday to shake up rules on time-share holidays in order to crack down on abuses by plugging loopholes in existing regulations.

Time-shares, which give a right to spend a fixed amount of time on a holiday property over a set period, are highly popular across the European Union, with demand growing fast in new, eastern European members.

The proposals aim to extend the scope of existing EU rules dating from 1994 to cover new products such as discount holiday clubs and "timeshare-like" holidays on cruise boats, canal boats and caravans, the EU executive said.

They also aim to ensure equal treatment across the 27 nation European Union so that consumers do not have nasty surprises while away from home.

The proposals would also set new rules covering shorter term contracts, the resale of time-share deals as well as clubs to exchange time at such properties.

About 2,300 complaints were lodged last year with consumer centres in Europe by unhappy holiday-goers, with 1.2 billion pounds (1.8 billion euros, 2.4 billion dollars) in damages registered in Britain alone.

"Consumers are being denied their rights, and the practices of rogue traders bring legitimate business operators into disrepute," Consumer Affairs Commissioner Meglena Kuneva said.

"With these new rules we want to create a level playing field for business, providing clear and simple rules for the reputable part of the industry and give consumers real peace of mind when they sign up for their dream holiday deal," she added.

The time-share market is worth over EUR 10.5 billion (14.1 billion dollars) and the industry employs 40,000 people across the EU, according to the Commission.

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