The National Consumer Commission has proposed a wide-ranging shake-up of legislation to enhance consumer protection and clean up the local holiday ownership and timeshare industry. The Mercury reports this will include the appointment of an ombudsman to rule on future complaints and possible banning of marketing practices long used to lure consumers.

The commission released a 135-page report last week on the findings of its inquiry into the timeshare industry, which started in May 2017.

The commission accepted proposals to pass ‘a modern, industry-focused, comprehensive piece of legislation that centralises regulation of the timeshare industry’ to ‘bring consumer protection in the industry on a par with the rest of the world’.

The report recommended the Minister of Trade & Industry prescribe – in terms of the Consumer Protection Act (CPA) – information consumers must receive before transactions with clubs can be concluded.

Another recommendation was all timeshare contracts, points purchases and membership application agreements be defined as ‘fixed-term contracts subject to renewal by agreement between the club/developer and the member’ and that consumers enjoy rights under the CPA, including the right to cancel a contract.

The report recommended amendments to the Property Time Sharing Control Act to prescribe information that must be disclosed to consumers before buying timeshare and that a regulatory authority enforce the legislation, and stiff penalties be imposed on firms for ‘crossing the ethical line’.

Full report in The Mercury (subscription needed)

NCC report into the timeshare industry