New measures to protect consumers from unscrupulous terms in timeshare and other holiday products are to be introduced. Paul Cullen, Consumer Affairs Correspondent, reports.
Minister for Enterprise and Employment Micheál Martin will next week begin a consultation process as the first step in reforming the regulations governing the burgeoning timeshare and long-term holiday market.
The move is part of an EU-wide reform of consumer legislation, which will eventually see major changes introduced in the areas of package holidays, distance contracts, unfair terms in contracts and guarantees for consumer goods and contracts negotiated away from business premises. The aim is to ensure there is an internal market for the consumer, with equal treatment throughout the EU.
There is already an EU directive governing timeshares dating back to 1994 but this has been largely superseded by developments such as holiday clubs.
The original directive does not deal with the resale of timeshare properties, the coverage of moveable property such as boats and cruise ships and shorter-term contracts.
With the growth of the sector, a number of swindles have emerged. These include holiday discount clubs where consumers have paid up to €3,000 to get a password to a website but find that the "huge discounts" promised on holiday accommodation, flights and rental cars are misleading.
Many timeshare owners are approached by commercial agents who ask for a fee in return for selling their timeshare. The new regulations will also apply to timeshare swaps, so that owners get sufficient information to form a realistic picture of the offer and don't end up being disappointed.
Holidaymakers sometimes find themselves pressurised into joining holiday clubs, and cannot avail of a cooling-off period in which they could cancel membership.
In an interview with The Irish Times, Mr Martin said he plans to review the system of regulators currently operating in the State. This was an area of concern for the Government as consumers were often an "after-thought" for some regulators.
The possible return of some powers from regulators to Government would form part of this review, he warned.
The Government found itself coming under fire last year over gas and electricity price rises, even though these were introduced by the energy regulator.
"Once you hand on responsibility to a regulator, the Government doesn't have much call. That's not the perception with the public, but it's the reality. There is a need for more accountability from agencies outside the executive," he said.