Timeshare Consumers Association

Consumer Protection from Unfair Trading Regulations 2008 "CPRs"

Summary

The Consumer Protection from Unfair Trading regulations ("CPRs") became law in the UK on 26 May 2008 but a number of EU countries had already introduced the law by the deadline date of 12 December 2007. The European Directive on which the CPRs are based is the "Unfair Commercial Practices Directive".
Some of the requirements in the CPRs are also requirements in the Timeshare Regulations 2010. See HERE
CPRs applies to any `Business to Consumer' ("B2C") transaction irrespective of the product or service or the circumstances of transaction (face to face, telephone, internet etc). The full text of CPRs are here
CPRs can also apply:-
when the consumer is selling to a trader as part of a "trade-in" agreement

during "after sales" activities such as debt collecting or resort management

to information provided in respect of loans

CPR has four key elements - these examples are of typical timeshare and holiday club situations:-
1. It is an offence for a trader to make a misleading statement.

a. "this is not timeshare" when it clearly is timeshare by general definition
b. "this is a good investment" when the secondary market price is only a fraction of the selling price.
c. "you are guaranteed ... .." when no such guarantee exists.
d. Other typical examples can be found here.
2. It is an offence for a trader to omit information resulting in the consumer being misled - a misleading omission
a. Failing to say that annual fees have been going up at an exorbitant rate
b. Failing to explain that certain timeshare and holiday club schemes are "subject to availability".
c. Failing to make clear that non-payment of annual fees could result in the forfeiture of ownership and/or legal action being taken to enforce payment.
3. It is an offence to use aggressive sales practices.

a. Any form of selling where the consumer feels under pressure (intimidation) or obligation to buy.
b. Inferring that the consumer will suffer financially or in health etc if they do not buy.
c. Making an unsolicited telephone call to a consumer who has registered for the Telephone Preference Service.
4. It is an offence to carry out any practices specified in a Black List .

a. Claiming to be a signatory to a Code of Conduct (ie. ABTA or ATOL) when this is not the case.
b. Claiming to be members of a respected organisation when they are not.
c. Falsely saying "only available today" when this is not true
d. Presenting rights given to a consumer in law as a distinctive feature of the traders offering
e. Claiming that something is "free" (or similar words) when it is not.
f. Falsely claiming or creating the impression that the trader is not acting in the course of his trade. (i.e. pretending to be making a sale on behalf of a consumer when this is not the case)
g. Creating the impression that the consumer cannot leave the premises without signing an agreement.
h. Conducting personal visits to a consumer's home and ignoring requests to leave.
i. Making persistent and unwanted telephone calls, faxes, e-mails etc..
j. Explicitly claiming to the consumer that if he does not buy the salespersons job is in jeopardy.
k. Persuading a consumer to buy membership of a holiday club by falsely claiming this would "avoid the liability for management fees for the rest of your life"
l. Failing to honour a Code of Conduct to which the trader has undertaken to be bound to.
m. Taking a consumer to a remote destination with no apparent return transport unless the consumer signs a contract.
The consumers view of a situation will be taken as being the truth of that situation, not the view of the trader. So, if a consumer believes that there has been a breach of the CPR, then an offence will have been committed. The only safeguard for a trader is that the consumer is expected to be "reasonably well informed and reasonably observant and circumspect". However particularly vulnerable consumers (i.e. those of old age) will have greater protection.
Although the CPR primarily applies to verbal representations it also covers situations where consumers are shown documents, brochures etc. during a sales presentation.
The CPR does not apply retrospectively.
What a consumer should do if they think the CPRs has been broken
If a consumer considers that the CPR has been broken - and they do not have to show that they have suffered any financial loss - then they should report the breach to their local Trading standards office (usually in the Town Hall where they make their rates payments) . If the breach occurs in another EU country then report it to the local enforcement authority in that country OR to the trading standards office in the consumers home town.
Enforcement
The principle enforcement agencies in the UK will be the Local Authority Trading Standards officers and the Office of Fair Trading ("OFT") in London. The OFT liaise with their counterparts throughout Europe to ensure that complaints reported in one country - usually the `home' country - are transmitted to the country where the complaint emanated for action to be taken.
Enforcement action can be taken under civil rules (undertakings and injunctions) as well as under criminal procedures (fines and imprisonment) .
Rest of Europe
The general wording of the CPR laws in other EU countries should be identical to the UK law.
A brochure explaining the CPRs is available from the European Commission website (PDF format). http://ec.europa.eu/consumers/consign/safe_shop/fair_bus_pract/ucp _en.pdf
Compensation
As yet there are no arrangements to enable consumers who have fallen victim to a breach of CPR to obtain compensation but we understand that plans are being made to enable this to happen.
However the TCA will attempt to set up a compensation group if a trader is found guilty of an offence under the CPR’s. See Here .

February 2011