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THE TIMESHARE PROMOTION
REGULATIONS – a step in the right direction
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Paul Edgar Micallef
Recently the Minister
responsible for tourism acting on the recommendation of
the Malta Tourist Authority issued the timeshare promotion
regulations or to give these regulations their full title
– “the Timeshare Promotion (Licensing of OPC
Representatives) Regulations, 2004.” The publication of
these regulations seems to have solicited few or no
comments in the local media, which is regrettable as these
regulations attempt to address a long standing compliant
with many tourists who visit Malta – the
“over-enthusiastic marketing” (to put it mildly) of
timeshare products by certain so-called timeshare
salespersons. One would have expected some interest if
anything to highlight the existence of appear to be a
series of provisions that go some way to stamp out certain
abusive practices, venturing in some instances on outright
harassment, which have regrettably time and again given a
bad name to the timeshare industry in Malta.
Periodically, particularly
during the tourist high season, letters by angry tourists
expressing their annoyance at the hard sell marketing
techniques used by a minority of timeshare salespersons
appear in the media. I recall reading even an editorial in
this newspaper calling for some concrete measures by the
competent authorities to address the problem once and for
all. Some of the misadventures told by those who fell
victim to certain practices venture on the incredible. The
ploys used to persuade potential clients know no bonds –
free meals, lucky (sic!) winners of attractive prizes -
the list of gimmicks goes on and on.
Now however to the credit of
the competent authorities – and one may add to that of the
serious timeshare entrepreneurs who genuinely believe in
their product and market their product without resorting
to certain gimmicks employed by a small minority - some
substantive measures appear to have been taken in the form
of these timeshare promotion regulations.
What are these Regulations all
about? In substance the regulations require that any
salespersons – more commonly known as OPC representatives
– engaged in promotion or marketing of timeshare products
must be licensed by the Malta Tourism Authority. In order
to acquire such a licence certain requirements must be
satisfied including notably a certificate of competence
drawn up by the employer of the OPC representative and a
police conduct certificate or an attestation by the
employer as to the conduct of the said representative. The
Regulations require an OPC representative to wear an
identity document issued by the MTA, which ID must be
clearly visible whilst the OPC representative is carrying
out his or her work.
Regulation 6 addresses the
longstanding lacuna in Maltese law in dealing with the
conduct of an OPC representative. Hence an OPC
representative cannot act in any manner which is
misleading or deceptive. Significantly there is an express
prohibition as to the use of “misleading or deceptive
prize draws, award schemes or free gifts” in trying to
sell timeshare. The same regulation also considers as an
offence an act which involves the harassment, coercion or
undue influence or pressure on the prospective buyer.
What is regrettable is that
these Regulations were not enacted years ago when the
first timeshare rules protecting buyers were issued. Then
it was suggested that the competent authorities should not
simply implement the EU directive on timeshare, but should
also address the problem of harassment of potential
timeshare buyers, a problem which has always bedeviled the
industry. Now at least even if somewhat late in the day
the powers-that-be have finally decided to address this
problem.
One criticism that may be
leveled at these regulations relates to the penalties that
may be imposed. In addition to the monetary penalties, an
additional effective deterrent would be holding the
offender personally liable for the refund of any monies
paid as a result of any transaction made consequential to
any abusive marketing. It will only be after some time has
passed that one can really assess whether these
regulations have adequately curbed abuses in the timeshare
industry.
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