Bill
HR 9255
Imposes full upfront cost disclosure, cooling-off rights, and pre-signing document review for timeshares, with FTC enforcement and state protections preserved.
What this bill aims to do
- Establish explicit federal requirements to improve transparency in the sale of timeshares.
- Create a framework for disclosed costs, fees, termination rights, and the ability for buyers to review documents before signing.
- Give the Federal Trade Commission (FTC) authority to enforce these provisions and impose penalties for noncompliance.
Main purpose and intent
- To ensure consumers receive clear, comprehensive, and timely information about the total costs and ongoing fees of timeshare ownership.
- To provide protections around changes to fees, the notice those changes require, and the options for ending ownership.
- To allow a buyer to review all relevant documents free from the influence of the seller prior to entering into an agreement.
- To standardize consumer protections across timeshare transactions, while preserving the ability of states to impose stricter rules.
Key provisions and changes
- Unlawful to enter into a timeshare agreement unless the following are included in a single document:
- An itemized specification of all acquisition and ongoing ownership costs, including ongoing maintenance fees.
- A specification of each fee that the timeshare company may alter, plus notice requirements and timing for those notices.
- A specification of each option available to end ownership (e.g., termination or exit options).
- A provision allowing the buyer to terminate the agreement without penalty during a 14-day cooling-off period after signing.
- Pre-signing review rights:
- The buyer must be given an opportunity to review all documents related to the agreement before entering into it, free from supervision by the timeshare company’s employees.
- Federal Trade Commission (FTC) enforcement:
- Violations are treated as unfair or deceptive acts or practices under the FTC Act.
- The FTC has the standard enforcement powers, penalties, and immunities provided under the FTC Act.
- The FTC is responsible for rulemaking as necessary to implement the act.
- Applicability and timing:
- The new requirements apply to agreements entered into on or after 90 days after enactment.
- Construction and cooperation with state law:
- State laws providing greater consumer protections can still apply; nothing in the bill limits stronger state requirements.
- Definitions:
- “Timeshare” includes various forms of right-to-use arrangements for a period shorter than a full year but longer than 3 years, extending to use of accommodations or facilities.
- “Timeshare company” means any entity involved in selling, offering, arranging, or providing a timeshare for monetary consideration.
- “Commission” refers to the Federal Trade Commission.
Who is affected
- Timeshare companies and sellers who market, sell, or arrange timeshares.
- Consumers purchasing or considering purchasing timeshares.
- The FTC, which would enforce the new requirements and issue related regulations.
- States, to the extent they impose additional protections (the bill preserves-state authority to impose stricter rules).
Key timelines and procedural aspects
- Enactment timing: The act becomes applicable to agreements entered into 90 days after enactment.
- Cooling-off period: Buyers have a 14-day period beginning on the date they enter into the agreement to terminate without penalty.
- Rulemaking: The FTC is empowered to promulgate necessary rules under the Administrative Procedure Act (5 U.S.C. § 553) to implement the act.
Potential impact and considerations
- Increased transparency around total costs and ongoing fees could reduce surprise charges for buyers.
- The 14-day cooling-off period provides buyers a window to reconsider without penalties.
- Expanded FTC enforcement could deter deceptive practices in the timeshare market.
- The pre-signing document review requirement may lengthen the sales process but improves informed consent.
- States retain the ability to impose higher consumer protections, allowing for a layered consumer protection regime.
Note: This summary reflects the bill text as introduced and does not account for potential amendments or changes during the legislative process.
Compiled from official sources — confirm details with the bill’s official record.
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