National Consumer Commission (NCC) has released a report on how it plans to tackle the beleaguered timeshare industry.
The report comes after an inquiry into the vacation ownership or timeshare industry conducted in 2017.
The timeshare industry is said to contribute as much as R3.5 billion to South Africa’s GDP but faces plenty of consumer disputes.
Commissioner Ebrahim Mohamed says recommendations have been made to correct both structural and behavioural problems in the industry.
He says some recommendations include creating fixed-term timeshare contracts for shorter periods, more clarity on the cancellation rights and terms of penalties.
Mohamed explains that report broadly recommends changes to the following aspects:
- management of the clubs
- competitiveness of timeshare products
- marketing of products
- credit issues
- fairness of contracts
- problems with the points system
- legislative reform
There were serious complaints lodged by consumers.— Ebrahim Mohamed, Commissioner at The National Consumer Commission
I have accepted the recommendation by the panel and we are about to see what we will have to see in order to give effect to these recommendations.— Ebrahim Mohamed, Commissioner at The National Consumer Commission
Listen to the discussion on The John Maytham Show: