Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC settlement bans sales of timeshare resale services, (Jul 25, 2014)

By Greg Hammond, J.D.

Three timeshare resale service operations that tricked consumers into paying thousands of dollars in fees, settled charges of fraud and deceptive trade practices with the FTC in June. The settlements, which were entered in the Tampa and Orlando federal district courts, effectively ban the operations from selling any further timeshare property resale services, or from misrepresenting material facts about any products or services (FTC v. Vacation Communications Group, LLC, File No. 1323020, Case No. 6:13-cv-00789-RBD-DAB); (FTC v. Resort Property Depot, Inc., File No. 1323058, Case No. 8:13-cv-01328-MSS-TBM); and (FTC v. Resort Solution Trust, Inc., File No. 1323101 | X130047, Case No. 8:13-cv-01329-VMC-TBM).

According to the Commission’s complaints, which were filed in May of 2013, Vacation Communications Group, LLC, Resort Property Depot, Inc., and Resort Solution Trust, Inc. charged consumers anywhere between $300 and $3,400 for promised sales or rentals of their timeshare properties. However, consumers frequently did not receive what they were promised and were denied refunds from the companies.

“Timeshare owners should avoid anyone who wants money up front and claims they have a buyer ready and waiting,” stated FTC bureau of Consumer Protection Director Jessica Rich. “If you’re thinking of selling a timeshare unit through a reseller, check them out first. Deal only with licensed real estate brokers and agents, ask for references from satisfied clients, and get everything in writing.”

The settlement orders impose monetary judgments against each of the defendants, ranging from $1.2 million to $10.2 million. In addition, Vacation Communications Group is banned from selling timeshare resale services; violating the Florida Deceptive and Unfair Trade Practices Act; and misrepresenting material facts of any service or product, including costs, restrictions, refunds, cancellation policies, and income likely to be realized. Resort Property and Resort Solution are effectively prohibited from selling timeshare resale services, telemarketing, misrepresenting material facts about any service or product, collecting money from consumers; and selling, benefitting from, or failing to properly dispose of consumers’ personal information.

The settlements reached in these three cases were part of an international crackdown on timeshare resale and travel fraud. Law enforcement agencies in 10 countries and 28 states participated in the crackdown last year.

Companies: Vacation Communications Group, LLC; Resort Property Depot, Inc.; Resort Solution Trust, Inc.

News: ConsumerProtection StateUnfairTradePractices FederalTradeCommissionNews