This EU Regulation for Consumer Protection Co-operation On Site Inspection Powers has been passed with the consultation period complete and will come into effect 1 January 2007.

In principal, this is about the appointment of the OFT as the organisation to deal with consumer enforcement issues for the UK and  giving them better, sufficient powers to make necessary on-site inspections and to gather evidence in relation to its role in enforcing consumer law in general.  While this is not timeshare specific, enforcement of timeshare legislation would be covered. It also appoints an official body to deal with enforcement issues in each country and enables them to liase more efficiently.

As we have taken a strong position that enforcement is one of the key policy options that we are proposing with regard to changes in timeshare legislation, TATOC made a submission last summer to support the position taken by the DTI in this regard.

From our official response:

Since January 2006, TATOC has circulated information to its members through its monthly newsletters and via email concerning proposed changes to timeshare legislation asking for their feedback.  At its conference in March, a presentation was given by Peter van der Mark of the OTE giving members who attended information regarding these changes and an opportunity for further discussion.  There have been numerous and lengthy discussions with TATOC members, the TATOC Board of Directors, the OTE, DTI, OFT, several ECCs and VOICE.  As a result, we circulated a position paper putting forth TATOC’s intended response to the European Commission’s Consultation Paper, Review of the Timeshare Directive (94/47/EC) inviting members response including asking for them to express any concerns with our response.  To date, we have only had support for our position from our members.  Our position strongly recommends that education, enforcement and self-regulation are the solutions to any industry key issues of concern.

While we appreciate that this response covers a far wider brief than that of the proposed changes to timeshare legislation, we believe that our members strongly support enforcement as a solution and therefore would support in principal the DTI proposals for on-site inspections.  This has proven to be true.

We circulated to owner’s representatives specific information regarding your consultation paper on the on-site inspection power required by Competent Authorities under the Consumer Protection Cooperation Regulation putting forward our proposed position of support in principal with a few concerns put forward by our solicitor in this matter for feedback. 

Our stated concerns were as follows:

The obtaining of privileged documents (Article 13 - and s227C(4):
The only documents which would be privileged; and therefore, protected from seizing by CPC are those relating to High Court proceedings. There are a number of other types of privileged documents - letters of advice from lawyers, counsel's opinions etc. We would suggest that s227C (4) needs to protect a wider range of documents held by those being investigated. 

"Reasonable" access to legal advice:

This is permitted once an inspection is under way, but it will not be allowed if the inspection is delayed or frustrated.  We would like more clarification of the term "reasonable"; however, it was suggested that this was a matter for the OFT to lay down some guidelines rather than insert any provision in the regulations.

PLEASE NOTE:  We have been satisfied with the changes made after the consultation period and conversations with both the DTI and the OFT that our concerns have been covered.  As such, we are very pleased with the result.