Consumer Authority warns holiday-makers of being misled by holiday clubs

The Consumer Authority launched an awareness campaign today to warn holiday makers of being misled by holiday clubs. It is also calling on consumers to file complaints with ConsuWijzer, the consumer information desk set up by the government. Every year, an estimated 165,000 people in the Netherlands fall victim to misleading and/or aggressive selling tactics in a bid to persuade them to become members of holiday clubs. Holiday‑makers interested in popular holiday destinations such as Greece and Spain are particularly liable to be duped by fraudulent sellers. It emerged from a previous investigation conducted by the Consumer Authority into unfair commercial practices that each person who falls victim to this practice suffers financial losses of €1083 on average.

By becoming a member, consumers purchase access to a special reservations system in which they are able to book 'cheap' holidays. Most types of these membership schemes are not governed by European regulations that protect the consumer. Marije Hulshof, Director of the Consumer Authority explains: "Sometimes it turns out that people have lost thousands of euros in a worthless product. Therefore it is our aim to warn consumers of these practices through ConsuWijzer. By filing complaints with ConsuWijzer, we are also able to submit enforcement requests to enforcement authorities in other EU countries. With this combination of raising awareness and enforcement, we hope to strengthen the position of the consumer."

Holiday-makers are often approached on the street. They receive a scratch-card, for example, with which they usually win a prize, such as a free holiday. In order to claim their prize, consumers are taken to a (secluded) room, where the sales representatives attempt to persuade the consumer to sign the contract and make a payment. Holiday-makers who enter into the membership scheme at that point often do so under pressure from the sales representative. Once consumers get home, it often becomes apparent that the offer was not as good as they were led to believe. For example, the number of holidays you can book is quite limited, availability is poor and in many cases, holidays are not as cheap as indicated in the sales pitch. In addition, it is not possible for consumers to sell on the membership (which lasts several years) to others, though this option had been promised before. An extended special section on holiday clubs is available on ConsuWijzer from today, which includes information and advice on how to avoid making regrettable purchases. ConsuWijzer is also using various media to warn Dutch holiday-makers of these misleading sales practices.

Holiday clubs as a priority area for the Consumer Authority

Memberships of holiday clubs are almost always offered by means of a sales pitch in countries outside the Netherlands. 'Misleading and aggressive sales pitches' form one of the priority areas of the Consumer Authority in 2009. In addition to raising awareness among consumers with regard to their rights through ConsuWijzer, the Consumer Authority is also able to take enforcing action.