PROTECTION OF CONSUMERS (TIMESHARE, LONG-TERM HOLIDAY PRODUCT, RESALE AND EXCHANGE CONTRACTS) REGULATIONS

AND EXCHANGE CONTRACTS)

SUBSIDIARY LEGISLATION 409.02

PROTECTION OF CONSUMERS (TIMESHARE,

LONG-TERM HOLIDAY PRODUCT, RESALE

AND EXCHANGE CONTRACTS) REGULATIONS

25th March, 2011

LEGAL NOTICE 109 of 2011.

The title of these regulations is the Protection of

Consumers in respect of certain aspects of Timeshare, Long-Term

Holiday Product, Resale and Exchange Contracts) Regulations.

Regulation 6(1)(a)

STANDARD INFORMATION FORM FOR TIMESHARE CONTRACTS

Part 1

Identity, place of residence and legal status of the trader(s) which will be party to

the contract

Short description of the product (e.g. description of the immovable property)

Exact nature and content of the right(s)

Exact period within which the right which is the subject of the contract may be

exercised and, if necessary, its duration

Date on which the consumer may start to exercise the contractual right

If the contract concerns a specific property under construction, date when the

accommodation and services/facilities will be completed/available

Outline of additional obligatory costs imposed under the contract; type of costs

and indication of amounts (e.g. annual fees, other recurrent fees, special levies, local

taxes)

A summary of key services available to the consumer (e.g. electricity, water,

maintenance, refuse collection) and an indication of the amount to be paid by the

consumer for such services

A summary of facilities available to the consumer (e.g. swimming pool or sauna)

Are these facilities included in the costs indicated above?

If not, specify what is included and what has to be paid for

Is it possible to join an exchange scheme?

If yes, specify the name of the exchange scheme

Indication of costs for membership/exchange

Has the trader signed a code/codes of conduct and, if yes, where can it/they be

found?

Part 2

General Information

•

The consumer has the right to withdraw from this contract without giving

any reason within 14 calendar days from the conclusion of the contract or any

binding preliminary contract or receipt of those contracts if that takes place later.

•

During this withdrawal period, any advance payment by the consumer is

prohibited. The prohibition concerns any consideration, including payment,

provision of guarantees, reservation of money on accounts, explicit

acknowledgement of debt etc. It includes not only payment to the trader, but also to

third parties.

•

The consumer shall not bear any costs or obligations other than those

specified in the contract.

AND EXCHANGE CONTRACTS)

•

In accordance with international private law, the contract may be governed

by a law other than the law of the Member State in which the consumer is resident or

is habitually domiciled and possible disputes may be referred to courts other than

those of the Member State in which the consumer is resident or is habitually

domiciled.

Signature of the consumer

Part 3

Additional information to which the consumer is entitled and where it can be

obtained specifically (for instance, under which chapter of a general brochure) if not

provided below

1. INFORMATION ABOUT THE RIGHTS ACQUIRED

•

conditions governing the exercise of the right which is the subject of the

contract within the territory of any Member States in which the property or

properties concerned are situated and information on whether these conditions have

been fulfilled or, if they have not, what conditions remain to be fulfilled,

•

where the contract provides rights to occupy accommodation to be selected

from a pool of accommodation, information on restrictions on the consumer’s ability

to use any accommodation in the pool at any time.

2. INFORMATION OF THE PROPERTIES

•

Where the contract concerns a specific immovable property, an accurate and

detailed description of that property and its location; where the contract concerns a

number of properties (multi-resorts), an appropriate description of the properties and

their location; where the contract concerns accommodation other than immovable

property, an appropriate description of the accommodation and the facilities,

•

The services (e.g. electricity, water, maintenance, refuse collection) to

which the consumer has or will have access to and under what conditions,

•

Where applicable, the common facilities, such as swimming pool, sauna etc.,

to which the consumer has or may have access and under what conditions.

3. ADDITIONAL REQUIREMENTS FOR ACCOMMODATION UNDER

CONSTRUCTION (where applicable)

•

The state of completion of the accommodation and of the services rendering

the accommodation fully operational (gas, electricity, water and telephone

connections) and any facilities to which the consumer will have access,

•

The deadline for completion of the accommodation and of the services

rendering it fully operational (gas, electricity, water and telephone connections) and

a reasonable estimate of the deadline for the completion of any facilities to which the

consumer will have access,

•

The number of the building permit and the name(s) and full address(es) of

the competent authority or authorities,

•

A guarantee regarding completion of the accommodation or a guarantee

regarding reimbursement of any payment made if the accommodation is not

completed and, where appropriate, the conditions governing the operation of such

guarantees.

AND EXCHANGE CONTRACTS)

4. INFORMATION ON THE COSTS

•

An accurate and appropriate description of all costs associated with the

timeshare contract; how these costs will be allocated to the consumer and how and

when such costs may be increased; the method for the calculation of the amount of

charges relating to occupation of the property, the mandatory statutory charges (for

ex a m p l e, t ax es a n d f e e s ) an d t h e a d m i n i s t r a t i v e o v e r h e a d s ( f o r ex a m p l e,

management maintenance and repairs),

•

Where applicable, information on whether there are any charges, mortgages,

encumbrances or any other liens recorded against title to the accommodation.

5. INFORMATION ON TERMINATION OF THE CONTRACT

•

Where appropriate, information on the arrangements for the termination of

ancillary contracts and the consequences of such termination,

•

Conditions for terminating the contract, the consequences of termination,

and information on any liability of the consumer for any costs which might result

from such termination.

6. ADDITIONAL INFORMATION

•

Information on how maintenance and repairs of the property and its

administration and management are arranged, including whether and how consumers

may influence and participate in the decisions regarding these issues,

•

Information on whether or not it is possible to join a system for the resale of

the contractual rights, information about the relevant system and an indication of

costs related to resale through this system,

•

Indication of the language(s) available for communication with the trader in

relation to the contract for instance in relation to management decisions, increase of

costs and the handling of queries and complaints,

•

Where applicable, the possibility for out-of-court dispute resolution.

Acknowledgement of receipt of information

Signature of the consumer

(1) These regulations transpose the provisions of the

Council Directive 2008/122/EC. of the European Parliament and of

the Council of 14 January 2009.

(2) The purpose of these regulations is to contribute to the

proper functioning of the internal market and to achieve a high

level of consumer protection, by approximating the laws,

regulations and administrative provisions in respect of certain

aspects of the marketing, sale and resale of timeshares and long-

term holiday products as well as exchange contracts.

(3) These regulations apply to trader-to-consumer transactions

and shall be without prejudice to laws

(a) providing for general contract law remedies;

(b) relating to the registration of immovable or movable

property and conveyance of immovable property;

(c) relating to conditions of establishment or authorisation

regimes or licensing requirements; and

(d) relating to the determination of the legal nature of the

rights which are the subject of the contracts covered by

these regulations.

Regulation 6(1)(b)

STANDARD INFORMATION FORM FOR LONG-TERM

HOLIDAY PRODUCT CONTRACTS

Part 1

Identity, place of residence and legal status of the trader(s) which will be party to

the contract

Short description of the product

Exact nature and content of the right(s)

Exact period within which the right which is the subject of the contract may be

exercised and, if necessary, its duration

AND EXCHANGE CONTRACTS)

Date on which the consumer may start to exercise the contractual right

costs the consumer can expect to incur resulting from the right to obtain access to the

accommodation, travel and any related products or services as specified

The staggered payment schedule setting out equal amounts of instalments of this

to be paid

After 1 year, subsequent amounts may be adjusted to ensure that the real value of

those instalments is maintained, for instance to take account of inflation.

Outline of additional obligatory costs imposed under the contract; type of costs

and indication of amounts (e.g. annual membership fees)

A summary of key services available to the consumer (e.g. discounted hotel stays

and flights)

Are they included in the costs indicated above?

If not, specify what is included and what has to be paid for (e.g. three-night stay

included in annual membership fee, all other accommodation must be paid for

separately)

Has the trader signed a code/codes of conduct and, if yes, where can it/they be

found?

Part 2

General Information

•

The consumer has the right to withdraw from this contract without giving

any reason within 14 calendar days from the conclusion of the contract or any

binding preliminary contract or receipt of those contracts if that takes place later.

•

During this withdrawal period, any advance payment by the consumer is

prohibited. The prohibition concerns any consideration, including payment,

provision of guarantees, reservation of money on accounts, explicit

acknowledgement of debt etc. It includes not only payment to the trader, but also to

third parties.

•

The consumer has the right to terminate the contract without incurring any

penalty by giving notice to the trader within 14 calendar days of receiving the

request for payment for each annual installment.

•

The consumer shall not bear any costs or obligations other than those

specified in the contract.

•

In accordance with international private law, the contract may be governed

by a law other than the law of the Member State in which the consumer is resident or

is habitually domiciled and possible disputes may be referred to courts other than

those of the Member State in which the consumer is resident or is habitually

domiciled.

Signature of the consumer

AND EXCHANGE CONTRACTS)

Part 3

Additional information to which the consumer is entitled and where it can be

obtained specifically (for instance, under which chapter of a general brochure) if not

provided below

1. INFORMATION ABOUT THE RIGHTS ACQUIRED

An appropriate and correct description of discounts available for future

bookings, illustrated by a set of examples of recent offers.

Information on the restrictions on the consumer’s ability to use the rights,

such as limited availability or offers provided on a first-come-first-served basis, time

limits on particular promotions and special discounts.

2. INFORMATION ON THE TERMINATION OF THE CONTRACT

Where appropriate, information on the arrangements for the termination of

ancillary contracts and the consequences of such termination.

Conditions for terminating the contract, the consequences of termination and

information on any liability of the consumer for any costs which might result from

such termination.

3. ADDITIONAL INFORMATION

Indication of the language(s) available for communication with the trader in

relation to the contract, for instance in relation to the handling of queries and

complaints,

Where applicable, the possibility for out-of-court dispute resolution.

Acknowledgement of receipt of information

Signature of the consumer

In these regulations, unless the context otherwise requires

"the Act" means the Malta Travel and Tourism Services Act;

"accommodation" means any movable or immovable facility

designated for overnight stays;

"ancillary contract" means a contract under which the consumer

acquires services which are related to a timeshare contract or long-

term holiday product contract and which are provided by the trader

or a third party on the basis of an arrangement between that third

party and the trader;

"authorised officer" means any officer appointed and authorised

in writing by the Authority to exercise the functions conferred in

these regulations on such officers;

"the Authority" means the Malta Tourism Authority;

"consumer" means a natural person who is acting for purposes

AND EXCHANGE CONTRACTS)

which are outside that person’s trade, business, craft or profession;

"the Director" means the Director of the Enforcement Directorate

of the Malta Tourism Authority;

"durable medium" means any instrument which enables the

consumer or the trader to store information addressed personally to

him in a way which is accessible for future reference for a period of

time adequate for the purposes of the information and which allows

the unchanged reproduction of the information stored;

"exchange contract" means a contract under which a consumer,

for consideration, joins an exchange system which allows that

consumer access to overnight accommodation or other services in

exchange for granting to other persons temporary access to the

benefits of the rights deriving from that consumer ’s timeshare

contract;

"event" means a promotion or sales event relating to timeshare

and, or long-term holiday product and, or resale and, or exchange

contract;

"long-term holiday product contract" means a contract of a

duration of more than one year under which a consumer, for

consideration, acquires primarily the right to obtain discounts or

other benefits in respect of accommodation, in isolation or together

with travel or other services. In calculating the duration of a long-

term holiday product, any provision in the contract allowing for

tacit renewal or prolongation shall be taken into account;

"the Minister" means the Minister responsible for tourism;

"Member State" means a State forming part of the European

Union;

"resale contract" means a contract under which a trader, for

consideration, assists a consumer to sell or buy a timeshare or a

long-term holiday product;

"timeshare contract" means a contract of a duration of more than

one year under which a consumer, for consideration, acquires the

right to use one or more overnight accommodation for more than

one period of occupation. In calculating the duration of a timeshare

contract, any provision in the contract allowing for tacit renewal or

prolongation shall be taken into account;

"trader" means a natural or legal person who is acting for

p u r p o se s r el a t i n g t o t ha t p e r so n ’s tr ad e , b u si n e ss , c r a f t o r

profession and anyone acting in the name of or on behalf of a

trader.

Regulation 6(1)(c)

STANDARD INFORMATION FORM FOR RESALE CONTRACTS

Part 1

Identity, place of residence and legal status of the trader(s) which will be party to

the contract

Short description of the services (e.g. marketing)

Duration of the contract

Outline of additional obligatory costs imposed under the contract; type of costs

and indication of amounts (e.g. local taxes, notary fees, cost of advertising)

Has the trader signed a code/codes of conduct and, if yes where can it/they be

found?

AND EXCHANGE CONTRACTS)

Part 2

General Information

•

The consumer has the right to withdraw from this contract without giving

any reason within 14 calendar days from the conclusion of the contract or any

binding preliminary contract or receipt of those contracts if that takes place later.

•

Any advance payment by the consumer is prohibited until the actual sale has

taken place or the resale contract otherwise is terminated. The prohibition concerns

any consideration, including payment, provision of guarantees, reservation of money

on accounts, explicit acknowledgement of debt etc. It includes not only payment to

the trader, but also to third parties.

•

The consumer shall not bear any costs or obligations other than those

specified in the contract.

•

In accordance with international private law, the contract may be governed

by a law other than the law of the Member State in which the consumer is resident or

is habitually domiciled and possible disputes may be referred to courts other than

those of the Member Stare in which the consumer is resident or is habitually

domiciled.

Signature of the consumer

Part 3

Additional information to which the consumer is entitled and where it can be

obtained specifically (for instance, under which chapter of a general brochure) if not

provided below

•

Conditions for terminating the contract, the consequences of termination,

and information on any liability of the consumer for any costs which might result

from such termination,

•

Indication of the language(s) available for communication with the trader in

relation to the contract, for instance in relation to the handling of queries and

complaints,

•

Where applicable, the possibility for out-of- court dispute resolution.

Acknowledgement of receipt of information

Signature of the consumer

(1)

The Director shall have the following functions

(a) to keep under general review, practices or proposed

practices in relation to any of the obligations imposed

on any persons by these regulations;

(b) to carry out investigations of any such practices or

proposed practices where the Director considers that,

in the public interest, such investigations are proper, or

AND EXCHANGE CONTRACTS)

where the Authority requests the Director to carry out

such investigations; and

(c) to request persons engaged in or proposing to engage

in such practices as are or are likely to be, contrary to

the obligations imposed on them by these regulations,

to discontinue or refrain from such practices.

(2) The Director may delegate the exercise of these or any

other functions under these regulations to any authorised officer.

Regulation 6(1)(d)

STANDARD INFORMATION FORM FOR EXCHANGE CONTRACTS

Part 1

Identity, place of residence and legal status of the trader(s) which will be party to

the contract

AND EXCHANGE CONTRACTS)

Short description of the product

Exact nature and content of the right(s)

Exact period within which the right which is the subject of the contract may be

exercised and, if necessary, its duration

Date on which the consumer may start to exercise the contractual right

Outline of additional obligatory costs imposed under the contract; type of costs

and indication of amounts (e.g. renewal fees, other recurrent fees, special levies,

local taxes)

A summary of key services available to the consumer

Are they included in the costs indicated above?

If not, specify what is included and what has to be paid for (type of costs and

indication of amounts; e.g. an estimate of the price to be paid for individual

exchange transactions, including any additional charges)

Has the trader signed a code/codes of conduct and, if yes, where can it/they be

found?

Part 2

General Information

•

The consumer has the right to withdraw from this contract without giving

any reason within 14 calendar days from the conclusion of the contract or any

binding preliminary contract or receipt of those contracts if that takes place later. In

cases where the exchange contract is offered together with and at the same time as

the timeshare contract, only a single withdrawal period shall apply to both contracts.

•

During this withdrawal period, any advance payment by the consumer is

prohibited. The prohibition concerns any consideration, including payment,

provision of guarantees, reservation of money on accounts, explicit

acknowledgement of debt etc. It includes not only payment to the trader, but also to

third parties.

•

The consumer shall not bear any costs or obligations other than those

specified in the contract.

•

In the accordance with international private law, the contract may be

governed by a law other than the law of the Member State in which the consumer is

resident or is habitually domiciled and possible disputes may be referred to courts

other than those of the Member State in which the consumer is resident or is

habitually domiciled.

Signature of the consumer

Part 3

Additional information to which the consumer is entitled and where it can be

obtained specifically (for instance, under which chapter of a general brochure) if not

provided below

AND EXCHANGE CONTRACTS)

1. INFORMAION ABOUT THE RIGHTS ACQUIRED

•

Explanation of how the exchange system works; the possibilities and

modalities for exchange; an indication of the value allotted to the consumer ’s

timeshare in the exchange system and a set of examples of the concrete exchange

possibilities,

•

An indication of the number of resorts available and the number of members

in the exchange system, including any limitations on the availability of particular

accommodation selected by the consumer, for example, as the result of peak periods

of demand, the potential need to book a long time in advance, and indications of any

restrictions on the choice resulting from the timeshare rights deposited into the

exchange system by the consumer.

2. INFORMATION OF THE PROPERTIES

•

A brief and appropriate description of the properties and their location;

where the contract concerns accommodation other than immovable property, an

appropriate description of the accommodation and facilities; description of where

the consumer can obtain further information.

3. INFORMATION OF THE COSTS

•

Information on the obligation on the trader to provide details before an

exchange is arranged, in respect of each proposed exchange, of any additional

charges for which the consumer is liable in respect of the exchange.

4. INFORMATION ON THE TERMINATION OF THE CONTRACT

•

Where appropriate, information on the arrangements for the termination of

ancillary contracts and the consequences of such termination,

•

Conditions for terminating the contract, the consequences of termination,

and information on any liability of the consumer for any costs which might result

from such termination.

5. ADDITIONAL INFORMATION

•

Indication of the language(s) available for communication with the trader in

relation to the contract, for instance in relation to the handling of queries and

complaints,

•

Where applicable, the possibility for out-of-court dispute resolution.

Acknowledgement of receipt of information

Signature of the consumer

(1) Any advertising by the trader shall specify the

possibility of obtaining the information referred to in regulation

6(1) and shall also indicate where such information can be

obtained.

(2) Where a timeshare, long-holiday term product, resale or

exchange contract is to be offered to a consumer in person at an

event, the trader shall clearly indicate in the invitation to the same,

the commercial purpose of the invitation and nature of such event.

(3) The information referred to in regulation 6(1) shall be made

available by the trader to the consumer at any time during the

event.

(4) A timeshare or long-term holiday product shall not be

marketed or sold as an investment.

Regulation 7(5)

SEPARATE STANDARD WITHDRAWAL FORM TO FACILITATE

THE RIGHT OF WITHDRAWAL

Right of withdrawal

The consumer has the right to withdraw from this contract within 14 calendar days

AND EXCHANGE CONTRACTS)

without giving any reason.

The right of withdrawal starts from .................................................... (to be filled

in by the trader before providing the form to the consumer).

Where the consumer has not received this form, the withdrawal period starts when

the consumer has received this form, but expires in any case after one year and 14

calendar days.

Where the consumer has not received all the required information, the withdrawal

period starts when the consumer has received that information, but expires in any

case after three months and 14 calendar days.

To exercise the right of withdrawal, the consumer shall notify the trader using the

name and address indicated below by using a durable medium (e.g. written letter sent

by post, e-mail). The consumer may use this form, but it is not obligatory.

Where the consumer exercises the right of withdrawal, the consumer shall not be

liable for any costs.

In addition to the right of withdrawal, national contract law rules may provide for

consumer rights, e.g. to terminate the contract in case of omission of information.

Ban on advance payment

During the withdrawal period any advance payment by the consumer is prohibited.

The prohibition concerns any consideration, including payment, provision of

guarantees, reservation of money on accounts, explicit acknowledgement of debt,

etc.

It includes not only payment to the trader, but also to third parties.

Notice of withdrawal

•

To (name and address of the trader) (*)

•

I/We (**) hereby give notice that I/We (**) withdraw from the contract,

•

Date of conclusion of contract (*)

•

Name(s) of consumer(s) (***)

•

Address(es) of consumer(s) (***)

•

Signature(s) of consumer(s) (only if this form is notified on paper) (***)

•

Date (***)

(*)

To be filled in by the trader before providing the form to the consumer.

(**) Delete as appropriate.

(***) To be filled in by the consumer(s) where this form is used to withdraw from the

contract.

Acknowledgement of receipt of information

Signature of the consumer

(1) The trader shall, in good time before the consumer is

bound by any contract or offer, provide the consumer, in a clear and

comprehensible manner with accurate and sufficient information as

follows

(a) in the case of a timeshare contract by means of the

standard information form as set out in Schedule I and

information as provided in Part 3 of the said form;

(b) in the case of a long-term holiday product contract by

means of the standard information form as set out in

Schedule II and information as provided in Part 3 of

the said form;

(c) in the case of a resale contract by means of the

standard information form as set out in Schedule III

and information as provided in Part 3 of the said form;

(d) in the case of an exchange contract by means of the

standard information form as set out in Schedule IV

and information as provided in Part 3 of the said form.

(2) The trader shall provide the information referred to in sub-

regulation (1) free of charge, on paper or on another durable

medium which is easily accessible to the consumer.

(3) The information referred to in sub-regulation (1) shall be

drawn up in the language or one of the languages of the Member

State in which the consumer is resident or a national, at the choice

of the consumer, provided such language is an official language of

the European Union.

AND EXCHANGE CONTRACTS)

(1)

A contract to which these regulations apply, shall be

valid if

(a) it is in writing;

(b) it is on paper or on another durable medium;

(c) it includes the information referred to under regulation

6(1);

(d) it includes the identity, place of residence and

signature of each of the parties;

(e) it includes the date and place of the conclusion of the

contract;

(f) it is drawn up in the language or one of the languages of

the country in which the consumer is resident or a

national, at the choice of the consumer, provided such

language is an official language of the European

Union

Provided that, in addition to sub-regulation (1), where the

trader carries out sale activities in Malta, the trader shall in every

instance provide the consumer with a contract drawn up in Maltese

or in English

Provided further that in addition, where the consumer is

resident in Malta, the trader shall

(a) in every instance provide the consumer with a contract

drawn up in Maltese or in English;

(b) where the timeshare contract concerns one specific

Member State, provide the consumer with a certified

translation of the contract drawn up in the language of

that Member State.

(2) The information referred to in regulation 6(1) shall form an

integral part of the contract to which these regulations apply and

shall not be altered unless

(a) the parties expressly agree otherwise; or

(b) the changes result from unusual and unforeseeable

circumstances beyond the trader’s control and the

consequences of which could not have been avoided

even if all due care has been exercised

Provided that any changes to the information referred to in

regulation 6(1) shall be communicated to the consumer, on paper or

on another medium easily accessible to him before the contract is

concluded and shall be expressly mentioned in the contract.

(3) Before the conclusion of the contract, the trader shall

explicitly draw the consumer’s attention to the existence of the

right to withdraw from a contract, the length of the withdrawal

period as provided for in regulation 8, and the ban on advance

payments during the withdrawal period as provided for in

regulation 9.

(4)

Each contract shall include separate contractual clauses

AND EXCHANGE CONTRACTS)

providing for the right to withdraw from a contract, the length of

the withdrawal period, and the prohibition on advance payments as

provided for under these regulations. Such information shall be

includ ed in t he text of the cont ract, and th e corr espo nding

contractual clauses shall be signed separately by the consumer.

(5) Each contract shall include a separate standard withdrawal

form as set out in Schedule V, whereby withdrawal may be

exercised by the consumer as provided for in regulation 8.

(6) The trader shall provide the consumer with a copy or copies

of the contract at the time of its conclusion.

(1) The consumer shall have a period of fourteen calendar

days to withdraw from the timeshare, long-term holiday product,

resale or exchange contract, without giving any reason therefor.

(2)

The withdrawal period shall be calculated

(a) from the day of the conclusion of the contract or of any

binding preliminary contract; or

(b) from the day when the consumer receives, by registered

mail, the contract or any binding preliminary contract

where the contract or preliminary agreement is

received later than the date referred to in paragraph

(a).

(3)

The withdrawal period shall expire

(a) after one year and fourteen calendar days from the day

referred to in sub-regulation (2), where a separate

withdrawal form is required by regulation 7(5) has not

been filled in by the trader and provided to the

consumer in writing, on paper or on another durable

medium;

(b) after three months and fourteen days from the day

referred to in sub-regulation (2) where the information

referred to in regulation 6(1) including the applicable

standard form set out in Schedules I to IV, has not been

provided to the consumer in writing, on paper or

another durable medium.

(4) Where the separate standard form required under regulation

7(5) has been filled in by the trader and provided to the consumer

in writing, on paper or on another durable medium within one year

from the day referred to sub-regulation (2), then the withdrawal

period referred to in this regulation shall commence to run as from

the day the consumer receives that form, by registered mail.

(5) Where the information referred to under regulation 6(1),

including the applicable standard form set out in Schedules I to IV,

has been provided to the consumer in writing, on paper or another

durable medium, within three months from the day referred to in

sub-regulation (2), then the withdrawal period shall commence to

run from the day the consumer receives that information, by

registered mail.

AND EXCHANGE CONTRACTS)

(6) Where the exchange contract is offered to the consumer

together with and at the same time as the timeshare contract, only a

single withdrawal period in accordance with sub-regulation (1)

shall apply to both contracts, and the withdrawal period shall be

calculated according to sub-regulation (2) as they apply to the

timeshare contract.

(7) If the consumer intends to exercise the right of withdrawal,

the consumer shall, before the expiry of the withdrawal period

notify the trader on paper or on another durable medium of the

decision to withdraw, by registered mail. The consumer may use

the standard withdrawal form set out in Schedule V and provided

by the trader in accordance with regulation 6(5). The deadline shall

be deemed to have been met if such notification is sent before the

withdrawal period has expired.

(8) The exercise of the right of withdrawal by the consumer

terminates the obligation of the parties to perform the contract.

(9) In exercising the right of withdrawal the consumer shall

neither bear any cost nor be liable for any value corresponding to

the service which may have been performed before withdrawal.

(1) The trader shall not accept any advance payments,

provision of guarantees, reservation of money on account, explicit

acknowledgement of debt or any other consideration from the

consumer, in relation to timeshare, long-term holiday products and

exchange contracts, before the end of the withdrawal period

according to regulation 8.

(2) The trader shall not accept any advance payments,

provision of guarantees, reservation of money on account, explicit

acknowledgement of debt or any other consideration from the

consumer, in relation to resale contracts, before the actual sale

takes place or the resale contract is otherwise terminated.

(1) The payment of long-term holiday contracts shall be

made according to a staggered payment schedule. The trader shall

be prohibited from accepting any payment of the price specified in

the contract otherwise than in accordance with the staggered

payment schedule. The payments, including any membership fee,

shall be divided into yearly installments, each of which shall be of

equal value. The trader shall send a written request for payment, on

paper or on another durable medium, at least fourteen calendar days

in advance of each due date, by registered mail.

(2) From the second installment payment onwards, the

consumer may terminate the contract without incurring any penalty

by giving notice to the trader, by registered mail, within fourteen

calendar days of receiving the request for payment for each

installment, provided that such right shall not affect rights to

terminate the contract under any other applicable law.

(1) Where the consumer exercises the right to withdraw

from the timeshare or long-term holiday product contract, any

exchange contract ancillary to it or any other ancillary contract

AND EXCHANGE CONTRACTS)

shall be automatically terminated, at no cost to the consumer.

(2) Without prejudice to the provisions of the Consumer Credit

Regulations, where the price is fully or partly covered by a credit

granted to the consumer

(a) by the trader, or

(b) by a third party on the basis of an arrangement

between the third party, the trader, and the consumer

exercises the right to withdraw from the timeshare,

long-term holiday product, resale or exchange

contract, the credit agreement shall be terminated, at

no cost to the consumer.

(1) Where the law applicable to the contract is the law of

Malta, consumers may not waive the rights conferred on them by

these regulations.

(2) Where the applicable law is that of a third country,

consumers shall not be deprived of the protection granted by these

regulations, if

(a) any of the immoveable properties concerned, to which

the contract refers, is situated within the territory of

Malta, or

(b) in the case of a contract not directly related to

immovable property, the trader pursues commercial or

professional activities in Malta or, by any means,

directs such activities to Malta and the contract falls

within the scope of such activities.

(1) Any person who contravenes the provisions of

regulations 5, 6, 7 and 9 shall be guilty of an offence, and shall, on

conviction, be liable to a fine (multa) not exceeding two thousand

and three hundred and twenty-nine euro (€2,329) in respect of any

contravention, provided that in the case of contravention of

regulation 9, in addition to the penalty related to that offence, the

person shall be ordered to refund the consumer the advance

payments, the provision of guarantees, the reservation of money on

account and the explicit acknowledgment of debt or any other

consideration made as a result of such offences.

(2) In any prosecution against a person charged with one of the

offences listed in sub-regulation (1), it shall be sufficient for the

prosecution to produce the relevant documentation duly

authenticated and shall not be required to produce the consumer.

(3) Where an offence under these regulations has been

com mitted by a body corporate and is proved to have been

committed with the consent or connivance of, or to have been

facilitated by any neglect on the part of any director, manager,

secretary or other similar officer of such body or of any person who

was purporting to act in any such capacity, that person, as well as

such body, shall be guilty of an offence and shall be liable to be

proceeded against and punished as if he were guilty of the first

mentioned offence.

AND EXCHANGE CONTRACTS)

(4) Notwithstanding the provisions of the Criminal Code, the

Attorney General shall always have a right of appeal in the Court of

the Criminal Appeal from any judgment given in proceedings

arising out of these regulations.

An authorised officer may, for the purpose of obtaining

information to enable the Director to perform his functions under

these regulations, at all reasonable hours and on production, if

required, of his credentials, exercise the following powers

(a) require any trader to give any other information which

the officer may reasonably require in regard to such

business activity;

(b) summon, at any reasonable time, any trader to give to

the officer any information which the officer may

reasonable require in regard to such business or

activity and to produce to the officer any records

which are in that person’s control.

AND EXCHANGE CONTRACTS)