Cancellation of Contracts made in a Consumer’s Home or Place of Work etc. Regulations 2008 (“Doorstop Regulations”)
Many TESS Law clients purchased their timeshare interest after resorts made an unsolicited approach, resulting in the client attending a sales presentation. The sales presentations were, in many cases, held not only away from the client’s home but involved an excursion away. The Doorstep Regulations accordingly apply, and clients can rely on Section 5 of the Regulations accordingly.
In selling timeshare interests, resorts failed to comply with the Doorstep Regulations. In particular, they might have failed:
- to provide the required notice of right to cancel a purchase agreement and membership in the club;
- to provide a notice incorporating the required information set out in Regulation 7 and Part 1 Schedule 4 of the Doorstep Regulations.
By failing to give the necessary cancellation notice in the form required by the Regulations, consumers may have been denied key statutory information.
Breach of the Doorstop Selling Regulations has both civil and criminal consequences.
It is clear that Doorstep Selling Regulations envisage 2 outcomes:
- if the trader fails to give notice of the right to cancel in the required form to a consumer the contract is unenforceable ((Practice Regulation 7(6));
- if a consumer serves a cancellation notice within the cancellation period the contract is cancelled ((Regulation 8(1)).
For the avoidance of any doubt, resorts are not entitled to assert that the contract to purchase the timeshare interest has in any way been affirmed by performance. There is case authority on the point and we refer you to the case of W v Veolia Environmental Services (UK) Plc  EWHC 2020.
If a resort is unwilling to release a consumer from this timeshare product, consumers reserve their right to report the resort to Trading Standards (the body responsible for enforcing compliance with the Regulations).
Last modified: 28th August 2020