Byrne to call for tougher rules to protect EU holiday-makers

Date: 04/11/1999

By Renée Cordes

CONSUMER Protection Commissioner David Byrne will next week call for tougher EU laws to protect travellers from unscrupulous package tour and time-share operators.

Reports drawn up by Byrne's officials will point to a number of loopholes in the current Union legislation, which lays down requirements for tour operators and real-estate agents who rent out holiday homes and flats for fixed time slots every year.

"The reports will focus on the shortcomings encountered in the transposition and application of the directives by member states and on the measures taken by the Commission to ensure compliance," said one. "We will also look at possibilities for improving consumer protection."

The two studies due to be unveiled when EU consumer ministers meet next Monday (8 November) will not contain any concrete proposals for new legislation. They will, however, make a strong case for toughening up the Union's package holiday and timeshare directives, which were adopted in 1994 and 1990 respectively.

The Commission is also preparing to take legal action against Italy for allegedly failing to fully implement Union rules which require tour operators to provide sufficient evidence that they can reimburse travellers if they go out of business.

Italy is not the only member state which has run into problems with this. The current directive leaves it up to individual governments to decide whether travel firms should be required to take out insurance or bank guarantees. The report points out that in many cases, consumers have only been able to recover part of their expenses, and argues that retailers and operators should always fully reimburse disappointed holidaymakers.

"No solution can be accepted that would, in effect, allow the refund of money paid over and repatriation expenses to be limited, even if that were to happen only under extreme circumstances," it states.

The European consumer group BEUC has welcomed Byrne's campaign for clearer provisions. "What we have is very vague wording which says the organiser shall provide sufficient evidence of security for a refund in the event of insolvency," said legal expert Ursula Pachl. "But it leaves a lot of possibilities open to member states on how to implement it."

Byrne will also ask member states whether consumers who book return trips lasting less than 24 hours should be covered by the reimbursement provisions. "If you buy a return ticket for the World Cup final, the travel could take place easily within 24 hours," said one official. "The need for protection would be quite the same as in the case where you book a week's holiday."

In the report on the timeshare directive, the Commission will ask member states whether consumers should be given up to 20 days after signing the contract to decide whether to withdraw rather than the ten days currently allowed. "When you conclude a contract of this kind, usually you do not know the applicable law and you need more information about it," said another official.

Consumer Protection Commissioner David Byrne is to call for tougher EU laws to protect travellers from unscrupulous package tour and time-share operators.