"Timeshare Transparency Act" new proposed bill

[TUGBrian]

not that most things have a shot of getting support in todays political environment, but heres something that applies to timeshare owners!

curious if it gets any traction at all

https://www.curtis.senate.gov/wp-content/uploads/2025/12/Timeshare-Transparency-Act-Bill-Text.pdf

edited: latest TUG video covering our stance on this topic!

 

[chapjim]

Curious also what might be the long-term effects of such legislation.

A good number of owners, probably a majority of owners like the operational side of timeshares but abhor the corporate/sales side. Unfortunately, one depends on the other. A perhaps unintended consequence might be the demise of the timeshare industry -- happiness for those who despise sales activity but sadness for those of us who enjoy using our timeshares.

 

[RX8]

A perhaps unintended consequence might be the demise of the timeshare industry

You make some good points but if improved transparency and a 14 day rescission period is enough for the timeshare industry to fold then maybe it needs to fold.

 

[RX8]

not that most things have a shot of getting support in todays political environment, but heres something that applies to timeshare owners!

curious if it gets any traction at all

https://www.curtis.senate.gov/wp-content/uploads/2025/12/Timeshare-Transparency-Act-Bill-Text.pdf

Sadly, nothing in the bill addresses the flat out lies told by sales that entice buyers to sign the contract.

 

[dioxide45]

So all it would really do is extend the rescission period to 14 days nationwide?

 

[TUGBrian]

id be in favor of increasing the rescission period, though wish it were more like 30 to 60 days isntead.... or even a tiered level of refund.

0-14 days - full refund.

14-90 days - nonrefundable deposit waived

90-1year - 50% refund..

or something like that...spitballing anyway....but noones asking me!

 

[jp10558]

Ideally the piece of paper that has to have all the info on it would end up in a standardized format. If I was in charge I'd want a clear part up front on this piece of paper they talk about that must say something like, in big print on the top:

No verbal representations in the sales process are guaranteed. Only what is in the written contract is provided.

So some thing that they have to sign that they received, like the Patient bill of rights. IDK if it would really matter though, I have so many dr offices that just have a little signature pad, you don't even see what you're signing. IDK how that was ever legal, but there you go.

Personally what I'd like to see is something like @TUGBrian suggested, or at least something that starts counting the recession days from the day after you check out of the resort or hotel where you signed it - put a stop at least to the running out the clock while you're on vacation.

I'm not sure if there's a law that could be passed to make the sales people change the tactics, much of what they do is already likely illegal and basically fraud, but they would need to enforce it. And to do so I think they'd need "secret shoppers" to go take presentations and "bust" the locations and people blatantly lying. Sort of like for underage beer sales.

 

[ScoopKona]

id be in favor of increasing the rescission period, though wish it were more like 30 to 60 days isntead.... or even a tiered level of refund.

0-14 days - full refund.

14-90 days - nonrefundable deposit waived

90-1year - 50% refund..

or something like that...spitballing anyway....but noones asking me!

I'd put the odds of something like this happening at zero. But it would stop much of the lying.

Everyone focuses with laser-like intensity on the lying salespeople. But they completely ignore the "gifts" and the timeshare OPCs -- who are the reason developer prices are so high. If there were no "free gifts," the price of the developer week would still be higher than what the resale price will be. But it wouldn't be orders of magnitude higher. If you want to rein in the costs, eliminating free gifts for attending sales presentations would fix this problem far quicker. Only people who actually want a timeshare would ever attend a presentation. The entire industry survives on the fact that the average person would stand in line for a free headache.

I'm continually confounded that after so many decades, average people haven't wised up about timeshare sales presentations or exit companies. The fact that they catch so many suckers completely unaware -- in an age where all the world's information can be accessed on their phone -- is stunning.

 

[vacationtime1]

So all it would really do is extend the rescission period to 14 days nationwide?

I think that is the only effect. Everything else is easily circumvented.

The section supposedly protecting purchasers against MF increases --Section 2(a)(1)(B) -- is toothless. It compels the "timeshare company" (as defined, intended to be the developer) to disclose any "ongoing fees" (i.e. MF's) that it controls and could increase. But developers do not have the power to increase MF's; the HOA does.

I understand the ongoing interrelationship between the developer, the HOA (whose members are too often determined by the developer), and the various trusts controlled by the developer that control an increasing number of HOA's. But that is just fodder for litigation or FTC rulemaking which is tedious and Byzantine.

 

[jp10558]

I'd put the odds of something like this happening at zero. But it would stop much of the lying.

Everyone focuses with laser-like intensity on the lying salespeople. But they completely ignore the "gifts" and the timeshare OPCs -- who are the reason developer prices are so high. If there were no "free gifts," the price of the developer week would still be higher than what the resale price will be. But it wouldn't be orders of magnitude higher. If you want to rein in the costs, eliminating free gifts for attending sales presentations would fix this problem far quicker. Only people who actually want a timeshare would ever attend a presentation. The entire industry survives on the fact that the average person would stand in line for a free headache.

Are you sure that the developer isn't also just soaking the retail purchaser? I do think that if they actually had to get people to come to the presentation without bribes then it would be different. I don't know how, but it would be. I don't think the politician wants to massively change how TS work, they just want to "make sure people know what they're getting". I have doubts this sort of bill will do that, but OTOH a longer recession period will help more people I think. Honestly, for luxury goods I have no problem letting the sellers try to sell about anything and buyers buy it if they want to. I just think we need to make sure buyers know what they're buying. In all parts of the economy. I'm not really interested in "saving people from themselves", but I am interested in trying to make it harder to basically commit fraud.

I'm continually confounded that after so many decades, average people haven't wised up about timeshare sales presentations or exit companies. The fact that they catch so many suckers completely unaware -- in an age where all the world's information can be accessed on their phone -- is stunning.

Yea, these people are really good at what they do. I sent a co-worker to Smuggs cause I had unexpected extra points expiring at the end of this year. I told him - be rude, tell them you just want your keys or whatever, don't waste time at a presentation. I told him to expect they'd try and sneak it in. Well, what does he do? Sign up for a presentation at check in. Well, he wasn't exactly sure but thought he may have. How? Like, why? So then I tell him, NO MATTER WHAT they say, DO NOT BUY ANYTHING from the sales people. Pretty clear right? Well, he chats me "is this a good deal for a discovery package?" - I was like NO. I can't tell if he bought it or not, it looked like maybe he put down $1,000. Like... normally he's a really smart guy. He works with pretty complex Linux cluster systems for a living. He also knows that I usually know what I'm talking about.

No idea. Hope he didn't really pay almost $4k for a discovery package over the next 2 years.

 

[ScoopKona]

Are you sure that the developer isn't also just soaking the retail purchaser?

Yes. I used to work for Hyatt. I've seen the numbers. The OPC gets paid by the tour. Gets paid again if they buy. And there's the cost of the "free" gift.

Some of them make more than the broker.

 

[TUGBrian]

yea sadly i doubt this is going to make any significant progress on making meaningful change vs making a great headline/pr opportunity to show how hard the industry is focusing on cleaning up its image!

 

[dioxide45]

I'm sure ARDA has their lobbyists out to squash this. If they really even need to try. Outside of the 14 day rescission period, it doesn't do anything that most state laws don't already cover. And we see how those state laws have failed many buyers. Could such a law even stand up in court since the FTCs regulation mainly comes from the Commerce Clause of the constitution? Meaning they generally regulate interstate commerce and most timeshare transactions are intrastate since buyer and developer are sitting at the same table consummating the transaction. Perhaps they could regulate telesales or perhaps timeshares bought while on a virtual presentation?

 

[jabberwocky]

This is interesting to read some of the analysis. I agree this doesn’t do much. It will just increase the stack of disclosures given to buyers, which means more things they won’t read.

One question I do have is whether fractional ownership properties will be defined as timeshares under this? I’ve always gotten the impression that 1/8, 1/4 etc owners feel they are superior to us lowly 1/52 owners. The definition of timeshare seems pretty broad.

 

[jabberwocky]

I'm sure ARDA has their lobbyists out to squash this. If they really even need to try. Outside of the 14 day rescission period, it doesn't do anything that most state laws don't already cover. And we see how those state laws have failed many buyers. Could such a law even stand up in court since the FTCs regulation mainly comes from the Commerce Clause of the constitution? Meaning they generally regulate interstate commerce and most timeshare transactions are intrastate since buyer and developer are sitting at the same table consummating the transaction. Perhaps they could regulate telesales or perhaps timeshares bought while on a virtual presentation?

If I were ARDA, I’d probably be pretty happy with this legislation. As you point out, it doesn’t really change much other than the 14 day period, which is probably still too short for most people who realize their mistake when they first try to book their dream Maui whale season vacation two months in advance and find no availability.

 

[dioxide45]

If I were ARDA, I’d probably be pretty happy with this legislation.

ARDA is happiest with no legislation at the federal level. They would fight the extension of rescission periods if attempted in any state. I think only only two states have rescission periods as long as 14 days and one of them is Alaska. Not a place that is a hotbed for timeshares. I think the other one is Delaware.

 

[pedro47]

This new legislation is dead in the water. IMHO

 

[pedro47]

Yes. I used to work for Hyatt. I've seen the numbers. The OPC gets paid by the tour. Gets paid again if they buy. And there's the cost of the "free" gift.

Some of them make more than the broker.

Many, many, many years ago at a Williamsburg, Virginia resort the OPC, bonus one year was a brand new automobile. It was not at the Marriott’s Manor Club.

 

[geist1223]

Should void the Parole Evidence Rule for any litigation. Void Binding Arbitration Clauses. Make it voluntary with the expense of Arbitration be born by the Seller. Void any part of the Sales/Purchase Contract that limits its terms to only those reduced to Writing. Require the recording of any sales pitch and that a copy of the recording be provided to the purchaser and it becomes part of the Sales/Purchase Contract. Require that the majority of the BOD be elected without the Vote of the Developer.

 

[jp10558]

Should void the Parole Evidence Rule for any litigation. Void Binding Arbitration Clauses. Make it voluntary with the expense of Arbitration be born by the Seller. Void any part of the Sales/Purchase Contract that limits its terms to only those reduced to Writing. Require the recording of any sales pitch and that a copy of the recording be provided to the purchaser and it becomes part of the Sales/Purchase Contract. Require that the majority of the BOD be elected without the Vote of the Developer.

Personally I really hate the Binding Arbitration Clauses - I think we should fix the court system, and make arbitration completely voluntary at the time of the dispute. I also think we should move towards the recordings like you suggest for 2 reasons. 1, contracts historically require a meeting of the minds, and 2, literacy is in freefall, but even so - laypeople are basically illiterate of legal documents anyways and have been forever. In the past, we didn't have easy recordings and storage and things like crypto signatures etc to validate such recordings so paper with signatures was as good as we could do. This isn't the case in 2025, and any honest legal professional would admit that with the huge proliferation of contracts, EULAs, etc - the meeting of the minds is around what the salesperson or front desk person or pre-click through page says in big print, not the 50 page legalese document that we're supposedly "agreeing" to.

Personally, I might suggest using some of our high tech to include a written or verbal quiz asking the consumer what they think the agreement is without input of the company and then having the company rep approve that understanding to execute the contract. If the company won't because the consumer understanding is very much different from the company legal team, then no contract. The whole set of people can try again to actually reach that meeting of the minds if they want to.

I feel like something like this wouldn't really make the PITA contract process actually functionally more annoying to anyone, yet would get rid of all sorts of taking advantage of misunderstandings. And if the recordings were missing time or show the rep coaching the quiz answers, the courts should then void the contract.

 

[TUGBrian]

saw that ARDA has come out 100% against the bill.... so you know it has to be very pro-consumer! lol

while we all agree it is a drop in the bucket in terms of fixing the real problems that plague this industry, if the only measure of success is "fixing it all" nothing would ever get done.

I reached out to both senators to offer our support or input if they wanted advice from an independent consumer organization!

 

[Fredflintstone]

One thing I would love to see it it being required that all timeshare transactions be completed by Real Estate lawyers. It protects both buyer and seller plus better ensures full disclosures. Afterall, timeshares are Real Estate transactions and filed as such.

 

[TUGBrian]

what legitimate non-biased attorney would ever tell a potential buyer that the contract they are signing to buy a new timeshare is a good idea? lol

if the owner hasnt done their proper research ahead of time to know exactly what they are getting into, its a bad deal period.

 

[RiverDowns]

My particular concern that hopefully would be on the microscope is the Exit Strategy if an owner, who had fully paid for the timeshare, has not been using the unit or availed of their amenities for 5 yrs or more, there should be a graceful exit that the timeshare company must accept to buy back to even to keep back.
There are other timeshare companies that offer the deed by back, but unfortunately Massanutten does not engage in this.

We all go through seasons in our lives, for us, we are retiring and our kids are not interested in the timeshare at all.
We are paying for maintenance fees because the timeshare company will
Slap us with penalties for abandoning our responsibilities and threaten us to collection agency or ruin our credit score.

There should be a graceful and exit. The timeshare company does not want to buy back our units but is continually building more new buildings or units to sell and trap new buyers

 

[dioxide45]

The law is terribly written and, outside the 14 day rescission, rather ambiguous. Perhaps it will get some refinement in committee, if it even gets that far. I still think this is something that is to be legislated at the state level and the federal government should keep their nose out of it.

Many laws just create unintended consequences. I've said that it would be good if the rescission period started at the time the owner got access to the booking site. One problem with that, that I realized, is that they will just move to setting up online access at the sales presentation. They have a way around just about anything.

Recording the sales presentation would be a good move with audio being provided to both parties. One can do that themselves in most states. Florida and California excluded as they are two party consent states. I do think that there are problems with mandatory binding arbitration. They could try to fix things by requiring the seller to pay for arbitration and not permit the developer to require the buyer to pay attorney fees if the buyer loses in arbitration. Perhaps they could require an arbitration opt out period. Though most people won't realize that exists until the period has ended. Lawsuits and lawyers can be very expensive when going to trial, so arbitration does have benefits.