Timeshare Lawsuits: A Look at the Past 30 Years

Timeshare Lawsuits and Attorney General Fines: A Look at the Past 30 Years

Timeshare Lawsuits and Attorney General Fines: A Look at the Past 30 Years Over the past three decades, timeshare companies have faced a significant number of lawsuits and fines from state attorney generals. These legal actions have been taken due to a variety of reasons, including deceptive sales practices, misrepresentation of terms and conditions, and failure to honor cancellation requests. In this article, we will take a look at some of the most notable timeshare lawsuits and fines of the past 30 years.

One of the earliest and most high-profile timeshare lawsuits occurred in the early 1990s, when the Florida Attorney General’s office sued Westgate Resorts for deceptive sales practices. The lawsuit alleged that Westgate sales representatives had misled consumers about the cost and terms of their timeshare purchases, and had used high-pressure tactics to convince them to buy. The case was settled in 1993, with Westgate agreeing to pay a $3.5 million fine and to implement new sales practices to prevent future deception.

In the early 2000s, the Arizona Attorney General’s office took action against several timeshare companies, including Diamond Resorts and Holiday Inn Club Vacations. The lawsuits alleged that the companies had used deceptive sales practices, such as misrepresenting the value of the timeshares and failing to disclose important terms and conditions. Diamond Resorts agreed to pay a $1.35 million fine, while Holiday Inn Club Vacations agreed to pay $1.25 million.

In 2010, the California Attorney General’s office filed a lawsuit against Wyndham Vacation Ownership, alleging that the company had engaged in false and misleading advertising, as well as deceptive sales practices. The lawsuit claimed that Wyndham had misrepresented the cost of its timeshares, as well as the availability of rental and resale options. The case was settled in 2012, with Wyndham agreeing to pay a $20 million fine and to implement new sales practices to prevent future deception.

In 2016, the New York Attorney General’s office announced a settlement with the timeshare company ILG for $7.8 million. The lawsuit alleged that ILG had engaged in deceptive sales practices, such as misrepresenting the value of its timeshares and failing to disclose important terms and conditions. The settlement also required ILG to implement new sales practices and to provide restitution to affected consumers.

In 2019, the Federal Trade Commission (FTC) announced a settlement with the timeshare company Diamond Resorts for $14.8 million. The lawsuit alleged that Diamond Resorts had engaged in deceptive sales practices, such as misrepresenting the cost of its timeshares and failing to disclose important terms and conditions. The settlement also required Diamond Resorts to implement new sales practices and to provide restitution to affected consumers.

Over the past 30 years, timeshare companies have faced a significant number of lawsuits and fines from state attorney generals and the FTC. These legal actions have been taken due to a variety of reasons, including deceptive sales practices, misrepresentation of terms and conditions, and failure to honor cancellation requests. The fines imposed on these companies have ranged from a few million dollars to tens of millions of dollars. Additionally, these companies have been required to implement new sales practices and to provide restitution to affected consumers.

It is important for consumers to be aware of these legal actions and to be cautious when considering a timeshare purchase. If you are considering a timeshare purchase, it is recommended that you research the company thoroughly, read all terms and conditions carefully, and consider seeking legal advice before making a decision. If you have already purchased a timeshare and are having difficulty canceling or negotiating with the company, it may be helpful to seek the guidance of a professional who specializes in timeshare cancellation and exit strategies.