65/08    21 May 2008

The OFT and enforcement partners from five other European nations have joined forces in an EU-funded project to combat bogus holiday clubs operating in Spain.

Representatives from enforcement bodies in the UK, Spain, Belgium, France, Norway and Sweden attended a two day conference in Malaga yesterday and today to discuss common enforcement objectives and consumer education initiatives aimed at reducing the harm caused by bogus holiday clubs. The project group also held a meeting with representatives from the Andalucian authorities to look at ways in which they could work together to take action against the worst offenders.

Bogus holiday clubs operating in Spanish holiday resorts, including Malaga, cost EU consumers billions of euros every year and undermine confidence in taking holidays in Spain. An estimated 400,000 UK consumers fall victim to the scam each year. Bogus holiday club representatives use unfair trading practices and high pressure selling tactics to dupe holidaymakers into signing expensive holiday club membership and as a result, instead of coming home with happy memories of a great holiday, many holidaymakers end up in debt to a club that fails to deliver on the promises made.

Typically consumers are approached by scratchcard touts whilst on holiday. The card will always be a winner and to collect their prize they are persuaded to attend a presentation on a 'great new holiday concept'. We advise consumers who are approached in this way to consider the following:

• Do I want to sit through a lengthy sales pitch?
• Will the promises made by the salesman be in the contract and can I rely on them?
• If I sign something now, can I cancel later or get a refund?

If the answer to any of these questions is no, then consumers should just walk away.

A European day of action is also planned for 28 May to raise awareness amongst holidaymakers about the tactics used by bogus holiday clubs, provide advice to avoid being scammed while representatives from the OFT, local authority Trading Standards Services, and partner European organisations will hand out information to holidaymakers at airports in their own countries.

Mike Haley, Head of Consumer Protection at the Office of Fair Trading said:

'The OFT is committed to working in partnership with other European enforcers to end the misleading commercial practices of bogus holiday clubs and to warn holidaymakers of the dangers of signing up.'

Dr. Etelvina Andreu, Director General of the Spanish National Institute for Consumption, said:

'We welcome this opportunity to enter into constructive dialogue with partners from around Europe with the aim of combating the activities of bogus holiday clubs and their marketers who have set up business in a number of Spanish resorts.'

Case studies of victims of bogus holiday clubs are available. Please contact the OFT press office for details.

NOTES

1. Recent research commissioned by the OFT involving 11,200 interviews estimated that bogus holiday clubs cost the UK public £1.17 billion a year with an estimated 400,000 adults falling victim to such scams every year.

2. OFT research shows that 78 per cent of bogus holiday club victims are aged between 35 and 64. The average loss per victim is £3,030.

3. Representatives from Solihull, Manchester, Gateshead and Luton Trading Standards Departments and the Central England Trading Standards Authority (CenTSA) will assist in educational activity at their local airports on 28 May.