North Dakota’s attorney general, Wayne Stenehjem, is cracking down on shady marketing practices by timeshare companies in the state. After a recent investigation, settlements were received from eleven different timeshare marketers.
It started with a promotion at the 2007 Fargo RibFest, where a marketer obtained entries in a drawing for a “free” vacation in the Bahamas. It turns out that there wasn’t really a contest at all. Apparently, everyone who entered the drawing received a phone call telling them they had “won” the trip. However, in order to claim it they would need to pay some fees and sit through a timeshare sales presentation.
In addition to using a phony contest to lure prospective buyers to a timeshare presentation, investigators found evidence of other violations, including violations of the state’s do-not-call law. The results of the investigation found that marketers had made misrepresentations to consumers, violated the home solicitation law and used high-pressure sales tactics.
The attorney general’s investigation in North Dakota began because of consumer complaints against several different timeshare companies. Other marketers were found to have used prerecorded calls to contact consumers in violation of the state’s do-not-call law, as well as failing to notify consumers of their right to cancel and engaging in marketing activities without the proper licensing.
The shady marketing practices found during the attorney general’s investigation are not isolated incidents. In many areas, high-pressure sales tactics are used to sell timeshares and salesmen may understate the costs involved in owning a timeshare as well as overstating the potential for savings or profit.
As attorney Benny L. Kass discovered on a recent vacation, it can be extremely difficult to get a timeshare company to even allow you to take the contract with you for a careful reading before you decide to sign. If you do take the time to read through the contract carefully prior to purchasing, you may find that the benefits you will receive are not as great as you were led to believe.