Timeshare Transparency Act
- Sponsor
- Sen. Curtis, John R. [R-UT]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- Dec 16, 2025
Bottom line
This bill aims to protect consumers by mandating greater transparency and a cooling-off period in timeshare sales, empowering the FTC to enforce these new standards.
What it actually does
The bill, titled the "Timeshare Transparency Act," makes it unlawful for timeshare companies to enter into agreements without providing clear, itemized costs, details on alterable fees and termination options, and a 14-day penalty-free termination period. It also requires individuals to have an unsupervised opportunity to review all documents before signing. The Federal Trade Commission (FTC) is tasked with enforcing these new requirements and promulgating necessary rules.
Proponents argue
Supporters argue that the bill addresses long-standing consumer complaints about deceptive sales practices, hidden fees, and difficulty exiting timeshare agreements. They contend it will empower consumers with critical information upfront, reduce high-pressure sales tactics, and provide a much-needed cooling-off period, thereby fostering a more ethical timeshare market.
Opponents contend
Critics, likely from the timeshare industry, might argue that existing state-level regulations are sufficient and that additional federal oversight could create unnecessary burdens, increase compliance costs, and potentially stifle legitimate sales. They might also contend that a 14-day termination period is excessively long and could lead to increased cancellations and administrative overhead.
The bill is very short and clear, making it highly accessible for any reader to understand its provisions and implications.
Section 2(a)(1)
Enhanced Transparency Requirements for Timeshare Agreements
This provision mandates that all timeshare agreements must include a single document detailing all acquisition and maintenance costs, including ongoing fees. It also requires clear disclosure of any fees that the timeshare company can change, along with the notice period for such changes. Furthermore, the agreement must specify all available options for an individual to end their timeshare ownership.
Supporters argue
Supporters argue this provision is crucial for combating deceptive sales practices where consumers are often surprised by hidden costs or find it impossible to understand their full financial commitment. It ensures consumers have a complete picture of ownership from the outset.
Critics contend
Timeshare companies might argue that compiling all costs into a single, itemized document is administratively burdensome given the variable nature of some fees and the complexity of timeshare structures. They may also contend that existing disclosures are adequate.
Tradeoffs
This provision balances consumer protection through comprehensive disclosure against the administrative burden on timeshare companies to standardize and simplify complex financial structures.
Section 2(a)(1)(D) and 2(a)(2)
14-Day Termination Right and Unsupervised Document Review
This provision grants individuals a 14-day period, starting from the agreement date, during which they can terminate their timeshare agreement without penalty. Additionally, it requires that before signing, individuals must be given an opportunity to review all associated documents, including the transparency specifications, free from the supervision of a timeshare company employee.
Section 2(b)
Federal Trade Commission Enforcement and Rulemaking Authority
This section designates violations of the bill's transparency requirements as unfair or deceptive acts or practices under the Federal Trade Commission Act. It grants the FTC full authority to enforce these provisions, including the power to promulgate necessary rules to carry out the Act.