Allegations of timeshare-funded RDO lobbying: a spending drive aimed at persuading Spanish politicians to weaken key consumer protections for mis-sold owners
Resort Development Organisation (RDO)
RDO’s stated position on its website is that it protects consumers and provides arbitration where disputes arise.
However, evidence points in the opposite direction, suggesting RDO’s underlying motivation is to protect the interests of the timeshare businesses that fund it, shielding them from adverse publicity and legal action.
One consumer expert has described RDO as a “cabal”, citing what they see as a secretive and highly partisan approach. Its senior management boards are portrayed as dominated by individuals who have accumulated significant wealth amid long-running allegations of consumer abuse.
The RDO Legislative Council is said to include in-house lawyers from major timeshare brands such as Marriott, Hilton and Club la Costa, alongside leading exchange companies including RCI and Interval International.
A law unto themselves?
Among the more controversial allegations are claims that RDO has been working to overturn the impact of a landmark Spanish Supreme Court decision, which opened the door for tens of thousands of mis-sold owners to pursue compensation related to their timeshare contracts.
It is alleged that, funded by timeshare backers, RDO appointed two high-profile consultancies with strong political connections: PricewaterhouseCoopers (PwC Spain) and specialist lobbying firm Acento.
Representatives from these two organisations reportedly opened dialogue with Spanish officials and politicians, including senior figures within the Spanish Ministry of Tourism and Ministry of Justice, as well as regional authorities.
Approaches were also made to political representatives across multiple autonomous communities, including Catalunya, the Canary Islands, the Balearic Islands, and the Valencian and Andalusian regions.
Greed vs consumer rights
The aim, it is claimed, was to build support within the Spanish political system to effectively neutralise the Supreme Court ruling by amending legislation designed to protect consumers from harmful and deceptive sales practices.
It took years of legal work to ensure these protections were properly enforced. Critics argue the timeshare industry is now attempting to roll back those hard-won rights and limit owners’ ability to seek redress.
To advance this objective, private meetings were reportedly arranged with ministers, lawmakers and other influential political figures. The lobbyists and timeshare lawyers are said to be promoting a narrative that protecting timeshare companies in Spain from the “consequences” of the Supreme Court decision is necessary for the wider Spanish economy.
A convenient point of view
Following this lobbying, support was reportedly secured to amend Spanish Law 42/1998, with amendments filed in the Spanish parliament.
The amendment documents set out how the industry frames its case: as a major contributor to the Spanish economy and as the “victim” of an alleged Supreme Court injustice.
A key statement in the documentation reads - “The (current) situation described has not only slowed down any development of timeshare activity, with the loss of opportunity in a key sector of our economy such as tourism, but has also led to bankruptcy or put at risk the economic viability of companies in the sector, destroying direct and indirect employment.”
As matters stand, the documents indicate that multiple senior politicians have been persuaded to back changes that would alter consumer-protection rules in a way that critics say benefits large businesses previously found to have harmed customers.
Has timeshare suffered as badly as they claim?
In one sense, yes. Timeshare is widely viewed as an emotional purchase. Few people plan to buy a timeshare; many are drawn in through costly marketing and sold via high-pressure presentations. Those types of sales tactics have been halted.
Timeshare companies can still trade in Spain, but more like the sales environment you would expect when buying a house or a car. Without the tactics previously used, they are unable to sell more than a small fraction of what they once could when the law allowed a wider range of manipulation techniques.
Put simply, the sales that no longer happen are those that the law (and, arguably, most of society) sees as unfair and immoral.
As for other financial hardship? Critics argue that no — the industry still makes money.
Despite some resorts allegedly seeking to reduce exposure to compensation payments by placing parts of their operations into insolvency, many largely remained open, continuing to welcome holidaymakers and timeshare owners.
The operations most associated with closures were high-pressure sales teams, the majority of whom were not Spanish citizens.
Resort owners also shifted towards marketing accommodation to regular holidaymakers.
On that basis, critics say the industry’s argument — that compensation claims will trigger severe consequences for the Spanish economy — is flawed, and that there is no evidence of the wide-ranging repercussions claimed.
They argue the real impact is a dent in the personal fortunes of timeshare barons.
Grim tactics
This alleged mission to persuade Spanish policymakers to abolish legal restitution for thousands of distressed timeshare owners is presented as part of a wider pattern of behaviour.
Since the law began penalising timeshare resorts for mis-selling, critics say those resorts have repeatedly tried to delay or avoid paying court-ordered compensation by using their financial resources to obstruct the legal process.
Given the older age profile of many owners, some observers believe a particularly cynical strategy is to delay cases so long that claimants die before their claims are resolved.
Fighting back on behalf of owners
Lawyers and consumer advocates say they are determined not to allow timeshare businesses to bulldoze legal processes or bury legitimate claims under an avalanche of delays.
Thousands of cases have already been won for owners — from courts of first instance, through appeal hearings, and up to the Spanish Supreme Court.
In the UK, similar disputes have played out, with a recent significant High Court victory that resulted in loans used to purchase timeshares being ruled unlawful, and lenders ordered to refund substantial sums.
A counter-campaign is now being led by European Consumer Claims (ECC) and associated lawyers to ensure Spanish politicians who have been approached by RDO and its members are presented with what ECC describes as a fuller, more accurate picture.
"ECC will be writing to the various national and regional heads of ministries that were subjected to RDO propaganda, and will ensure that they understand the true economic situation – including how timeshare companies in this country have enriched themselves through aggressive and deceitful sales methods," explains Greg Wilson, CEO of ECC.
"We will also be publishing open letters in media addressed to politicians both in Spain and the UK."
"ECC will publicly share case studies of many owners who are vulnerable and distressed. We will ask the parties and ministries in Spain that have been persuaded to participate in the legal amendments to reassess their position. Unlike the secretive lobbying conducted by RDO and its members, ECC will publish our appeals for support for the many timeshare owners who have suffered from devious and unlawful selling.
"One obvious question we will be asking is why politicians from regions such as the Basque Country would be interested in backing these amendments when there are no timeshare operations in their constituencies."
ECC: Leading the fight back
If you’ve been treated unfairly by a timeshare company, get in touch with our team to understand your options.
