AIRDA has formulated a code of ethics that will ensure fair business
practices within the industry, especially amongst AIRDA’s members
and protect the interests both the consumer and the members. The code
will also lay down guidelines that will be abided by all the members
and will work towards cementing an image of trust and respectability,
of the vacation ownership industry in the minds of the people. The
code is also instrumental in removing inconsistencies in the business
model adopted by various resort developers.
To read the complete Code of Ethics, please click on the link given
at the bottom of the page.
CODE OF ETHICS - MANDATE
1. General:
o All members of the association agree to comply with this Code
which incorporates general solicitation and sales requirements.
o This Code of Ethics has been adopted to benefit both consumer
and the developer by instilling high ethical standards in all persons
engaged in vacation ownership (timeshare) and Holiday ownership
industry in India.
o This Code shall be applicable to all types of contacts, print
media, electronic media as well as in the matter of its solicitations.
o Each member of the association will abide by this Code, in law
and in spirit, and will ensure the same from their subsidiaries,
agents, servants, employees, advertising & marketing agencies,
sales and marketing staff. The member will be accountable for any
failure to comply by any of the aforementioned persons. To reiterate,
the onus of responsibility on the developer to be clearly stated
as to the acts of employees, marketing company, agents etc.
2. Cooling off period:
o Every agreement should contain a cooling off period of 10 working
days from the date of purchase. During this period, customers have
absolute right of cancellation of purchase.
o Upon the termination of the Agreement in terms hereof, the Seller
shall immediately refund all payments made by the purchaser and/or
return any share certificate, title deeds or other documents handed
over or paid in terms of this agreement.
3. Cancellations:
o Clear policy guidelines to be adopted for cancellations after
cooling off period. AIRDA to be kept informed of all such policies.
o Clear policy guidelines for cancellations effected and weeks repossessed
due to non-payment either of initial purchase price or maintenance
fees.
4. Sales & Marketing:
o Irrespective of the mode of solicitation, buyers must be informed
that the offer relates to a vacation ownership (timeshare) sale
and if applicable, is dependent on attending a sales presentation.
o All information in the offer must be accurate, factual and complete.
o Contract agreement to clearly include terms of the cooling off
period and the arrangements for protection of the advance(s) paid.
5. Exchange Programs:
o Clarity and accuracy on exchange programmes, including the methods,
terms and conditions and fees applicable should be clarified before
signing the contract and start of cooling off period.
o Information about such programmes should be clearly disclosed
in the prospectus.
6. Resale Weeks:
o Any developer/marketer offering resale weeks must offer purchasers
the same benefits of cooling off period.
o Resellers may not solicit registration or listing fees from a
prospective seller by falsely saying he has a buyer ready on hand.
7. Rentals:
Rental clause should clearly explain modalities of payment to customers,
charges by developer or rental payment for cases where developer
offers to rent out weeks on behalf of its members.
8. Clubs & Points:
o Vacation ownership (timeshare) clubs should make available to
purchasers accurate description of the terms and conditions relating
to the reservation and or assignment or accommodation.
o Number of points sold should not exceed inventory available.
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