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Investigation Into Travel Club Completed

FOR IMMEDIATE RELEASE

Edmonton, Aug 10, 2001 -- An investigation has determined there is insufficient evidence to substantiate complaints that Snowbird Vacations International breached the province’s consumer protection legislation by exerting undue pressure during sales presentations or by refusing to cancel contracts.

Alberta Government Services is reviewing the Fair Trading Act to determine whether new rules are needed to regulate travel clubs, which promise consumers vacation deals in return for memberships.

The investigation by Alberta Government Services into Snowbird, a travel club with Alberta offices in Edmonton, Calgary and Red Deer, was launched in February 2000. It was prompted by complaints from Alberta consumers. However, investigators have determined there is a lack of evidence to prove the company committed unfair practices as outlined in the Fair Trading Act.

Some consumers mistakenly believed they were buying a time-share and, as a result, believed they had the right to cancel their Snowbird contracts. The Fair Trading Act does give consumers who purchase time-shares seven days to cancel their contract without needing a reason. However, travel clubs do not fall into the category of time-shares. As a result, consumers who purchase travel club memberships do not have the same statutory cancellation rights as consumers who purchase time-shares.

Since January 2000, close to 300 Albertans called Alberta Government Services with questions about Snowbird. Most consumers paid between $3,000 and $6,000 to join the travel club.

Albertans are becoming more concerned with the operation of travel clubs. The number of callers to the department’s Consumer Information Centre with a question about such clubs has almost quadrupled in one year, from 125 inquiries in 1999/2000 to 402 in 2000/2001.

Consumers considering joining a travel club are advised to:

• never sign a contract unless they have read and understood it,
• never purchase a travel club membership under pressure – think about it,
• shop around – compare prices offered by other businesses.

Consumers with questions or concerns should call the Consumer Information Centre at 1-877-427-4088 (toll-free).

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Mary Lou Reeleder - Alberta Government Services - (780) 415- 6051