Trendwest Resources, a timeshare operator, will pay $795,000 in fines and possible millions in consumer restitution to settle a lawsuit over its marketing practices.
The firm, a subsidiary of Cendant Corp., misrepresented its timeshare products and violated cancellation notice requirements, according to the office of California Attorney General Bill Lockyer.
It also used automatic dialing devices in its telemarketing in violation of state law, and failed to honor do-not-call requests, Lockyer’s office alleged.
Trendwest announced that it had changed its internal policies, and that employees and vendors would be held more accountable, according to wire service reports.
The settlement, approved by the San Mateo County Superior Court, requires that Trendwest pay restitution to consumers who purchased timeshare contracts from the firm after March 31, 2001 and asked to cancel within 45 days, and to people who signed up for the firm’s Explorer program and had not yet exercised their rights. Including civil penalties, the total settlement could hit $4.3 million, according to Lockyer’s staff.
The civil penalty funds will be divided between the state and San Mateo County.
In addition, the firm will for four years fund ongoing state audits to determine compliance.
“Trendwest misled consumers through deceptive sales practices and non-disclosure, and illegally denied consumers the ability to cancel their contracts,” said Lockyer in a statement. “This settlement will help make victims whole, and ensure Trendwest operates lawfully in the future.”
Trendwest operates 48 timeshare properties, mostly in western states, Hawaii, the South Pacific, British Columbia and Mexico.
Network
