A timeshare sales agent can’t lie to a consumer. A lie can, in some circumstances, support a claim for common law fraud. But the Tennessee Timeshare Act takes this one step further, and creates statutory prohibitions on certain types of misrepresentations. Specifically, Tenn. Code Ann. §66-32-131 expressly prohibits “any person” from participating in an advertisement which contains any statement “which is false or misleading.” Tenn. Code Ann. §66-32-132 prohibits several types of misrepresentations, including (8) misrepresentations regarding the accommodations and facilities, (9) misrepresentations regarding the services, (10) misrepresentations regarding exclusivity of facilities or services, and (11) misrepresentations about the timeshare program, the purchase contract, or the “purchaser’s rights, privileges, benefits or obligations under the purchase contract” or the Timeshare Act. As referenced in my prior blog, note that Tenn. Code Ann. §66-32-102(2) defines “advertisement” broadly, as “any written, printed, verbal or visual offer by an individual or general solicitation.”
So if the doctrine of common law fraud already prevents misrepresentations, then what is the significance of the protections in the Tennessee Timeshare Act? As I will be discussing in a future blog post, the Tennessee Timeshare Act provides specific remedies that are not available in a common law fraud case.
John O. Belcher is a founding member of Belcher Sykes Harrington, PLLC and routinely represents consumers in timeshare fraud cases. The information above is just a general summary and does not constitute legal advice. If you would like to discuss your particular timeshare transaction, don’t hesitate to contact Belcher Sykes Harrington, PLLC.