New guidance released for holiday park owners and operators

New and long-awaited guidance has been released by the Chartered Trading Standards Institute and the Department for Business and Trade, for holiday park owners and operators, to ensure compliance with consumer law when selling holiday caravans or holiday lodges for private ownership. The new guidance document can be accessed here.

The guidance provides information on how contract law and fair-trading legislation applies to holiday park owners and operators when dealing with contracts and consumers (consumers being the owners or prospective owners of a caravan/lodge pitched on your holiday park). The two main contracts used are explained – the purchase agreement for the holiday caravan or lodge and the pitch licence agreement. The guidance highlights key points regarding the use of variation terms, for example being able to make a change to pitch fees, and ensuring all terms of the contract are unambiguous and fair for the consumer. Unfair terms can have extensive effects on the operation of a holiday park owner’s contract with a consumer and may affect other similar contracts they have entered into. A checklist is included to help holiday park owners assess the clarity of their contracts.

The guidance gives practical examples of when main pieces of legislation affecting holiday park owners might apply to the holiday park sector. Some of the practical examples are sales and marketing information including misleading information, pricing and promotions. The relationship between holiday park owners and holiday caravan/lodge owners is clarified including factors such as standards of behaviour, pitch fees, termination of pitch licence agreement, improvements to pitch by owners and the selling or transferring of holiday caravans or lodges by the owner.