The Resort Development Organisation (RDO) Code of Conduct

Summary of the initiative

The Resort Development Organisation (RDO)
The Code strengthens the position of the consumers and improves the image of the industry. The Code establishes standards of practice which ensure fairness and propriety with which member companies conduct their business.

Description of the Initiative



    Contact Point - Commission
    JUST E2

    Self/Co-Regulation Basic Act

    Title of Act
    Directive 2008/122/EC of the European Parliament and of the Council of 14 January 2009 on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts, OJ L 33, 3.2.2009, p. 10
    Title of Act
    The Resort Development Organisation (RDO), Code of Conduct (substantially revised in 2010 to align with the provisions of Directive 2008/122/EC)
    Review, Revision or Sunset Clause Year

    Geographical Coverage

    Global coverage
    Participating Countries


    Problems that lead to the introduction of Self/Co-Regulation and the adoption of the Founding Act
    RDO was founded with the aim to enforce strong business ethics, promote transparent company practices and to foster rigorous adherence to legislation (Directive 94/47/EC, later replaced by Directive 2008/122/EC). The timeshare industry suffered a bad reputation in the past due to misleading and aggressive selling methods. Fraudulent practices have not been fully eradicated in this holiday industry. The primary objective of the code of conduct is to promote strong ethical standards and the delivery of high quality service. The code precludes members from using aggressive selling techniques and requires member companies to provide clear evidence that a robust complaint handling process exists at the resort.
    Target Group(s)
    Time share businesses.
    Type of Instrument(s)
    On 1st January 2010 RDO’s new Code of Conduct came into force, the new Code reflects changes in the industry and legislation such as the EU Timeshare Directive, Rome 1, and the Unfair Commercial Practices Legislation which made certain aspects of the old Code obsolete. The new Code is accompanied by an Alternative Dispute Resolution Scheme (ADR) which allows consumers to have a cost effective alternative form of redress, in addition to RDO’s free-of-charge complaint handling service.
    Type of Financing
    Fees are paid by consumers and member organisations for the arbitration schemes. Level of fee depends on the amount claimed.
    Type of Monitoring
    Conduct an initial survey of compliance capacity of future regulateesConduct regular visits and spot checksInitiate complaints proceduresMaintain database of those bounded by the normsProduce regular reportsReceive complaints and verify if norms were breached or notReflexive dialogue with the - stakeholdersOther
    European Commission
    National public authority
    International public authority
    Private regulator (code owner)yesyes
    Private independent party with a mandate (e.g. auditors)
    Self-appointed private parties (e.g. NGOs)
    Succinct description of the type of Monitoring
    RDO’s free-of-charge complaint handling service. Complaints are sent to RDO, who then contacts relevant members and tries to handle them. If this is not satisfactory, the consumer is informed that the dispute may be resolved with an ADR-scheme (Alternative Dispute Resolution Scheme).
    Type of Enforcement
    Faming, shaming and blamingJudicial sanctionsMembership suspension/exclusionPrivate finesOther
    Private Regulatoryesyes
    Private independent party with a mandate (e.g. auditors)
    Court system
    Alternative dispute resolution (ADR) / Online dispute resolution (ODR)
    Succinct description of the type of Enforcement
    Compliance with best practice standards set by the Code is governed by so-called Administrative Procedures. RDO members have an excellent track record in complying with the Code. The Membership of a company can be suspended in response to non-compliance with the Code of Conduct.


    SMO self- and co-regulation database - private code 125