The Timeshare Beat
December 3, 2001
HONOLULU, HI -- In the most recent edition of The Timeshare Beat's column written by the individual known as "The
Shadow" (http://www.thetimesharebeat.com/shadow.htm),
it was pointed out that the information about timeshare presented on the FTC's website-- which has been online
since 1993-- was written not by ARDA or any other timeshare-related company but by ASTA, the American Society of
Travel Agents. The Shadow pointed out that ASTA has historically not been friendly to the timeshare industry and
that the information on the FTC website is generally quite negative, then questioned, "So, will someone please
tell me why ASTA is representing (speaking for) our industry, product and service to the general public and not
ARDA…?"
In response, ARDA President Howard Nusbaum wrote a letter to The Shadow outlining steps that ARDA is currently engaged in regarding the issues raised.
In the interest of providing accurate information to the timeshare industry, we are publishing this letter in its entirety below.
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November 28, 2001
Dear Shadow:
During my tenure as President of ARDA, I have read the "Shadow Knows" column on occasion and have come
to generally enjoy the flavor of the column and the desire to be relevant to its readers.
Upon completion of a recent piece entitled, "ARDA's President, Howard Nusbaum on point", I was not so
much upset but disappointed that perhaps we at ARDA have not done a sufficiently effective job in touting our progress
with the Federal Trade Commission. In fact, for more than a year ARDA has been actively engaged in strengthening
the ties with the FTC, not only for the Association, but more importantly for industry companies themselves. In
the fall of 2000, FTC Associate Director for Marketing Practices, Eileen Harrington, spoke at length to the ARDA
Board of Directors about the specific practices the FTC was concerned about in its oversight and enforcement role.
In fact, Ms. Harrington was featured on the cover of the December issue of Developments magazine. That feature
article included an interview with Ms. Harrington that amplified on her words to the Board with respect to the
practices that concerned the FTC and would thus prompt investigation.
Second, Katy Harrington-McBride, an associate with the FTC was the featured speaker before the ARDA Federal Issues
Committee at the 2001 Annual Convention in Orlando. We at ARDA believe the Annual Convention is more than a "love
fest", although we appreciate the reference. The Annual Convention is a unique and indispensable opportunity
not only to network and do deals, but also to learn of the latest developments in the legislative and regulatory
arenas at the state and federal levels. At this particular session of the Federal Issues Committee, the FTC's
Harrington-McBride advised ARDA members of the new privacy rules under the FTC's jurisdiction that would require
full compliance by many ARDA members by July 1, 2001.
Third, ARDA has been partnering with the FTC for nearly a year to update the FTC website to more fairly and accurately
portray the resales market today. Further, I am pleased to report that the FTC has been very forthcoming and supportive
in our discussions, indicating their clear intention to cite ARDA as the foremost expert in timeshare resales.
These discussions are in an advanced stage and ARDA members from the appropriate committees are currently reviewing
draft language, which ARDA sent in early October 2001.
We hope to complete this process within a couple months. As a trade association it is imperative that we have
an appropriate process allowing all segments of our governing members to reach consensus. Our goal is to continue
to strengthen the relationship between the timeshare industry and the FTC. We sincerely believe that a stronger
relationship between ARDA and the FTC will benefit ARDA members, timeshare consumers, and serve to continue to
enhance the perception of the industry by regulators and consumers.
Finally, while we always can do a better job in promoting our progress, and will continue to strive to spread the
good word, we again, extend our open invitation to the Shadow to call, write or e-mail to inquire what we are working
on in any area of the vast timeshare world. We will all benefit from the exchange.
Sincerely,
Howard C. Nusbaum
President
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