03 / 28 / 22
Publication of NOM-029-SE-2021, which establishes commercial practices and informative requirements for the provision of timeshare services.
MEXICO CITY, MEXICO, March 28rd, 2022 – The NOM-029-SE-2021 (the “NOM”) was published on March 28, 2022 and will become effective 180 calendar days after its publication. The NOM´s purpose is to guarantee that timeshare services, as well as contracts related to such services, comply with informative requirements and other elements necessary for consumer’s protection.
This NOM cancels NOM-029-SCFI-2010 but does not repeal or replace the provisions set forth in the Federal Consumer Protection Law.
This NOM is applicable to individuals who regularly or periodically offer, distribute, sell, lease or grant the use or enjoyment of goods, products and services related to timeshare services. In addition, to individuals who provide timeshare services in relation to real estate that they do not own or dispose of.
This NOM seeks to regulate the concepts established in the Consumer Protection Law applicable to those persons who acquire, perform, or enjoy as final recipients a timeshare service.
The following is a list of some of the subjects mentioned in the NOM:
- Prohibitions applicable to the marketing of timeshares
- Regulation regarding requirements applicable to non-negotiated agreements.
- Regulation regarding pre-sales and sales of timeshare services.
- Regulation regarding the regulations that establish the use and enjoyment of the real estate given in timeshare.
- Management mechanisms of real estate subject to timeshare.
- Regulation regarding timeshare services commercialized in Mexico and rendered abroad
The Ministry of Economy, through the General Direction of Norms and PROFECO oversees the compliance with this NOM.
Los Proveedores y Prestadores Intermediarios podrán de manera voluntaria acudir a evidenciar el cumplimiento de la NOM, sin perjuicio de las facultades de verificación y vigilancia de las autoridades competentes.
The Providers and Intermediary Providers may voluntarily evidence compliance with the NOM, without prejudice and the competent authority’s verification rights.
It is important to take into account the new provisions adopted by the NOM since the compliance regulations for Providers has increased. In addition, the NOM includes Intermediary Providers bound to comply with the NOM.
Providers and Intermediary Providers shall analyze the effects with non-compliance with the NOM, since there are already penalties provided for in the NOM for non-compliance with the rules set forth therein and, in addition, the following penalties will also be applicable the penalties of such breach set forth in the Federal Consumer Protection Law, establishes fines ranging from $617.41 to $2’414,759.14 Mexican pesos (from US$ 30.87 to US$ 120,737.95). The Federal Consumer Protection Law establishes that the recurrence of violations (when the same offender incurs in two or more violations of the same legal provision during the course of a year, counted as from the day in which the first violation was committed) gives rise to the suspension or cancellation of the Provider’s and Intermediary Provider’s operations. Please contact our experts if you have any questions.