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The National Consumer Commission will be launching an investigation into conduct of major holiday clubs operating in South Africa.

The probe into the 'timeshare/ vacation ownership industry was announced by Commissioner Ebrahim Mohamed this week in light of a range of complaints by consumers.

Some of the allegations include complaints from customers who say they were duped into signing up for lifetime contracts ; overbooking and over-selling accommodation; excessive levy increases as well as threats of legal action if members cannot pay up.

READ: How to rid yourself of binding timeshare contracts

We have been receiving complaints about the time share industry for years now, we have received since I was the DGI in excess of 2 000 complaints.

Ebrahim Mohamed , National Consumer Commissioner

There were gaps in the legislation for instance that didn't cover consumer protection adequately. So we thought that a study of the entire industry from A-Z to cover not only consumer complaints but issues such as how are points calculated in the point system because that is the system that causes most of the complaints.

Ebrahim Mohamed , National Consumer Commissioner

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