Which federal regulation ensures consumer protection during timeshare sales?

Regulation Z is the correct answer because it is designed to protect consumers in financial transactions by requiring clear disclosure of the terms and costs associated with credit, including in timeshare sales. One of its main components is the Truth in Lending Act, which mandates that creditors disclose important information about lending terms before the transaction occurs. This ensures that potential buyers fully understand what financial obligations they are taking on when entering into a timeshare agreement.

The regulation specifically requires that any advertising for timeshare sales disclose all relevant information, such as the total cost, interest rates, and any penalties or fees associated with the loan. This helps consumers make informed decisions and fosters transparency in the timeshare industry, ultimately leading to better consumer protection.

Options such as Regulation G, Regulation T, and Regulation R serve different purposes and do not primarily focus on consumer protection in timeshare sales. Regulation G deals with the implementation of provisions related to loan and financial institutions, Regulation T pertains to the extension of credit by brokers and dealers, and Regulation R provides exemptions related to certain banking services. None of these regulations directly address the protections necessary for consumers engaging in timeshare transactions as effectively as Regulation Z.