Finally, over the next four years, the company will fund DRE's audits of Trendwest to determine its compliance with the settlement. The judgment grants the Attorney General's Office authority to inspect and copy all of the company's accounts, contracts, correspondence, financial records and other documents related to the case. The DRE also is authorized to conduct onsite investigations of Trendwest and inspect its records, at the company's expense.

Trendwest, a subsidiary of Cendant Corp., develops and operates 48 timeshare properties located in the western US, British Columbia, Mexico, Hawaii and the South Pacific. The company sells its timeshare interests through direct marketing in which the firm offers consumers gifts and incentives to attend sales presentations.

The Attorney General's office says the majority of Trendwest's marketing revolved around timeshare use credits, which the company normally sold for between $14,000 and $25,000 and for which Trendwest provided financing. Trendwest also sold a "trial" product, good for about one year, for $595.

The complaint alleged Trendwest engaged in deceptive marketing and sales practices, and misrepresented its timeshare products. Additionally, the firm violated cancellation notice requirements and unlawfully failed to accept cancellation requests, according to the complaint. Trendwest also violated the law in its telemarketing practices by using automatic dialing devices and failing to honor consumers' "do not call" requests, the complaint alleged. Other violations, according to the complaint, included selling products not covered by its DRE permit and noncompliance with laws governing prizes and incentives.