Key Notes

Consumer Protection

Background:

The aim of promoting the interests, health and safety of consumers in the EU is enshrined in articles 153 and 95 of the Treaty establishing the European Community. On 7 May 2002, the European Commission adopted a new consumer policy strategy specifying its overall political approach for the five year period, 2002-2006.

There are three key objectives:

“A high common level of consumer protection”.
This would mean harmonisation by the most appropriate means using framework directives, standards, best practices. These would cover the safety of goods and services and economic and legal interests thereby enabling consumers to shop with confidence anywhere in the EU and through any medium. The main initiatives envisaged were addressed in the Green Paper on EU Consumer Protection and on the safety of services.

“Effective enforcement of consumer protection rules”.
Consumers should be given the same protection throughout the EU. The priority actions are the development of an administrative co-operation framework between Member States and of redress mechanisms for consumers.

“Proper involvement of consumer organisations in EU policies”.
Consumers and their representatives should have the capacity and resources to promote their interests on a similar footing as other stakeholders. The main actions consist of a review of mechanisms for consumer organisations to participate actively in EU policy making and to the setting up of education and capacity-building projects.


What the EPP-ED has achieved:

There are three major reports where the Group has been the driving force in promoting the consumer's interests in the single market.

Marianne Thyssen's report on the Commission Green Paper - "European Union consumer protection: legal aspects."
The Commission's Green Paper suggested the idea of developing a framework directive on fair commercial practices. It also suggested the development of a legal instrument for co-operation between enforcement authorities.
The European Parliament passed a resolution that (a) wanted to see the development of rules for a better treatment of Community law in cross border relations and (b) agreed that an internal market needed co-ordinated market supervision. The EPP-ED emphasised that there was a need for simpler, more focused legislation that would be easier to enforce. It also supported the idea of intergovernmental co-operation by national enforcement authorities which could operate to the advantage of mutual information and mutual assistance in specific cases. Consequently, the Commission was asked to provide detailed information on the nature of any obstacles encountered and to quantify their impact on cross-border purchases. Furthermore, it was to continue consultations with all parties concerned, on both the production and the distribution sides, and with representatives of SMEs and consumer organisations.

"Internal market: sales promotions and consumer protection, transparency."
The initial Commission proposal argued that the use of sales promotions within the Community was hampered by several legal obstacles because of divergences in national legislation and legal uncertainty. There would need to be uniform rules for sales promotions and a high level of consumer protection to ensure confidence in the internal market.
The EPP-ED considered the proposal to be an important market opening measure that would improve significantly the operation of the internal market. The Group worked hard to ensure that businesses could concentrate on product and marketing innovations and not have to worry about complying with 15 different sets of rules. This would mean that the best deals in one country would be available to all consumers. The Group also raised concerns that whilst it supported consumer safeguards, some of those mentioned were too complicated and incoherent in the proposed regulation.

"Consumer protection: unfair business-to-consumer commercial practices (amend. dir. 84/450/EEC, 97/7/EC, 98/27/EC)."
Research by the Commission indicated that there are appreciable internal market barriers and distortions of competition that arise from unfair commercial practices and from fragmented regulation across Member States.
The EPP-ED supports the Commission's intention that the directive should apply only to the collective economic interests of consumers and not provide a right of action to individual consumers. With the scope of the proposal restricted to business to consumer transactions, industry operators need the reassurance that the Directive will be applied towards prevention of abusive practices rather than as a ‘backdoor’ means of imposing additional controls. The Group also believes that unfair practices not included in the list at adoption should be caught by the General Clause and the three tests contained therein. However, any such revision must take place using the full Co-decision procedure laid down in Article 251 of the Treaty. Member States must not be allowed to deviate from the list of prohibited practices during or after transposition. Finally, the Group considers the most effective way to regulate advertising, including advertising to children, is through the clear recognition of self regulation within an appropriate framework of law.


Looking to the future:

The EPP-ED Group has been at the forefront of promoting the consumer's interests within the internal market and will continue to be so during the next Parliament. The key is to ensure that businesses are able to compete fairly throughout the European Union, assured of their legal obligations, thereby offering the consumer the best choice for goods and services. The consumer must be confident that no safety risks are entailed by the increased variety of products and that legal aid is available to enforce consumer rights. Where there is legal uncertainty, there is market failure and this is to the detriment of the consumer. The development of the internal market is in the interests of all European citizens and therefore Member States need to act more decisively through closer co-operation on the issues of mutual recognition and harmonisation.