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Europe reviews consumer legislation
Douglas Herbison, Amdea's chief executive, comments on the recent EU review of the legislation dealing with consumer transactions.
Published:  01 July, 2007
Douglas Herbison

Discussions are currently underway in Brussels and in London about reviewing current EU rules applicable to consumer transactions. In Euro-jargon, this is known as the review of the 'consumer acquis', ie the body of existing legislation in this field.

A consultative Green Paper was issued in February 2007. It follows two years of discussions within the European institutions, which have focused on eight specific directives. Some of these are not directly relevant to our industry, such as the Rules on Timeshare, or Package Travel. But others are, such as Sale Of Goods and Associated Guarantees, Unfair Contract Terms, and – for some – Doorstep or Distance Selling.

AMDEA is, of course, involved in these discussions, working closely with our European Association CECED in Brussels and with the CBI in London.

Better regulation

The European Commission claims that this process is part of its declared aim of improving the quality of EU legislation and that it is part of the EU Consumer Strategy 2007-2013. This aims to increase the confidence of consumers to shop and of traders to supply – both internally and across borders.

The Commission adds that it has already declared its intention to reduce the overall 'acquis communautaire', repealing legislation where it is no longer deemed necessary, and simplifying rules wherever possible. In a statement in November 2006 the Commission declared its commitment to reducing the administrative burden in the EU by 25% by 2012.

But as AMDEA and the CBI have pointed out, better regulation is not just about less regulation, but rather it is about creating the right business environment for industry and commerce to work and grow. That is why it is important to consider carefully the issues associated with the Commission's latest Green Paper.

The Green Paper

The Green Paper is split into two main parts. The first deals with more general principles, such as whether to leave the existing directives unchanged, whether to make changes but keep the sectors affected separated, or whether to introduce new rules which are allencompassing. The Green Paper refers to changes in society which have made revision necessary, such as new technologies and the Internet. Discussions with Commission officials seem to indicate a preference for the 'middle road' of changes but based on separate sectors.

The second part of the Green Paper deals with more specific issues and raises a number of basic questions, such as whether it is possible to apply common definitions of the term 'consumer'. It also addresses important aspects of provisions contained in the Directives on Unfair Contract Terms and the Sale of Goods and Associated Guarantees.

The Directive provides that the seller must deliver goods which are in conformity with the sales contract. But there is a lack of definition about the point of delivery. Also, the Commission wishes to consider extending the present assumption that 'non-conformity' should be found within the first six months to a longer period (perhaps corresponding to the guarantee period). Another issue is whether consumers should be able to choose their preferred remedies for non-conforming goods, and whether these might be sought directly from the manufacturer. Consideration is also given in the Green Paper to minimum standards for guarantees and the extent to which these should be transferable. So there is a lot to consider.

The latest indications are that the Commission intends to produce a document summarizing the views received from all concerned – probably in the autumn. This will be followed by either a Proposal or a White Paper outlining intended action. This should emerge in 2008.







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