Brussels, 02/02/2011 (Agence Europe) - On the evening of Tuesday 1st February, a large step forward was made in the future reform of EU consumer rights, to clarify and harmonise these rights by establishing a foundation of clear rules to facilitate the functioning of the single market. The committee on the internal market and consumers of the European Parliament took position at first reading on the proposed directive of October 2008 which has turned into a saga, so problematic has been the level of harmonisation required to satisfy all political groups and all member states - “maximalists” and “minimalists” alike.
Agreeing with their rapporteur Andreas Schwab (EPP, Germany), and contrary to the initial proposal of the Commission, which recommended the full harmonisation of national laws in all areas, the majority of MEPs (22 votes in favour, 16 against and one abstention) opted for a balanced solution. Maximum harmonisation will be in place only for provisions regarding consumer information, delivery lead times and the right to cancel sales and service contracts concluded remotely and off-premises between professionals and consumers. It will be accompanied by an option for the member states to apply stricter national rules (principal of minimal harmonisation) in other areas, such as recourse in the event of failure to comply, for example for goods which are not described as in the contract - a requirement which is important to France, which is particularly keen to keep its system which is applicable in the event of latent defects (which allows a consumer to quote a latent defect well beyond the two years of legal warranty provided for in the directive on unfair terms of contract).
By virtue of the text as voted on, the cancellation period has been extended to 14 days (from seven days under current legislation). After a contract has been cancelled, the consumer will be entitled to reimbursement (including delivery costs) within 14 days. The merchant will be liable for the risk of any damage to the good occurring during transport, until the consumer takes possession of the good. The consumer will have cancellation rights for solicited visits, if the merchant previously telephoned the consumer and applied pressure to arrange a visit. For off-premises contracts, the cancellation period will start on the date of receipt of the good by the consumer, rather than the date on which the contract was concluded (no change from current practice).
“With this vote, the committee on the internal market is departing from the principle that full harmonisation is possible, as long as all levels of consumer protection are respected. These elements will help to reinforce trust in the single digital market and, therefore, will allow SMEs to develop”, said Andreas Schwab.
The S&D Group voted against the text, feeling that it will pave the way for “a reduction of consumer rights in certain areas”, as shadow rapporteur Evelyne Gebhardt (S&D, Germany) explained. The Greens/EFA also voted against, deploring the choice of “lowest common denominator”.
Damien Abad, Catherine Soullie, Constance Le Grip and Philippe Juvin (all EPP, France) all paid tribute to a “great victory for both consumers and businesses of Europe” and having obtained satisfaction on all points which remained problematic. “The text keeps in place the French exemption over consumer protection and even extends the level of protection in a number of areas. For example, when making a purchase over the internet, the idea that the double-click which allows the purchaser to confirm his order constitutes his purchase is now obligatory”, they stressed.
Viviane Reding, the fundamental rights commissioner who, early in her term in office, helped to get the initial proposal out of deadlock by opening it up to “targeted maximum harmonisation”, welcomed the result. “The balanced approach selected by the Parliament will reinforce both consumer rights and functioning of the single market”, she said.
In the view of EuroCommerce, which favoured maximum harmonisation, “the possibility given to the member states to create different levels of consumer protection in Europe will increase legal fragmentation, create more barriers and additional costs and, therefore, will undermine pan-European commercial activities, particularly electronic trades”. UEAPME described the committee's vote as “an enormous step backwards from the general guidelines adopted by the Council, because these two chapters (on consumer rights relating to sales contracts and futures contracts) which had been deleted by the Council have been brought back and no distinction has been established between solicited and unsolicited contracts”.
The current consumer rights rules are laid down by four European directives. These concern unfair contract terms, sales and guarantees, remote selling and door-to-door selling. The Parliament will take position on the proposed new directive at a plenary session in March. (A.N./transl.fl)