Brussels, 11/10/2011 (Agence Europe) - On Tuesday 11 October 2011, EU Justice and Citizenship Commissioner Viviane Reding suggested improvements to the functioning of the single market which will facilitate the expansion of cross-border trade for business and cross-border shopping for consumers. She unveiled a draft EU regulation to introduce European contract law.
Once approved (consumers will be able to click on an icon online to signal they wish to sign such a deal), the optional European contract sets out a range of uniform rules for business and consumers, as an alternative to national law for any type of product, be it white goods, films or online music.
The Commission explained that with this common European sales law, businesses seeking information about the national law of other member states would only need to ask a few, less important, questions that European sales law did not cover. A Commission communication explained that, in transactions between businesses and consumers, it would be no longer necessary to find provisions imperative to consumer law protecting consumers, given that common European sales law would contain harmonised rules on the matter, as well as a high level of protection throughout the Union.
For European businesses, the cost of business transactions and legal obstacles in 27 different legal contracts would therefore be reduced. The Commission considers that commercial losses created by the different laws are around €26 billion a year. Bolstered by this instrument, companies would also be encouraged to export their products more, explained the Commission. Only 9.3% of European businesses currently sell their products in other EU countries. This European contract, available translated into all official EU languages, will also help to reduce translation costs for business.
The Commission also explains that protection will be strengthened for consumers and adjusted to certain national practices that already exist: a withdrawal law is therefore planned. In contracts between businesses and consumers, the choice of this European instrument will only be valid if the consumer's consent is clearly and expressly provided. To help consumers understand their rights under this instrument, a standard information sheet will also be provided informing them of their rights. Consumers will also have several remedies to choose from in the event of purchasing defective products and will have the right to obtain repair, replacement or reduction in price. The Commission explained that so far, this choice of remedies only exists in a few member states. (SP/transl.fl)