Brussels, 28/07/2000 (Agence Europe) - The European Commission decided on Thursday to send a reasoned opinion to Belgium for its refusal to allow a customer-loyalty campaign being sponsored by a company operating in another EU Member State. The case was sparked three years ago by a complaint lodged by the company, specialised in the organisation of promotional campaigns for other firms. It was prohibited from running a campaign in Belgium consisting of offering customers points that could be exchanged for airline tickets. Belgian authorities ruled that the campaign was illegal under a 1991 Belgian law on trading practices.
This law prohibits customer-loyalty campaigns that are not directly organised by the company trying to win customers and where the premiums, rebates or gifts are not similar to the products or services which a customer initially acquires in order to be entitled to the "compensation". Companies established in Belgium are allowed to run such schemes, however. The Commission is therefore of the view that the refusal is discriminatory and constitutes an illegal restriction on the freedom to provide services in the internal market (Article 49 of the EU Treaty).
"This practice imposes restrictions on marketing", explained the spokesman for the European Commissioner in charge of the internal market, Frits Bolkestein. The European Commission has until now taken little action in cases of this kind, concentrating instead on obstacles to free movement of goods and mutual recognition of qualifications. But continuation of such practices could create distortions between traditional trade and electronic commerce. The European directive adopted in May, which establishes a legal framework for electronic commerce, prohibits Member States from limiting the marketing on their territory of services legally available in another Member State.
Upon receipt of the reasoned opinion, Belgium will have two months to submit a satisfactory response, failing which the European Commission may decide to refer the case to the European Court of Justice.