Brussels, 21/05/2002 (Agence Europe) - The Consumers Council, presided by Ms Villalobos Telero held a political debate on Tuesday that allowed Member States to clarify their concerns about the proposal of regulation on sales promotion in the internal market. The text aims to eliminate barriers to the crossborder trade of goods and services, resulting from divergent national provisions applying to discounts, premiums, gifts, competitions and promotional games linked to a purchase (the restrictive provisions would be replaced by requirements of transparency and information on commercial communication, that guarantee a high level of consumer protection, and protection of minors and health). Speaking before the Council, Commissioner Frits Bolkestein insisted that the regulation proposed would encourage competition to the benefit of consumers, while guaranteeing the correct working of the internal market. We give below the guidelines reached on the most controversial issues:
Scope and degree of harmonisation required: The United Kingdom is the only Member State that meets the Commission's proposal. France, the Netherlands and Germany would prefer wider harmonisation of national legislation, while other delegations, such as Austria, recommend a mixed approach (harmonisation and application of the principle of mutual recognition). Still others (Spain, Portugal, Finland) give preference to the principle of mutual recognition alone, on condition that specific attention is paid to certain tools for promotion or to products presenting potential risks for consumers (alcohol, tobacco, lottery games).
Relevance of the application of the same approach to the promotion of sales between professionals and between professionals and consumers: Several delegations (Netherlands, Austria, Germany, Finland, Sweden and Spain) consider for various reasons that two different systems are needed. Luxembourg, too, on condition that this does not entail additional costs for companies. France has expressed its preference for regulations limited to relations between professionals and consumers.
Fate to be reserved to the specific case of door to door sales: Some delegations (Netherlands, United Kingdom, Sweden, Austria) approve the Commission's approach aimed at lifting restrictions to this practice in the internal market. Others rule out this practice of regulation, which would allow Member States to impose restrictions at national level (Luxembourg, Denmark, Ireland, Portugal, Italy). Others still would hope, via the regulation, to maintain restrictions at Community level (France, which bans this practice, but also Germany, Belgium, Greece and Spain).
Speaking on behalf of the Commission, Frits Bolkestein stressed that the practice of selling at a loss may be an effective, and sometimes the only way to penetrate new markets, which justifies it being authorised under certain conditions.
Nature of the legal basis and instrument: In response to this subsidiary question on the questionnaire prepared by the Presidency, no delegation was in favour of a regulation. Nine delegations (France, Austria, Germany, Spain, Portugal, Italy, Belgium, Sweden and Greece) prefer a directive. The Commission considers that a regulation is more able to ensure legal security in the internal market and to satisfy its determination to legislate better, as described in its White Paper on governance.
Link between the regulation proposed and the Green Paper on the future of consumer policy: Italy and France hope the regulation will have a double legal base (Article 95 "Internal Market", as the Commission proposes, but also Article 153 on "consumer protection"). Sweden, Denmark and Finland insisted that both issues should be studied together. Greece and Belgium hope to wait for the result of the consultation on the Green Paper before concluding on sales promotion. Germany notes incompatibilities between the two approaches. The United Kingdom and the Netherlands see no incompatibility and press the Council and the Commission to pursue the work without delay. The Commission said it could accept these two issues in parallel. The first reading of the European Parliament on the proposal of regulation is expected in June.