Brussels, 19/05/2003 (Agence Europe) - On Monday the Competitiveness Council began an exchange of views on the regulation for "sales promotions" and sent the case onto the Italian Presidency. Divergences persist on this paper, which will enable companies to carry out "promotional activities" (presents, participation in competitions and games, prizes and discounts via price reductions, coupons or free products) in the whole of the internal market, on the basis of "mutual recognition" of inspections carried out in the country of origin of the company concerned.
Many of the delegations (France, Italy, Belgium, Austria and Finland) support a Presidency proposal that would change the draft regulation into taking national provisions more into account. The Commission could agree to it but is afraid that a directive might weaken the principle of mutual recognition. In the name of this principle, Spain and the Netherlands would prefer to stick to the Commission principle. Luxembourg and the United Kingdom are flexible.
Sweden and Finland are requesting a derogation so that sales promotions for alcohol is excluded from the field of application for the legislation because of reasons linked to public health. Belgium believes that a general derogation clause would be more suitable: it would allow Member States to introduce exemptions on the mutual recognition principle out of public health reasons or child protection, following notification to and agreement from the Commission. Portugal underlined that exemptions could not be stipulated until the paper provided a more precise definition of sales operations covered by the legislation. Commissioner Frits Bolkestein indicated that he could agree to a general clause.
Spain and other delegations are afraid of there being some confusion over sales promotion games and gambling, such as lotteries, which the majority countries do not want included in the internal market. Austria, supported notably by Spain and Portugal, have come up with a possible compromise: setting a ceiling below which sales games would be covered by the paper, thereby excluding gambling.
Finland insisted that the text be adopted in parallel to the framework directive on unfair trade practices, which Commissioner for consumers, David Byrne, is expected to propose soon.
The paper was proposed in October 2001 and is expected to get rid of cross-border obstacles to sales and at the same time enhance information for consumers on discounts and games proposed. It will compel Member States to get rid of certain bans, such as the 33% limit on discounts imposed in Belgium, for example. The Commission rejected demands from the Parliament which would have got rid of out of season discounts. Member States, however, agreed to allow Union countries to outlaw selling at a loss, which is the case in France. A compromise could exclude pharmaceutical products. The Parliament and the Council have already strengthened aspects from the paper linked to child protection.