Written Answers. - EU Consumer Affairs.
Eric J. Byrne
Question:
56
Mr. E. Byrne
asked the
Minister for Enterprise and Employment
the progress, if any, made at the EU Consumer Affairs Council during Ireland's Presidency of the EU; the further priorities, if any, he has for the Presidency in respect of consumer affairs; and if he will make a statement on the matter.
[23156/96]
I am pleased to inform the House that a number of significant advances in consumers' entitlements, protection and rights have been secured during Ireland's Presidency of the European Union (EU).
At the Consumer Council of 25 November, chaired by the Minister of State for Commerce, Science and Technology, Deputy Rabbitt, political agreement was reached on (i) a new and amending consumer credit directive which provides that a common formula for the calculation of the cost of credit ("APR") will be applied throughout the EU, thereby enabling consumers to compare more readily the various credit products on offer and seek the best bargain available, with greater certainty and confidence; and (ii) the speedy introduction, on a pilot basis, by the Commission of a voluntary out-of-courts system for the resolution of individual consumer cross border disputes; initially the new system, which is informal, inexpensive and simple, shall assist in the settlement of disputes in a non-adversarial and unintimidating manner and thereby represent a major milestone in the provision of access to justice for consumers, without detracting from or diminishing their statutory rights.
Minister Rabbitte was also anxious that fellow consumer Ministers would be afforded the opportunity to contribute to and make an input, into other wider policy areas, which until now have largely been off-limits, but yet impact considerably on the health, safety and economic interests of consumers. To this end, the Minister tabled two discussion documents on the consumer in the information society, which comprehended issues such as affordable and universal access, consumer data protection rights, the need for adequate and appropriate education and training for consumers to derive full advantage from the new information age; the results of consumer Ministers' deliberation shall form an important and integral part of the comprehensive debate on this subject at the proposed European Council in Dublin on 14 December, and the position of the vulnerable consumer and in particular those who may be disadvantaged because of their age, education or economic circumstances, and thereby are deprived from participating fully in the European Single Market.
In addition, agreement was also reached at the council on some important elements of a proposed directive on injunctions for the protection of consumers' interest, the purpose which is to enable member states to take swift and effective action against unlawful practices which harm consumers and in many instances emanate from other member states.
The Commission, also outlined their recently published proposals for a directive on guarantees and after sales services, the aims of which are to harmonise legal guarantees throughout the Community, and to stipulate that commercial guarantees offered by the supplier must supplement consumers' statutory rights and meet certain transparency requirements.
Other topics on which Ministers held an exchange of views were the proposed introduction of the new European currency and its implications for consumers; the labelling of genetically modified foods and food ingredients; the Commission's Green Papers on Financial Services, and Commercial Communications in order to ensure that the consumer interest is afforded due priority in any follow-up action; and BSE.
In addition to the progress achieved by the Consumer council, there has been a most sigificant breakthrough in the meantime on another important consumer dossier. Agreement was reached on 27 November last between the Council of EU Consumer Ministers and the European Parliament on a common text for a directive on the protection of consumers in respect of distance sales contracts.
Distance sales contracts comprehend transactions where there is no direct or face-to-face contact between the supplier of the goods or services and the consumer, and the supplier elicits business by means of either printed matter such as brochures or mail-order catalogues, or electronic media such as telephone, fax or Internet.
The directive provides that (i) the consumer shall be given complete information before the contract is concluded and in particular detail on the identity of the supplier, the characteristics of the goods or services, the price, including delivery charges, method of payment, and the duration in which the sales offer is valid; (ii) in order to allow adequate time and due consideration of the commitment being undertaken, consumers must be given a seven day "cooling off" period, in which they may withdraw from the contract and be entitled automatically to refund; (iii) the contract must be performed within thirty days of receipt of the customer's order and if the original goods requested are not available the customer must be supplied with goods of equivalent quality and price; (iv) the customer is protected fully against unsolicited goods or services and is not obliged to pay for them or the expense of their return; (v) consumers shall be protected against the fraudulent use of their credit card; and (vi) free samples must be clearly indicated and if customers do not respond to an offer, their silence cannot be taken as consent; thus inertia selling is being outlawed.
When transposed into Irish legislation, the directive shall be enforced by the Director of Consumer Affairs who will be empowered to seek a High Court judgment prohibiting practices which are contrary to its provisions.
