Michael D. Higgins
Question:31 Mr. M. Higgins asked the Tánaiste and Minister for Enterprise, Trade and Employment the main features of the new consumer initiative agreed among member states on 18 May. [18049/04]
View answerThursday, 17 June 2004
Questions (34)
Written answers
The proposed new unfair commercial practices directive aims to clarify consumers' rights and facilitate cross-border trade by establishing common, EU wide rules against aggressive or misleading business-to-consumer marketing. The directive provides for full harmonisation at EU level as soon as traders comply with its provisions.
Article 5 of the directive establishes two general conditions to apply in determining whether a practice is unfair. The practice must be contrary to the requirements of professional diligence and materially distorts consumers' behaviour.
The benchmark consumer to be considered in assessing the impact of a practice is generally the average consumer. There are also measures to prevent the exploitation of consumers, such as children who may be vulnerable to particular practices. Two specific types of unfair commercial practice are defined in more detail as misleading, Articles 6 and 7, and aggressive, Articles 8 and 9.
The directive contains an annex. It lists some specific types of unfair commercial practice that are banned in all circumstances. For example, making false claims about products or creating the impression that the consumer cannot leave the premises until a contract is formed.
Under Article 11 member states will have a duty to ensure the rules on unfair commercial practices are enforced and that traders in their jurisdiction who break them are punished. The duty to pursue rogue traders applies equally whether the consumers targeted live in the member state or another part of the EU.
I am pleased that political agreement was reached on the proposal under my chairmanship of the Competitiveness Council. In the autumn it will go back to the European Parliament for a second reading. Agreement on the proposal was complimented by the first reading agreement of the proposal for a regulation that provides for co-operation between the various consumer enforcement authorities of member states. It shall be easier to tackle cross-border abuses of consumer rights. On 18 May the Council noted this fact.
In an Internal Market of 25 member states trade and commerce is increasingly conducted across borders. Therefore, it is critical for consumer confidence that we provide strong protection measures and effective redress mechanisms. These two initiatives were positively progressed under the Irish Presidency and they will contribute greatly to this goal.