Budapest - 26 April 2005 Fernand Van Gansbeke DG Enforcement and Mediation Belgium European core principles and actions for the protection of consumers Taiex Workshop – IM Budapest (HU) - 26 April 2005

Budapest - 26 April Introduction Consumer Protection not always a hot item in EU Today : 25 countries and >470 consumers Consumer Protection : different approach in different countries Neccessity for a Comminity-level policy

Budapest - 26 April The Birth of Consumer Policy First Action Plan 1975 : 5 fundamental rights To protection of health and safety To protection of economic interest To redress in case of damages To information and education To representation Single Act 1987 : introduction of notion ‘consumer’ Art 100a  Commission entitled to protect consumers at a high level

Budapest - 26 April The Birth of Consumer Policy (2) Single Market 1993 – new action programme : Notion of consumer confidence Progress on toy safety and general product safety, cross- border payments, unfair contract terms, distance selling, and timeshares Maastricht 1991 : A fully fledged Commity policy An Art 129a : ‘strengthening of consumer protection’ Several Green Papers (…)

Budapest - 26 April Priorities Priorities : Financial services, essential public utility services and food products Consumer eduction Assistance to help other countries to develop consumer- oriented policy But then : BSE crisis DG XXIV : consumer policy and health protection  DG Sanco

Budapest - 26 April Priorities 1996 – 1998 (2) Treaty of Amsterdam : Art. 153a : fresh impetus to consumer policy Protection of health, safety and economic interest of consumers Promote their rights to information, education and to organise themselves in order to safeguard their rights Consumer policy should be taken into account in all other Community policies Action plan : Consumer representation and education Consumer health and safety Economic interest of consumers

Budapest - 26 April Accents in the Priorities Consumer representation and education Systematic consultation Effective dialogue Information campaigns Expansion of the Euroguichets centres Cooperation on consumer education Consumer health and safety Risk analysis Guarantee for safer products and services Response to emergencies Economic interests of consumers

Budapest - 26 April Priorities – Actual Policy Consumers must be able to benefit fully from the internal market : Need for simpler and more uniform rules, A similar degree of application throughout the Union More accessible information and education measures Effective appeal mechanisms

Budapest - 26 April The Consumer Policy Strategy 3 Key objectives in one DG (Sanco) : A high common level of consumer protection Effective enforcement of consumer protection rules Proper involvement of consumer organisations in EU policies In order to help : achieve integration of consumer conderns into all other EU policies Maximise benefits of the single market for consumers Prepare for enlargement

Budapest - 26 April Safeguarding Consumers’ Interests Art. 153 of the Treaty : The internal market must work effectivily Consumers can : Purchase/order goods/services all over the EU When travelling / on distance / door-to-door Transfer money Legislation had to be adopted

Budapest - 26 April Safety of Products A high level of consumer health and safety ! Food safety  cfr Reg. 178/2002/EC Product safety  General Product Safety Directive (GPSD) Consumer products on the market should be safe General directive, but also completing sectorial legislation Generic definition of safe product Obligation for enforcing – appointing authorities Rapex exchange of information system … Safety of services  separate initiatives

Budapest - 26 April Enforcing Consumer Protection Rules Effective enforcement = Correct transposition by Member States Effective, efficient and consistent enforcement International Consumer Protection Enforcement Network (1991) – OECD Subgroup of ICPEN (1999) for the EU Prosafe Problem of enforcement by a mixture of private and public laws Need for EU initiative

Budapest - 26 April Consumer Protection Cooperation Regulation 2006/2004 : cooperation between national authorities responsible for enforcement of consumer protection laws Networking Obligation to assist Co-ordination of actions Information exchange Result of Green Paper 2001 on EU Consumer Portection Actual implementation phase Effective 2006

Budapest - 26 April Injunction Injunction = court order to stop, refrain or oblige a specific act Dir. 98/27/EC – Common procedure to allow a qualified body to seek an injunction in another country. Action based on own national provisions transposing EU Directives. Member States had to designate courts or administrative authorities and qualified bodies

Budapest - 26 April Redress / Asserting Consumer Rights Consumer have now certain rights Need for mechanisms to ensure that rights can be exercised Important for consumer confidence Access to courts is slow, expensive or unsuitable Therefore : a number of initiatives : Alternative Dispute Resolution (ADR) – EEJ-net European Consumer Centres (ECC)

Budapest - 26 April ADR Alternative Dispute Resolution schemes (ADR) = out of court mechanisms Public initiative  Private initiative Difference in status of decision Recommandation 98/257 EEJ net Database of different out of court bodies Goal : Building up confidence Integration in ECC Network

Budapest - 26 April European Consumer Centres (ECC) Merge of two previous existing networks : Euroguichets and EEJ-Network Aim : one-shop for citizens Tasks : Inform consumers about opportunities of internal market Advice in consumer related problems and support in cross- border complaints Co-ordinate out of court settlements throughout Europe Provide easy access to such procedures cross border Conduct cross border comparisons … 23 Centres, more to be planned

Budapest - 26 April Working with Consumer Organisations One of the key objectives of the Strategy Participation in policy making Use consumer associations’ experience But need for a more consistent framework Increased financial and technical support to get a better active and efficient intervention Commission study : opportunities for improvement

Budapest - 26 April Conclusion 30 years of history and evolution A lot has been done Important work lays on the table Framework directive ‘unfair trade practices’ Implementation Regulation Enforcement Co-operation Further : Need for more simplification of existing rules and deregulation Use of framework directives  fragmentation

Budapest - 26 April 2005 Fernand T.G. VAN GANSBEKE Director DG Enforcement & Mediation WTC 3 - Office Boulevard Simon Bolivar 30 B BRUSSELS Phone : Fax : Website :