Tuesday, April 13, 2010

A consistent approach for EU consumers?

The review covers the 8 main directives aimed at protecting consumers, including the familiar roll-call of the Unfair Terms in Consumer Contracts Directive, the Consumer Sales and Guarantees Directive, the Distance Selling Directive, the Doorstep Selling Directive and the Package Travel Directive. It pulls on a number of surveys which show that despite attempts at harmonisation, trade between member states in consumer goods is not what it could be - many businesses would like to sell to consumers in other member states but are fearful of doing so because of varying regulatory requirements, and many consumers who purchase goods from another member state are running into difficulties when their rights vary state to state.

The main objective of the review is to remove this stumbling block, allowing consumers and businesses within the European Union to trade without concern as to where the other party is based, primarily to benefit consumers by allowing for consistency, but also to reduce the burden of SMEs by creating a more predictable regulatory environment within the European Union.

The green paper is consulting on a number of issues including the proposed approach (either a vertical approach requiring the revision of individual directives, or a horizontal approach requiring the implementation of a framework addressing issues for all consumer contracts), the definitions of consumer and professional (recognising that there is not currently a consistent approach to this), the potential introduction of a general duty to act in good faith, and detailed questions regarding unfair terms, withdrawal, delivery, remedies and other issues.

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