EU states seek unity on commercial rules

COMMERCE: Streamlined guidelines on advertising, marketing and after-sales would aid customers, says Commission

COMMERCE: Streamlined guidelines on advertising, marketing and after-sales would aid customers, says Commission

The majority of European Union member-states want the European Commission to develop a framework directive on fair commercial practices, the Commission has said.

A framework directive would harmonise national rules on the fairness of commercial practices - including advertising, aggressive marketing and after-sale customer assistance - between businesses and consumers.

A fully harmonised system will bring advantages to both consumers and businesses and complete the internal market in this area, the Commission says.

READ MORE

The Commission will now consult on the detail of a possible framework directive before making proposals.

Separately, the Commission will proceed with a proposal for improving the enforcement of consumer protection rules in the EU.

Health and Consumer Protection Commissioner, Mr David Byrne, said he recognised that this was a complex area. "We need to work closely with national governments, the European Parliament, business and consumers to get the detail right before making proposals.

"The programme of consultation outlined in the communication will enable us to develop proposals that give consumers the confidence to take the plunge into the internal market directly, exploiting the price differences that the euro has uncovered."

The 2001 Green Paper on consumer protection presented an analysis of the shortcomings of the internal market, from the perspectives of consumers and the businesses that sell to them.

It showed that fragmentation along national lines was still the rule.

The latest communication from the Commission identifies a possible "general clause", a fundamental principle defining fair commercial practices articulated into four possible key rules:

• A prohibition on business from engaging in commercial practices that are misleading or likely to mislead the consumer;

• A duty to disclose to the consumer all material information which is likely to affect the consumer's decision;

• A prohibition on the use of physical force, harassment, coercion or undue influence by business;

• Effective information disclosure and complaint-handling in the after-sales period.