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MEPs divided over Consumer Rights Directive

Published 28 June 2010 - Updated 13 December 2010
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Members of the European Parliament's internal market and consumer protection committee (IMCO) have voiced their differences in approach to draft EU proposals aimed at safeguarding consumer rights across the European Union.

A Parliament report on European Commission proposals to establish a more uniform set of rules on consumer rights across the EU received a rather mixed welcome from MEPs on Thursday (24 June).

The report focused on the last four chapters of the proposed directive, which relate to sales contract terms as well as general and final provisions.

The first three chapters were discussed in the committee earlier this month (EurActiv 04/06/10).

The Commission's 2008 proposal merges four existing EU consumer rights directives into one, structured under seven chapters, such as consumer information and contract terms (EurActiv 08/10/08; EurActiv 10/10/08).

The Parliament's rapporteur, German MEP Andreas Schwab (European People's Party), proposes considerable changes regarding the chapter-based structure of the directive and advocates a mixed approach to harmonisation.

He proposes applying the concept of "targeted full harmonisation" whereby common EU rules are applied across the board when desirable, leaving others to only pursue minimum harmonisation.

But other MEPs expressed concern over Schwab's plans to reorganise the directive's structure.

British MEP Malcolm Harbour (European Conservatives and Reformists), who chairs the IMCO committee, stressed that discussing the content of the directive would not be possible before MEPs had agreed on the structure.

Harbour advised the rapporteur and shadow rapporteurs to work together and agree on a structure before the committee meets next month to discuss the consolidated version of the draft report.

In general, MEPs asked for more time to consider this complex piece of legislation.

Member states also appear to be divided on the issue, with a majority in favour of full targeted harmonisation but on a varying scale according to the type of contract.

While the Commission's original proposal, tabled under the Barroso I Commission, seeks full harmonisation, the new EU executive argues that only targeted full harmonisation is desirable (EurActiv 16/04/10).

Justice and Fundamental Rights Commissioner Viviane Reding said that if there is no agreement on the dossier at first reading, she will consider tabling a new text.

Positions: 

European chambers of commerce and industry (Eurochambres) called on the European Parliament to halt discussions on Alexander Schwab's draft report on the Consumer Rights Directive until "the implications of its radical changes to the Commission proposal are carefully assessed". 

Next steps: 
  • 12 July 2010: Consolidated text discussed in committee.
  • 26 Oct. 2010: Vote in committee scheduled.
  • Dec. 2010: Plenary vote scheduled.
  • 10 Dec. 2010: Council debate scheduled.
Background: 

At present, the contractual rights of EU consumers are set out in four separate directives on unfair contract termssales and guaranteesdistance selling and doorstep selling respectively. These date from the 1980s and 1990s, while many EU countries have since adopted stricter rules themselves. 

By the European Commission's own admission, this has led to "a patchwork of laws" and "a maze of different rights and practices […] which are as unclear to consumers as they are confusing for business". 

The proposal for a new Consumer Rights Directive, tabled in October 2008, seeks to simplify this by merging the existing four EU consumer rights directives into one set of fully harmonised rules (EurActiv 08/10/08; EurActiv 10/10/08).

The aim is to improve the functioning of the internal market for consumers through encouraging business to sell to consumers abroad and increasing consumer confidence in cross-border purchases.

The proposed directive concerns business-to-consumer (B2C) sales contracts for goods and services and specifically covers issues such as pre-contractual information, delivery rules, 'cooling off' periods for distance sales, repairs, replacements and guarantees as well as new selling technologies.

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