FIA clubs call on the Commission to improve consumer protection

Publication date: 15 January 2009

New EU proposals aim to simplify the maze of consumer rights laws. Whilst generally welcoming the principle of better contractual rights for European consumers, FIA clubs call for new EU contractual law not to lower consumer protection levels. This is especially so, at a time when important consumer rights for car buyers and owners contained in the so-called Block Exemption Regulation are also under review and in danger of abolition.

The European Commission has launched proposals to simplify four existing EU consumer rights directives into one set of rules. The aim is to boost consumer confidence and at the same time to cut red tape. A standard set of consumer contract terms will also cut compliance costs substantially. The proposed Consumer Rights Directive upgrades existing consumer protection in several key areas and for many consumers. FIA club experts, though, remain cautious. They fear that the Commission's push for full harmonisation will mean the Commission fixing a single maximum level of protection throughout the EU, even if this would be a step backwards in some countries. This is definitely a case where “one size does not fit all”.

Kerstin Sundvall from Swedish club Motormännen (“M”) is most concerned about the “full” harmonisation. “This means that Member States may not maintain or introduce, in their national law, provisions diverging from those laid down in this Directive, including more or less stringent provisions to ensure a different level of consumer protection,” Sundvall noted. That may be fine for countries where consumer protection needs to be boosted, but can lead to less protection in some cases. Sweden, for instance, generally gives protection to consumers for a longer period of time.

Dutch club ANWB is also disappointed by the proposal. “The Netherlands will take a step backwards in protecting consumers if the directive is adopted. The reason for this is that the member states will no longer be able to opt for a higher level of protection than that prescribed by the EU. The legal guarantee on durable products such as cars and other means of transport will deteriorate as a result of this,” notes the club in a reaction. One example is the legal guarantee period on products. Under Dutch law, this is not limited, but in the draft directive it is restricted to a maximum of two years. The directive also gives the seller greater rights to choose whether to repair faulty products rather than offer a replacement.

German club AvD is also critical of proposed full harmonisation. This does not allow national variations in favour of the consumer. “In other words, a levelling down is not advantageous for the interests of our club members in general and can lead to a lower protection level in several member states,” said Petra Schmucker. She pointed to German laws governing the cooling off periods for distance and doorstep selling. The period is currently unlimited in the even of an inappropriate advice or instruction. The maximum cooling off period of three months after fulfilling the contract – as foreseen in the Commissions draft directive – would actually shorten the time considerably for German consumers. “In our view, only the obligatory minimum level should be defined in the European directive in order to enhance the legal certainty for the consumer,” said Schmucker. EU efforts should then not jeopardise the levels of consumer protection already achieved.

Car consumer rights protected elsewhere

The proposed Consumer Rights Directive will also not include many of the essential consumer rights covering the sale of cars currently contained in the so-called Motor Vehicle Block Exemption Regulation. “If the Regulation went without replacement then the consumer rights given above would suddenly no longer be stipulated anywhere. Consumers would be subjected to the dictates of the industry,” warned Austrian club ÖAMTC's Ursula Zelenka.

“This regulation indirectly contains some essential consumer rights, which are not otherwise regulated elsewhere,” said Zelenka . These rights include that of being able to buy a vehicle outside the purchaser's home state. Under the Regulation, you can have a vehicle purchased in another country serviced in your home country or at any contract repair shop for the same make. Your warranty claims are also considered valid in other countries or at home.

Other important rights in the Block Exemption Regulation include that of going to independent garages, being allowed to use lower-priced and non-original replacement parts for repairs without losing warranty claims. Zelenka would like to see the Block Exemption Regulation retained by the Commission after 31 May 2010. Failing this, these rights should be given in a new EU law. For the time being it does not seem likely that forthcoming new consumer rights legislation will fill the gap.