European Commission risks harming consumer protection

Publication date: 23 April 2009

CoR member Wolfgang Gibowski, plenipotentiary of the Land of Lower Saxony: European Commission risks harming consumer protection

On 22 April, the Plenary Session of the EU Committee of the Regions discussed Wolfgang  Gibowski's draft opinion on the Proposal for a Directive from the European Commission on Consumer Rights COM(2008) 614 final). Under the new directive, key provisions on consumer protection are to be standardised in order to improve the operation of the internal market, increase consumer confidence and facilitate cross-border trade. "The aim of the directive is a worthy one, but unfortunately in practical terms it leaves much to be desired. Were it to be implemented, the proposed directive would result in the level of consumer protection in many European Member States being reduced", explained Mr Gibowski.

The main bone of contention is that, for the first time, the draft directive is to apply the principle of full harmonisation in European consumer law. This is a new departure in European law, according to Mr Gibowski. Full harmonisation would mean that in this area the Member States would be unable to retain or to introduce any legislation not referred to in the directive. Until now, directives in this area have determined a European minimum standard, leaving Member States able to exceed the level of consumer protection afforded by the EU.

"Full harmonisation will thus have the same effect as implementing a regulation and have significant repercussions on systems of civil law in the Member States. National legislation regarding contract and default would have to be brought into conformity with it. Furthermore, Member States would no longer be able to exceed the level of consumer protection afforded by the directive. This cannot be in our interests and is a substantial violation of the subsidiarity principle."

The very concept of the Commission proposal comes in for criticism. "Instead of the originally planned standardisation of eight directives, only four are now being integrated. The Commission is pressing on with this piecemeal approach to European consumer legislation and passing up the opportunity to achieve proper standardisation," continued Mr Gibowski.

"One of the more serious shortcomings of the Commission's proposal is that it is not based on hard evidence," explained the rapporteur. "The entire draft directive is based on one Eurobarometer survey interpreted arbitrarily and without expert advice. Specific problems encountered by consumers in cross-border trade, especially language barriers, legal fees and court costs, were unlikely to be remedied by this directive. In short, this draft directive helps nobody.  On the contrary, in some Member States a perceptibly reduced level of consumer protection would result."

Source: COR