### if the consumer has required the remedying of the lack of conformity by repair or replacement pursuant to paragraph 1 , the consumer may resort to other remedies only if the trader has not completed repair or replacement within a reasonable time , not exceeding 30 days . however , the consumer may withhold performance during that time . ### if the consumer has required the remedying of the lack of conformity by repair or replacement pursuant to paragraph 1 , the consumer may resort to other remedies only if : the trader has not completed repair or replacement within a reasonable time , not exceeding 30 days ; b ) the trader has implicitly or explicitly refused to remedy the lack of conformity ; c ) the same fault has occurred again following repair or replacement .


### limitation of remedies for digital content not supplied in exchange for a price where digital content is not supplied in exchange for the payment of a price , the buyer may not resort to the remedies referred to in points to of article 106 . the buyer may only claim damages under point of article 106 for loss or damage caused to the buyer ' s property , including hardware , software and data , by the lack of conformity of the supplied digital content , except for any gain of which the buyer has been deprived by that damage . ### limitation of remedies for digital content not supplied in exchange for payment of a price or any other counter performance - 1 . where digital content is supplied in exchange for a counter performance other than the payment of a price the buyer may resort to any of the remedies referred to in article 106 except for price reduction under point . where digital content is not supplied in exchange for any counter performance the buyer may not resort to the remedies referred to in points to of article 106 . the buyer may only claim damages under point of article 106 for loss or damage caused to the buyer ' s property , including hardware , software and data , by the lack of conformity of the supplied digital content , except for any gain of which the buyer has been deprived by that damage .


### this regulation establishes a common european sales law . it harmonises the contract laws of the member states not by requiring amendments to the pre - existing national contract law , but by creating within each member state ' s national law a second contract law regime for contracts within its scope . this second regime should be identical throughout the union and exist alongside the pre - existing rules of national contract law . the common european sales law should apply on a voluntary basis , upon an express agreement of the parties , to a cross - border contract . ### this regulation establishes a common european sales law for distance contracts and in particular for online contracts . it approximates the contract laws of the member states not by requiring amendments to the first national contract law regime , but by creating a second contract law regime for contracts within its scope . this directly applicable second regime should be an integral part of the legal order applicable in the territory of the member states . in so far as its scope allows and where parties have validly agreed to use it , the common european sales law should apply instead of the first national contract law regime within that legal order . it should be identical throughout the union and exist alongside the pre - existing rules of national contract law . the common european sales law should apply on a voluntary basis , upon an express agreement of the parties , to a cross - border contract .


### in a consumer sales contract , any agreement derogating from the requirements of articles 100 , 102 and 103 to the detriment of the consumer is valid only if , at the time of the conclusion of the contract , the consumer knew of the specific condition of the goods or the digital content and accepted the goods or the digital content as being in conformity with the contract when concluding it . ### any agreement derogating from the requirements of articles [ . . . ] to the detriment of the consumer is valid only if , at the time of the conclusion of the contract , the consumer knew of the specific condition of the goods or the digital content and explicitly accepted the goods or the digital content as being in conformity with the contract when concluding it .


### ‘ commercial guarantee’ means any undertaking by the trader or a producer to the consumer , in addition to legal obligations under article 106 in case of lack of conformity to reimburse the price paid or to replace or repair , or service goods or digital content in any way if they do not meet the specifications or any other requirements not related to conformity set out in the guarantee statement or in the relevant advertising available at the time of , or before the conclusion of the contract ; ### ' commercial guarantee ' means any undertaking by the trader or a producer to the consumer , in addition to his legal obligation relating to the guarantee of conformity , to reimburse the price paid or to replace , repair or service goods or digital contents in any way if they do not meet the specifications or any other requirements not related to conformity set out in the guarantee statement or in the relevant advertising available at the time of , or before the conclusion of the contract ;


### to overcome these contract - law - related barriers , parties should have the possibility to agree that their contracts should be governed by a single uniform set of contract law rules with the same meaning and interpretation in all member states , a common sales law . the common european sales law should represent an additional option increasing the choice available to parties and open to use whenever jointly considered to be helpful in order to facilitate cross - border trade and reduce transaction and opportunity costs as well as other contract - law - related obstacles to cross - border trade . it should become the basis of a contractual relationship only where parties jointly decide to use it . ### contract - law - related barriers prevent consumers and traders from fully exploiting the potential of the internal market and are particularly relevant in the area of distance selling which should be one of the tangible results of the internal market . in particular , the digital dimension of the internal market is becoming vital for both consumers and traders as consumers increasingly make purchases over the internet and an increasing number of traders sell online . given that communication and information technology means are constantly developing and becoming increasingly accessible , the growth potential of internet sales is very high . against this background , and to overcome such contract - law - related barriers , parties should have the possibility to agree that contracts they conclude at a distance , and , in particular , online , should be governed by a single uniform set of contract law rules with the same meaning and interpretation in all member states , a common european sales law . that common european sales law should represent an additional option for distance and , in particular , internet trade , increasing the choice available to parties and open to use whenever jointly considered to be helpful in order to facilitate cross - border trade and reduce transaction and opportunity costs as well as other contract - law - related obstacles to cross - border trade . it should become the basis of a contractual relationship only where parties jointly decide to use it .


### the common european sales law should comprise of a complete set of fully harmonised mandatory consumer protection rules . in line with article 114 of the treaty , those rules should guarantee a high level of consumer protection with a view to enhancing consumer confidence in the common european sales law and thus provide consumers with an incentive to enter into cross - border contracts on that basis . the rules should maintain or improve the level of protection that consumers enjoy under union consumer law . ### in line with article 114 of the treaty , those rules should guarantee a high level of consumer protection with a view to enhancing consumer confidence and thus provide consumers with an incentive to enter into cross - border contracts . the rules should maintain or improve the existing level of protection that consumers enjoy under union consumer law .


### with a view to maximising the added value of the common european sales law its material scope should also include certain services provided by the seller that are directly and closely related to specific goods or digital content supplied on the basis of the common european sales law , and in practice often combined in the same or a linked contract at the same time , most notably repair , maintenance or installation of the goods or the digital content . ### with a view to maximising the added value of updating existing provisions on the legal obligation relating to the guarantee of conformity , the material scope of this directive should also include certain services that are directly and closely related to specific goods or digital content and in practice often combined in the same or a linked contract at the same time .


### once there is a valid agreement to use the common european sales law , only the common european sales law should govern the matters falling within its scope . the rules of the common european sales law should be interpreted autonomously in accordance with the well - established principles on the interpretation of union legislation . questions concerning matters falling within the scope of the common european sales law which are not expressly settled by it should be resolved only by interpretation of its rules without recourse to any other law . the rules of the common european sales law should be interpreted on the basis of the underlying principles and objectives and all its provisions . ### the rules of the common european sales law should be interpreted autonomously in accordance with the well - established principles on the interpretation of union legislation . questions concerning matters falling within the scope of the common european sales law which are not expressly settled by it should be resolved only by interpretation of its rules without recourse to any other law . the rules of the common european sales law should be interpreted on the basis of the underlying principles and objectives and all its provisions .


### this regulation establishes a common european sales law . it harmonises the contract laws of the member states not by requiring amendments to the pre - existing national contract law , but by creating within each member state ' s national law a second contract law regime for contracts within its scope . this second regime should be identical throughout the union and exist alongside the pre - existing rules of national contract law . the common european sales law should apply on a voluntary basis , upon an express agreement of the parties , to a cross - border contract . ### this directive provides a minimum set of rules making up the legal framework for certain aspects of the sale of consumer goods and digital content , legal obligations relating to guarantees of conformity and related - services contracts . this directive therefore harmonises the contract law of member states without preventing them from maintaining or introducing stricter national provisions in the areas harmonised by this directive in order to guarantee a high level of consumer protection .


### the principle of good faith and fair dealing should provide guidance on the way parties have to cooperate . as some rules constitute specific manifestations of the general principle of good faith and fair dealing , they should take precedent over the general principle . the general principle should therefore not be used as a tool to amend the specific rights and obligations of parties as set out in the specific rules . the concrete requirements resulting from the principle of good faith and fair dealing should depend , amongst others , on the relative level of expertise of the parties and should therefore be different in business - to - consumer transactions and in business - to - business transactions . in transactions between traders , good commercial practice in the specific situation concerned should be a relevant factor in this context . ### the general principle of good faith and fair dealing should provide guidance on the way parties have to cooperate . as some rules constitute specific manifestations of the general principle of good faith and fair dealing , they should take precedent over the general principle . the general principle should therefore not be used as a tool to amend the specific rights and obligations of parties as set out in the specific rules . the concrete requirements resulting from the general principle of good faith and fair dealing should depend , amongst others , on the relative level of expertise of the parties and should therefore be different in business - to - consumer transactions and in business - to - business transactions . in transactions between traders , good commercial practice in the specific situation concerned should be a relevant factor in this context . without preventing parties from pursuing their own interests , the general principle of good faith and fair dealing should set a standard of conduct which ensures a honest , transparent and fair relationship . while it precludes a party from exercising or relying on a right , remedy or defence which that party would otherwise have , the principle as such should not give rise to a general claim for damages . rules of the common european sales law constituting specific manifestations of the general principle of good faith and fair dealing like avoidance for fraud or the non - performance of an obligation created by an implied term can give rise to a right to damages , however only in very specific cases .


### all the matters of a contractual or non - contractual nature that are not addressed in the common european sales law are governed by the pre - existing rules of the national law outside the common european sales law that is applicable under regulations no 593 / 2008 and no 864 / 2007 or any other relevant conflict of law rule . these issues include legal personality , the invalidity of a contract arising from lack of capacity , illegality or immorality , the determination of the language of the contract , matters of non - discrimination , representation , plurality of debtors and creditors , change of parties including assignment , set - off and merger , property law including the transfer of ownership , intellectual property law and the law of torts . furthermore , the issue of whether concurrent contractual and non - contractual liability claims can be pursued together falls outside the scope of the common european sales law . ### all the matters of a contractual or non - contractual nature that are not addressed in this directive are governed by the pre - existing rules of national law .


### in relations between a trader and a consumer the parties may not , to the detriment of the consumer , exclude the application of this chapter or derogate from or vary its effects . ### in relations between a trader and a consumer the parties may not , to the detriment of the consumer , exclude the application of this chapter or derogate from or vary its effects , before notice of avoidance or termination is given .


### it is also appropriate to review the functioning of the common european sales law or any other provision of this regulation after five years of operation . the review should take into account , amongst other things , the need to extend further the scope in relation to business - to - business contracts , market and technological developments in respect of digital content and future developments of the union acquis . ### it is also appropriate to review the functioning of the common european sales law or any other provision of this regulation after five years of operation . the review should take into account , amongst other things , the need to include further rules relating to the matter of retention of title clauses , market and technological developments in respect of digital content and future developments of the union acquis . particular consideration should further be given to whether the limitation to distance contracts , and in particular online contracts , remains appropriate or whether a wider scope , including on - premises contracts , may be feasible .


### the buyer loses the right to terminate under this section if notice of termination is not given within a reasonable time from when the right arose or the buyer became , or could be expected to have become , aware of the non - performance , whichever is later . ### the buyer loses the right to terminate under this section if notice of termination is not given within 30 days from when the right arose or the buyer became , or , if the buyer is a trader that buyer could be expected to have become , aware of the non - performance , whichever is later


### ‘ trader’ means any natural or legal person who is acting for purposes relating to that person ' s trade , business , craft , or profession ; ### ‘ trader’ means any natural person or any legal person , irrespective of whether privately or publicly owned , who is acting , including through any other person acting in his name or on his behalf , for purposes relating to his trade , business , craft or profession in relation to contracts ;


### the long period of prescription is ten years or , in the case of a right to damages for personal injuries , thirty years . ### the long period of prescription is six years or , in the case of a right to damages for personal injuries , thirty years .


### without prejudice to paragraph 3 , the customer ' s remedies are subject to a right of the service provider to cure whether or not the customer is a consumer . ### without prejudice to paragraph 3 , the customer ' s remedies are subject to a right of the service provider to cure .


### digital content is often supplied not in exchange for a price but in combination with separate paid goods or services , involving a non - monetary consideration such as giving access to personal data or free of charge in the context of a marketing strategy based on the expectation that the consumer will purchase additional or more sophisticated digital content products at a later stage . in view of this specific market structure and of the fact that defects of the digital content provided may harm the economic interests of consumers irrespective of the conditions under which it has been provided , the availability of the common european sales law should not depend on whether a price is paid for the specific digital content in question . ### digital content is often supplied not in exchange for a price but in combination with separate paid goods or services , involving a non - monetary consideration such as giving access to personal data or free of charge in the context of a marketing strategy based on the expectation that the consumer will purchase additional or more sophisticated digital content products at a later stage . in view of this specific market structure and of the fact that defects of the digital content provided may harm the economic interests of consumers irrespective of the conditions under which it has been provided , the protection for the consumer which is ensured by this directive should not depend on whether a price is paid for the specific digital content in question .


### this regulation enables traders to rely on a common set of rules and use the same contract terms for all their cross - border transactions thereby reducing unnecessary costs while providing a high degree of legal certainty . ### this regulation enables traders , in particular small or medium - sized enterprises , to rely on a common set of rules and use the same contract terms for all their cross - border transactions thereby reducing unnecessary costs while providing a high degree of legal certainty .


### the buyer loses the right to terminate under this section if notice of termination is not given within a reasonable time from when the right arose or the buyer became , or could be expected to have become , aware of the non - performance , whichever is later . 2 . paragraph 1 does not apply : where the buyer is a consumer ; or where no performance at all has been rendered ### alternative 2 [ alternative amendment to amendments for article 106 and article 174 to ] the buyer loses the right to terminate under this section if notice of termination is not given within a reasonable time from when the right arose or the buyer became , or , if the buyer is a trader that buyer could be expected to have become , aware of the non - performance , whichever is later . 2 . paragraph 1 does not apply where no performance at all has been rendered .


### this regulation establishes a common european sales law . it harmonises the contract laws of the member states not by requiring amendments to the pre - existing national contract law , but by creating within each member state ' s national law a second contract law regime for contracts within its scope . this second regime should be identical throughout the union and exist alongside the pre - existing rules of national contract law . the common european sales law should apply on a voluntary basis , upon an express agreement of the parties , to a cross - border contract . ### this regulation establishes a common european sales law for distance contracts and in particular for online contracts . it approximates the contract laws of the member states not by requiring amendments to the first national contract law regime , but by creating a second contract law regime for contracts within its scope . this directly applicable second regime should be an integral part of the legal order applicable in the territory of the member states . in so far as its scope allows and where parties have validly agreed to use it , the common european sales law should apply instead of the first national contract law regime within that legal order . it should be identical throughout the union and exist alongside the pre - existing rules of national contract law . the common european sales law should apply on a voluntary basis , upon an express agreement of the parties , to a cross - border contract .


### since the common european sales law contains a complete set of fully harmonised mandatory consumer protection rules , there will be no disparities between the laws of the member states in this area , where the parties have chosen to use the common european sales law . consequently , article 6 regulation no 593 / 2008 , which is predicated on the existence of differing levels of consumer protection in the member states , has no practical importance for the issues covered by the common european sales law . ### once there is a valid agreement to use the common european sales law , only the common european sales law should govern the matters falling within its scope . since the common european sales law contains a comprehensive set of uniform harmonised mandatory consumer protection rules , there will be no disparities between the laws of the member states in this area , where the parties have chosen to use the common european sales law . consequently , article 6 of regulation no 593 / 2008 , which is predicated on the existence of differing levels of consumer protection in the member states , has no practical relevance for the issues covered by the common european sales law as it would amount to a comparison between the mandatory provisions of two identical second contract law regimes .


### ‘ commercial guarantee’ means any undertaking by the trader or a producer to the consumer , in addition to legal obligations under article 106 in case of lack of conformity to reimburse the price paid or to replace or repair , or service goods or digital content in any way if they do not meet the specifications or any other requirements not related to conformity set out in the guarantee statement or in the relevant advertising available at the time of , or before the conclusion of the contract ; ### ' commercial guarantee ' means any undertaking by the trader or a producer to the consumer , in addition to his legal obligation relating to the guarantee of conformity , to reimburse the price paid or to replace , repair or service goods or digital contents in any way if they do not meet the specifications or any other requirements not related to conformity set out in the guarantee statement or in the relevant advertising available at the time of , or before the conclusion of the contract ;


### where , in a consumer sales contract , the trader is required to remedy a lack of conformity pursuant to article 110 the consumer may choose between repair and replacement unless the option chosen would be unlawful or impossible or , compared to the other option available , would impose costs on the seller that would be disproportionate taking into account : ### if the good or the digital content is not in conformity with the contract , the consumer may require remedy free of charge by choosing between repair and replacement unless the option chosen would be unlawful or impossible or , compared to the other option available , would impose costs on the seller that would be disproportionate taking into account :


### the parties may agree that the common european sales law governs their cross - border contracts for the sale of goods , for the supply of digital content and for the provision of related services within the territorial , material and personal scope as set out in articles 4 to 7 . ### the parties may agree subject to the requirements laid down in articles 8 and 9 that the common european sales law governs their cross - border contracts for the sale of goods , for the supply of digital content and for the provision of related services within the territorial , material and personal scope as set out in articles 4 to 7 .


### with a view to maximising the added value of the common european sales law its material scope should also include certain services provided by the seller that are directly and closely related to specific goods or digital content supplied on the basis of the common european sales law , and in practice often combined in the same or a linked contract at the same time , most notably repair , maintenance or installation of the goods or the digital content . ### with a view to maximising the added value of updating existing provisions on the legal obligation relating to the guarantee of conformity , the material scope of this directive should also include certain services that are directly and closely related to specific goods or digital content and in practice often combined in the same or a linked contract at the same time .


### the agreement of the parties to a contract is indispensable for the application of the common european sales law . that agreement should be subject to strict requirements in business - to - consumer transactions . since , in practice , it will usually be the trader who proposes the use of the common european sales law , consumers must be fully aware of the fact that they are agreeing to the use of rules which are different from those of their pre - existing national law . therefore , the consumer ' s consent to use the common european sales law should be admissible only in the form of an explicit statement separate from the statement indicating the agreement to the conclusion of the contract . it should therefore not be possible to offer the use of the common european sales law as a term of the contract to be concluded , particularly as an element of the trader ' s standard terms and conditions . the trader should provide the consumer with a confirmation of the agreement to use the common european sales law on a durable medium . ### the agreement of the parties to a contract to the use of the common european sales law is indispensable for the application of the common european sales law . that agreement should be subject to strict requirements in business - to - consumer transactions . since , in practice , it will usually be the trader who proposes the use of the common european sales law , consumers must be fully aware of the fact that they are agreeing to the use of rules which are different from those of their pre - existing national law . therefore , the consumer ' s consent to use the common european sales law should be admissible only in the form of an explicit statement separate from the statement indicating the agreement to the conclusion of the contract . it should therefore not be possible to offer the use of the common european sales law as a term of the contract to be concluded , particularly as an element of the trader ' s standard terms and conditions . the trader should provide the consumer with a confirmation of the agreement to use the common european sales law on a durable medium .


### ‘ trader’ means any natural or legal person who is acting for purposes relating to that person’s trade , business , craft , or profession ; ### ‘ trader’ means any natural person or any legal person , irrespective of whether privately or publicly owned , who is acting , including through any other natural or legal person acting in his name or on his behalf , for purposes relating to his trade , business , craft or profession in relation to contracts ;


### in a consumer sales contract , any lack of conformity which becomes apparent within six months of the time when risk passes to the buyer is presumed to have existed at that time unless this is incompatible with the nature of the goods or digital content or with the nature of the lack of conformity . ### in a consumer sales contract or a contract for the supply of digital content , any lack of conformity which becomes apparent within one year of the time when risk passes to the consumer is presumed to have existed at that time unless this is incompatible with the nature of the goods or digital content or with the nature of the lack of conformity .


### in relations between a trader and a consumer the parties may not , to the detriment of the consumer , exclude the application of this chapter or derogate from or vary its effects . ### in relations between a trader and a consumer the parties may not , to the detriment of the consumer , exclude the application of this chapter or derogate from or vary its effects , before notice of avoidance or termination is given .


### ‘ distance contract’ means any contract between the trader and the consumer under an organised distance sales scheme concluded without the simultaneous physical presence of the trader or , in case the trader is a legal person , a natural person representing the trader and the consumer , with the exclusive use of one or more means of distance communication up to and including the time at which the contract is concluded ; ### ‘ distance contract’ means any contract between the trader and the consumer or another trader under an organised distance sales scheme concluded without the simultaneous physical presence of the trader or , in case the trader is a legal person , a natural person representing the trader and the consumer or the other trader , with the exclusive use of one or more means of distance communication up to and including the time at which the contract is concluded ;


### the purpose of this regulation is to improve the conditions for the establishment and the functioning of the internal market by making available a uniform set of contract law rules as set out in annex i . these rules can be used for cross - border transactions for the sale of goods , for the supply of digital content and for related services where the parties to a contract agree to do so . ### the purpose of this directive is to improve the conditions for the establishment and the functioning of the internal market by ensuring a high level of consumer protection which takes account of new technologies , too , by harmonising certain aspects of the laws , regulations and administrative provisions of the member states with regard to certain aspects of the obligation relating to the guarantee of conformity , related services and digital content in connection with contracts concluded between consumers and traders .


### possess such qualities and performance capabilities as the buyer may expect . when determining what the consumer may expect of the digital content regard is to be had to whether or not the digital content was supplied in exchange for the payment of a price . ### possess such qualities and performance capabilities as the consumer may expect , including durability , appearance and absence of minor faults . when determining what the consumer may expect of the digital content regard is to be had to whether or not the digital content was supplied in exchange for the payment of a price .


### if the seller ' s non - performance is excused , the buyer may resort to any of the remedies referred to in paragraph 1 except requiring performance and damages . ### if the seller ' s non - performance is excused , the buyer may resort to any of the remedies referred to in paragraph 1 except damages .


### if the seller’s non - performance is excused , the buyer may resort to any of the remedies referred to in paragraph 1 except requiring performance and damages . ### the right to resort to these remedies passes to a subsequent purchaser of the goods or digital content where that purchaser is a consumer .


### in order to enhance legal certainty by making the case - law of the court of justice of the european union and of national courts on the interpretation of the common european sales law or any other provision of this regulation accessible to the public , the commission should create a database comprising the final relevant decisions . with a view to making that task possible , the member states should ensure that such national judgments are quickly communicated to the commission . ### in order to enhance legal certainty by making the case - law of the court of justice of the european union and of national courts on the interpretation of this directive accessible to the public , the commission should create a database comprising the final relevant decisions . with a view to making that task possible , the member states should ensure that such national judgments are quickly communicated to the commission .


### the buyer ' s rights are not subject to cure by the seller ; and ### the buyer ' s rights are not subject to cure by the seller , except where they relate to goods or digital content which are manufactured , produced or modified according to the consumer ' s specifications or which are clearly personalised ; or


### limitation of remedies for digital content not supplied in exchange for a price where digital content is not supplied in exchange for the payment of a price , the buyer may not resort to the remedies referred to in points to of article 106 . the buyer may only claim damages under point of article 106 for loss or damage caused to the buyer ' s property , including hardware , software and data , by the lack of conformity of the supplied digital content , except for any gain of which the buyer has been deprived by that damage . ### limitation of remedies for digital content not supplied in exchange for payment of a price or any other counter performance - 1 . where digital content is supplied in exchange for a counter performance other than the payment of a price the buyer may resort to any of the remedies referred to in article 106 except for price reduction under point . where digital content is not supplied in exchange for any counter performance the buyer may not resort to the remedies referred to in points to of article 106 . the buyer may only claim damages under point of article 106 for loss or damage caused to the buyer ' s property , including hardware , software and data , by the lack of conformity of the supplied digital content , except for any gain of which the buyer has been deprived by that damage .


### ‘ consumer’ means any natural person who is acting for purposes which are outside that person ' s trade , business , craft , or profession ; ### ' consumer ' means any natural person who is acting for purposes which are outside his trade , business , craft or profession ;


### the buyer loses the right to terminate under this section if notice of termination is not given within a reasonable time from when the right arose or the buyer became , or could be expected to have become , aware of the non - performance , whichever is later . ### the buyer loses the right to terminate under this section if notice of termination is not given within 30 days from when the right arose or the buyer became , or , if the buyer is a trader that buyer could be expected to have become , aware of the non - performance , whichever is later


### without prejudice to paragraph 3 , the customer ' s remedies are subject to a right of the service provider to cure whether or not the customer is a consumer . ### without prejudice to paragraph 3 , the consumer ' s remedies are subject to a right of the service provider to cure pursuant to article [ . . . ] .


### the buyer loses the right to terminate under this section if notice of termination is not given within a reasonable time from when the right arose or the buyer became , or could be expected to have become , aware of the non - performance , whichever is later . 2 . paragraph 1 does not apply : where the buyer is a consumer ; or where no performance at all has been rendered ### alternative 2 [ alternative amendment to amendments for article 106 and article 174 to ] the buyer loses the right to terminate under this section if notice of termination is not given within a reasonable time from when the right arose or the buyer became , or , if the buyer is a trader that buyer could be expected to have become , aware of the non - performance , whichever is later . 2 . paragraph 1 does not apply where no performance at all has been rendered .


### since the common european sales law contains a complete set of fully harmonised mandatory consumer protection rules , there will be no disparities between the laws of the member states in this area , where the parties have chosen to use the common european sales law . consequently , article 6 regulation no 593 / 2008 , which is predicated on the existence of differing levels of consumer protection in the member states , has no practical importance for the issues covered by the common european sales law . ### once there is a valid agreement to use the common european sales law , only the common european sales law should govern the matters falling within its scope . since the common european sales law contains a comprehensive set of uniform harmonised mandatory consumer protection rules , there will be no disparities between the laws of the member states in this area , where the parties have chosen to use the common european sales law . consequently , article 6 of regulation no 593 / 2008 , which is predicated on the existence of differing levels of consumer protection in the member states , has no practical relevance for the issues covered by the common european sales law as it would amount to a comparison between the mandatory provisions of two identical second contract law regimes .


### the common european sales law should comprise of a complete set of fully harmonised mandatory consumer protection rules . in line with article 114 of the treaty , those rules should guarantee a high level of consumer protection with a view to enhancing consumer confidence in the common european sales law and thus provide consumers with an incentive to enter into cross - border contracts on that basis . the rules should maintain or improve the level of protection that consumers enjoy under union consumer law . ### in line with article 114 of the treaty , those rules should guarantee a high level of consumer protection with a view to enhancing consumer confidence and thus provide consumers with an incentive to enter into cross - border contracts . the rules should maintain or improve the existing level of protection that consumers enjoy under union consumer law .


### in a consumer sales contract , any agreement derogating from the requirements of articles 100 , 102 and 103 to the detriment of the consumer is valid only if , at the time of the conclusion of the contract , the consumer knew of the specific condition of the goods or the digital content and accepted the goods or the digital content as being in conformity with the contract when concluding it . ### any agreement derogating from the requirements of articles [ . . . ] to the detriment of the consumer is valid only if , at the time of the conclusion of the contract , the consumer knew of the specific condition of the goods or the digital content and explicitly accepted the goods or the digital content as being in conformity with the contract when concluding it .


### this regulation establishes a common european sales law . it harmonises the contract laws of the member states not by requiring amendments to the pre - existing national contract law , but by creating within each member state ' s national law a second contract law regime for contracts within its scope . this second regime should be identical throughout the union and exist alongside the pre - existing rules of national contract law . the common european sales law should apply on a voluntary basis , upon an express agreement of the parties , to a cross - border contract . ### this regulation establishes a common european sales law for distance contracts and in particular for online contracts . it approximates the contract laws of the member states not by requiring amendments to the first national contract law regime , but by creating a second contract law regime for contracts within its scope . this directly applicable second regime should be an integral part of the legal order applicable in the territory of the member states . in so far as its scope allows and where parties have validly agreed to use it , the common european sales law should apply instead of the first national contract law regime within that legal order . it should be identical throughout the union and exist alongside the pre - existing rules of national contract law . the common european sales law should apply on a voluntary basis , upon an express agreement of the parties , to a cross - border contract .


### with a view to maximising the added value of the common european sales law its material scope should also include certain services provided by the seller that are directly and closely related to specific goods or digital content supplied on the basis of the common european sales law , and in practice often combined in the same or a linked contract at the same time , most notably repair , maintenance or installation of the goods or the digital content . ### with a view to maximising the added value of updating existing provisions on the legal obligation relating to the guarantee of conformity , the material scope of this directive should also include certain services that are directly and closely related to specific goods or digital content and in practice often combined in the same or a linked contract at the same time .


### to enable the automotive industry to carry out long - term investments and innovation it is desirable to provide indications of how this regulation should be amended for the period beyond 2020 . these indications should be based on an assessment of the necessary rate of reduction in line with the union ' s long term climate goals and the implications for the development of cost effective co2 reducing technology for cars . it is therefore desirable for these aspects to be reviewed , the commission to make a report and if appropriate proposals made for targets beyond 2020 . ### to enable the automotive industry to carry out long - term investments and innovation it is desirable to provide indications for the period beyond 2020 . this should be done by setting a target for 2025 . the target should be based on the necessary rate of reduction to be in line with the union ' s long term climate goals and enhance the development of cost effective co2 reducing technology for cars . it is therefore desirable for the commission to make a report and propose targets for beyond 2020 .


### the maximum number of new passenger cars to be taken into account in the application of the multipliers set out in paragraph 1 for the period 2020 to 2023 shall not exceed a cumulative total of 20 000 new registrations of passenger cars per manufacturer . ### from 2020 and each subsequent calendar year , the commission shall , on the basis of the information provided by member states in accordance with article 8 , calculate to what extent the credits and debits obtained under the provisions of this article affect the level of the target set out in the second paragraph of article 1 . '


### to enable the automotive industry to carry out long - term investments and innovation it is desirable to provide indications of how this regulation should be amended for the period beyond 2020 . these indications should be based on an assessment of the necessary rate of reduction in line with the union ' s long term climate goals and the implications for the development of cost effective co2 reducing technology for cars . it is therefore desirable for these aspects to be reviewed , the commission to make a report and if appropriate proposals made for targets beyond 2020 . ### to enable the automotive industry to carry out long - term investments and to introduce innovation it is desirable to provide indications of how this regulation should be amended for the period beyond 2020 . these indications should be based on an assessment of the conditions conducive to the necessary rate of reduction in line with the union’s long - term goals and the implications for the development of cost effective technology to reduce emissions of dust and harmful gases , as well as noise emissions , from cars . it is therefore desirable for these aspects to be reviewed , the commission to make a report and if appropriate proposals made for co2 targets beyond 2020 . the report should include an assessment of co2 emissions at all stages in the manufacturing process , as well as throughout the life of the vehicle and during scrapping and recycling .


### the regulation requires the commission to carry out an impact assessment in order to review the test procedures to reflect adequately the real co2 emissions behaviour of cars . this work is proceeding through the development of a world light duty test procedure in the framework of the united nations economic commission for europe but is not yet complete . in view of this , annex i to regulation no 443 / 2009 establishes emission limits for 2020 as measured according to regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 . when the test procedures are amended , the limits set in annex i should be adjusted to ensure comparable stringency for manufacturers and classes of vehicles . ### the regulation requires the commission to carry out an impact assessment in order to review the test procedures to reflect adequately the real co2 emissions behaviour of cars . this work is proceeding through the development of a world light duty test procedure in the framework of the united nations economic commission for europe but is not yet complete . in view of this , and given that the existing test cycle does not sufficiently reflect the actual emissions of cars and vans on the road , the swift development of an improved test cycle is crucial . when the current test procedures , set out in annex i to regulation no 443 / 2009 , which establishes emission limits for 2020 as measured according to regulation no 715 / 2007 and annex xii to regulation no 692 / 2008 , are amended , the limits set in annex i should be adjusted to ensure comparable stringency for manufacturers and classes of vehicles .


### the european insurance and occupational pensions authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to prevent regulatory arbitrage and guarantee a level playing field , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a union body having legal personality and it should have legal , administrative and financial autonomy .


### where the commission does not endorse the standards or endorses them in part or with amendments , it shall inform the authority of its reasons . ### in any event , the commission shall inform the authority , the european parliament and the council of its decision , stating its reasons .


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of union legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , ensuring effective and consistent supervision of financial institutions with a union dimension and a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### that report shall also evaluate progress achieved towards regulatory and supervisory convergence in the fields of crisis management and resolution in the community . the evaluation shall be based on extensive consultation , including with the insurance , reinsurance and occupational pension funds stakeholder group . ### that report shall also evaluate progress achieved towards regulatory and supervisory convergence in the fields of crisis management and resolution in the community and shall submit a report to the parliament and the council together with any appropriate proposals to amend this regulation . the evaluation shall be based on extensive consultation , including with the insurance , reinsurance and occupational pension funds stakeholder group .


### proposal for a regulation of the european parliament and of the council establishing a european insurance and occupational pensions authority ### proposal for a regulation of the european parliament and of the council establishing a european supervisory authority


### the national supervisory authorities shall make every effort to comply with those guidelines and recommendations . ### within two months of the issuance of a guideline or recommendation , each national supervisory authority shall decide whether it intends to comply with that guideline or recommendation . in the event that it does not intend to comply , it shall inform the authority , stating reasons . the authority shall make those reasons public .


### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the european banking authority and the european securities and markets authority . ### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely with the european banking authority and the european securities and markets authority ; it shall also ensure cross - sectoral supervisory consistency and coordination in particular on : - financial conglomerates ; - accounting and auditing ; - micro - prudential analyses for financial stability ; - retail investment products ; - anti - money laundering measures ; and - information exchange with the european systemic risk board .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , an insurance , reinsurance and occupational pension funds stakeholder group should be established for that purpose , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact assessment with a view to ensuring that the best practices for high - quality regulation are met . to provide effective external assistance , an insurance , reinsurance and occupational pension funds stakeholder group should be established , representing in balanced proportions union insurance and reinsurance firms and insurance intermediaries as well as occupational pension funds , trade unions , academics and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


### where the commission does not endorse the standards or endorses them in part or with amendments , it shall inform the authority of its reasons . ### where the commission intends not to endorse the standards , it shall send the draft standards back to the authority , explaining in writing the reasons why they are in conflict with the public interest of the union , the principle of proportionality or the integration of the internal . within a period of six weeks of receipt of the commission ' s written reasons , the authority shall amend the draft standards duly taking into account the commission’s concerns .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of policyholders , other beneficiaries and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of policyholders , other beneficiaries and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by eu law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should be empowered to adopt delegated acts in accordance with the procedure referred to in article 290 of the treaty on the functioning of the european union concerning technical standards in financial services .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervision should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions at the national level and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority as well as a european supervisory authority .


### consistent application of community rules where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . without prejudice to the powers laid down in article 20 , the national supervisory authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the national supervisory authority concerned a recommendation setting out the action necessary to comply with community law . the national supervisory authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with community law . 4 . where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the national supervisory authorities shall provide the commission with all necessary information . 5 . the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . 7 . decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the national supervisory authorities on the same matter . any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### non - application of union law where a competent authority has not applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more competent authorities , from the european , parliament , the council or the commission , or on its own initiative , and after having informed the competent authority concerned , the authority may investigate the alleged non - application of union law . without prejudice to the powers laid down in article 20 , the competent authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the competent authority concerned a recommendation setting out the action necessary to comply with union law . the competent authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with union law . 4 . where the competent authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with union law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . 5 . the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non - compliance by the competent authority in order to maintain or restore neutral conditions of competition in the internal market or ensure the orderly functioning and integrity of the financial system in cross - border activities , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice . before adopting an individual decision , the authority shall inform the commission thereof . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . the commission shall decide whether to endorse the authority ' s draft decision within two weeks of receipt . the commission shall not extend that period . the commission may endorse the draft decision only in part or with amendments , where the union interest so requires . where the commission does not endorse the draft decision or endorses it in part or with amendments , it shall inform the authority without delay in the form of a formal opinion . within one week of receipt of that formal opinion , the authority shall review and adapt its decision to the commission ' s formal opinion and transmit it without delay to the commission . within one week of receipt of the amended decision of the authority , the commission shall decide whether to endorse it or reject it . if the amended decision is rejected by the commission , the decision shall be deemed not to have been adopted . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions .


### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority should share any relevant information with the european systemic risk board . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should ensure follow - up . ### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority and the european systemic risk board should share any relevant information . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should ensure follow - up , as appropriate .


### the board of appeal shall be composed of six members and six alternates , who shall be individuals with relevant knowledge and experience , excluding current staff of the national supervisory authorities or other national or community institutions involved in the activities of the authority . ### the board of appeal shall be composed of six members and six alternates , who shall be individuals of high repute with a proven record of relevant knowledge and professional , including supervisory , experience at a sufficiently high level in the fields of banking , insurance , securities markets or other financial services , excluding current staff of the competent authorities or other national or union institutions involved in the activities of the authority .


### if , at the end of the conciliation phase , the national supervisory authorities concerned have failed to reach an agreement , the authority may take a decision requiring them to take specific action or to refrain from action in order to settle the matter , in compliance with community law . ### if , at the end of the conciliation phase , the national supervisory authorities concerned have failed to reach an agreement , the authority may take a decision to settle the disagreement and to require them to take specific action or to refrain from action , in compliance with eu law .


### that report shall also evaluate progress achieved towards regulatory and supervisory convergence in the fields of crisis management and resolution in the community . the evaluation shall be based on extensive consultation , including with the insurance , reinsurance and occupational pension funds stakeholder group . ### that report shall also evaluate the progress that has been made in the achievement of the authority ' s objectives and the evolution towards regulatory and supervisory convergence and integration in the fields of crisis management and resolution in the european union . equally , the report shall evaluate how the sector is dealing with the costs derived from its ordinary functioning and how can their full internalisation be achieved taking into account a cyclical perspective . the evaluation shall be based on extensive consultation , including with the insurance , reinsurance and occupational pension funds stakeholder group .


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to national supervisory authorities or financial institutions . the national supervisory authorities shall make every effort to comply with those guidelines and recommendations . where the national supervisory authority does not apply those guidelines or recommendations it shall inform the authority of its reasons . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of union legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions . the authority shall conduct open public consultations on guidelines and recommendations and analyse the potential related costs and benefits . the guidelines shall be published on the authority ' s website . the competent authorities shall make every effort to comply with those guidelines and recommendations . where a competent authority does not apply those guidelines or recommendations it shall inform the authority of its reasons . the authority shall publish those reasons , giving the competent authority due notice of its intention to do so .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision of the authority , and thereby fails to ensure that a financial institution complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a national supervisory authority does not comply with the decision of the authority , and thereby fails to ensure that a financial institution complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under union law , including the cessation of any practice .


### the board of appeal designates its president . ### the president , appointed jointly by european parliament , the council and the commission , should be a professional lawyer .


### where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . ### where a national supervisory authority has not correctly applied the legislation referred to in article 1 , including the technical standards established in accordance with article 7 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article .


### the authority may develop technical standards in the areas specifically set out in the legislation referred to in article 1 . the authority shall submit its draft standards to the commission for endorsement . ### the authority shall develop technical standards in the areas specifically set out in the present regulation and in the legislation referred to in article 1 or on the commission ' s request . technical standards shall not include policy choices and shall reflect the principle of proportionality . the authority shall submit its draft technical standards to the commission for adoption as delegated acts or endorsement as implementing acts in accordance with this regulation and with the legislation referred to in article 1 . the draft standards shall be transmitted at the same time to the european parliament and the council .


### without prejudice to the competences of the community institutions , the authority may develop contacts with supervisory authorities from third countries . it may enter into administrative arrangements with international organisations and the administrations of third countries . the authority shall assist in preparing equivalence decisions pertaining to supervisory regimes in third countries in accordance with the legislation referred to in article 1 . ### without prejudice to the competences of the union institutions , the authority may develop contacts with supervisory authorities , international organisations and the administrative bodies of third countries . such arrangements shall create no legal obligations on the part of the union or its member states .


### the insurance , reinsurance and occupational pension funds stakeholder group may submit opinions and advice to the authority on any issue related to the tasks of the authority specified in articles 7 and 8 . ### the insurance , reinsurance and occupational pension funds stakeholder group may submit opinions and advice to the authority on any issue related to the tasks of the authority , including in relation to reaching joint positions with the european supervisory authority and the european supervisory authority as set out in article 42 , with particular focus on the tasks set out in articles 7 and 8 .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations with all stakeholders before issuing guidelines and recommendations and shall analyse the potential related costs and benefits before adopting draft technical standards , in line with established best practices among national authorities . the authority shall request an opinion or advice from the insurance , reinsurance and occupational pension funds stakeholder group as referred to in article 22 .


### the standards shall be adopted by the commission by means of regulations or decisions and published in the official journal of the european union . ### the commission shall adopt delegated acts in accordance with articles 7a to 7d , designed to establish the technical standards referred to in paragraph 1 . those acts shall be adopted by the commission in the form of regulations or decisions .


### the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . ### the commission shall take such a decision no later than one month from the adoption of the recommendation .


### the authority shall contribute adequate resources to the administrative support of the joint committee of european supervisory authorities . this includes staff , administrative , infrastructure , and operational expenses . ### the joint committee shall have a permanent secretariat , staffed on secondment from the three european supervisory authorities . the authority shall contribute adequate resources to administrative , infrastructure and operational expenses .


### where a member state considers that a decision taken under article 11 impinges on its fiscal responsibilities , it may notify the authority and the commission within one month after notification of the authority ' s decision to the national supervisory authority that the decision will not be implemented by the national supervisory authority . ### where a member state considers that a decision taken under article 11 impinges on its fiscal responsibilities , it shall notify the authority , the commission and the european parliament within ten working days after notification of the authority ' s decision to the national supervisory authority that the decision will not be implemented by the national supervisory authority .


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of eu legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , ensuring a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall decide whether to maintain or revoke the authority ' s decision on the basis of a qualified majority of its members , as defined in article 16 of the eu treaty and article 3 of the protocol on transitional provisions annexed to the treaty on european union and to the treaty on the functioning of the european union , at a meeting no later than two months after the authority has informed the member state as set out in subparagraph 4 .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting policyholders and other beneficiaries , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting policyholders and other beneficiaries , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , strengthening international supervisory coordination , whilst taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , and preventing regulatory arbitrage and contributing to a level playing field . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the eu legislation referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission , and undertaking economic analyses of markets to promote the achievement of the authority’s objectives .


### in the case of non - contractual liability , the authority shall , in accordance with the general principles common to the laws of the member states , make good any damage caused by it or by its staff in the performance of their duties . the court of justice shall have jurisdiction in any dispute over the remedying of such damage . ### in the case of non - contractual liability , the authority shall , in accordance with the general principles common to the laws of the member states , make good any unjustifiable damage caused by it or by its staff in the performance of their duties . the court of justice shall have jurisdiction in any dispute over the remedying of such damage .


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained .


### where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . ### where the national supervisory authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority , take a decision requiring the national supervisory authority to take the action necessary to comply with union law .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority shall , pursuant to the legislation referred to in article 1 , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the national supervisory authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson , two members of the board of supervisors and two people drawn from an expert list that the chairperson shall maintain . no member of the panel from the board of supervisors shall be drawn from a national supervisory authority which is party to the disagreement , nor shall they have any interest in the conflict . the panel shall reach a decision by simple majority .


### consistent application of community rules where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . without prejudice to the powers laid down in article 20 , the national supervisory authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the national supervisory authority concerned a recommendation setting out the action necessary to comply with community law . the national supervisory authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with community law . 4 . where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the national supervisory authorities shall provide the commission with all necessary information . 5 . the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . 7 . decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the national supervisory authorities on the same matter . any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### non - application of union law where a competent authority has not applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more competent authorities , from the european , parliament , the council or the commission , or on its own initiative , and after having informed the competent authority concerned , the authority may investigate the alleged non - application of union law . without prejudice to the powers laid down in article 20 , the competent authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the competent authority concerned a recommendation setting out the action necessary to comply with union law . the competent authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with union law . 4 . where the competent authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with union law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . 5 . the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non - compliance by the competent authority in order to maintain or restore neutral conditions of competition in the internal market or ensure the orderly functioning and integrity of the financial system in cross - border activities , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice . before adopting an individual decision , the authority shall inform the commission thereof . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . the commission shall decide whether to endorse the authority ' s draft decision within two weeks of receipt . the commission shall not extend that period . the commission may endorse the draft decision only in part or with amendments , where the union interest so requires . where the commission does not endorse the draft decision or endorses it in part or with amendments , it shall inform the authority without delay in the form of a formal opinion . within one week of receipt of that formal opinion , the authority shall review and adapt its decision to the commission ' s formal opinion and transmit it without delay to the commission . within one week of receipt of the amended decision of the authority , the commission shall decide whether to endorse it or reject it . if the amended decision is rejected by the commission , the decision shall be deemed not to have been adopted . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions .


### the authority shall form part of a european system of financial supervisors , hereinafter referred to as ' esfs ' , which shall function as a network of supervisors , as further specified in article 39 . ### the authority shall form part of a european system of financial supervision , hereinafter referred to as ' esfs ' .


### the authority and the national supervisory authorities shall provide the commission with all necessary information . ### the national supervisory authorities shall provide the authority with all necessary information .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . it can choose to reject them in part or in whole if , for example , the draft technical standards were incompatible with european union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit when deciding when to endorse , partially endorse or reject them . the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt delegated acts in accordance with article 290 of the treaty . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the union acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities .


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and the alternates shall be appointed , after consultation with the authorities ' management boards , as follows : - two members and two alternates by the council ; - two members and two alternates by the commission ; - two members and two alternates by the european parliament .