COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 24.06.1996 
COM(96) 264 final 
95/0148 (COD) 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
ON CONSUMER PROTECTION IN THE INDICATION OF THE 
PRICES OF PRODUCTS OFFERED TO CONSUMERS 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

Explanatory memorandum 
I REVIEW OF THE PROCEDURE 
On 12 July 1995 the Commission of the European Communities adopted the proposal for 
a Directive on consumer protection in the indication of the prices of products offered to 
consumers. 
The Economic and Social Committee delivered its opinion at its 331st plenary session of 
20 and 21 December 1995, acting on the proposal of its rapporteur Mr Folias. 
On 18 April 1996 the European Parliament adopted a legislative resolution embodying 
the opinion of the European Parliament, acting on the proposal of its rapporteur, 
Mrs Oomen-Ruitjen. In this resolution Parliament invites the Commission to modify its 
proposal on the basis of the proposed amendments. 
The "Consumer Affairs" Council met on 23 April 1996 in Luxembourg under the Italian 
Presidency. It came to a unanimous political agreement on the common position 
concerning the above-mentioned proposal for a directive. 
II COMMENTS ON THE MODIFICATIONS 
The 22 amendments adopted by the European Parliament can be seen as a response to 
four main concerns. Firstly, in a certain number of amendments, Parliament pinpointed 
the remit of the text proposed by the Commission, notably the objective and the scope of 
the mechanism. These aspects do not substantially modify the Commission's proposal. 
Secondly, it took into account the supplementary costs which might be imposed on small 
retail businesses by providing for a permanent follow-up by the Commission and financial 
support for information for programmes targeted at small businesses. However, instead 
of a permanent or temporary exemption for certain small businesses, Parliament opted for 
a longer adaptation period. Thirdly, Parliament also wanted to emphasise the importance 
of consumer information in the context of introducing the single currency by provided for 
dual price labelling and training of employees in businesses. Finally, Parliament 
jettisoned without ambiguity the link between the obligation to indicate the unit price and 
the exemption for products sold in ranges. 
1. Clarification of the text 
As regards Parliament's first concern, the Commission shares its viewpoint. Hence in its 
amended proposal the Commission has incorporated Amendments 1, 2 and 9 (in respect 
of letters (a) and )b) of former Article 2), 10, 11, 12, 13, 16, 20, 21 and 24 to clarify and 
pinpoint the proposed mechanism. In seven cases (Amendments 2, 3, 5, 11, 16, 20 and 
24) the Commission has reformulated the text by making drafting changes or changes 
of a technical legislative nature, without, therefore, making any substantive modifications. 
The approval of amendment 16 made a modification of the recitals 15 and 16 necessary. 
Concerning the amendment 24 the Commission has in addition separated the amendment 
and has incorporated it into Articles 1(2) and 3(2). This implies that, in respect of the 
items refered to in Article 3(2), the obligation of mentioning the selling price, but not the 
unit price, will remain. The approval of amendment 24 made it also necessary to modify 
article 7. Amendment 9 (in respect of letter (c)) has not been taken up by the 
Commission, because its definition of the retail trade is too ambiguous and overbroad. 
Amendment 14 concerns labelling methods. The Commission considers that Member 
States are in a better position to lay down detailed procedures in this domain, as a 
function of local circumstances; hence this amendment has not been taken up. 
2. Small retail businesses 
The new mechanism imposes some additional burdens on trade. But the European 
Parliament is particularly concerned with this sector, and notably with small retail 
businesses. 
As for the Commission, it has tried to find a solution which is not too heavy, while 
upholding the objective of providing the necessary information. 
Amendments 6 and 22 propose a report on the situation of small retail businesses one 
year after the. deadline for transposai. In the Commission's experience a period of one 
year is not long enough to acquire experience in the application of the Directive such as 
to draw up a report. Hence a minimum period of two years would be necessary. Such a 
period will allow the Commission to scrutinize in depth the economic impact of the 
Directive on small retail businesses. 
Amendment 19 concerns financial support for certain small retail businesses. The 
Commission does not consider that financial support for information programmes targeted 
at small retail businesses is a realistic solution. Firstly, the problem of small retail 
businesses is too complex to be regulated definitively at Community level. More 
specifically, the nature of the aid depends entirely on factors which the Commission can 
neither know nor influence. In certain Member States, where the entire retail trade already 
applies unit prices, such an aid would not be justified. Moreover, criteria would have to 
be laid down. It is also important for Member States to be in a position to fully assess the 
nature of the potential difficulties, particularly if these difficulties are directly bound up 
with the enforcement of the mechanism. After all, at least in the case of foodstuffs, many 
of the rules have already been in force for several years anyhow. Finally, investments in 
price indication technology make economic sense, because this technology constitutes a 
marketing and inventory management tool. The costs involved are not substantial, 
especially as small retail businesses enjoy an adjustment period allowing them to stagger 
the costs over an extended period. 
For this reason the Commission welcomes the solution contained in Parliament's 
Amendment 18 on small retail businesses: a generous adaptation period of six additional 
years after the date of entry into effect of the provisions adopted under the Directive. 
Moreover, the Commission is willing to provide particulars pertaining to costs and hence 
has incorporated Amendment 5. 
3. Introduction of the Single Currency 
Parliament wanted to emphasise the importance of consumer information in the context 
of the move to the single currency. Hence it proposed Amendments 4, 15, 17 and 23 on 
the transitional period for the introduction of the single currency, so as to familiarise 
customers with the relative values of the currencies. While agreeing that price 
transparency is a priority on the road to Economic and Monetary Union, the Commission 
considers it premature to spell out the details at this stage and holds that accompanying 
measures should be the subject of an overall approach. 
4. Abandonment of the link with ranges 
The Commission has incorporated Amendment 3. This amendment specifies that the 
ranges have a distinct function and clearly abandons the link with ranges. 
Ill OVERVIEW 
OPINION OF THE COMMISSION CONCERNING THE 
PROPOSED PARLIAMENTARY AMENDMENTS 
No of 
amendment 
1 
2 
3 
4 
5 
6 
9 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 Provisions concerned 
recital - 1 (new) 
recital 1 
recital 6a (new) 
recital 12a (new) 
recital 17a (new) 
recital 19 
Article 2 a) and b) 
Article 2 c) 
Article 3, paragraph 2 
Article 3, paragraph 2 
Article 4, paragraph 2 
Article 4, paragraph 3 
Article 5 
Article 5 a (new) 
Article 6 
Article 6, paragraph 3a (new) 
Article 7, first sentence 
Article 7a (new) 
Article 9 
Article 10 paragraph 1 
Article 11 paragraph 1 
Article 6 paragraph 3 b (new) 
Article la (new) Commission 
accepted 
accepted 
accepted 
rejected 
accepted 
rejected 
accepted 
rejected 
accepted 
accepted 
accepted 
accepted 
rejected 
rejected 
accepted 
rejected 
accepted 
rejected 
accepted 
accepted 
rejected 
rejected 
accepted New numbering 
Recital 1 
Recital 2 
Recital 8 
Recital 20 
Article 2 
Article 4 paragraph 3 
Article 4 paragraph 4 
Deleted 
Article 4 paragraph 2 
Article 6 
Article 7, first sentence 
Article 9 
Article 10 
Article 1, paragraph 2, 
and Article 3, 
paragraph 2 
The above table shows that the Commission has accepted 14 out the 22 amendments 
voted by the European Parliament. 
AMENDED PROPOSAL FOR A 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
ON CONSUMER PROTECTION IN THE INDICATION OF THE 
PRICES OF PRODUCTS OFFERED TO CONSUMERS 
INITIAL PROPOSAL AMENDED PROPOSAL 
The European Parliament and the Council Unchanged 
of the European Union 
Having regard to the Treaty establishing the Unchanged 
European Community, and in particular 
Article 129a(2) thereof, 
Having regard to the proposal from the Unchanged 
Commission1 
Having regard to the opinion of the Unchanged 
Economic and Social Committee2 
Acting in conformity with the procedure 
provided for in Article 189b of the Treaty 
establishing the European Community, Unchanged 
1. Whereas transparent operation of the 
market and correct information can be of 
benefit to consumer protection and to 
healthy competition between enterprises and 
their products 
1 OJ No C 260, 5.10.1995, p.5. 
2 OJ No C 82, 19.3.1996, p.32. 
1. Whereas consumers must be 
guaranteed a high level of protection; 
whereas the Community should contribute 
thereto by specific actions which provide 
for adequate information of consumers on 
the prices of products offered to them; 2. Whereas, consumers must therefore 
be guaranteed a high level of protection; 
whereas the Community should contribute 
thereto by specific actions which provide 
for precise, transparent and unambiguous 
2. Whereas the Community's 
programmes for a consumer protection and 
information policy3 provide for the 
establishment of common principles for 
indicating prices; 
3. Whereas these principles have been 
established by Council Directive 
79/581/EEC of 19 June 19794 as amended 
by Council Directive 88/315/EEC of 7 June 
19885 and Council Directive 88/314/EEC of 
7 June 19886 concerning the indication of 
prices of foodstuffs and non-food products; 
4. Whereas the obligation to indicate 
the selling price and the price per unit of 
measurement contributes substantially to 
improving consumer information by 
providing consumers with essential data in 
order to make reasoned choices; information of consumers on the prices of 
products offered to them; 
3. Unchanged 
Unchanged 
Unchanged 
5. Whereas, however, the mechanism 
adopted included a certain number of 
exceptions to the general obligation to 
indicate the unit price, notably when 
products are marketed in quantities or 
capacities corresponding to the values of the 
ranges adopted at Community level. Unchanged 
3 OJ No C 92, 25.4.1975, p.2 and OJ No C 133, 3.6.1981, p.2. 
4 OJ No L 158, 26.6.1979, p.19. 
5 OJNoL 142, 9.6.1988, p.23. 
6 OJ No L 142, 9.6.1988, p.19. 
6. Whereas this link between indication 
of the unit price of products and 
standardisation of packaging introduced 
rigidities into the implementation of the 
mechanism adopted, which has proven 
overly complex to apply; whereas it is thus 
necessary to abandon this link in the 
interests of simplification, without prejudice 
to the rules governing packaging 
standardization; Unchanged 
7. Whereas, therefore, account should 
be taken of all the difficulties encountered 
in implementing the mechanism provided 
for in the above-mentioned Directives and 
a new and simplified mechanism proposed 
which will enable the main objective to be 
achieved more easily, namely adequate 
information of consumers; 8. Whereas producers and traders 
having resort to ranees may retain and 
further develop them, provided, however, 
that they also indicate the unit price; 
9. Unchanged 
8. Whereas indicating the selling price 
and the unit price is the easiest way to 
enable consumers to evaluate and compare 
the nature and quality of products in an 
optimum manner and hence to make 
informed choices on the basis of simple 
comparisons; 
9. Whereas, therefore, the general 
obligation to indicate both the selling price 
and the unit price for all products should be 
maintained except for products marketed in 
bulk, where the selling price cannot be 
determined until the final consumer 
indicates how much of the product he 
requires; 
10. Whereas only Community-level rules 
can ensure homogenous and transparent 
information that will benefit all consumers 
in the context of the internal market; 
whereas the new, simplified approach is 10. Unchanged 
11. Unchanged 
12. Unchanged 
both necessary and sufficient to achieve this 
objective; 
11. Whereas, moreover, price 
transparency is a priority in the run-up to 
Economic and Monetary Union, and must 
therefore be significantly improved and 
arrangements made for its entry into effect 
in good time for the transition to the single 
currency; 
12. Whereas introduction of the single 
currency will be greatly facilitated by 
providing consumers with simple yardsticks 
for comparing the prices of products; 
13. Whereas there is a need to take into 
account the fact that certain products are 
widely and customarily sold in quantities 
different from the values of the base 
quantity referred to in the Directive; 
whereas it is thus advisable to allow 
Member States, in certain cases, to authorise 
that the unit price be indicated in relation to 
the quantity value which custom has 
enshrined; 13. Unchanged 
14. Unchanged 
15. Unchanged 
14. Whereas Member States must be 
free to adapt the obligation to indicate the 
unit price for certain trades of forms of 
trade, and also to determine that such 
indication is not necessary for a certain 
number of products, when it does not 
provide useful information for consumers; 
15. Whereas Member States should also 
remain free to waive the obligation to 
indicate the unit price in the case of 
products for which such price indication 
would not be meaningful or would be liable 
to cause confusion; whereas this is the case 
notably when indication of the quantity is 
not a relevant particular for price 
comparison purposes, or when different 
products are marketed in the same 
packaging; 16. Unchanged 
17. Whereas Member States should also 
remain free to waive the obligation to 
indicate the unit price in the case of 
products for which such price indication 
would not be meaningful; whereas this is 
the case notably when indication of the 
quantity is not a relevant particular for price 
comparison purposes, or when different 
products are marketed in the same 
packaging; 
16. Whereas in the case of non-food 
products, Member States, with a view to 
facilitating application of the mechanism 
implemented, are free to draw up a list of 
products or categories of products for which 
the obligation to indicate the unit price 
remains applicable; 18. Whereas in the case of non-food 
products, Member States, with a view to 
facilitating application of the mechanism 
implemented, shall draw up, a list of 
products for which the obligation to indicate 
the unit price remains applicable; 
17. Whereas trends in distribution 
methods must be taken into consideration; 
whereas solutions must be found to permit 
optimum information of consumers on 
product prices at the lowest possible 
marginal cost; 19. Unchanged 
18. Whereas a variable adaptation period 
should be provided for depending on the 
economic operators concerned in order to 
enable them to make the detailed 
arrangements for indicating unit prices; 
19. Whereas particular attention should 
be paid to the adaptations required in small 
retail businesses, notably taking into 
account technological trends and the 
envisaged timetable for the introduction of 
the single currency; whereas to this end the 
Commission shall present an evaluation 
report on the situation two years before the 
final deadline for the general application of 
the mechanism, 20. Whereas it is therefore essential that 
before the application of the mechanism, the 
Commission should draw up. in cooperation 
with the governments and competent 
national bodies, an accurate statement of the 
total costs of the Directive to retail 
businesses, especially in the small and 
medium-sized sector: 
21. Unchanged 
22. Unchanged 
HAVE ADOPTED THIS DIRECTIVE 
Article 1 
The purpose of this Directive is to stipulate 
indication of the selling price and the price 
per unit of measurement of products offered 
by traders to final consumers, so as to 
improve consumer information and to allow 
easy comparison of prices, wherever such 
comparison is relevant. 1. Unchanged 
2. The following are excluded from this 
directive: 
- auctions 
private sales. 
Article 2 
For the purposes of this Directive: 
a) "selling price" means the price for a 
given quantity of the product; For the purposes of this Directive: 
a) "selling price" means the final price 
for a given quantity of the product, 
including VAT, all other taxes and the costs 
of all services which the consumer is 
obliged to pay for in addition; 
b) "unit price" means the price for one 
kilogram, one litre, one metre, one square 
metre or cubic metre of the product or any 
other quantity which is widely and 
customarily used in the Member States in 
the marketing of specific products; b) "unit price" means the final price, 
including VAT, all other taxes and the costs 
of all services which the consumer is 
obliged to pay for in addition, for one 
kilogramme, one litre, one metre, one 
square metre, one cubic metre or one item 
of the product or any other quantity which 
is widely and customarily used in the 
Member States in the marketing of specific 
products. 
c) "products sold in bulk" means 
products which are not pre-packaged and/or 
are not measured or weighed except in the 
presence of the final consumer. c) "products sold in bulk" means 
products which are not pre-packaged and/or 
not measured or weighed except in the 
presence of the final consumer. 
10 
Article 3 
1. The selling price and the unit price 
shall be indicated for all products referred 
to in Article 1, subject to the provisions of 
Article 6. 1. Unchanged 
2. For products sold in bulk, the unit 
price must be indicated for all products 
referred to in Article 1, since the selling 
price cannot be determined prior to the 
request expressed by the final consumer. 2. The obligation to indicate the price per 
unit measurement shall not apply to: 
- foodstuffs sold in hotels, cafes, 
restaurants, public houses, cinemas and 
theatres, teaching institutions, leisure 
centres, staff shops, hospitals, canteens and 
similar establishments, 
- itinerant traders. 
- products sold in means of transport. 
- products sold in vending machines. 
3. For products sold in bulk only the 
unit price must be indicated for all products 
referred to in Article 1. 
4. The above paragraphs shall apply 
also to any type of advertising in which a 
price is mentioned. 
Article 4 
1. The selling price and the unit price 
must be unambiguous, easily identifiable 
and clearly legible. Unchanged 
2. The selling price and the unit price 
shall relate to the final price of the product 
under the conditions laid down by the 
Member States. 
3. The unit price shall refer to the 
quantity declared, in accordance with 
national and Community provisions, and 
notably net quantities of products. Deleted 
2. The unit price shall refer to the 
quantity declared, in accordance with 
national and Community provisions 
11 
Article 5 
Member States shall lay down the detailed 
rules for indicating prices, notably as 
regards prices applying to quantities that are 
widely and customarily used, referred to in 
Article 2(b). Unchanged 
Article 6 
1. Member States may waive the 
obligation to indicate the unit price of 
products for which such indication would 
not be meaningful because of the products' 
nature or purpose, and products for which 
such indication would not provide the 
consumer with adequate information or 
would be liable to create confusion. 1. Member States may waive the 
obligation to indicate the unit price of 
products for which such indication is not 
meaningful because of the products' nature 
or purpose. 
2. Member States may waive the 
obligation to indicate the unit price of 
products for which indication of length, 
mass or volume is not required by national 
or Community provisions. This applies in 
particular to products sold by individual 
item or singly. 
3. With a view to implementing the 
provisions set out in paragraphs 1 and 2 
above, the Member States may, in the case 
of non-food products, establish a list of the 
products or product categories to which the 
obligation to indicate the unit price shall 
remain applicable. 2. Deleted 
2. In the case of non-food products, 
Member States shall establish a list of the 
products to which the obligation to indicate 
the unit price shall remain applicable. This 
list shall be drawn up in a practical way by 
using a common nomenclature. The 
Commission shall provide a framework so 
that the lists in the various Member States 
are as consistent as possible in terms of 
content. 
Article 7 
Member States may provide that the 
obligation to indicate the unit price of 
products other than those marketed in bulk 
which are sold by certain small retail 
businesses shall apply at the latest by 6 
June 2001, if the obligation to indicate the 
unit price from 7 June 1997 Member States may provide that the 
obligation to indicate the unit price of 
products other than those marketed in bulk 
which are sold by certain small retail 
businesses shall apply at the latest bv six 
years after publication of this Directive, if 
12 
- is likely to constitute a excessive 
burden for these businesses the obligation to indicate the unit price by 
the date provided for in Article 10(0. 
- is likely to constitute a excessive 
burden for these businesses 
or or 
- is impracticable because of the 
number of products on sale, the sales area, 
the nature of the place of sale or specific 
conditions applicable to certain forms of 
business, such as certain types of itinerant 
trade. - is impracticable because of the 
number of products on sale, the sales area, 
the nature of the place of sale or specific 
conditions applicable to certain forms of 
business. 
Article 8 
Member States shall lay down penalties for 
infringements of national provisions adopted 
in application of this Directive, and shall 
take all necessary measures to ensure that 
these are enforced. These penalties must be 
effective, proportionate and dissuasive. unchanged 
Article 9 
Council Directive 79/5 81/EEC of 19 June 
1979, as amended by Council Directive 
88/315/EEC of 7 June 1988 and Directive 
88/314/EEC of 7 June 1988 shall be 
repealed with effect from 7 June 1997. 1. In Article 10, first sentence, first line 
of the Council Directive 79/581/EEC of 19 
June 1979. and in the article 10. first 
sentence, first line of the Council directive 
88/314/CEE of 7 June 1988. the words "a 
period of 9 years" shall be replaced bv the 
words "a period expiring on the date 
referred to in Article 10(1) of 
Directive 96/.../EC 
2. Council Directive 79/581/EEC of 
19 June 1979, as amended by Council 
Directive 88/315/EEC of 7 June 1988, 
Council Directive 88/314/EEC of 7 June 
1988 and the European Parliament and 
Council Directive 95/58/EC of 29 
November 19957 shall be repealed with 
effect from the date referred to in 
Article 10m. 
7 OJ No L 299, 12.12.1995, p.ll. 
13 
Article 10 
1. Member States shall bring into force 
the laws, regulations and administrative 
provisions necessary to comply with this 
Directive by 6 June 1997 at the latest. They 
shall forthwith inform the Commission 
thereof. The provisions adopted shall be 
applicable as of 7 June 1997. 1. Member States shall bring into force 
the laws, regulations and administrative 
provisions necessary to comply with this 
Directive two years after publication of the 
Directive at the latest. They shall forthwith 
inform the Commission thereof. The 
provisions adopted shall be applicable two 
years after application of the Directive. 
2. When Member States adopt these 
provisions, these shall contain a reference to 
this Directive or shall be accompanied by 
such a reference at the time of their official 
publication. The procedure for such 
reference shall be adopted by the Member 
States. 2. Unchanged 
3. Member States shall communicate to 
the Commission the text of the provisions 
of national law which they adopt in the 
field governed by this Directive. In 
particular, they shall indicate the rules 
adopted pursuant to Articles 5, 6 and 7, 
and any later amendments thereto. 3. Unchanged 
4. Member States shall communicate 
the provisions governing the penalties 
provided for in Article 8, and any later 
amendments thereto. 4. Unchanged 
Article 11 
1. The Commission shall, not more 
than two years after the date referred to in 
Article 10(1), submit to the European 
Parliament and the Council an initial report 
on the application of the provisions of 
Article 7. 
2. The Commission shall, not more 
than four years after the date referred to in 
Article 10(1), submit to the European 
Parliament and the Council a global report 
on the application of this Directive. 1. Unchanged 
2. Unchanged 
Article 12 
This Directive is addressed to the Member 
States. Unchanged 
^ 

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COM(96) 264 final 
DOCUMENTS 
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