NoC34/78 OfficialJournaloftheEuropeanCommunities 2.2,94
OpinionontheSupplier-Consumer Dialogue
(94/C34/23)
On23March1993theEconomicandSocialCommittee,actingunderthefourthparagraph
ofArticle20ofitsRulesofProcedure,decidedtodrawupanown-initiativeOpiniononthe
followingsubject:Thesupplier-consumer dialogue.
TheSectionforProtectionoftheEnvironment ,PublicHealthandConsumerAffairs,which
wasresponsibleforpreparingtheCommittee'sworkonthesubject,adopteditsOpinionon
9November1993,TheRapporteurwasMrHilkensandtheCo-Rapporteur wasMr
Proumens .
Atits310thPlenarySession(meetingof25November1993),theEconomicandSocial
CommitteeadoptedunanimouslythefollowingOpinion.
1.introductoryRemarks mission.TheOpinionissuedbytheCommitteeonthis
subjectin1984,inwhichtheCommitteecalledfora
moresolidfoundationtobeprovidedforsuchadia­
logue,byissuingaframeworkDirectivesettingouta
numberofrules,alsofailedtoprovidetheexpected
stimulustothedevelopmentofmachineryfornego­
tiationsbetweenproducersandconsumersintheEC.
1.3.1.TheCommitteewoulddrawattentioninthis
contexttothediscussionsonthepromotionofadia­
loguebetweenproducersandconsumerswhichtook
placeoverfiveyearsagobetweenrepresentatives ofthe
Consumers'Consultative CommitteeandUNICE.The
aimofthesediscussionswastofindsolutionstocom­
monproblemsonthebasisofeithercodesofpractice
oragreements .
1.3.2.Thispromisinginitiativewasnot,however,
takenanyfurthersince,inadditiontoadegreeof
politicalopposition,noprovisionwasmadeforthe
practicalimplementation ofthedialogue.Thiswould
involve,settingoutinteralia:
—anofficialstructure,or,atleast,aformalstructure;
—workingmethods;1.1.Inrecentyearsattentionhasbeendrawnin
variousECconsumerprogrammestotheimportance
ofhavingadialoguebetweenproducersofgoodsand
servicesandtraders(supplyside),ontheonehand,and
consumers (demandside),ontheotherhand.
Inasocial-market economythepartieswhichare
involvedinthewealth-creating processandwhichhave
opposinginterestsinsomeareasofthisprocesswill
endeavourtofindamutuallyacceptablesolution,by
meansofadialogue,toanyproblemswhichmayoccur.
Themostwell-knownexample—albeitinanother
context—isthenegotiationsbetweenemployersand
employees,ortheirrepresentatives ,whichalsoleadto
theconclusionofagreementsonthebasisofdialogue.
1.2.Thenumberofconsumerproblemshas
increasedwitheconomicdevelopment .Theguiding
principlewhentacklingtheseproblemsisusuallythe
needtoprotecttheconsumer.Consumerpolicyisthere­
foreprimarilyregardedasapolicyofprotection,an
areaofpolicywhichismainlyconsideredtobethe
responsibilityofthegovernment .Theviewhas,how­
ever,beengaininggroundoverthelastfewyearsthat
certainproblemswhicharisebetweenproducersand
consumerscanbeaddressedandresolvedbymeansof
consultationsordialoguebetweenrepresentatives of
thetwosides.ThisisalsothecaseintheECMember
States,althoughtherearestilldivergenciesinthe
approachbeingfollowed.
Thesedivergenciesarenotonlycausedbythediffer­
encesinthelevelofconsumerorganization inthe
MemberStates;afurtherfactorwhichmayhavea
bearinghereisthedifferencesinconsumptionhabitsin
thevariousregionsoftheCommunity .Areport
appendedtothisOpinionprovidesasummaryofthe
situationinthisregardinthevariousECMemberStates
andanumberofStatesapplyingtojointheEC.
1.3.AtEClevelnosignificantprogresshasbeen
madewithregardtodialogueoverconsumerissues,
despitethebestendeavoursoftheEuropeanCom­—alistofthesubjectstobediscussed;
—clearrulesinrespectofparticipationinthedialogue.
Itisthereforeimportanttodrawattentiontothese
shortcomings inthepresentOpinioninordertoenable
themtobeavoidedinthefuture.Significantprogress
has,however,beenmadeinthisfieldinanumberof
MemberStates.
1.4.Ithasbecomeclearthatacertainleveloftrust
needstoexistbetweenthepartiesbeforeameaningful
dialoguecancomeintobeing.Fruitfulconsultations
(dialogue)culminatinginagreements(*)canonlybe
establishedbetweenthepartiestothemarketaftera
gradualprocessofdevelopment .Itisapparentfrom
theabovementioned nationalsurveyappendedtothis
Opinionthatthepaceofdevelopment inthisfieldin
thevariousECMemberStatesshowsconsiderable
(')InthepresentOpiniontheterm'agreement'isusedina
generalsensetoimplytheresultachievedfromadialogue.

2.2,94 OfficialJournaloftheEuropeanCommunities NoC34/79
whichunderlinetheimportanceofdialogueasan
instrumentofconsumerpolicy.divergence .InanumberofMemberStatesthereisstill
scarcelyanydialoguebetweensuppliersandconsumers,
whilstinotherMemberStates,ontheotherhand,a
'mature'dialoguehasalreadybeenestablishedwhich
hasledtoagreementsbetweentheparties.Theproduct
informationsystemintroducedintheNetherlandsand
theDanishlabellingsystemareexamplesofsuchagree­
ments.2.Generalobservations
1.5.Developments whicharetakingplaceaspartof
theEuropeanintegrationprocesspointtotheemerg­
enceofamorefavourableclimateforadialogue-based
approach,alsoinrespectofconsumerpolicy.Thetrend
towardsderegulationandapplicationofthesubsidiarity
principle,inboththeMemberStatesandatEClevel,
playsaroleinthisrespect.Theprinciplethat,wherever
possible,thepartiesinvolvedaretomanagetheirown
affairsonthebasisofmutualconsultations mustalso
applytoconsumerpolicy.2.1.AlthoughtheestablishmentoftheInternalMar­
keton1January1993createdanopeneconomicarea
withnofrontierbarriers,thisdoesnotmeanthatthe
consumerisablefullytobenefitfromtheattendant
advantages .Thefragmentation ofthemarketbrought
aboutbytheexistenceofnationalfrontiersclearly
affectstheconsumer.EClawsintroducedinanumber
offieldstoimprovethesituationoftheconsumerin
theInternalMarketstillfallshortofensuringproper
protectionforconsumersthroughouttheEC.Forthe
mostpartthepurposeisonlyminimumharmonization ,
withtheresultthatdifferencesbetweentheMember
Statesremain.Theprincipleofmutualrecognitionof
theprovisionsapplyingintheMemberStateswillalso
nothelptobringabouttransparency asregardsthe
positionofconsumers .Inthefinalanalysisthereare
toomanyomissionsinEClegislationforthemarket
tooperateeffectivelytothebenefitoftheconsumer.
Examplesoftheseomissionsareprovisionsinrespect
ofguaranteesandafter-salesservice.Asaresultofthis
situation,consumersmakingcross-frontier purchases
stillhavetocontendwithdivergentlegislation.From
theconsumerpointofview,afullyeffective'internal
market'hasyettobeestablished .1.6.InaCouncilResolutionof13July1992(1),the
subjectofadialoguewasonceagainexpresslyreferred
toinalistofprioritiesforconsumerpolicy,underthe
headingof'consumerrepresentation '.Intheveryrecent
CouncilResolutionof5April1993(2)theCommission
isexpresslyrequestedtoexaminethefeasibilityof
developing,withrespecttoconsumerinformation,a
'self-regulatory system'aspartoforganizednego­
tiationsbetweenthevariousparties(consumers,indus­
try,services,tradeorganizations ).Oneimportantrea­
sonadvancedinfavourofsuchasystemisthefactthat
iftheInternalMarketestablishedon1January1993is
tooperateeffectively,itisnecessaryforalltheparties
involved,includingtheindividualconsumer,tohave
confidenceinthefunctioningofthemarketandto
benefitfullyfromit.TheoperationoftheInternal
Market,however,isbeinghamperedbythetradebar­
rierscausedbythecurrentdivergencies ,notablyin
nationalprovisionsregardinglabelling.2.2,ItclearlytranspiredfromthedebateintheMem­
berStatesontheratificationoftheTreatyofMaas­
tricht,thatthepublicintheCommunitywantedtosee
greatertransparencyinthedecision-making processand
wantedtobeinvolvedinthedecision-making process.
IfconsumerconfidenceintheprocessofEuropean
integrationistoberegained,attentionmustbepaid,in
thecontextofboththeestablishment oftheInternal
MarketandfurtherprogresstowardsEuropeanunifi­
cation,toensuringthatthesupplysideandthedemand
sidearetreatedequallyintheeconomicprocess.Itis
onlyinthiswaythatitmaybepossibletorealize
consumer'sexpectationsofincreasedprosperityasa
resultoftheestablishment oftheInternalMarket,as
definedanumberofyearsago.TherecentSutherland
Reportthereforerightlycallsforattentiontobepaid
tothepositionofconsumersintheprocessofcomplet­
ingtheInternalMarket.Therestorationofconsumer
confidenceintheInternalMarketisfurthermore an
extremelyimportantfactorinbringingabouteconomic
revivalandgivinganewimpetustoemployment .1,7,ThepurposeoftheCommittee'sinitiativeis
tomakeacontribution ,atthecurrentstageof
developments ,toshapingopinioninthisfield.In
additiontotheissueofgreaterinvolvementof
consumersinconsultations oneconomicandsocial
matters,consideration isalsogiventothequestion
ofwhether'self-regulatory agreements'(3)canbe
concludedinthefieldofconsumerpolicy,bymeans
ofadialoguebetweenthepartiesinvolved,and
whethersuchagreementsmaytaketheplaceofformal
legalprovisionstoprotectconsumersintheareas
concerned.AttentionisdrawntotwoOpinionsissued
recentlybytheCommitteeonconsumerpolicy(4)
2.3.Furtherprogresstowardscompletionofthe
(1)qjNoqig62371992 InternalMarketwillrequiresupplementary legal
(2)OJNoClio'20.4.1993. measures,particularlyinrespectofhealthandsafety.
(3)Cf.alsopoint2.5.2below. Thereare,however,otherareasinwhichthereisa
(4)OJNoC339,31.12.1991andOJNoC19,25.1.1993.needtostrengthenthepositionoftheconsumerinorder

NoC34/80 OfficialJournaloftheEuropeanCommunities 2.2.94
toenablehimorhertoplayanequalroleinthemarket
tothatplayedbytheproducer.Thequestionthenarises
astowhetheritisdesirableornecessarytoregulate
suchfieldsentirelybylegalmeasuresorwhetherthere
arenotothermeansofachievingthesameobjective.workmakesitpossibletotakebetteraccountofthe
consumer'sstandpointintheconsultations .ThisOpin­
ionwilllookmoreparticularlyatwhetherandhow
dialoguebetweenthetwopartiesatEClevelcan
becomeaninstrumentofconsumerpolicy.Theaimof
thisdialoguemustbetogivethepartiesconcernedthe
opportunitytoreachappropriateagreementsfollowing
properconsultation ;theseagreementswouldtakethe
placeoflegalprovisionsorsupplementthem.Thetech­
nicaltermusedtodescribethisapproachis'self-regu­
lation',underwhichmeasuresareformulatedbythe
partiesconcerned,ratherthanbeingimposedby
government .Self-regulation does,however,takeanum­
berofdifferentforms.Threedistincttypesmaybe
listed-.2.4.IntheCommittee'sview,consideration should
begiventoadoptinganewapproachtoanumberof
areasofECconsumerpolicy.Inthosefieldswhere
regulatorymeasuresarerequiredtostrengthenthepos­
itionoftheconsumer,EClegislationshouldcoveronly
fundamentalrequirements ,andespeciallyprovisions
whichareessentialtotheeffectiveoperationofthe
marketorforthehealthandsafetyoftheconsumer.In
thecaseoftheremainingaspectsthepartiesconcerned,
suppliersandconsumers,shouldbecalleduponto
concludeagreements .(a)unilateralself-regulation ,carriedoutbybusi­
nessmenortheirorganizations ;
(b)unilateralself-regulation involvingconsultations
withconsumerorganizations ;Thestandpointoutlinedaboveisbasedontheobser­
vationthatconsumersintheMemberStates,andalso
atEClevel,areincreasinglybeingrecognizedasconsul­
tationpartnerswithregardtoconsumerissues.
(c)bilateralself-regulation leadingtoagreements
betweenbusinessmen'sorganizations andcon­
sumers'organizations (possiblyinvolvingnational
orECauthorities).GiventhattheconsumerintheInternalMarkethasto
beinapositiontocarryouthismarketrole,thereisa
needtoexaminewhetherandunderwhichconditions
dialoguebetweenthesupplierandtheconsumershould
playagreaterroleinthedevelopmentofaconsumer
policy.Aswearedealingherewithself-regulation asaninstru­
mentofconsumerpolicy,self-regulation willbetaken
tomeanbilateralregulationbythepartiesinvolved.
2.5.Formsofdialogue2.6.The'newapproach *totechnicalharmonization
andstandardsmayserveasanexample
2.6.1.Inarelatedfield,namelythatoftechnical
regulations,a'newapproach'hasbeenfollowedinthe
ECsince1985,Underthisapproachonlytheessential
safetyrequirementsarelaiddowninECDirectives:the
formulationofspecifications inrespectofproductsand
servicesisentrustedtoEuropeannon-governmental
bodies.Althoughtheabovementioned approachmay
beregardedasaformofself-regulation ,theconsumer
inputtothestandardsprocessisunsatisfactory ascon­
sumersareinvolvedinonlyaverysecondaryway.2.5.1.Incontactsbetweensocialgroups,including
contactsbetweenproducersandconsumers,manydif­
ferentformsofdialoguearepossibleandpractised.
Theseformsvaryfrominformalconsultations over
problemswhichhavearisenbetweenindividualcon­
sumersortheirorganizations ,ontheonehand,and
enterprisesortheirorganizations ,ontheotherhand,
toconsultationsleadingtounderstandings embodiedin
formalagreements .TheUK,inparticular,haslong
practicalexperienceinthisfieldbutthistypeof
approachhasalsobeenadoptedinotherECMember
States.Inbetweenthesetwoformsofdialoguethere
arealargenumberofotherformsofconsultation ,
suchasparticipationbyconsumersininstitutionalized
consultationprocessesinthesocio-economic field
(advisorybodies).2.6.2.Thenewapproachtotechnicalharmonization
andstandardscouldprovideanexampleofamethod
whichcouldbeadoptedincertainareasofconsumer
policy.Thefirststageintheseareaswouldbetodraw
upabasicEClegalinstrument (DirectiveorRegulation )
whichwouldmerelylaydownthefundamentalpro­
visions.Thesecondstagewouldthenbetoissuea
Recommendation inwhichtheCommissioncallsupon
thepartiesinvolvedtoassumejointresponsibilityfor
fleshingoutthesefundamentalprovisions.2.5.2.AtEClevel,too,consumersareinvolvedin
institutionalized dialoguethroughtheirrepresentatives
ontheEconomicandSocialCommittee .Despitethe
relativelysmallnumberofconsumerrepresentatives on
theCommittee,theirparticipationintheCommittee's

2.2.94 OfficialJournaloftheEuropeanCommunities NoC34/81
havinglawsimposeduponthembyoutsidebodiesin
everypossiblefield.Theadvantageforconsumersis
thattheycancontributetotheestablishmentofrules
whichprovidethemwithappropriateprotection.
3.2.Animportantelementofthisapproachtocon­
sumerpolicyisthefactthatthetwosidesareonan
equalfootingandrecognizeandrespecteachothers'
interests.Theyare,ofcourse,freetochoosewhether
ornottheywishtotakepartinadialogueleadingto
self-regulation .However,ifitbecomesapparentthat
someformofregulationisrequiredinaparticulararea,
partiesshouldbewillingtoparticipate,ifonlyoutof
respectfortheotherparty.Inthefinalanalysis,in
theabsenceofself-regulation theauthoritieswillfeel
obligedtointroducelegalprovisions.2.7.Proposalsforthepossiblemachineryofthesup­
plier-consumer dialogue
2.7.1.Intheabsenceofsuitablemachinery,thepar­
tieseligibletotakepartinsuchadialoguemighthave
difficultyininitiatingdialoguewithoutassistance.Itis
thereforeproposedthata'forum'forcoordinationat
EClevelbesetup.Thisforumwouldberesponsiblefor
ensuringproperrepresentation ofthepartiesinvolvedin
thevariousprojectsandmightalsobegivenresponsi­
bilityforpromotingdialoguebetweenthepartiescon­
cerned.
2.7.2.Onepossibilitycouldbetoincluderepresenta­
tivesofproducers (bothofgoodsandservices)and
tradersalongsideconsumers'representatives onthe
existingConsumers'ConsultativeCouncil.Thepresent
CouncilshouldthenbetransformedintoaConsultative
CouncilforConsumerAffairs.IntheCommittee'sview
suchanarrangementcouldnot,however,berec­
ommendedatthepresenttimeas,wereittobeintro­
duced,thespecificroleoftheexistingCouncilcould
nolongerbefulfilled.
2.7.3.Asecondpossibility,whichwouldundoubt­
edlybeeasiertoputintoeffect,wouldbetoestablish
a'ConsumerAffairsDialogueBoard'whichwouldact
asa'forum'.TheCommissionshouldtaketheinitiative
inestablishingthisBoard.
TheaimandroleoftheproposedDialogueBoardis
consideredingreaterdetailinChapter3ofthisOpin­
ion.TheCommitteewould,however,pointoutatthis
juncturethatifthedialogueistobeeffective,itis
absolutelyessentialthatthefundamentalconditionsset
outinChapter3beobserved.
TheCommissionshouldalsocometoaclearagreement
withthepartiesconcernedonissuessuchasthefol­
lowing:
—theroleoftheConsumerAffairsDialogueBoard;3.3.Asregardstheimplementation ofself-regu­
lation,theCommitteewouldmakethefollowingpro­
posal(cf.point2.6.2above).
3.3.1.InthefieldinwhichtheECconsidersitdesir­
abletolaydownrules,the'essentialelements',i.e.the
provisionswhicharenecessaryforeffectiveoperation
ofthemarketortoprotecttheconsumer,shouldbe
laiddowninanEClegalinstrument (Directiveor
Regulation).Newmeasuresshould,ofcourse,bebased
onthenewArticle129a.
3.3.2.TheCommission shouldissueaRecommen­
dationontheotherelementsofsuchrules,definingthe
issuesinvolvedandcallinguponthepartiesinvolvedto
enterintoadialoguewithaviewtodealingwiththese
issuesbyself^regulation .TheRecommendation would
alsosetoutthebasicconditionstobemetbytheprocess
ofself-regulation .
—theBoard'sworkingmethods;
—membershipoftheBoard,bearinginmindthat
equalrepresentation isasinequonon;
—thebudget;
—funding.
TheConsumerAffairsDialogueBoardcouldusethe
facilitiesoftheEconomicandSocialCommittee .3.3.3.Theproposed'forumfordialogue'wouldtake
theinitiativeinbringingtogetherthepartiesinvolved.
Anumberofadditionalconditionsalsoneedtobemet:
—equalrepresentation oftheparties,irrespectiveof
theformtakenbytheproposedforum;
—theindustrialsectorsinvolvedshouldbeproperly
representedontheforum;
—theestablishmentofthe'forumfordialogue'must
notleadtothesideliningorabolitionofexisting
specificconsultativebodies(e.g.theStandingCom­
mitteeforFoodstuffsandtheCommitteeonCom­
merceandDistribution);
—participationbythevariouspartnersintheworkof
theforummustnotresultinlossoftheirautonomy
andtheirspecificidentity;theymustretainthe3.Practicalimplementation oftheproposals—the
mainelements
3.1.Dialoguebetweenthesuppliersofgoodsand
servicesandconsumersprovidesthetwosideswithan
opportunitytoreachagreementsonthepolicytobe
pursued,takingaccountoftheirrespectiveinterests.
Suchadialogueofferssupplierstheadvantageofnot

NoC34/82 OfficialJournaloftheEuropeanCommunities 2.2.94
forinitialproposalsinrespectofself-regulation .Ifthe
ConsumerAffairsDialogueBoardwerebasedatthe
EconomicandSocialCommitteeaccountcouldalsobe
takenofthesuggestionsputforwardbytheCommittee
intheregularappraisalsoftheSingleMarketcontained
initsOpinions [seetheOpinionontheSutherland
ReportFromaconsumerpointofview,attention
shouldalsobepaidtotheareaslistedbelow.
4.2.1.Consumerinformation
4.2.2.Hotelclassificationoptionofengaginginformalandinformalcontacts
withECauthoritiesandotherFXbodies;
—thestructureandthefinancialpositionofallthe
partiesinvolvedmustbesuchastoenablethemto
participateinthedialogueonanequalfooting.
3.3.4.IntheCommittee'sview,theself-regulation
systemestablishedasaninstrumentofconsumerpolicy
willhavetorespectanumberofbasicrulesifthe
consultationsaretoachievethedesiredobjective,name­
lytoconcludebindingagreementsbymeansofbilateral
self-regulation .Anumberofbasicrequirementsare
listedbelow:
—thepartiestotheagreementsorcodesofpractice,
theirqualitiesandtermsofreferencemustallbe
clearlydefined;
—thegoodsorservicescoveredbyself-regulation must
bepreciselydescribed;
—thedurationoftheagreementmustbestipulated;
—implementingprovisionswillhavetobelaiddown,
including:
•rulesanddeadlinesinrespectofpossibleinterim
assessments ;
•remedies,suchascomplaintsandarbitrationpro­
cedures,intheeventoffailuretomeettheterms
oftheagreement ;
•thepenaltiestobeappliedintheeventoffailure
tomeetthetermsoftheagreement .4.2.3.Guarantees andafter-sales service
4.2.4.Arrangements withfinancialinsti­
tutionswithregardtoconditions
applicable topaymenttrans­
actionsandmethodsofmaking
payments
4.2.5.Provisions inrespectofadver­
tising
4.2.6.Insurance sector
4.2.7.Medicinalproducts
4.Mainareasforself-regulation4.2.8.Proposalsfortheestablishment of
arbitration boards
5.Concludingremarks4.1.Theabovemodelforaself-regulation dialogue
betweensuppliersandconsumersshouldinprinciple
beregardedasbeinggenerallyapplicableinrespectof
thefurtherdevelopmentofconsumerpolicy.However,
thefieldofapplicationofthisformofdialogueshould
perhapsbelimitedforpragmaticreasons.Thebest
approachwouldbetoexamineonasector-by-sector
basiswhichareaslendthemselvestothisapproach.
Someoftheareaswhichqualifyforsuchanapproach
arelistedbelow.
4.2.Outlinelistofthemainareasforself-regulation
TheexperiencewiththeSingleMarketgainedbycon­
sumers,tradersandproducerscouldprovidethebasisTheCommitteeurgestheCommissiontoarrangea
'hearing'ofallthepartiesinvolved(atbothnational
andEClevel)inthenearfutureinordertoidentifythe
areasofpolicywhichreadilylendthemselvestothe
organizationofageneraldialoguebetweenconsumers
andproducers.InthiscontexttheECCommission
shouldalsoclarifythelimitsimposedbyArticle85of
theECTreatyonself-regulation bythepartiestothe
market.
(')OJNoC304,10.11,1993.
DoneatBrussels,25November1993.
TheChairman
oftheEconomicandSocialCommittee
SusanneT1EMANN