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5"? * COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 31.10.1995 
COM(95) 519 final 
COMMUN ICA HON 1 ROM THE COMMISSION 
PRIORITIES FOR CONSUMER 
POLICY 
1996 - 1998 

1-2 
Introduction 
The first and second three-year action plans ensured a necessary concentration of effort on 
addressing the issues which were important to consumers being able to participate in and 
benefit from the development of the Internal Market. While it remains necessary to complete 
the work done by ensuring the final adoption and implementation of all the measures proposed 
it is important at this stage to face up to other questions and problems which confront 
consumers, building on what has been achieved but which are not exclusively linked to the 
Internal Market. 
The insertion of Article 129A into the Treaty clearly requires the European Community to 
deal with the broad range of consumer issues, not just those related to the Internal Market 
project. This obligation implies careful consideration of subsidiarity at all stages so that 
appropriate solutions vis-à-vis Member States are adopted. 
From the work which has been done and the ability of the Commission to identify more 
clearly the persistent causes of consumer difficulty it is possible now to direct attention to a 
variety of subjects which need to be tackled if the European Community is to fulfil its 
responsibility. 
The present priorities for Consumer Policy are not intended to spell out each individual action 
which might be undertaken, that is rather the role of Commission Work Programmes. The 
objective is to present the selected priorities for work over the next three years, so that it is 
clearly understood what direction the policy will take and how the limited resources available 
will be deployed. Some of the priority areas are so new and complex that it would not be 
realistic to sketch out the precise consequences or actions needed. It is intended to adjust 
priorities within such subjects as it becomes clearer what options are available. 
Strategy 
Consumer interests are very broad and diverse. Virtually every policy in the European 
Community has some significance for consumers. Faced with this situation and given the 
resources available for redeployment, the Commission must choose priorities from a range of 
options. In the two preceding Action Plans, the choice of priority was clearly the Internal 
Market and the essential work necessary to enable consumers participate effectively in its 
operation. The completion ol* the work set in motion must be maintained and corrective 
measures must be considered where problems arise. 
The choices now are based on three considerations: 
1 ) Consumers face immediate problems which need to be addressed. Consumer concerns 
about public services, financial services, and food safety are evident. Questions raised 
are, since the introduction of Article 129A, broader than the Internal Market 
dimension. The need for information and education of consumers has been apparent 
for some time now but very limited action has been taken to face up to these needs. 
Since consumers' ability to "self protect1 is fundamentally linked to knowledge, it is 
indeed imperative to endeavour to improve this aspect considerably. 
2) The major technological change which is leading to the Information Society has the 
capacity to transform conditions for most people. Efforts, including education and 
training, will be intensified to help consumers adapt to this new reality so that they 
can benefit fully from it. Already significant measures have been initiated since it is 
recognised that consumer participation will be crucial to success. 
3) Just as consumer policy was directed over the last six years towards contributing to 
the success of the major European Community goal of completing the Internal Market 
so also the policy should now adjust to the major objectives now in focus. The 
objectives of achieving European Monetary Union, to continue to develop sustainable 
patterns of development and consumption as well as the prospect of enlargement of 
the Union to PECO countries have become central to the European Community. 
Further efforts arc needed to find ways in which consumer policy can contribute to the 
attainment of these goals. 
Priorities for Action 
1. A major effort to improve the education and information of consumers. 
2. Complete, review and maintain up to date the framework needed to 
ensure that consumers' interests are fully taken into account in the 
Internal Market. 
3. The consumer aspects of financial services. 
4. The protection of consumers ' interests in the supply of essential services 
of public utility. 
5. Measures to enable consumers to benefit from the opportunities 
presented by the Information Society. 
6. Measures to improve consumer confidence in Foodstuffs. 
7. Encouragement of a practical approach to sustainable consumption. 
8. Strengthening and increasing consumer representation. 
9. Assist Central and Eastern European countries to develop consumer 
policies. 
10. Consumer policy considerations in developing countries. 
5 
1- A major effort to improve the information and education of consumers 
Inadequate information lies at the root of many consumer problems so if proper information 
can be presented many consumer difficulties can be overcome. It might be assumed that the 
explosion of information services being experienced now eases the consumers' problem. The 
reality is that it complicates matters for consumers who have growing difficulty in choosing 
the appropriate and relevant material to enable them to select the goods and services they 
need. 
Ways of stimulating independent research through universities and other centres of excellence 
need to be considered to ensure that expert knowledge is developed on a variety of 
consumption issues. 
The market conditions in all Member States have changed because of the major work 
undertaken to develop the Internal Market. Unless consumers are sufficiently aware of the 
changes they will be disadvantaged. The job of enforcement and monitoring by public 
authorities is rendered more difficult if consumers arc not alert and ready to point out failures 
in the market place. Member States have a crucial role to play in consumer information and 
the Commission intends to complement and support that work. 
The foundations of this work have been laid and considerable expertise and "know how" has 
been developed. The major challenge now is to achieve wide-scale projection of key 
information so that the maximum effect of the changes can be achieved. This requires major 
use of electronic and audio-visual media. The benefit which will accrue will not just have 
a market effect but also public attitudes to the European Community in general will be greatly 
improved as realisation of the relevance of its work to citizens' well-being sinks in. 
Information supply alone will not be sufficient to meet the consumers needs. Unless serious 
efforts are made through largetted consumer education from early school years, to develop 
understanding of a range of subjects from nutrition and health to how markets work, many 
consumers will not be able to navigate with confidence through modern markets. The role 
which education can play in the drive towards sustainable consumption or in preparing for the 
information society is of fundamental importance. Without an adequate approach being 
developed, it must be expected that consumer suspicions will inhibit their participation in such 
projects. If sophisticated supply is to be possible, it must be matched by equally sophisticated 
demand. 
Responsibility for consumer education rests clearly with the Member States. The Commission 
has a responsibility to focus attention on this need and to complement and assist in an 
appropriate manner. 
2. Complete» review and maintain up to date the framework needed to ensure that 
consumers' interests arc fully taken into account in the Internal Market 
The Commission will ensure that Internal Market legislation adopted is properly implemented. 
Based on the experience of its operation, and coherently with the principle of subsidiarity, the 
Commission will assess the opportunity of reviewing and adjusting such legislation. The 
Commission will be considering appropriate action in response to the Green Paper on Access 
to Justice and Guarantees as an important contribution to completing the Internal Market from 
a consumer viewpoint. 
3. The consumer aspects of financial services 
The Internal Market for financial services is notable for the creation of a level playing field 
for financial institutions, allowing freedom to market services cross-border and liberalising the 
requirements on the establishment of a branch in another Member State. This provides for 
increased competition, choice and innovations which help consumers. Other legislation also 
provides important safeguards for consumers. 
However, consumer associations report dissatisfaction with aspects of financial services 
purchases. They are faced with diversified and complex services and frequently lack adequate 
information about these to help them choose what is best for them. They also find it difficult 
to get independent advice. The exclusion by the Council of financial services from the scope 
of the Distance Selling Directive raises concerns which must be addressed. In particular the 
absence of a cool ing-off period to consider the suitability of the contract for non-life insurance 
has led to numerous complaints from consumers. 
The Commission report on Consumer Credit (Directive 87/102/EEC) highlighted some 
problems and recent developments in the functioning of the market for consumer credit in the 
European Community Member States and opened the discussion with interested parties. The 
Commission intends to examine further the functioning of the consumer credit market and 
notably the role of credit intcrmediairies. In this context particular interest will be paid to the 
question of overindebtedncss. Consumer related aspects of mortgage credit will also be 
addressed. 
One aspect of major concern for consumers is the use of means of payment. As regards 
payment cards, consumer research and studies showed that in most Member States the 
Recommendation on Payment Systems (88/590/EEC) is not fully implemented. Various other 
aspects of payment cards (conditions of use, prices) need to be taken into account. 
The consumer dimension in the process of preparing for transition to the Single Currency is 
crucial. As the Commission has indicated in its Green Paper consumer confidence in all 
aspects of this process is vital. Consumer organisations have a key role to play in achieving 
this and they need to be consulted and involved at all stages. 
4. The protection of consumers' interests in the supply of essential services of public 
utility 
Essential services of public utility have to meet the needs of the citizen. The Commission has 
made considerable efforts to accelerate the liberalisation of essential services of public utility. 
The introduction of competition in these services will have a positive impact for consumers. 
The Commission is conscious that consumers are vitally concerned that adequate guarantees 
of universal service are provided and will continue to ensure that appropriate provision is 
made to achieve this. 
While continuing to press for liberalisation to increase efficiency and to reduce prices to the 
X 
benefit of consumers, the Commission will be concerned to ensure that the quality of service 
is improved and enhanced particularly for groups of consumers who are in a weak position 
and therefore very dependent on such services. 
The Commission will publish a Green Paper on transport entitled "Citizens' Network" which 
will take account of key consumer concerns. 
5. Measures to enable consumers to benefit from the opportunities presented by the 
information society 
The potential benefits to consumers from the development of the information society are great. 
The variety of applications open up new service possibilities for consumers. The Market is 
becoming global in scope. 
The Commission has already, in its Action Plan "Europe's Way to the Information Society" 
and the creation of an Information Society I'orum and an expert group on the social and 
societal aspects of the information society, taken steps to address its development. Some 
important legislation has also been proposed such as the ONP Voice Telephony, Data 
Protection and Distance Selling draft directives. 
Many consumers will want to avail themselves of this opportunity and the Commission 
intends to ensure that this aspiration becomes a reality. However, this is a complex area 
because the various developments grouped under the title of "information society" cover a 
wide range of consumer activity. Continuous specialised observation of developments in this 
area from a consumer perspective will be required to ensure maximum consumer benefit. 
Particular attention needs to be focusscd on the following key points: 
access to the system. There is a need to ensure that everyone who wants to can draw 
benefit from this development; 
new consumer skills will be needed: special education and training efforts will be 
required; 
electronic shopping malls - should prove very attractive to consumers providing that 
9 
secure payment systems can be developed. 
The globalisation of supply which the information society heralds calls for a comparable 
adjustment in the regulatory system. This adaptation will be of critical importance to 
consumers' willingness to participate and it needs to be addressed quickly. The Commission 
should continue to examine the actual and potential consequences of the Information Society 
for the Internal Market and promote any appropriate action, taking into account consumer 
needs and Global Market implications. 
Special assistance may be needed to encourage Consumer Organisations to change to take 
advantage of the opportunity afforded to them by this new society. New forms of cooperation 
on a global basis between such organisations should be encouraged so that the presence of 
assistance for consumers is guaranteed from the start. 
6. Measures to improve consumer confidence in foodstuffs 
Consumer group studies raise questions about the effectiveness of the food safety/purity 
control system. Public authorities throughout the European Community operate a system of 
controls designed to assure that food on the market is wholesome. Weaknesses in the system 
of control of the whole production chain, unless corrected, could quickly reduce significantly 
public confidence. 
The Commission will examine what measures can be developed, together with research, to 
cope with these concerns and will also reflect on the extension of product liability to include 
primary producers. 
It is not clear that all the information provided on food labels is really helpful to consumers. 
Some of this is unusable by consumers because of its complexity and indications are that other 
key information needs arc not met at all. For the minority of consumers to whom food 
selection is critical because of health reasons, complex information may be helpful because 
their medical advisors at least can comprehend such information. Given that most 
harmonisation of food labelling was undertaken in order to open up the Internal Market and 
10 
on an ad hoc basis the time may be approaching when it would be possible to review and 
simplify this legislation where necessary. 
The Commission intends to prepare a Green Paper on the future of Food Legislation in the 
European Community which will allow for widespread consultation on the main food issues. 
7. Encouragement of a practical approach to sustainable consumption 
The political recognition that society laces a major challenge in adjusting its habits and 
behaviour to the degree that they are sustainable has developed globally. The European 
Community as a major economic power has a crucial role to play in the development of this 
concept. Most of the initial locus has been on supply side adjustments but consumer policy 
needs to be concentrated on these areas also if some of the problems are to be overcome. 
Identifiable groups of consumers indicate commitment to tackling some of the problems of 
sustainability. By forging connections and networks between these groups it should be 
possible to ensure that a capacity to act is developed which will prove to be useful, once the 
priority problems have been identified and the basis of a solution has been agreed. 
Surveys show a high, and increasing level of environmental awareness among the general 
public and consumers. 
Consumers can exerce a considerable pressure, by their choices, toward design, production and 
marketing of products and services with a reduced environmental impact. 
Moreover, consumers have their own responsibility for the environment, in particular by using 
and disposing of products in the most appropriate way and participating in reuse, recovery, 
recycling schemes. 
However, consumers can make fully informed and rational choices only if information is 
provided covering the relevant environmental and performance aspects, and if the information 
given is neutral and reliable. 
Il 
Awareness raising, education, general information and labelling of products and services are 
the priority aspects in the area. 
The challenge is to identify the real priority problems where consumer attitudes and habits are 
the predominant factor and subsequently to devise strategics, in particular based on the 
elements mentioned above, best suited to and likely to achieve the goals desired. It is clear, 
for example, that many consumers are willing and able to contribute constructively to waste 
handling improvements. 
A difficult issue is how to accurately assess the merits of one product against another in the 
majority of cases. Agreed systems for such measures based on Life Cycle Analysis, should 
be developed further. 
The multiplicity of environmental problems identified and often challenged by others serve 
to confuse consumers rather than encourage them to contribute to sustainability. 
Currently the co-existence of several private or national labels is one of the reasons for 
confusion of the consumer and non-rational choices. Moreover the environmental claims 
made by certain private firms have not always been proven as reliable. A high concern for 
a better consumption has been perceivable, but reliable guidance for consumers is not 
sufficiently available. 
Using the methodology of Life Cycle Assessments, it is possible to obtain a reliable scientific 
comparison of the environmental impacts from different products either in their production 
and use and disposal/recycling phases. 
The EC eco-Iabel which is being established within the framework of Regulation 880/92/EEC 
operates on the basis of this methodology and is aimed at providing the market with an 
independent evaluation for environmental friendly products. Other labels, like the EC energy 
label, harmonise the information provided to the EC consumers in order to facilitate their 
choices. There is a clear need to develop this type of label and scheme further. 
12 
8. Strengthening and increasing consumer representation 
Consumers in most societies do not tend to be particularly organised into associations or 
groups. In the European Community it is estimated that about 4 million citizens subscribe 
to consumer associations. Because the most organised groups were in northern European 
Community Member States, the Commission has endeavoured to strengthen the movement in 
the southern countries where traditionally little presence of a consumer structure existed. 
financial support of consumer organisations and regions is still very low throughout most of 
Southern Europe. Consequently, the need for the Commission to sustain and increase support 
is essential in order to ensure the short and medium term development of the consumer 
movement in these countries. 
The need for consumer representation in many of the services likely to emerge in the 
Information Society is recognised. Efforts to assist and encourage the necessary involvement 
will be made by the Commission. 
The Commission has reformed yet again its consultation relationship with consumers and has 
been able to move to a situation where the new Consumer Committee is mainly drawn from 
national representatives of organisations active on the ground in each Member State. This 
improvement comes on lop of having access to \~\vc European-wide organisations structured 
on a Internal Market basis (BEUC, COFACE, EIICA, Eurocoop, ETUC). It is hoped to be 
able to secure a speedy input of advice from consumers through the operation of active 
consultation procedures. 
Increasingly the Commission is making use of market research techniques to sample opinions 
and study habits and attitudes of consumers throughout the European Community. This 
approach complements the opinions expressed by consumer representatives enabling a better 
balance to be achieved in decision making. 
A more structured approach to involving consumer representatives in the standard setting work 
of CEN/CENELEC has been set in motion, fhe founding of ANEC, a consortium of 
LI 
consumer organisations, to coordinate and manage consumer input to the specific European 
standards committees, offers the prospect of real involvement and their work will be carefully 
monitored and assisted on a continuing basis. 
9. Assist Central and Eastern European countries to develop consumer policies 
Fundamental reforms aimed at promoting the consumer interests on markets in 
transition have already been achieved or still arc discussed or under preparation in all 
CEEC. However, in general consumer legislation remains too dispersed, lacks 
coordination and hence cohesion, and very often continues to be dependent upon 
measures pursuing other policy objectives. Moreover, in many cases there is no 
effective enforcement of existing consumer laws. 
Legal and technical assistance is thus required to overcome the hurdles which still 
remain. This is the reason why in the White Paper published in May 1995 special 
attention has been given to this issue. 
fhe work started in 1994 under the Phare programme and which has been extended 
for 1995 needs to be built upon so that the tools for the formation and implementation 
of effective consumer policy are developed. 
10. Consumer policy considerations in developing countries 
Up to now consumer policy, as such, has never been included in development policy. 
I wen though consumer policy is potentially of central importance in situations of 
abject poverty where malnutrition and exclusion are key issues, it has been seen as 
relevant to developed markets only. 
Understanding of basic food hygiene, use of medicines, home economics, food 
conservation and other such subjects have been at the heart of the work of many 
consumer organisations for years. Issues such as the offloading of unfit or unsafe 
production are of major importance in third world countries. By endeavouring to 
14 
formulate a useful approach to questions like the above the Commission will improve 
the quality of its existing work in support of these vulnerable countries. 
fhe European Parliament fpr the first time in 1995 voted an amendment foreseeing 
consumer policy actions in the budget lines destined for use in developing countries. 
In the implementation of its projects and programmes, particularly in the social sector 
(health, education, environment, fight against poverty and malnutrition), the 
Commission will integrate an appropriate consumer policy dimension. 
f) 
ISSN 0254-1475 
COM(95) 519 final 
DOCUMENTS 
EN 10 
Catalogue number : CB-CO-95-567-EN-C 
ISBN 92-77-95374-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg