S&j'f 
mn COMMISSION OF THE EUROPEAN COMVfUNITIES 
COM(90) 98 final 
Brussels, 3 May 1990 
Itlg!lIE5g^CTI0N PLAN OF CONSUMER POLICY IN THE EEC 
(1990 1992) 
cV? ?s f-
THREE YEAR ACTION PLAN OF CONSUMER POLICY IN THE EEC 
• 
(1990 1992) 
CONSUMER POLICY IN THE COMMUNITY 
The Treaty of Rome in its preamble affirmed the essential objective 
of the Treaty as being the constant improvement of the living and 
working conditions of the people. 
The Single European Act additionally in Article 100 A.3. added a 
conscious dimension with the words "The Commission in its proposals 
concerning health, safety, environmental protection and consumer 
protection will take as a base a high level of protection". 
Since 1961, when Sicco Mansholt, the Agriculture Commissioner, 
convened consumer representatives for the first time, the Community 
has attempted to develop consumer policy. However, it was on the 
occasion of enlargement in 1972 that the policy got its first serious 
attention when the heads of state and government of the six founder 
states called for a major effort to address the practical day to day 
problems of citizens. As a result in 1973, the Commission established 
a specialised service to deal with environment and consumer 
protection and created a Consumer Consultative Committee. 
In April 1975, a first consumer programme was adopted, but it was not 
until 1981 with the adoption of a second programme, at the behest of 
the Council of Ministers, that the policy began to develop visibly. 
The first Consumer Council took place in 1983 and since then they 
have become a regular feature of Community business. 
In 1985 a programme was launched to give a new impetus to consumer 
policy. This coincided with the publication of the White Paper on the 
Internal Market and increased consciousness of the importance of 
addressing consumer concerns in the concentrated preparations for the 
Internal Market. Many of the measures which the Community has taken 
in recent years have addressed consumer interests. However, with the 
imminence of 1992, pressure has been applied by the Council of 
Ministers on November 9, 1989 for a further effort to intensify 
activity addressed to the consumer. 
The Commission recognised the importance of consumer policy in its 
report on progress towards the internal market (C0MC88) 650 of 
17th November 1988). 
That report stated "Consumer protection provides an example of a 
policy area which will take on an enhanced importance in the 
completed internal market. Consumers will need to be reassured that 
their interests are properly represented, that considerations of 
physical and economic safety have been properly taken into account 
and that access to information and justice is assured." 
In February 1989 the Commission decided to establish the Consumer 
Policy Service. Expectations of greater attention to consumer policy 
were raised accordingly in the European Parliament, in the Member 
States and the consumer organisations. 
The Council, on its own initiative, unanimously adopted, on 
9th November 1989, a Resolution on future priorities for a relaunch 
of consumer policy (89/C 294/01). 
The construction of the internal market is expected to be greatly to 
the advantage of the consumer. To gain the benefits, it is necessary 
that consumers be sufficiently confident to use the opportunities 
provided. Significant progress has been made in providing the basis 
for confidence in industry and commerce and they have been responding 
accordingly to the challenge. In paralell it is important to pay 
attention to consumer interests', not only for their own sakes, but 
also for the benefits of producers, distributors and enterprise in 
general. 
This could be done in a limited way by specific Community consumer 
actions but the interests of consumers should also be reflected in 
the establishment of other Community policies (i.e. environment, 
industrial, agriculture, transport and social policy). 
This action plan concentrates on the more specific actions which have 
been identified. 
Subsidiarity Principle 
Consumer policy in the Member States has developed over many years, 
but only limited aspects of consumer protection have been addressed 
at Community level. With the imminence of 1992 there is pressure for 
accelerated activity on consumer issues. In preparing this action 
plan therefore, the Commission has restricted its proposals to those 
areas where its involvement is essential to the success of the 
Internal Market. 
A limited number of legislative actions are proposed where common 
harmonised approaches are crucial to the proper functioning of the 
market. 
Other actions are proposed in the Representation and Information 
sectors. Finally, some actions are proposed in order to assist in the 
development of activities and where stimulation is needed to speed up 
developments throughout the Community. In those instances it is not 
envisaged that Commission support would continue indefinitely, but 
that either the authorities in Member States or the eventual self 
sustaining capacity of independent organisations would ensure 
continuity. 
Practical consumer policy must be effectively managed in the Member 
States on an ongoing basis with the management and control of safety, 
information and redress being adapted in each instance to local 
needs. It would be unrealistic to undertake such tasks continuously 
at a Community level. 
A. CONSOLIDATION OF PROGRESS 
a) Situation of consumers in 1990 
The programme adopted to open up the internal market included many 
measures which were important from the consumers' viewpoint. 
Sector by sector legislation in many products and services has 
removed barriers to trade which limit availability to consumers, 
as well as addressing safety. A global approach to certification 
and testing of products has been accepted. 
In addition, specific measures have been adopted particularly 
tailored to consumers safety and economic needs (product 
liability, misleading advertising, rapid exchange of information 
system, etc.). 
b) Implementation 
The Commission will seek to reinforce the efforts to secure 
implementation of the directives already adopted, as well as to 
develop and operate the related management and control procedures. 
Many Community directives have a consumer effect, especially 
environment, agriculture, transport, but particularly important 
are those regulating food, medicines and financial services, such 
as the banking and insurance. 
The work of CEN/CENELEC in providing the necessary standards to 
support Community legislation is a vital componant which also 
needs to be finalised on time. 
On a more specific basis the Commission recognises that, from a 
consumer perspective, the implementation of the Product Liability 
Directive 85/374, the Misleading Advertising Directive 84/540, the 
Credit Directive 87/102, the Door Step Selling Directive 85/577, 
the Food Labelling Directive 79/112 and the first of the new 
approach directive that on Toy Safety 88/378, are of critical 
importance. For that reason it will emphasize to the authorities 
in the Member States the necessity to transpose these directives 
into their national legislation as quickly as possible. 
The Commission also attaches great importance to the rapid 
adoption of its draft directive for general product safety. 
B. THREE YEAR ACTION PLAN 
The Commission in responding to the resolution on the development 
of consumer policy adopted by the Council on November 9th, 1989 
puts forward this action plan for the three years ending on 31st 
December 1992. 
Four main areas of focus are identified because of their 
importance in building the consumer confidence necessary to 
support the implementation of the internal market. 
(1) Consumer Representation 
(2) Consumer Information 
(3) Consumer Safety 
(4) Consumer Transactions. 
1. CONSUMER REPRESENTATION 
To achieve the economic and social benefits of the internal market 
it is necessary that consumers participate actively in many 
functions. 
(i) Consumer representation is required at policy levels in the 
Community as well as in each Member State, in order to match 
the influence achieved by producers and suppliers and assist 
in the adoption of balanced decisions. Some Member States 
have achieved a balance between producer/consumer 
representation. The Commission should seek to encourage the 
development of an equivalent balance where it has not been 
fully achieved. 
(ii) The decision of the Commission to establish a new Consumer 
Consultative Council gives a lead in consumer representation 
and affords a better and more effective system of involving 
consumer representatives in the various policies and 
procedures being established at Community level. The 
systematic exchange of information and experience of 
consumer policy in the Member States will be an important 
function of this Council. 
(iii) It must be recognised that the differences between the 
degree of organisation, culture and capacity of consumer 
organisations varies greatly between Member States, some of 
which have acute difficiencies. Efforts to improve this 
situation mustbe continued and reinforced while respecting 
the different needs. 
(iv) Public trust in many of the agencies which manage safety and 
quality, which set standards, which certify conformity of goods 
or services, which authorise products or which arbitrate on 
disputes can be strengthened if there is more effective 
participation of consumer representatives in their operation. 
With consideration being given to new agencies in the Community, 
it is important that this aspect be taken into account from the 
beginning. 
(v) Supporting the development of consumer organisations is 
therefore essential in all parts of the Community so as to 
provide the "corps" of representation necessary. 
The development of consumer organisations will also lead to 
increased provision of services required by consumers themselves 
in the fields of information, advice and legal services. The 
success of some organisations in conducting and distributing 
comparative testing results of goods and services has tended to 
foster competition and assist in consumer choice. 
(vi) This development of consumer organisations requires funding and 
practical assistance if it is to succeed. The benefits which will 
accrue from such investment will far outweigh the costs involved 
by reducing the need for public provision of many services. Care 
however must be taken to preserve the independent character of 
consumer organisations if their credibility with consumers is to 
be maintained. Every effort must be made to reduce the need for 
public funding from the Community budget by encouraging local 
financing and self sufficiency among consumer groups. 
(vii) The development of effective, confident and more representative 
consumer structures is required, if successful producer/consumer 
dialogue and negotiation is to have its natural role in the 
market. The inability of Consumers to fund such work at a 
Community level is a big inhibiting factor. The relative 
weakness of developments in this activity deprives the market of 
a means of addressing consumer problems without the need for 
additional legislation. Through the new Consumers Consultative 
Council, the Commission will seek to realise consumer 
representation willing and able to negotiate with suppliers. 
Action representation : 
1. Complete the establishment and development of the Consumer 
Consultative Council and if necessary help promote the development 
of similar approaches in Member States. 
2. Assist in the development of consumer organisations particularly 
in Southern Europe and Ireland by providing technical and/or 
financial assistance for projects and actions, as well as the 
exchange of information and experience. 
3. Encouragement of greater producer/consumer concertation. 
2. CONSUMER INFORMATION 
Consumer confidence to achieve the benefits from the operation of 
the single market can be obtained through the availability of 
adequate information. There are many facets to information 
provision : 
(a) Information services 
(b) Policy committment to transparency 
(c) Comparative testing and advertising 
(a) Information services 
i) The necessary provision of adequate information flows to meet 
consumers' needs will depend on the development and stimulation 
of a response from a variety of economic and social actors. This 
extends far beyond the public service sectors in the Community 
to include consumer organisations, private sector organisations, 
professional advisors, and the communications industry. Sales 
promotion information is not of itself a sufficient basis for 
decision making for significant purchases. Consumers need access 
to factual information and advice right across the range of 
supply. 
ii) The volume and concentration of changes in legislation, 
standards and control procedures, arising in order to open up 
the single market, creates information needs for consumers just 
as it has for industry and which has led to the establishment of 
Euroguichets and other actions already. Add to that a somewhat 
wider range of products and a veritable transformation in the 
availability of services and it becomes clear that a major focus 
on information provision is needed by consumers. 
iii) While there is a close link between using information properly 
and education, the reality is that many citizens emerge from 
the school system ill prepared for their role as adults in a 
consumer society. 
Action information services: 
1. Communication to the Council on consumer information (strategy and 
actions). 
2. Support local initiatives of three pilot projects of European 
consumer information and advice centers for frontier regions in 
1991 and 1992 using the experience gained by Commission services 
in related activities already. 
3. The promotion of cooperation between consumer organisations and 
the education systems in exchanging materials to improve teaching. 
4. Collaboration with the youth information and awareness 
programmes. 
(b) Transparency policy 
i) Consumer policy must endeavour to secure the greatest possible 
degree of relèvent disclosure or transparency which can be 
achieved. 
The need for maximum transparency in the presentation and supply 
of goods and services is increasingly recognised. Much of the 
existing legislation regulating the market sectors, does not 
ensure adequate transparency. Particular attention must be given 
to banking, insurance and other financial services because of 
their importance in the internal market. 
Even where requirements are established in product sectors such 
as foodstuffs, sufficient disclosure of ingredients, processes, 
and food values in a manner which allows consumers to 
discriminate is not achieved. Disclosure can confuse as well as 
inform. 
ii) It must also be recognised that transparency requirements change 
and evolve. The recent focus on ecological and health concerns 
illustrates this. There are emerging concerns arising from the 
development of biotechnology which will also require 
examination. 
There is a need therefore to review transparency requirements 
already in place with the aim of rationalising, as well as 
ensuring that new regulations take account of this aspect. 
iii) The development of labelling legislation, inevitably in 
piecemeal fashion, needs to be examined to ensure that 
confusions are corrected or eliminated and that anticipated 
consumer requirements are met. 
10 
iv) Labelling provisions must also be developed to facilitate 
recognition of product qualities and to cope with emerging 
concepts such as organic farming ecological or biological 
products. Without making provision it will be extremely 
difficult for producers to assure consumers of the existence of 
real qualities. While care must be taken to avoid resorting to 
recipe law to specify exactly how products must be made, the 
emphasis should be put on recognition of quality production 
sought by producers themselves, by the development of 
identifying marks or seals as appropriate. 
Action transparency: 
1. Seek maximum transparency, particularly for banking and insurance, 
through Community legislation, if necessary, to assist consumer 
choice. 
2. Proposals to assure transparency in cross frontier financial 
transfers and payments. 
3. Analysis of existing labelling directives with a view to its 
rationalisation and improvement taking account of changing needs. 
. amendments of the food labelling directive 79/112 
. proposal for directive on general product labelling. 
4. Develop the concept of labelling to support quality products. 
(c) Comparative testing 
i) The first need recognised by many consumer organisations to 
assist consumer choice has been that of comparative testing of 
goods and services. The most successful independent consumer 
organisations fund their operation by successfully selling the 
results of comparative testing studies to consumers. This 
activity stimulates competition and helps recognition and 
evaluation of quality provided that it is conducted according to 
the recognised criteria and basic conditions of testing. 
ii) The penetration of this information however is limited and the 
facilities organised to achieve it are not adequate. 
11 
iii) The focus of comparative testing has to be directed more and 
more from existing national markets to a situation where the 
information covers the whole internal market. Special attention 
must be paid to this task. 
iv) Consumer choice would be facilitated if accurate advertising 
comparing prices and quality were available. This is 
particularly so when transfrontier transactions increase. In 
some Member States comparative advertising is still prohibited 
because unfair competition and trade mark laws forbid an 
advertiser from identifying competitors and their goods or 
services by name. The Commission intends to bring forward an 
amendment to the Misleading Advertising Directive to remedy this 
situation, on conditions which will strike a fair balance 
between the interests of consumers and suppliers. 
Action comparative testing: 
1. Stimulation of comparative testing to meet market needs, taking 
account of the Commission memorandum COM 89/209. 
2. Proposal of directive to encourage comparative advertising 
(amendment of directive 84/540). 
3. CONSUMER SAFETY 
Much harmonisation of legislation in the Community has been 
proposed and adopted already on a sector by sector basis. The 
safety aspects of this legislation will go a substantial way 
towards ensuring that reasonable controls are exercised. 
i) The need to cover sectors not addressed by specific 
legislation, take account of developments in technology and 
knowledge, cover consumer safety emergency situations at 
Community level in an efficient way and streamline how public 
authorities in the Member States manage and interface with 
safety issues, remains as a significant step required to 
build consumer and product users confidence in the operation 
of the internal market. The draft Product Safety Directive 
12 
proposed by the Commission should be adopted speedily, so 
that it will be effectively implemented in time for the 
completion of the internal market. 
ii) In addition, the strategy of using legislation dealing with 
civil liability for defective products adopted by the Council 
in 1985 in Directive 85/374 will be examined by the 
Commission with a view to a proposal of measures to deal with 
civil liability for physical damage arising from the supply 
of services. 
iii) The completion of the sectoral legislation programme of the 
White Paper, particularly those on food, pharmaceuticals and 
cosmetics, combined with the global approach of (i) and (ii) 
above will enable the Community to address consumers in the 
knowledge that their health and safety interests are 
adequately protected and that they can confidently choose 
between a wide range of goods and services without undue 
risk. 
iv) Rather than spread consumer vigilence over the whole range of 
production, it is necessary to attempt to identify the 
particular goods and services which are of concern and 
interest to consumers. By identifying such a priority list, 
it would be possible to secure priority attention in 
standards setting, information provision or other such 
activity. 
v) The extent to which the Community might best use the 
Commission or other agencies to supplement the efforts of 
Member States in fields such as "premarketing authorisation" 
of medicines, coping with serious emergencies, compliance or 
quality certification is an issue being carefully considered 
at present. The Product Safety Draft Directive seeks to 
permit a small but constructive role in emergency management 
by the Commission. Such developments will require for 
13 
success, the maximum input of consumer and public health 
interests if they are to make an adequate contribution to the 
effectiveness of the Community. 
vi) a) Standards setting by CEN/CENELEC is taking longer than 
envisaged, yet those standards are needed by Community 
legislation. Reinforcement of that work, together with the 
adoption of priorities is an absolute necessity. Greater 
consumer participation in standards setting will build 
confidence in the adequacy of the safety or quality levels 
adopted. Every effort must be made to achieve this goal in 
line with the Council Resolution of 4.11.1988 
b) Certification of compliance with essential requirements of 
Community legislation is of great importance. In order to 
ensure consistency of such procedures throughout the 
Community to build confidence in the safety of mutual 
recognition, the Commission has presented a memorandum 
COM 89/209 final of 4.7.1989 and the Council on 21.12.1989 
adopted a resolution. 
c) As proposed in the draft directive on general product 
safety the temporary Rapid Exchange of Information System 
for emergency safety problems must be put on a permanent 
and improved basis so that not only are decisions notified 
by Member States but that also serious concerns which 
might lead to decisions are included. 
d) Information gathering and surveillance systems appropriate 
to the management of safety must be developed. 
Action safety: 
1. Proposal for Council decision to extend the Rapid Exchange of 
Information System. 
14 
2. Examination of the need for a proposal on liability for physical 
damage in services. 
3. Cosmetics directive amendment. 
4. Prepare listing of products requiring priority attention of 
consumers in standards setting and information. 
N.B.: . Complete implementation of the Product Liability Directive 
85/374. 
. Adoption of the draft directive on product safety. 
4. CONSUMER TRANSACTIONS IN THE MARKET 
To achieve full benefit from the internal market, it is necessary 
that its citizens be prepared to use that market by purchasing 
goods and services available anywhere in it. 
Cross frontier selling by electronic means using television and 
new communications technology, in addition to existing mail order 
business, will stimulate demand for cross frontier purchasing. In 
addition the free movement of people achieved under the 
Community's programme, enabling citizens to travel, work and 
reside where they wish, will increase consumer mobility. It is 
therefore necessary to take the steps required to enable consumers 
to exercise their purchasing potential throughout the Community. 
i) The differences in conditions of sale in contracts across the 
twelve Member States are such as to inhibit consumers from 
purchasing significant items or services away from his or her 
place of residence. The risks involved in so doing, without 
hiring a lawyer to guide and advise on the purchase, will be 
formidable. Most prudent consumers will not take such risks. 
With each Member State having a different legal system, 
complicated additionally by nine Community languages, the 
inability of citizens to confidently cope with such 
complexities will inhibit purchasing across frontiers. 
15 
ii) It is necessary to identify the elements in the existing 
contract laws of Member States which are likely to inhibit 
consumer purchasing and as far as possible eliminate them. 
Problems could arise from differences existing which allow 
for unbalanced and potentially damaging contract terms in the 
small print of contracts and which are often not expected by 
consumers. 
iii) In addition to modifying existing law, consideration must be 
given to whether, in the internal market, it might not be 
helpful to both producers and consumers alike to construct a 
model set of contract conditions (i.e. a sale of goods act) 
as part of the appraisal of civil law in the Community. This 
would include guarantees and warrenties which should be 
available uniformly across the whole market. Even on an 
optional basis, such a measure could simplify consumer sales 
procedures. 
iv) Access to justice and redress is already inadequate in many 
Member States because of the cost, complexity and time 
required and there are problems in relation to transfrontier 
operations. This will also inhibit consumer purchasing. If 
the proposals in (ii) and (iii) above, together with those on 
product and service liability, are successfully implemented, 
then the pressure and scale of proposal required in this 
field will be greatly reduced. Comprehensive studies of what 
might be 
undertaken are being conducted at present. Particular 
attention is being paid to possibly allowing for group 
actions for consumer redress. 
v) New selling techniques such as television selling to 
consumers or the selling of timeshare holiday homes are 
growing rapidly. Because these often occur away from the 
normal business situation, they raise concerns about undue 
sales pressure on consumers. Similar issues were successfully 
16 
addressed in the Door Step Selling Directive 85/577 by 
providing for a "cooling off" period to allow for 
cancellation of a purchase order after reflection. 
Action transaction: 
1. Proposal of directive on unfair contract terms. 
2. Examination of possible initiatives to simplify cross 
frontier consumer contracts, guarantees and after sales 
service. 
3. Consideration of means of improving consumer access to 
justice and redress. 
4. Proposal for a directive on distance selling. 
17 
3 YEAR ACTION PLAN 
Implementation Action 
1. Sustained efforts to secure implementation of directives of importance 
to consumers. 
Representation 
1. Complete the establishment and development of the Consumer 
Consultative Council and help promote the development of similar 
approaches in Member States. 
2. Assist the development of consumer organisations particularly in 
Southern Europe and Ireland by providing financial assistance for 
projects and actions as well as the exchange of information and 
experience. 
3. The encouragement of greater producer/consumer concertation. 
Consumer information 
1. Communication to the Council on consumer information (strategy and 
actions) (1990). 
2. Support local initiatives of three pilot projects of European 
consumer information and advice centers for frontier regions in 
1991 and 1992 using the experience gained by Commission services 
in related activities already. 
3. The promotion of cooperation between consumer organisations and 
the education systems in exchanging materials to improve teaching. 
4. Collaboration with the youth information and awareness 
programmes. 
18 
Transparency 
1. Seek maximum transparency, particularly for banking and insurance, 
through Community legislation, if necessary, to assist consumer 
choice. 
2. Proposals to assure transparency in cross frontier financial 
transfers and payments (1991). 
3. Analysis of existing labelling directives with a view to its 
rationalisation and improvement taking account of changing needs. 
. amendments of the food labelling directive 79/112 (1990) 
. proposal for directive on general product labelling (1991). 
4. Develop the concept of labelling to support quality products 
(1990/1). 
Comparative testing 
1. Stimulation of comparative testing to meet market needs taking 
account of the Commission memorandum COM 89/209 (1991/2). 
2. Proposal of directive to encourage comparative advertising 
(amendment of directive 84/540). (1990) 
Safety 
1. Proposal for Council decision to extend the Rapid Exchange of 
Information System (1990). 
2. Examination of the need for a proposal on liability for physical 
damage in services. 
3. Cosmetics directive amendment (1990). 
4. Prepare listing of products requiring priority attention of 
consumers in standards setting and information (1991). 
N.B.: . Complete implementation of the Product Liability Directive 
85/374. 
. Adoption of the draft directive on General Product Safety. 
19 
Consumer transaction 
1. Proposal of directive on unfair contract terms (1990). 
2. Examination of possible initiatives to simplify cross frontier 
consumer contracts, guarantees and after sales service. 
3. Consideration of means of improving consumer access to justice and 
redress (1991). 
4. Proposal for a directive on distance selling. (1990) 
ISSN 0254-1475 
COM (90) 98 final 
DOCUMENTS 
EN 15 
Catalogue number : CB-CO-90-177-EN-C 
ISBN 92-77-59639-2 
Office for Official Publications of the European Communities 
L-2985 Luxembourg