WRITTEN QUESTION E-1994/99

by Paul Rübig (PPE-DE) to the Commission

(9 November 1999)

Subject: Price marking obligation on the Internet

Intra-Austrian trade via the Internet is subject to the price marking law and the price indication Directive which prescribe gross-price marking.

When individual traders sell over the Internet in different countries two questions immediately arise, namely whether price marking should be gross ( which means taking into account the differing VAT rates) or net, and the currency used.

Given the distinctive character of the Internet it would undoubtedly be appropriate to introduce special arrangements, for instance permitting net-price marking where all still accruing taxes and costs (e.g. VAT, shipping costs, customs duties ) can be queried by the consumer. Otherwise the European Internet suppliers might be disadvantaged in relation to the American suppliers in competition and the consumer would be deterred by numerous figures in online transactions (11 different standard VAT rates).

Does the Commission have plans for such special arrangements for trading on the Internet in order to remove the justified doubts of the industry, and what exemptions from gross-price marking might those arrangements include?

Answer given by Mr Byrne on behalf of the Commission

(8 December 1999)

The purpose of Directive 98/6/EC of the European Parliament and of the Council of 16 February 1998 on consumer protection in the indication of the prices of products offered to consumers(1) is to stipulate indication of the selling price and the price per unit of measurement of products offered by traders to consumers. Article 2 of the Directive defines selling price as the final price for a unit of the product, or a given quantity of the product, including VAT and all other taxes.

Furthermore, Article 4 of Directive 97/7/EC of the European Parliament and of the Council of 20 May 1997 on the protection of consumers in respect of distance contracts(2) states that the consumer, prior to the conclusion of any distance contract, must be provided with information on the price of the goods or services, including all taxes, delivery costs where appropriate, and the cost of using the means of distance communication where it is calculated other than at the basic rate.

There are no specific Community provisions on the currency in which prices must be indicated, but it is necessary to take account of Article 4 of Directive 98/6/EC, which allows Member States to provide for a limit on the maximum number of prices to be indicated.

As far as Internet trading is concerned, the rules deriving from Directive 98/6/EC remain applicable. However, attention is drawn to the amended proposal for a Directive of the European Parliament and of the Council on certain legal aspects of electronic commerce in the Internet market(3), Article 5(2) of which stipulates that Member States shall provide in their legislation that where Information Society services refer to prices and other essential terms and conditions, these are to be indicated accurately and unequivocally and must include all additional costs.

(1) OJ L 80, 18.3.1998.

(2) OJ L 144, 4.6.1997.

(3) COM(1999) 427 final.