WRITTEN QUESTION E-2676/02

by Paul Rübig (PPE-DE) to the Commission

(24 September 2002)

Subject: Follow-up to the Green Paper on consumer protection

In June 2002, the Commission published its Follow-up communication to the Green Paper on EU Consumer Protection(1) which envisages the development of a framework directive on unfair commercial practices.

The Commission, however, would confine the prospective framework directive to business to consumer (B2C). It proposes a general clause consisting of the establishment of the unfairness of a commercial practice and a consumer detriment test. By confining the directive to B2C, different unfairness criteria will

ensue for B2C on the one hand and business to business (B2B) on the other, which will, moreover, continue to be regulated at national level. For each segment of the B2C sector which would not be covered by the framework directive, the principle of mutual recognition would also apply.

The Commission also makes it clear that the prospective framework directive would be a directive laying down minimum requirements which the Member States could make more stringent.

How does the Commission intend to counteract this development which, from a business viewpoint and in terms of the single market, is potentially detrimental? How will the framework directive contribute to greater legal certainty and creating uniform terms of competition? From a commercial viewpoint, will the proposed approach remove barriers in the internal market and make the legal situation clearer?

(1) COM(2002) 289 final.

Answer given by Mr Byrne on behalf of the Commission

(24 October 2002)

The Commission set out in the Green Paper on Union Consumer Protection(1) ideas on the harmonisation of national laws on fairness of commercial practices in the internal market. The follow-up Communication says, A framework directive should bring about maximum harmonisation [and] application of the principle of mutual recognition and control by the country of origin (internal market principles). It is therefore not appropriate to say that a possible framework directive would only lay down minimum requirements that the Member States could make more stringent.

Furthermore, the Commission's position is underlined in part III of the annex to the Communication on page 19 The combination of an adequate level of harmonisation and the principles of mutual recognition and country of origin (which should be enshrined in the framework directive) will have as a consequence that divergent interpretations in jurisprudence at national level will not result in the fragmentation of the internal market.

The ideas for a possible framework directive would address the Honourable Member's concerns that legislation in this area increases legal certainty, creates uniform terms of competition and removes barriers to trade in the internal market.

As regards the scope of a possible framework directive the Commission does not propose to cover all business-to-business (B2B) issues as the need for such coverage has not been widely expressed in the consultation following the Green Paper.

Finally, the Commission can confirm its intention to propose that the principle of mutual recognition be applied in the area of fair commercial practices to B2C aspects not harmonised by a possible directive. The purpose of the consultation is to seek views on the issues that require harmonisation and those that can be dealt with in accordance with the principle of mutual recognition.

(1) COM(2001) 531 Final.