WRITTEN QUESTION E-0771/01

by Juan Naranjo Escobar (PPE-DE) to the Commission

(13 March 2001)

Subject: E-commerce and financial services

With the intention of promoting electronic commerce in financial services, the Commission submitted, some weeks ago, a strategy aimed at achieving an integrated market in those services by 2005. This strategy is based on the country of origin principle: in other words, crossborder buying and selling of financial services should obey the rules of the Member State in which the service is provided.

In the interests of overcoming the existing market fragmentation, what concrete actions does the Commission intend to take to boost consumer confidence in Internet payment systems? By what means does the Commission propose to harmonise the codes of conduct for professionals? To what extent does it intend to cooperate with operators on those markets to ensure that its objectives are achieved by 2005?

Answer given by Mr Bolkestein on behalf of the Commission

(6 June 2001)

As explained in the Communication on E-Commerce and Financial Services(1) confidence in Internet payment systems is essential for the development of business to consumer e-commerce. The Commission is working on both improving the technical security and establishing a legislative framework in order to promote consumer confidence in Internet payments.

In addition, the Commission recently adopted a Fraud Prevention Action Plan(2) which covers technological improvements to payment products and systems, as well as an improved information exchange. It also stresses the need for close co-operation of all the parties involved at all levels in a payment transaction. The Commission will co-ordinate action to promote preventive measures, including information gathering and awareness raising initiatives. A forum on security of payment products and systems will be established as well as an experts' group at Community level with the aim of strengthening cross-border co-operation.

Concerning legislative measures, the Commission believes that a legal framework for a refund system that establishes a right for refund in the event of a non-authorised transaction and non-delivery of goods purchased at a distance is needed urgently. This framework will strengthen the existing Community legislation on consumer protection in the area of electronic payments(3).

The Commission is supportive of industry developments in secure technical solutions, for example through other initiatives undertaken by the Commission, such as the possibility to propose a directive on mutual recognition of the evaluation of security product and services and as the smart card charter in the e-Europe initiative.

Following the conclusion of the Presidency at the European Council of Stockholm, the Commission will develop, in co-operation with the Council, a vast strategy in the electronic network security area.

(1) COM(2001) 66 final.

(2) COM(2001) 11 final.

(3) Directive 97/7/EC of the Parliament and of the Council of 20 May 1997 on the protection of consumers in respect of distance contracts Statement by the Council and the Parliament re Article 6(1) Statement by the Commission re Article 3(1), first indent (OJ L 144, 4.6.1997) and 97/489/EC: Commission Recommendation of 30 July 1997 concerning transactions by electronic payment instruments and in particular the relationship between issuer and holder (OJ L 208, 2.8.1997).