Amended proposal for a European Parliament and Council Directive on consumer protection in the indication of the prices of products offered to consumers
Date: 1997-04-04
Institutions: European Commission
Subjects: consumer information, national implementing measure, publishing of prices, selling price, trade regulations, unit price

COMMISSION OF THE EUROPEAN COMMUNITIES 

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Brussels,  04.04.1997 
COM(97) 136  final 

95/0148 (COD) 

OPINION OF THE COMMISSION 

pursuant to Article 189 b(2)(d) of the EC Treaty, on the 
European Parliament's amendments to the Council's 
common position regarding the 

Proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 

on consumer protection in the indication of the prices 
of products offered to consumers 

AMENDING THE PROPOSAL OF THE COMMISSION 

pursuant to Article 189a(2) of the EC Treaty 

OPINION  OF THE  COMMISSION 

I.  REVIEW  OF THE  PROCEDURE 

On  12 July  1995 the Commission of the European Communities adopted the proposal 
for  a  Directive  on  consumer  protection  in  the  indication  of  the  prices  of  products 
offered  to  consumers.  The  Economic  and  Social  Committee  delivered  its  opinion  at 
its 331st plenary  session  of 20 and  21 December  1995, acting on  a proposal  from  its 
rapporteur Mr Folias. 

On  18  April  1996  the  European  Parliament  adopted  a  legislative  resolution 
embodying  the  opinion  of  the  European  Parliament,  acting  on  a  proposal  from  its 
rapporteur,  Mrs Oomen-Ruijten.  Following this resolution  the Commission  presented 
its amended proposal on 24 June 1996. 

On  27 September  1996  the  Council  adopted  the  common  position  on  the  above-
mentioned  proposal  for  a Directive.  On the  same day  the Commission  presented  the 
European  Parliament with  its communication  on the common position of the Council. 

Acting  on  a  proposal  from  its  rapporteur,  Mrs Oomen  Ruijten,  the  European 
Parliament  on  18 February  1997 adopted  its recommendation  for  the second  reading 
on the common position. 

In  accordance  with  Article  189b  (2)  (d) of the  Treaty,  the Commission  must  deliver 
an opinion for the attention of the Council on the amendments adopted by Parliament. 
In  this  particular  case  the  opinion  amends  the  proposal  from  the  Commission  in 
accordance with Article  189a (2). 

II.  COMMENTS ON THE  AMENDMENTS 

The  22  amendments  adopted  by  the  European  Parliament  address  three  main 
concerns.  Most  of  the  proposed  amendments  clarify  the  wording  and  flesh  out  the 
scope  of  the  text.  Parliament  has  also  taken  into  account  the  particular  situation  of 
certain  small  retail  businesses.  However,  instead  of  the  solution  in  the  common 
position,  namely the possibility of an exemption  for the Member Stales and (he option 
of  proposing  another  system  three  years  after  the  end  of  the  transposition  period, 
Parliament  preferred  a  longer  adaptation  period  with  an  obligation  on  the  Member 
States  to  provide  retailers  with  specific  information  on  the  transposition  of  the 
Directive. Finally, Parliament emphasised the importance of consumer information  by 
providing  for  double  pricing  in  euros  and  in  national  currency  at the time the  single 
currency is introduced. 

L Clarification and fleshing out of the text 

These modifications  of  a more technical  nature (amendments  Nos  1, 2,  3, 5, 6,  7,  8, 
11,  12,  13, 14,  17,  18,  19 and 22) do not  substantially  change the  common  position. 
The  Commission  has  endorsed  all  these  amendments.  Some  flesh  out  the  recitals 
(amendments Nos  1, 2, 3 and  8) or delete certain recitals (amendments Nos  5, 6 and 
7)  which  do  not  contain  any  additional  information  over  and  above  that  of  the 
articles  themselves.  Other  amendments  flesh  out  the  definitions  and  scope  of  the 
common  position  (amendments  Nos  11,  12,  13,  18 and  19) or  adapt  the wording  of 
the common position to the Parliament's  amendments  (amendments Nos 6, 7,  14 and 
17).  Amendment  No  22  again  introduces  an  obligation  on  the  Member  States  to 
communicate  in  particular  the  penalties  applicable  to  infringements  of  the  national 
instruments transposing the Directive. 
Amendment No 24 was not accepted  by the Commission.  This  amendment  concerns 
the  detailed  procedures  governing  price  indications.  The  Commission  believes  that 
the Member States are best qualified  to regulate these matters. 

2. Small retail businesses 

Amendments Nos  10, 20 and 21 on the situation of small retail businesses have been 
accepted  by  the  Commission.  The  Parliament's  solution,  already  taken  up  by  the 
Commission at the first  reading, is to provide for  a longer adaptation period than that 
initially  foreseen  (amendment  No  20).  For  example,  this  would  make  it  possible  to 
better recoup the investment in price marking technology  over an extended period.  In 
this  connection,  amendment  No  10  emphasises  the  importance  of  technological 
progress.  To  facilitate  application  of  the  mechanism,  amendment  No  21  imposes  a 
special  obligation  on  the  Member  States  to  provide  particular  information  on  the 
transposition rules to retail businesses, in particular small retailers. 

3. Introduction of the single currency 

Amendments Nos 9,  15 and  16 concern double pricing rules  (euro/national  currency) 
during  the  transitional  period,  in  connection  with  the  introduction  of  the  single 
currency.  These  amendments  have  not  been  taken  up  by  the  Commission  in  this 
proposal. While emphasising that price transparency  is a priority  in the framework  of 
implementing Economic and Monetary Union, the Commission does not consider that 
this proposal for  a Directive is the appropriate  place for  such rules. The  Commission 
believes  that  it  is  too  early  at  this  stage  to  lay  down  such  details,  and  that 
accompanying measures should be the subject of a more general instrument. 

HI.  AMENDED PROPOSAL 

Bearing  in  mind  the  above,  and  in  accordance  with  Article  189a  (2),  the 
Commission's  amended proposal  adopts  amendments  Nos  1, 2,  3, 5, 6,  7,  8,  10,  11, 
12,  13, 14, 17, 18, 19, 20, 2 land 22. 

Amended  proposal  for  a European  Parliament  and 
Council Directive on consumer  protection  in the  indication 
of the prices of products  offered  to  consumers 

COMMON POSITION 

AMENDED PROPOSAL 

THE EUROPEAN PARLIAMENT AND  THE  unchanged 
COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  unchanged 
the  European  Community,  and 
particular Article 129a (2) thereof, 

in 

Having  regard  to  the  proposal  from  the  unchanged 
Commission^), 

Having  regard  to  the  opinion  of  the  unchanged 
Economic and Social Committee( ), 

Acting  in  accordance with the procedure  unchanged 
in  Article  189b  of  the 
laid  down 
Treaty(3), 

1.  Whereas  transparent  operation  of  the 
market  and  correct  information  is  of 
benefit  to  consumer  protection  and  to 
healthy  competition  between  enterprises 
and products: 

2.  Whereas 
consumers  must  be 
guaranteed  a  high  level  of  protection; 
should 
the  Community 
whereas 
contribute  thereto  by  specific  action 
which  supports  and  supplements  the 
policy  pursued  by  the  Member  States 
and 
regarding  precise, 
unambiguous  information  of  consumers 
on the prices of products offered to them; 

transparent 

1.  Whereas 
consumers  must  be 
guaranteed  a  high  level  of  protection; 
should 
the  Community 
whereas 
contribute  thereto  by  specific  action 
which  supports  and  supplements  the 
policy  pursued  by  the  Member  States 
of 
regarding 
consumers  on  the  prices  of  products 
offered to them: 

information 

adequate 

2.  Whereas  the  Council  Resolution  of  3. unchanged 
14 April 

a  preliminary 

1975 

on 

1OJNoC260, 5.10.1995, p. 5. 
2OJNoC82,  19.3.1996, p. 32. 
3 Opinion of the European Parliament of 18 April 1996 (OJ No C 141, 13.5.1996, p. 191), 
Council common position of 27 September 1996 (OJ No C 333, 7.11.1996, p. 7) and 
Decision of the European Parliament of... (not yet published in the Official Journal). 

programme  of  the  European  Economic 
Community  for  a  consumer  protection 
and information policy^) and the Council 
Resolution  of  19 May  1981  on  a second 
programme  of  the  European  Economic 
Community  for  a  consumer  protection 
and information policy( )  provide for the 
establishment  of  common  principles  for 
indicating prices; 

3.  Whereas  these  principles  have  been  4. unchanged 
established  by  Directive  79/581/EEC(6) 
and  Directive  88/314/EEC(7)  concerning 
the 
indication  of  prices  of  certain 
foodstuffs  and non-food products; 

the  5. unchanged 

the 

link  between 

4.  Whereas 
indication  of  the  unit  price  of  products 
and their pre-packaging in pre-established 
quantities  or  capacities  corresponding  to 
the  values  of  the  ranges  adopted  at 
Community 
level  has  proved  overly 
complex  to  apply;  whereas  it  is  thus 
necessary  to  abandon this  link  in  favour 
of  a  new,  simplified  mechanism  and  in 
the  interest  of  the  consumer,  without 
prejudice 
governing 
to 
packaging standardisation; 

rules 

the 

5. Whereas the obligation to indicate the 
the  unit  price 
selling  price  and 
contributes  substantially  to  improving 
consumer 
information  notably  at  the 
moment  of  purchasing,  as  this  is  the 
easiest  way  to  enable  consumers  to 
evaluate  and  compare  the  price  of 
products  in  an  optimum  manner  and 
hence  to  make  informed  choices  on  the 
basis of simple comparisons; 

6.  Whereas the obligation to indicate the 
the  unit  price 
selling  price  and 
contributes  substantially  to  improving 
consumer  information,  as  this  is  the 
easiest  way  to  enable  consumers  to 
evaluate  and  compare  the  price  of 
products  in  an  optimum  manner  and 
hence  to  make  informed  choices  on  the 
basis of simple comparisons; 

4 OJ No C 92, 25.4.1975, p. 2. 
5OJNoC  133, 3.6.1981, p. 1. 
6 OJ No L 158, 26.6.1979, p.  19. Directive as last amended by Directive 95/58/EC 
(OJNoL299,  12.12.1995, p. 11). 
7 OJ No L 142, 9.6.1988, p.  19. Directive as last amended by Directive 95/58/EC 
(OJ No L 299, 12.12.1995, p. 11). 

6.  Whereas,  therefore,  there  should  be  a  7. unchanged 
general  obligation  to  indicate  both  the 
selling price and the unit for all products 
except  for  products  sold  in  bulk,  where 
the  selling  price  cannot  be  determined 
until the consumer indicates how much of 
the product is required; 

7.  Whereas  Member  States  may  decide  deleted 
the  above  mentioned 
not  to  apply 
obligation  to  products  supplied  in  the 
course  of  the  provision  of  a service  and 
for sales by auction and sales of works of 
art and antiques; 

8.  Whereas  it  is  necessary  to  take  into  deleted 
account the fact that certain products are 
customarily  sold  in  quantities  different 
from  one kilogram,  one  litre,  one metre, 
one square metre or cubic metre; whereas 
it  is  thus  appropriate  to  allow  Member 
States to authorise that the unit price refer 
to  a  decimal  or  submultiple  of  those 
quantities  or to  a different  single unit  of 
quantity, taking into account the nature of 
the product and the quantities in which it 
is  customarily  sold  in the  Member  State 
concerned; 

9. Whereas the obligation to  indicate the  deleted 
unit price may entail an excessive burden 
for  certain  small  retail  businesses  under 
and  whereas 
certain 
Member  States  should 
therefore  be 
allowed  to  refrain  from  applying  this 
obligation in such cases; 

circumstances 

10.  Whereas  Member  States  should  also 
remain  free  to  waive  the  obligation  to 
indicate  the  unit  price  in  the  case  of 
products  for  which  such  price  indication 
would  not  be  significant  or  would  be 

8.  Whereas  Member  States  should  also 
remain  free  to  waive  the  obligation  to 
indicate  the  unit  price  in  the  case  of 
products  for  which  such  price  indication 
would  not  be  meaningful  or  would  be 

liable  to  cause  confusion,  for  instance 
when  indication  of  the  quantity  is  not 
relevant  for  price  comparison  purposes, 
or when  different  products  are marketed 
in the same packaging; 

liable  to  cause  confusion,  for  instance 
when  indication  of  the  quantity  is  not 
relevant  for  price  comparison  purposes, 
or when  different  products  are marketed 
in the same packaging; 

11.  Whereas  in  the  case  of  non-food  9. unchanged 
products, Member  States, with a view to 
facilitating  application  of  the mechanism 
implemented, are free to draw up a list of 
products  or  categories  of  products  for 
which  the obligation  to  indicate the unit 
price remains applicable; 

that  will  benefit 

12.  Whereas  Community-level  rules  can 
transparent 
ensure  homogenous  and 
information 
all 
consumers  in  the  context  of  the  internal 
market;  whereas  the  new,  simplified 
approach is both necessary  and  sufficient 
to achieve this objective; 

13.  Whereas  particular  attention  should 
be  paid  to  small  retail  businesses; 
whereas,  to  this  end,  the  Commission 
should, in its report on the application of 
this  Directive  to  be  presented  no  later 
than  five  years  after  publication  thereof 
in  the  Official  Journal  of  the  European 
Communities,  take  particular  account  of 
the experience  gleaned  in the application 
of 
small  retail 
businesses, inter alia regarding trends and 
technological  development 
in  selling 
methods, 

this  Directive  by 

10. unchanged 

into 

11.  Whereas  particular  attention  should 
be paid to the adjustments which have to 
be  made  in  small  retail  businesses,  in 
account 
taking 
particular 
technological  developments  and 
the 
planned timetable for introduction  of the 
single  currency:  whereas  to  this  end  the 
Commission  shall,  one  year  before  the 
final  deadline  for  general  application  of 
the mechanism, present a report assessing 
the situation: 

HAVE ADOPTED  THIS DIRECTIVE: 

Article 1 

The  purpose  of  this  Directive  is  to  unchanged 
stipulate  the  indication  of  the  selling 
price  and 
the  price  per  unit  of 
measurement  of  products  offered  by 
traders to consumers in order to improve 

consumer  information  and  to  facilitate 
companion of price» 

Article 2 

For the purpose of this Directive: 

a) selling price  shall mean the price for  a 
unit of the product or a given  quantity  to 
the product; 

b) unit price  shall mean the price for  one 
kilogram, one litre, one metre, one square 
metre or cubic metre of the product; 

a)  'selling  price'  shall  mean  the  final 
price  for  a unit  of  the  product,  including 
VAT,  all  other  taxes  and  the  costs  of  all 
services which the consumer is obliged to 
pay for in addition: 

b)  'unit price'  shall mean the  final  price. 
including  VAT,  all  other  taxes  and  the 
costs  of  all  services  which  the  consumer 
is obliged  to  pay  for  in addition, for  one 
kilogram, one litre, one metre, one square 
metre, one cubic metre or one item of the 
product  or  any  other  quantity  which  is 
widely  and  customarily  used 
the 
the  marketing  of 
Member  States 
specific products: 

in 

in 

c)  products  sold  in  bulk  shall  mean 
products which  are not pre-packaged  and 
are  measured  in  the  presence  of  the 
consumer; 

unchanged 

d) trader shall  mean  any  natural  or  legal  unchanged 
person  who  sells  or  offers  for  sale 
his 
fall  within 
products  which 
commercial or professional  activity; 

e)  consumer  shall  mean  any  natural 
person  who  buys  a  product  for  purposes 
that  do  not  fall  within  the  sphere  of  his 
commercial or professional  activity; 

unchanged 

Article 3 

1.  The  selling  price  and  the  unit  price 
shall be indicated for all products  referred 

1.  The  selling  price  and  the  unit  price 
shall be indicated for all products  referred 

to  in Article  1, the indication of  the unit  to  in Article  1, the indication of  the unit 
price  being  subject  to  the  provisions  of  price  being  subject  to  the  provisions  of 
Article 7. 

Article 6. 

2.  Member  States  may  decide  not  to  2.  Member  States  may  decide  not  to 
apply paragraph 1 

apply paragraph 1  to: 

to: 

-  products  supplied  in  the  course  of  the  -  products  supplied  in  the  course  of  the 
provision of a service, 

provision of a service, 

-  sales  by  auction  and sales  of works  of  -  sales  by  auction  and sales  of  works  of 
art and antiques. 

art and antiques. 

Member States may decide not to apply 
the obligation to indicate the unit price 
to: 

- products sold in vending machines. 

- itinerant traders and personal in-home 
sales: 

- foodstuffs  sold in catering 
establishments, cinemas and theatres 
houses, cinemas and theatres, educational 
establishments, recreational 
establishments, staff shops at the 
workplace, hospitals, canteens and 
similar institutions: 

3. For products sold in bulk, only the unit  unchanged 
price must be indicated. 

4. Any advertisement which mentions the 
selling  price  of  products  referred  to  in 
Article  1 shall also indicate the unit price 
subject to Article 7. 

4. Any advertisement which mentions the 
selling  price  of  products  referred  to  in 
Article  1 shall also indicate the unit price 
subject to Article 6. 

Article 4 

1.  The  selling  price  and  the  unit  price  unchanged 
must be unambiguous,  easily  identifiable 
and clearly legible. 

2,  The  selling  price  and  the  unit  price  deleted 
shall  relate  to  the  final  price  of  the 
product  under  the  conditions  laid  down 
by the Member States. 

3.  The unit price shall refer to a quantity  2. unchanged 
declared in accordance with national and 
Community provisions. 

Where national or Community provisions 
require  the  indication  of  the  net  weight 
and  the  net  drained  weight  for  certain 
pre-packed products, it shall be  sufficient 
to  indicate  the  unit  price  of  the  net 
drained weight. 

Articles 

Member  States  shall  lay  down  detailed  unchanged 
rules  (e.g.  marking  or  labelling)  for 
indicating prices. 

Article 6 

Members  States  may  stipulate  that  the  deleted 
unit  price  shall  refer  to  a  decimal 
multiple  or submultiple  of  the  quantities 
referred to in Article 2  (b) or to a single 
unit  of  quantity  which  is  different  from 
those  referred  to  in  Article  2  (b),  taking 
into account the nature of the product and 
the  quantities  in  which  it  is  customarily 
sold in the Member State concerned. 

Article 7 

Article 6 

the 
1.  Member  States  may  waive 
obligation  to  indicate  the  unit  price  of  obligation  to  indicate  the  unit  price  of 
products for which such indication would  products  for  which  such  indication  is 
the  meaningless  because  of  the  products' 
not  be  significant  because  of 

the  1.  Member  States  may  waive 

products'  nature or purpose or would  be  nature  or  purpose  or  would  be  liable  to 
liable to create confusion. 

create confusion. 

the  deleted 

2.  Member  States  may  waive 
obligation to indicate the unit price of the 
products  for  which  indication  of  length, 
mass,  surface  or  volume  is  not  required 
by  national  or  Community  provisions. 
This applies in particular to products sold 
by individual item or singly. 

to 

3.  With  a  view 
implementing 
paragraphs  1 and 2, Member States may, 
in 
the  case  of  non-food  products, 
establish a list of the products or product 
categories  to  which  the  obligation  to 
indicate  the  unit  price  shall  remain 
applicable. 

to 

2.  With  a  view 
implementing 
paragraph  1. Member  States  may,  in the 
case of non-food products, establish a list 
of  the  products  or  product  categories  to 
which  the  obligation  to  indicate  the unit 
price shall remain applicable. 

Article 8 

Article 7 

Members  States  may  provide  that  the 
obligation  to  indicate  the  unit  price  of 
products  other  than  those  marketed  in 
bulk which are sold by certain small retail 
businesses  shall  apply  at  the  latest  six 
years  after  publication  of  this  Directive, 
if  the obligation to indicate the unit price 
from the date  provided for in Article  12 
(I)  is  likely  to  constitute  an  excessive 
burden for these businesses. 

Member  States  may  provide  that  the 
obligation  to  indicate  the  umt  price  of 
products  other  than  those  sold  in  bulk, 
which  are  sold  in  certain  small  retail 
businesses,  shall  not  apply,  subject  to 
Article  13,  if  the  obligation  to  indicate 
the  unit  price  would  constitute  an 
excessive  burden  for  these  businesses 
because  of  the  number  of  products  on 
sale, the sales area, the nature of the place 
of sale,  specific  conditions  of  sale where 
the product  is  not  directly  accessible  for 
the  consumer  or  certain 
forms  of 
business, such as certain types of itinerant 
trade. 

Article 8 

Member  States  shall  provide  appropriate 
measures  to 
inform  retailers  of  the 
national law transposing this Directive. In 
particular.  Member  States  shall  work 
with professional organisations to provide 
appropriate  information  to  ensure  that 
small retailers are adequately informed of 

10 

the provisions of this Directive. 

Article 9 

Member  States  shall  lay  down  penalties  unchanged 
for  infringements  of  national  provisions 
adopted  in  application  of  this  Directive, 
and  shall  take  all  necessary  measures  to 
ensure  that  these  are  enforced.  These 
penalties must be effective,  proportionate 
and dissuasive. 

Article 10 

1.  The  transition  period  of  nine  years  unchanged 
in  Article  1  of  Directive 
mentioned 
95/58/EC of the European Parliament and 
of  the  Council  of  29  November  1995 
amending  Directive  79/581/EEC  on 
consumer protection  in  the  indication  of 
the  prices  of  foodstuffs  and  Directive 
88/314/EEC  on  consumer  protection  in 
the  indication  of  the  prices  of  non-food 
products(8)  shall  be  extended  until  the 
date referred  to  in Article  12 (1)  of  this 
Directive. 

Directives 

79/5 81/EEC 

2. 
88/314/EEC shall be repealed with  effect 
from the date referred to in Article  12 (1) 
of this Directive. 

and  unchanged 

Article 11 

This Directive  shall  not prevent Member  unchanged 
States  from  adopting  or  maintaining 
provisions which  are more favourable  as 
regards 
information  and 
comparison  of  prices,  without  prejudice 
to their obligations under the Treaty. 

consumer 

OJNoL299,  12.12.1995, p. 11. 

11 

Article 12 

1.  Member  States  shall  bring  into  force  unchanged 
the  laws,  regulations  and  administrative 
provisions  necessary to comply  with this 
Directive  not  later than  ...(*).  They  shall 
forthwith 
the  Commission 
thereof.  The provisions  adopted  shall  be 
applicable as of that date. 

inform 

these  unchanged 

When  Member  States  adopt 
measures,  they  shall  contain  a  reference 
to this Directive or shall be accompanied 
by  such  reference  at  the  time  of  their 
official  publication.  The  methods  of 
making such reference shall be laid down 
by Member States. 

2.  Member  States  shall  communicate  to  unchanged 
the Commission the text of the provisions 
of  national  law  which  they  adopt  in  the 
field governed by this Directive. 

3.  Member  States shall  communicate the 
provisions 
the  penalties 
provided  for  in  Article  9.  and  any  later 
amendments thereto. 

governing 

Article 13 

The  Commission  shall,  not  more  than 
three  years  after  the  date  referred  to  in 
Article  12  (1),  submit  to  the  European 
Parliament 
a 
comprehensive  report  on  the  application 
of  this  Directive,  in  particular  on  the 
application  of  Article  8,  accompanied,  if 
appropriate, by a proposal. 

the  Council 

and 

The  Commission  shall,  not  more  than 
three  years  after  the  date  referred  to  in 
Article  12  (1),  submit  to  the  European 
Parliament 
a 
comprehensive  report  on  the  application 
of  this  Directive,  in  particular  on  the 
application  of  Article  7,  accompanied,  if 
appropriate, by a proposal. 

the  Council 

and 

The European Parliament and the Council  The European Parliament and the Council 
shall,  on  this  basis,  re-examine  the  shall,  on  this  basis,  re-examine  the 

24 months following the date of publication in the Official Journal. 

12 

provisions of Article 8. 

provisions of Article 7. 

Article 14 

This  Directive  shall  enter  into  force  on  unchanged 
the  day  of  its  publication  in  the  Official 
Journal of the European Communities. 

is  addressed 

to 

the  unchanged 

Article 15 

This  Directive 
Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council, 
The President 

13 

ISSN 0254-1475 

COM(97) 136  final 

DOCUMENTS 

EN 

10 

Catalogue  number  :  CB-CO-97-123-EN-C 

ISBN  92-78-17525-0 

Office  for Official Publications of the European Communities 

L-2985 Luxembourg 

4M