WRITTEN QUESTION E-3327/00 by Christoph Konrad (PPE-DE) to the Commission. Consumer protection and unfair commercial practices and sales methods.
Date: 2000-10-25
Institutions: European Parliament, Provisional data
Subjects: European social policy, Germany, advertising malpractice, competence of the Member States, real estate credit

C 174 E/34

Official Journal of the European Communities

EN

19.6.2001

(2001/C 174 E/035)

WRITTEN QUESTION E-3327/00

by Christoph Konrad (PPE-DE) to the Commission

(25 October 2000)

Subject: Consumer protection and unfair commercial practices and sales methods

In Germany some 100 000 people have been the victims of organised mass fraud under dubious trustee
model funding schemes. Intermediary sales organisations are used to hold out the offer of purchasing real
estate (condominiums) and shares in closed-end real estate funds with high tax advantages and high
returns based on 100 % financing and guaranteed rents. However, they fail to deliver.

This poses the following questions:

1.

Is the Commission aware of the mass indebtedness of deceived purchasers as a result of (cid:146)100 %
financed real estate purchase(cid:146) (housing and financing in the same package) via agreements between
banks, trustees and vendors, and is this an infringement of European consumer law?

2. Does the Commission take the view that these unfair practices are also an infringement of the
principle formulated by the Commission, and acknowledged by the other EU bodies, of guaranteeing
unreservedly the economic and legal
interests of consumers in the EU and of counteracting the
problem of debt overload of consumers as a result of (cid:145)snowball(cid:146) sales (1)?

3. What action does the Commission intend taking to regulate the practices of legally independent sales
organisations with questionable methods towards consumers (aggressive approaches to deals, mislead-
ing or inaccurate information, failure to honour promises made in advertisements)?

4. What is the Commission(cid:146)s view of the question of the law of obligations and liability with regard to
violation of the banks(cid:146) duty of care (banks as lenders and at the same time as a party to the
investment through financing agreements between the bank and the sales organisations and through
financing contracts)?

5. What opportunities are available to consumers who are highly indebted as a result of trustee model

financing to enforce their right to compensation through the courts?

(1) See the Communication from the Commission of 2 December 1998 (cid:129) Consumer policy action plan 1999-2001
(COM(98) 696) and resolutions of the European Parliament and the Council on this communication. See also
Decision No 283/1999/EC of the European Parliament and of the Council of 25 January 1999 establishing a general
framework for Community activities in favour of consumers.

Answer given by Mr Byrne on behalf of the Commission

(17 January 2001)

1.
The Commission was not aware of the extent of the business practices mentioned by the Honourable
Member. Given the information available, it does not seem, that, these practices are covered by existing
Community consumer protection law. Possibly, these practices could involve cases of misleading advertis-
ing according to Council Directive 84/450/EEC of 10 September 1984 relating to the approximation of
the laws, regulations and administrative provisions of the Member States, concerning misleading advertis-
ing (1). However, this Directive leaves Member States, to a large extent, room for implementation and
specific complaints should therefore be addressed to competent authorities in the Member States
concerned. From the information available, an infringement of Community consumer protection law
cannot be presumed.

2. and 3.
and legal interests of consumers.

Practices like the ones mentioned by the Honourable Member do certainly damage economic

19.6.2001

EN

Official Journal of the European Communities

C 174 E/35

In its (cid:145)Consumer Policy Action Plan 1999-2001(cid:146) (2) the Commission undertook to examine the feasibility of
a general framework on fair trading. In line with this commitment, the Commission is preparing a
communication on this issue, which will be submitted to the Community institutions in a few months.
However, it is not clear from the information available, if the incriminated practices would fall under the
scope of such a general framework on fair trading.

In any case, even a general framework to trade fairly does not necessarily prevent criminal practices. The
practices as described by the Honourable Member could indeed involve criminal behaviour.

The possible contractual liability in these cases is a matter of German private law and not regulated

4.
by Community law.

The concerned consumers could consult legal advice or contact consumer associations for advice or

5.
support according to German law.

(1) OJ L 250, 19.9.1984.
(2) COM(98) 696 final.

(2001/C 174 E/036)

WRITTEN QUESTION E-3337/00

by Lucio Manisco (GUE/NGL) to the Commission

(25 October 2000)

Subject: Attacks on press freedom in Austria

On Monday, 9 October 2000, as was reported in the most respected European newspapers, the journalists
of the State-run Austrian television service, ORF, spoke out with one voice against the massive pressure
being exerted by senior leaders of J(cid:246)rg Haider(cid:146)s Freedom Party (FP(cid:214)) and their intolerable attempts to
censor the station(cid:146)s editorial staff and management. One of the main culprits has been the head of the FP(cid:214)
parliamentary group, Peter Westenthaler, who within the space of a single day intervened on as many as
22 occasions in an attempt to obstruct the journalists(cid:146) work, influence the subjects covered and the format
and scope of reports, and demand (cid:145)counter-reports(cid:146) whenever the television news was not to his liking.

Furthermore, according to Profil magazine, the management of the State television service has opened an
internal
investigation to discover why the text of news items was leaked to politicians before the
programmes concerned had even been broadcast. Lastly, another source has revealed that two police-
officers have been implicated in a criminal plan to (cid:145)physically punish(cid:146) the television presenter Josef Bronkal
for his severe criticism of J(cid:246)rg Haider(cid:146)s party.

in which the 14 Union governments
In the light of the statement issued on 12 September 2000,
announced that they were lifting the diplomatic sanctions imposed on Austria but at the same time
pointed to the need to keep an especially close watch on J(cid:246)rg Haider(cid:146)s Freedom Party, does the
Commission not believe that the Union institutions should roundly and unambiguously condemn the
continuing blatant attacks on freedom of the Press, and hence democracy, being mounted in Austria?

Answer given by Mr Prodi on behalf of the Commission

(12 December 2000)

The Commission always attaches great importance to democratic principles,
including freedom of the
press, especially in the Member States. Nevertheless, any measures that may be called for by the incidents
deplored by the Honourable Member must be taken by the Austrian authorities. In the present state of
Community law, such measures do not come within the Commission(cid:146)s jurisdiction. Moreover,
the
conditions for the application of the Union Treaty provisions concerning the violation of fundamental
rights have not been met in this case.