Communication from the Commission to the European Parliament, the Council,the Economic and Social Committee and the Committee of the Regions - Consumer Policy Strategy 2002-2006
Date: 2002-05-07
Institutions: European Commission
Subjects: action programme, consumer information, consumer movement, consumer policy, consumer protection

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Official Journal of the European Communities

8.6.2002

Communication from the Commission to the European Parliament, the Council, the Economic and
Social Committee and the Committee of the Regions

Consumer policy strategy 2002-2006

(COM(2002) 208 final)

(2002/C 137/02)

(Text with EEA relevance)

1. INTRODUCTION

1.1. Content

This communication sets out the Commission's strategy for
consumer policy at European level over the next five years
the Commission issued an interim
(2002-2006). Last year,
report (1) on progress made under
the past action plan
It sets
(1999-2001)
out
through
included in a short-term rolling programme,
actions
which will be
through a working
document of
the Commission. The three
objectives are:

in order to prepare this new strategy.

regularly
the services of

three mid-term objectives,

implemented

reviewed

scientific and regulatory work in order to ensure independence,
transparency and better protection of consumer
interests,
demonstrates the increased importance attached to consumer
policy.

the European Parliament,

This communication invites
the
Council, the Economic and Social Committee, the Committee
of the Regions and all interested parties to support the overall
approach and the
in particular. The
three objectives
Commission also invites them to foster the adoption of the
key measures proposed and to support their implementation.

— a high common level of consumer protection,

1.2. Scope

— effective enforcement of consumer protection rules,

— involvement of consumer organisations in EU policies.

These three objectives are designed to help achieving inte-
gration of consumer concerns into all other EU policies, to
maximise the benefits of
for consumers
and to prepare for enlargement.

the single market

consumer

in this
issues

information and education,

communication covers
to consumers
relevant

safety,
Consumer policy
in the
economic and legal
market place,
the
promotion of consumer organisations and their contribution
with other stakeholders to consumer policy development. The
scope of this strategy does not cover food safety issues. Food
issues are now dealt with separately and have their own legis-
lative agenda. The White Paper on Food Safety adopted on 12
January 2000 (4) contains proposals for a major programme of
legislative reform in this area.

the

under

actions,

Under the first objective ‘A high common level of consumer
protection’, the chief actions are initiatives on follow-up to
commercial practices issues addressed by the Green Paper on
EU Consumer Protection (2) and on the safety of services. The
priority
‘Effective
enforcement of consumer protection rules’, are the devel-
opment of an administrative cooperation framework between
Member States and of redress mechanisms for consumers. And
to achieve the third objective ‘Involvement of consumer organi-
sations in EU policies’, the main actions consist in the review
of mechanisms for participation of consumer organisations in
EU policymaking and in the setting up of education and
capacity-building projects.

second objective

to one of

central
the
European consumer policy
is
Commission's strategic objectives,
that of contributing to a
better quality of life for all (3). It is also an essential element
strategic objective of creating new
of
economic
European
the
economy. The creation of a Directorate-General
for Health
and Consumer Protection in 1999 and a reorganisation of

dynamism and modernising

the Commission's

(1) COM(2001) 486 final.
(2) COM(2001) 531 final of 2 October 2001.
(3) Commission communication COM(2000) 154 final of 9 February
2000; Strategic Objectives 2000-2005 ‘Shaping the new Europe’.

2. THE RATIONALE OF THE NEW CONSUMER POLICY

STRATEGY

the progressive establishment of

The development of consumer policy at EU level has been the
essential corollary of
the
internal market. The free circulation of goods and services
has required the adoption of common, or at least convergent,
rules to ensure at one and the same time sufficient protection
of consumer
regulatory
obstacles and competitive distortions.

interests and the elimination of

Measures have frequently sought to give consumers the means
to protect
their own interests by making autonomous,
informed choices. This typically ensures that consumers will
have sufficient, correct information before engaging in trans-
actions and certain legal rights in case the transaction does not
deliver the required outcome. These measures seek to redress
structural
and
to
business
information and legal expertise as well as on their economic
resources.

flowing from limits on the former's access

imbalances between individual

consumers

(4) COM(1999) 719 final.

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in some situations, providing a basis for informed
However,
choice and legal redress has been regarded as insufficient,
notably as regards protection of physical health and safety. In
such situations, harmonised rules are considered necessary to
guarantee an adequate level of protection to all consumers
quite independently of their ability to protect themselves by
making informed choices. The decision to adopt such a
measure depends to a large extent on a political assessment
of the importance of the interest
to be protected and the
feasibility of consumers being able to protect themselves by
informed choices in practice.

2.1. The scope of EU consumer policy

EU consumer policy should provide essential health and
safety requirements and safeguard economic interests to
ensure a high level of protection and meet the expectations
of citizens throughout the EU. Products and services placed on
the market should be safe and consumers should receive the
relevant information to make appropriate choices. Consumers
should also be protected from abusive practices. Much of the
work in this domain concerns legislation and other actions
having a direct impact on market behaviour, such as standard-
isation, codes of conduct or best practice.

EU consumer policy should also empower consumers to
understand policies that affect them and to make an input
into these policies. Consumers should have the capacity to
promote their interests in order to be on the same footing as
other civil society stakeholders represented at the EU level.

important for these other areas, e.g. sustainable development
in its social, environmental and economic dimensions.

Consumer policy is an area where the EU can add value. It is a
shared responsibility between the EU and national public
authorities. EU rules are enforced at the national
level. Inte-
gration of consumer interests into all policies can only be
effective if there is a similar approach at national level. This
means that consumer policy is a collective endeavour of all
European Union policy sectors and at all
levels, regional,
national and European.

The principles outlined above are enshrined in Articles 153
and 95 of the Treaty establishing the European Community.

2.2. The process of the new strategy

2.2.1. Impact assessment

The success of a consumer policy strategy can only be
measured by the impact it has for consumers in Europe. It
is therefore essential that the rationale for the strategy is clearly
set out in advance, that progress on the strategy is regularly
monitored and that the success of individual actions is clearly
evaluated and lessons learned for the future. This would allow
lessons to be drawn and suggest any necessary policy adap-
tation.

2.2.2. A knowledge-based policy

fully from the potential of

It is also important that consumers have comparable oppor-
the internal
tunities to benefit
market in terms of greater choice, lower prices, and the affor-
dability and availability of essential services. Barriers to cross-
border trade should therefore be overcome in order that the
consumer dimension of the internal market can develop in
parallel with its business dimension. EU consumer policy
therefore
and common
a
environment ensuring that consumers are confident in
shopping across borders throughout the EU.

coherent

setting

aims

at

As well as specific consumer protection rules, consumers are
also affected by other important EU policies such as the
internal market, environment and sustainable development,
transport, financial services, competition, agriculture, external
trade and more. Consumer policy as such cannot be developed
in isolation without taking into account other areas that have
an impact on consumers. Systematic
integration of
consumer concerns into all relevant EU policy areas is
essential. In recent years significant progress has been made
toward achieving this. The aim for the future should be to
build on these achievements in order to make integration of
consumer interests into other policies more systematic.

Similarly consumer policy must take into account concerns of
other areas to ensure a coherent approach to Community
are very
policy as

a whole. Also,

consumers'

choices

Consumer policy needs to be backed by relevant information
and data in order to adjust policies and prioritise in the most
appropriate ways. A more comprehensive,
systematic and
continuous effort is needed to develop a suitable knowledge
base as an essential tool for policy makers. There is also a need
for information and data for the general public, especially since
the euro, which increases price trans-
the introduction of
parency
also require
the
accurate data on the safety of goods and services to make
informed decisions, and many consumers desire information
on other aspects of products, such as the environmental
effects associated with them. The Commission will continue
to provide detailed information on relevant
for
consumers through its ‘Dialogue with citizens’ publications
and website (http://europa.eu.int/citizens).

euro area. Consumers

across

issues

Due to the diversity of consumer
issues, comprehensive
consumer-related information and data has to include general
quantitative data (such as on consumption, living conditions
and other socioeconomic aspects), data linked to consumer
activities
(such as on the participation to consumer
associations) and consumer economic interests (such as on
prices). Policy makers need to complement quantitative data
available with qualitative data, which can be provided by
opinion surveys on consumer attitudes, knowledge and satis-
faction. Monitoring of consumer complaints and their handling
is also a key issue for better information about consumers'
interests and market responses.

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to

on

and

develop
data

Commission will

continue
information

its
The
‘knowledge-base’
on
consumers and the market. It intends to continue the
publication ‘Consumers in Europe — facts and figures’,
surveys on consumer prices, Eurobarometer and focus
group surveys on services of general
interest. The
Commission will also carry out Eurobarometer surveys
on cross-border
consumer
consumer problems
information and representation. It also intends to develop
indicators on consumer satisfaction, and will make use of
the
uses
internet-based mechanisms
feedback and to
conduct consultations. The Commission will also make
in particular
use of scientific research where relevant,
through the Framework Programmes for research and tech-
nological development.

initiative which

policy-making

interactive

to gather

and

2.3. Key factors underlying the new strategy

Five key factors have been taken into account in developing
this new strategy.

2.3.1. The euro

The long-awaited arrival of the euro in consumer pockets is
beginning to fundamentally change business and consumer
the euro has
attitudes. The introduction of
removed an
important psychological barrier
to consumers shopping in
other Member States and has made it easier to compare
prices. Cross-border opportunities should, therefore, become
more evident for consumers.

2.3.2. Social, economic and technological changes

Internet use and its household penetration rates are
increasing. In November 2001, almost 50 % of the population
(over 15 years) used the internet either at home, at work, at
school,
Internet
in public access places or on the move.
penetration in EU households increased from 18 % in March
2000 to 38 % in December 2001 (5). These trends will raise
awareness amongst a growing number of consumers of the
possibilities of electronic commerce.

E-commerce and the information society reduce the relevance
of distance in advertising, marketing and retailing for many
products but above all, for services.

Consumption patterns are also changing. The service sector
is growing. In the EU, it is now at least double the size of the
manufacturing sector in terms of GDP; three times the size if
social and public services are included (6). This means that

(5) E-Europe benchmarking report, 5 February 2002, COM(2002) 62

final.

(6) Source: Eurostat.

services,
increasingly taken into account in EU consumer policy.

safety aspects, will have to be

including their

2.3.3. Reaping the full benefits of the internal market

With these changes, cross-border trade is now a more realistic
proposition. However, obstacles to realising the full potential of
the retail internal market still remain.

Surveys show that there are still wide differences in price for
many consumer goods and services across the EU, of which
consumers would be able to take advantage if they were able to
have more confidence in shopping across borders. In addition,
prices might be reduced if companies could sell across border
without having to establish specific arrangements for different
countries.

Wide divergences in prices

The last Commission report (7) on the functioning of
product and capital markets shows that the retail prices
food and consumer goods continue to vary widely
of
between Member States and that the narrowing of such
price variations has slowed down considerably in recent
In general, prices vary three to five times more
years.
across
report
a
country. The
regulations, company
that different national
concludes
behaviour and competition problems may be combining
to keep prices apart across the Community.

the EU than inside

Different consumer protection rules apply in different
Member States. Unsure of what protection they do or do not
have when they shop abroad, consumers restrict their choices
to the products and services available in their own Member
State.

Lack of consumer confidence in buying across border

Across the EU, consumers have significantly less confidence
about shopping cross-border than in their own countries
— only 31 % of consumers think they would be well
protected in a cross-border dispute with a supplier,
against
an average of 56 % who would feel well
protected regarding a similar dispute within their own
country (8).

(7) COM(2001) 736.
(8) EOS Gallup Europe ‘Consumers survey’, January 2002, the overall

report of the survey is available on:
http://europa.eu.int/comm/dgs/health_consumer/events/
event42_en.html

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It

is therefore essential
internal market

Likewise businesses are frequently unclear about what practices
they should follow if they sell to consumers in other Member
for the European Union to
States.
ensure that
rules and practices promote
consumer confidence in cross-border transactions. This
implies simpler and more common rules, a similar level of
enforcement
consumer
the EU, more
information and education and effective redress mechanisms.

accessible

across

Cross-border shopping will not
replace routine shopping,
except for those who live very near borders. But even just
making cross-border shopping a realistic possibility can
itself have a major knock-on impact on competition in
local markets. Even if a small percentage of consumers shop
abroad, it will have an effect on the prices in each Member
State's overall market. This impact has already been seen for
example in the UK car sector (9).

2.3.4. Implementing governance reform

The Lisbon European Council, the White Paper on Governance
adopted in July 2001 (10) and the better regulation action plan
to be presented shortly to the Commission, together represent
to reform. These
a dynamic expression of political will
initiatives opened an important debate
the
to improve
quality, effectiveness and simplicity of regulatory acts and to
better consult and involve civil society in the EU decision-
making process.

Consumers have high expectations of the European Union, its
ability to ensure their safety, to protect their interests and to
enable them to realise directly some of
the benefits of
European integration. But alongside that, citizens also feel
increasingly alienated from the EU and its processes and insti-
tutions. This means that future EU consumer protection policy
should both produce concrete benefits for citizens in their daily
life, and engage consumers in the development and implemen-
tation of that policy. The five principles for good governance
of openness, participation, accountability, effectiveness and
coherence are directly relevant
to consumer policy and
should form an integral part of the future strategy.

2.3.5. Preparing for enlargement

Accession of the candidate countries to the EU will have an
important impact on the functioning of the internal market.
This is particularly true in the area of consumer protection,
where citizens,
in their capacity as consumers, will directly
experience the effects of an enlarged market. The EU will be
faced with new regulatory and enforcement structures and,
consumer
more
protection.

generally, with new attitudes

towards

Many consumer protection rules are currently covered by
law rather than European legislation. Though the
national

(9) http://europa.eu.int/comm/competition/car_sector/price_diffs
(10) COM(2001) 428 final.

the

countries

candidate

accession of

detail of these provisions varies across the current Member
States, their fundamentals are broadly similar. However, with
the
the
current
heterogeneity of national provisions will significantly increase.
strong in the
structures are not always as
Enforcement
candidate countries and the experience and expectations of
their
consumer
movement of the candidate countries has still a long way to
develop in order to play its full role of informing consumers,
role in market
representing them and playing their
surveillance.

also very different. The

consumers

full

are

The challenge will be to meet the legitimate expectations of
new members while safeguarding and improving the present
level of consumer protection both in terms of safety and legal
and economic rights of consumers. Enlargement
issues are
therefore taken into account
this strategy, and
the Commission will continue to make every effort to help
consumers, their representatives and national authorities from
the candidate countries prepare for accession.

throughout

2.4. The structure of the new consumer policy strategy

This communication provides the Commission's strategy for
consumer policy at the European level over the next five
years (2002-2006). It sets out three mid-term objectives,
implemented through actions included in a short-term
rolling programme, which will be reviewed regularly. The
regular update of the rolling programme will be carried out
the
through a working document of
Commission. The medium-term strategy will provide
a
consistent orientation, while the short-term plan can be more
quickly adapted to changing circumstances.

services of

the

the policy strategy with the financial

The Commission also plans to better integrate the preparation
of
for
consumer protection actions (11), which currently runs to a
different timetable.

instrument

3. THE POLICY OBJECTIVES OF THE NEW CONSUMER

POLICY STRATEGY

The key factors outlined above have led us to identify three
mid-term objectives:

Objective 1: ‘A high common level of consumer protection’.
We must go further to enable consumers and business to
realise the benefits of the internal market. Central to this is
the establishment of common consumer protection rules and
practices across Europe. This means moving away from the
present situation of different sets of rules in each Member
State towards a more consistent environment for consumer
protection across the EU.

(11) 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 (OJ L 34, 9.2.1999,
p. 1).

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‘Effective enforcement of consumer protection
Objective 2:
rules’. There is no good law if it is not properly enforced. As
the degree of economic integration in the internal market
steadily increases and more opportunities are open for
consumers, consumers should be given in practice the same
the EU, and even more so in an
protection throughout
enlarged EU. Business has also a keen interest
in a more
uniform application of rules. Public authorities should have
practical and effective means of cooperating to that end.

‘Involvement of consumer organisations in EU
Objective 3:
policies’. The input of consumer organisations into policies is
essential both in terms of content and in terms of process.

through making better use of alternative forms of regulation,
such as self-regulation and co-regulation, standardisation. A
high common level of consumer protection also requires incor-
porating the integration principle by ensuring that other EU
policies, such as internal market, financial services, transport,
energy, environment, competition, agriculture, external trade
and more, systematically and specifically address consumer
to consumers and
interests. Provisions, which are essential
which ensure a high level of protection across
the EU,
should be fully taken into account in the definition of all EU
policies. Likewise, consumer policy initiatives should also of
course take into account their impact on business and other
interested parties. The Commission is also developing an inte-
grated approach to assessing the impact of initiatives across the
full range of policies and groups affected by them.

is easier

These objectives are mutually reinforcing. Enforcement of EU
policies
if a high common level of consumer
protection is achieved; but common EU rules, which are not
uniformly enforced creates uncertainty and reduces benefits for
consumers. The benefits of a common level of protection can
not be reaped fully if consumer organisations are not strong
enough to play their role by providing policy makers with
policy input, evidence of problems and by helping to enforce
rules through market surveillance.

Priority has been given in the strategy to actions which
complement each other and which, together, form a critical
mass of actions, which reinforces their leverage effect. These
priority actions address mainly cross-border issues. They are
chosen to maximise impact at EU level. Some of
these
actions propose pooling scarce
from EU or
national
level. They often serve more than one objective.
Particular prominence is given to actions promoting integration
of consumer concerns into other policies and preparing for
enlargement.

resources,

3.1. Mid-term objective 1: A high common level of

consumer protection across the EU

This objective does not mean regulating all
consumer
protection in detail at European level. That would be neither
desirable nor practical.
It means harmonising, by whatever
means is most appropriate (framework directive, standards,
best practices), not just the safety of goods and services, but
also those aspects of consumer economic interests that give
consumers the confidence necessary to conduct transactions
anywhere in the internal market.
It could mean setting in
place a common set of simple and clear EU rules and safety
requirements, on commercial practices and on consumer
It could also mean filling gaps between
contractual rights.
require reform of existing
existing EU rules, which will
directives.
it would
responsibility
mean reinforcing

In line with the governance initiative,

consumer

business

and

A high level of consumer protection is required. This will
be fully taken into account into the definition of other
policies.

This objective requires actions in the following policy areas:

3.1.1. Safety of consumer goods and services

it

is

still

Community action has been successful in ensuring free circu-
lation of consumer products within the EU and a strategy for
results in the case of services is being
achieving similar
reinforce
necessary
pursued. However,
Community action intended to ensure that a high and
consistent level of protection in relation to consumer goods
is guaranteed through the EU.
services,
Community initiatives to contribute to consumer safety have
It is
been limited so far to a few areas, notably transport.
therefore necessary
further
to examine
Community action in this respect and launch the appropriate
initiatives.

In the case of

the needs

for

to

The priorities in this policy area include the implemen-
tation of the revised Directive on general product
safety (12),
in particular the development of standards
under this new Directive,
the appropriate initiatives in
the area of the safety of services provided to consumers
and tackling specific safety problems as they arise. The
preparation of new legislation on chemicals will provide
for adequate risk reduction measures and will increase the
level of consumer safety.

(12) Directive 2001/95/EC of

the
Council of 3 December 2001 on general product safety (OJ L
11, 15.1.2002, p. 4).

the European Parliament and of

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3.1.2. Legislation on consumer economic interests

3.1.2.3. Law governing consumer contracts

3.1.2.1. Commercial practices

The Green Paper on Consumer Protection (13) set out options
for the further harmonisation of rules on commercial practices,
either on a case-by-case basis or supplementing this through
framework legislation. There is also a need to review and
reform existing EU consumer protection directives, to bring
them from
them up to date
minimum harmonisation to ‘full harmonisation’ measures.
The Green Paper and the Commission's strategy on services (14)
make it clear that the simple application of mutual recognition,
without harmonisation, is not likely to be appropriate for such
consumer protection issues. However, provided a sufficient
degree of harmonisation is achieved,
the country of origin
approach could be applied to remaining questions.

and progressively adapt

The Commission will present a follow-up communication
to the Green Paper on Consumer Protection in 2002,
which will further clarify its intentions in relation to new
and existing initiatives regarding commercial practices and
provide for further consultation.

3.1.2.2. Review of existing Community legislation relating to

consumer protection

on

selling techniques). Reform of

The Commission's Reports (15)
the Directives
on
timeshare (16) and on package travel (17)
indicated a number
of shortcomings and further evidence has come to light in
the form of complaints to the European Parliament and to
the Commission. These two Directives provide for a mixture
of contract law remedies and rules on commercial practices
latter could be
(e.g.
partially completed under any initiative subsequent
to the
Green Paper on EU Consumer Protection. For these directives,
one of the key priorities for the Commission would be to
propose full harmonisation in order to minimise variations in
consumer protection rules across the EU that create fragmen-
tation of the internal market to the detriment of consumers
and business.

the

Moreover, the Commission will report on the implementation
of several of the existing directives, which require it. These
reports could be accompanied by proposals for amendment,
if appropriate.

The Commission will review the existing Directives on
timeshare, package travel and indication of prices.

(13) COM(2001) 531 final.
(14) COM(2000) 888.
(15) SEC(1999) 1795 final and SEC(1999) 1800 final.
(16) Directive 94/47/EC of the European Parliament and of the Council

(OJ L 280, 1994, p. 83).

(17) Council Directive 90/314/EEC of 13 June 1990 on package travel,
package holidays and package tours (OJ L 158, 23.6.1990).

In 2001,
the Commission adopted a communication on
European Contract Law (18), which launched a consultation
process on potential problems for the internal market and
the uniform application of Community law resulting from
the divergence of national contract laws. Consumer contract
law represents an important part of the EC contract law. The
Council has invited the Commission to communicate the
results of the consultation and its observations and recommen-
dations if necessary in the form of a Green or a White Paper at
the end of 2002. The European Parliament has called on the
Commission to draw up an action plan.

The follow-up to the communication will respond to the
requests of the Council and of the European Parliament. It
could suggest a mix of regulatory and non-regulatory
measures. Among the non-regulatory measures it could
propose coordination of research activities. These activities
could lead to the elaboration of a general
frame of
reference, establishing common principles and terminology.
Furthermore it could explain which measures would be
taken to ensure coherence of
the existing and future
acquis, taking into account the general frame of reference.
In this context, a review of existing consumer contract
law in order to remove existing inconsistencies, to fill gaps
and to simplify could be envisaged. Harmonisation of the
cooling-off periods of several Directives (19) would also be
part of this review.

3.1.3. Financial Services

The financial service action plan (20) sets out a programme of
initiatives designed to complete the internal market in retail
financial services. Much has already been done, such as the
Regulation on cross-border payments in euro (21) which will
greatly benefit consumers and contribute to enhancing cross-
border trade by aligning bank charges for cross-border and
national transactions. However, more is needed, as the action
plan sets out. This includes both actions to facilitate the cross-
border provision of financial services and measures to ensure
the proper protection of consumers, wherever they are in the
EU and to increase their confidence in cross-border trans-
actions. The Commission will reinforce a regulatory approach
in the field of financial services based on early, broad and
including
systematic consultation of all
consumers and end-users.

interested parties,

(18) COM(2001) 398 final.
(19) Directive 94/47/EC of the European Parliament and of the Council
on the protection of purchasers in respect of certain aspects of
contracts relating to the purchase of the right to use immovable
properties on a timeshare basis (OJ L 280, 29.10.94, p. 83),
Directive 97/7/EC of the European Parliament and of the Council
on the protection of consumers in respect of distance contracts (OJ
L 144), Council Directive 85/577/EEC of 20 December 1985 to
protect the consumer in respect of contracts negotiated away from
business premises.
(20) COM(1999) 232 final.
(21) Regulation (EC) No 2560/2001 of 19 December 2001 (OJ L 344,

28.12.2001, p. 13).

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To these ends, the Commission will, in particular, propose
to revise
the Directive on consumer
credit (22).

and update

European trustmark requirements and a structure to monitor
their implementation in practice.

The Commission will make a proposal for a compre-
hensive legal framework for payments in the internal
market. The forms that money and payments take are
changing rapidly: plastic money, electronic money. The
introduction of the euro is speeding up this development.
Efficient and secure payment instruments and networks are
indispensable in a well-functioning internal market. The
legislator will have to address the developments in the
areas of prices,
relationships
between the issuers and holders of these new forms of
payments. Existing legislation will also have to be reviewed.

time periods

and the

abuse (23)

field,
directives
that have

the Commission has adopted
In the securities
and
on market
proposals
for
prospectus (24)
consumer
a high level of
the directive on investment
protection. The revision of
services will
the conduct of
business rules. The Commission intends to also make a
transparency obligations of quoted
proposal on the
companies. These proposals would all benefit consumers
by creating a fairer and more transparent internal market
for financial services.

lead to harmonisation of

3.1.4. Electronic commerce

Consumers are still wary of shopping online, with less than
2 % of retail sales being made online. In the context of the
e-Europe Action Plan adopted in 2000 (25), the Commission
has developed a strategy to build consumer confidence
online, made up of four elements: high quality e-commerce
codes; quality alternative dispute resolutions (ADRs); clear
and consistent laws and effective enforcement.

Whilst there are many codes, trustmarks and other schemes,
their sheer number and variety make it difficult for consumers
to decide whether they can be confident about dealing with
any particular site. The Commission's e-confidence initiative
was launched in May 2000. This brought together a wide
including consumer and business
range of
representatives,
in an effort to reach agreement on common
requirements of good practice. In December 2001, stakeholders
presented a broad agreement to the Commission proposing

stakeholders,

(22) Council Directive 87/102/EEC of 22 December 1986 for the
approximation of
and administrative
provisions of the Member States concerning consumer credit, as
amended by Directive 90/88/EEC of 22 February 1990; European
Parliament and Council Directive 98/7/EC of 16 February 1998,
(OJ L 42, 12.2.1987, OJ L 61, 10.3.1990, OJ L 101, 1.4.1998).

regulations

laws,

the

(23) COM(2001) 281 final.
(24) COM(2001) 280 final.
(25) http://europa.eu.int/information_society/eeurope/action_plan/

index_en.htm

On the basis of this agreement, the Commission intends to
adopt a Recommendation on consumer confidence in
electronic commerce and will work with stakeholders to
monitor the implementation of their agreement.

Secure networks, secure access and the protection of privacy
are also vital elements in building consumer confidence in
electronic
commerce. The 2002 e-Europe Benchmarking
Report (26) states that progress to improve protection against
security threats is still slow despite several initiatives initiated
by the public and private sectors such as the adoption of the
electronic signature Directive (27). In the last two years, there
for
has been an increase in threats and security incidents,
example virus attacks. Against this background, the e-Europe
security approach has evolved towards a more comprehensive
approach of network and information security.

The Commission and Member States will take a series of
measures to improve electronic commerce security
encompassing awareness-raising,
support,
regulation and international coordination (28).

technological

3.1.5. Services of general interest (SGI)

gas),

interest and subject

interest are defined in the Commission
Services of general
communication on ‘Services of general interest in Europe’ (29)
as being services which the public authorities class as being of
general
to specific public service obli-
gations. They cover such areas as transport, energy (elec-
telecommunications (30)
tricity,
postal
services (31). A guarantee of universal access, high quality
and affordability of these services constitutes the basis of the
consumer needs as well as other obligations to accompany the
liberalisation process. The Commission report on services of
European Council (32)
general
announced the Commission's intention to produce a regular
series of reports monitoring market performance in this field.
The first such report has been produced and it has identified
the quality of services as a big challenge for the future.

interest

Laeken

and

the

to

(26) E-Europe benchmarking report, 5 February 2002, COM(2002) 62

final.

(27) Directive 1999/93/EC of

the
Council of 13 December 1999 on a Community framework for
electronic signatures (OJ L 13, 19.1.2000, p. 12): entry into force
19.7.2001.

the European Parliament and of

(28) Commission communication, COM(2001) 298 of 6 June 2001;

Council Resolution 14378/01 of 6 December 2001.

(29) COM(2000) 580 of 20 September 2000.
(30) Directive 2002/22/EC of

Council of 7 March 2002,
108, 24.4.2002, p. 51).

the European Parliament and of
‘Universal Service Directive’

the
(OJ L

(31) However, not all activities in these sectors are subject to public
service obligations and some operate under normal market
conditions, for example in the sectors of transport and energy,
though some consumer protection measures apply across these
sectors.

(32) COM(2001) 598 of 17 October 2001.

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There is currently a lack of quality indicators sufficiently
developed to conduct an evaluation of these services. The
Commission intends
communication
to produce
to conduct horizontal
defining
interest. This
services of general
evaluations of
methodology will pay special attention to consumers'
views on the performance of these services.

a methodology

a

3.1.6. International trade, standardisation and labelling issues

The world trading system is governed by the World Trade
liberalisation
Organisation agreements. Apart
itself, various aspects of
for
consumers.

from trade
these agreements are relevant

3.1.5.1. SGI — Transport

In the transport area, certain services have given rise to a high
level of consumer dissatisfaction as expressed in Euroba-
rometer (33) and qualitative focus group surveys. Considerable
progress is being made as regards passenger rights in air
transport. There is, however, a need to extend this progress
to other modes of transport.

The Commission White Paper ‘European transport policy
time to decide’ (34) states the Commission's
for 2010:
intention by 2004 and as far as possible to extend
consumer protection measures for air transport to
other modes of
the
railways, maritime transport and as far as possible, urban
transport services.

and in particular

transport,

3.1.5.2. SGI — Energy

In the energy sector, the Commission has made proposals (35)
to further open up to competition the electricity and gas
markets. These proposals foresee that all customers would be
free to choose their supplier by 1 January 2005.

in the case of electricity, a right

The proposals contain a detailed set of consumer basic rights
to a universal
including,
service. They also provide for a minimum set of conditions
in contracts, transparency of information on applicable prices
and tariffs, measures to protect vulnerable customers and the
availability of low-cost and transparent complaint handling and
dispute settlement mechanisms.

The Commission will continue to monitor the implemen-
tation of the internal electricity and gas market rules,
in
particular
regarding their effect on consumers, and to
continue research on a wide range of energy options for
the future.

(33) Eurobarometer on SGI, September 2000, available at:

http://europa.eu.int/comm/dgs/health_consumer/library/surveys/
facts_euro53_en.pdf

(34) COM(2001) 370 of 12 September 2001.
(35) Proposed Directive amending Directives 96/92/EC and 98/30/EC
concerning common rules for the internal market in electricity and
natural gas — Commission communication COM(2001) 125 of 13
March 2001.

A new round of WTO trade negotiations was launched in
trade
Doha in November 2001 comprising both further
these
liberalisation and new rule making. Many aspects of
including,
negotiations
for
example: WTO negotiations on services,
including financial
services, discussions on labelling, on product safety and on
deceptive practices in the context of the TBT (36) agreement,
the use of precaution and intellectual property issues.

to consumers,

relevant

are

In addition to the WTO the EC has negotiated or is in the
process of negotiating trade agreements with several countries
and regions, which are also relevant to consumers' interests.

standards,

International
those established by
in particular
ISO (37), have an important status under the TBT agreement
and may influence
interests of European
consumers. It is therefore important to ensure transparency
and adequate representation of consumer interests in the inter-
national standardisation process.

the safety or

Private schemes, such as codes of conduct, guidelines and
private, voluntary labelling, that aim at informing consumers
about
the
product in question can complement public policy measures,
in view of promoting sustainable development.

the origin, production and potential

impact of

The Commission will promote and protect consumer
interests in the WTO as well as in the context of
bilateral
forums. The
Commission will maintain a dialogue with consumer
organisations to this end. It will also promote consumer
participation in international standardisation.

and in other

relations

trade

3.2. Mid-term objective 2: Effective

enforcement of

consumer protection rules

Effective cooperation on enforcing consumer protection rules is
the second objective of this strategy. There are both legal and
practical obstacles to enforcement cooperation at the moment,
which need to be overcome if consumer protection principles
are to be effectively applied in practice. While there is a coor-
dination role at EU level, enforcement remains principally a
in the
national,
this
following
mid-term objective:

competence. Actions
considered to achieve

regional or
areas

local
should be

(36) WTO Agreement on technical barriers to trade.
(37) International Standards Organisation.

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3.2.1. Enforcement cooperation between Member States

3.2.1.2. The CLAB (39) — ‘unfair contract terms’ — database

Cooperation between the public authorities responsible for the
enforcement of rules on commercial practices and product
safety is key to the functioning of the internal market. The
ability of rogue traders to act cross-border unimpeded would
have a detrimental effect on consumer and business confidence.
The Green Paper on EU Consumer Protection (38) outlined the
case for a legal instrument, similar to what exists in other EU
policies, to formalise this cooperation. Such a legal instrument
could also provide the basis for cooperation agreements with
third countries. The ideas in the Green paper on these issues
were the subject of a very large consensus.

The Unfair Contract Terms Directive (40) was adopted to
eliminate unfair terms from contracts drawn up between a
professional and a consumer. The Commission launched the
CLAB database to create an instrument for monitoring the
the Directive in the form of a
practical enforcement of
database on ‘national
jurisprudence’ governing unfair terms.
‘Jurisprudence’ as understood by CLAB covers not only court
administrative bodies,
judgments but
voluntary agreements, out-of-court settlements and arbitration
awards.

also decisions by

Reinforced structures for enforcement cooperation on product
safety, such as the Consumer product safety network have
already been foreseen in the revised Directive on general
product safety.

to propose

legislative
The Commission intends
framework for enforcement cooperation on consumer
protection between Member States, including the setting-up
of a committee of representatives of national enforcement
bodies.

a

Existing ad-hoc and informal cooperation instruments, such as
IMSN or CLAB have pioneered this form of cooperation and
will continue to be important:

3.2.1.1. The

International marketing supervision network

(IMSN)

The IMSN is an organisation consisting of the law enforcement
authorities of 29 countries. In principle these authorities are
members of the Organisation for Economic Cooperation and
Development (OECD). The mandate of the network is to share
information about cross-border commercial activities that may
affect consumer interests, and to encourage international coop-
eration among law enforcement agencies. The European
Commission participates as observer to the biannual
IMSN
conferences. The European sub-group ‘International marketing
supervision network — Europe’ (IMSN-Europe) is a network of
governmental authorities involved in the enforcement of fair
trade practice laws and other consumer protection activities
from the European Economic Area countries.

To ensure a permanent and systematic exchange of
information between the members of
IMSN-Europe, the
Commission intends to develop its existing website for
information exchange purposes and the database, which
registers enforcement related information.

The Commission intends to complete and improve the
CLAB database in the next years.

3.2.2. Information and data on the safety of goods and services

The effectiveness of the systems in place in the EU for ensuring
a high level of consumer health and safety protection should be
monitored closely in order
to identify any weaknesses,
determine the priorities for reinforcing or completing the
safety provisions applicable,
intervene rapidly in case of
emergencies and assist the decision makers in defining new
policy orientations. This involves, in particular, collecting and
consumer
assessing information and data on dangerous
products, the risks posed by certain services,
the accidents
related to consumer products and services.

Collecting and exchanging at EU level such information is also
in order to contribute to ensuring a consistent
important
and
enforcement of Community provisions on product
service safety.

The ‘rapid alert system’ (RAPEX) and the programmes to
collect and exchange data on product-related injuries
should be developed further. A reinforcement of
RAPEX will be part of the implementation of the revised
General Product Safety Directive (41). The development of
a scheme to collect, assess and exchange data and
information on service safety and on the accidents in
certain service sectors may be considered as part of the
initiative on the safety of services. Moreover, the existing
scheme to collect and assess data on product-related
injuries under the Injury Prevention Programme (42), will
be continued as part of the new health programme, and
reinforced if necessary by appropriate specific initiatives.

(39) CLAB refers to the French term ‘clauses abusives’,

i.e. unfair

contract terms.

(40) Directive 93/13/EEC (OJ L 95, 21.4.1993).
(41) Directive 2001/95/EC of

the
Council of 3 December 2001 on general product safety (OJ L
11, 15.1.2002, p. 4).

the European Parliament and of

(38) COM(2001) 531 final.

(42) http://europa.eu.int/comm/health/ph/programmes/injury/

index_en.htm

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to facilitate

enforcement mechanisms.

integrating in the
Enlargement will add the challenge of
In
Community system weaker
order
the Commission is
such integration,
assisting candidate countries in the difficult task of steadily
putting in place adequate administrative structures and
enforcement powers
the
consumer protection acquis.

to implement

and monitor

Candidate countries will be involved in the implementation
of the revised general product safety directive, in particular
through their participation in the reinforced ‘rapid alert
system’ (RAPEX).

3.2.3. Redress

If consumers are to have sufficient confidence in shopping
outside their own Member State and take advantage of the
internal market, they need assurance that if things go wrong
they have effective mechanisms to seek redress. Better and
for
easier access
resolving cross-border disputes are therefore necessary to
facilitate more effective access to justice for consumers.

to courts and out-of-court mechanisms

3.2.3.1. Alternative dispute resolution

Where cross-border disputes arise, resorting to traditional liti-
gation is not always practical nor cost effective for consumers
and business alike. The Commission has responded with a
low cost
number of initiatives aimed at promoting simple,
and effective means of resolving cross-border disputes such
as alternative dispute resolutions (43) (ADRs).

In order
to coordinate out-of-court-settlement procedures
the European extra-judicial network
throughout Europe,
(EEJ-Net) has been launched in October 2001. The EEJ-Net
provides a communication and support structure made up of
national contact points (or ‘clearing houses’) established by
clearing house will help the
each Member State. The
consumer with information and support in making a claim
to an appropriate out-of-court alternative dispute resolution
the
system. The EEJ-Net

complemented by FIN-NET;

is

(43) The Commission has adopted two Recommendations on the prin-
ciples applicable to the bodies responsible for the out-of-court
settlement of consumer disputes (98/257/EC, OJ L 115, 17.4.1998,
p. 31) and on the principles for out-of-court bodies involved in the
consensual resolution of consumer disputes (2001/310/EC, OJ L
109, 19.4.2001, p. 56).

EU-wide out-of-court network dealing with cross-border
complaints related to financial services set up in February
2001.

The Commission will develop the EEJ-Net with Member
States. It will ensure minimum guarantees for ADRs by
encouraging the application of the principles under the
1998 and 2001 Commission Recommendations. The
Commission will
further develop and improve FIN-NET
and will promote the development of EU-wide ADR
schemes, particularly online schemes. The Commission
also adopted a Green Paper on Alternative Dispute
Resolution (44) to take stock of the existing situation with
a view to setting future priorities, and will propose a
communication on Online Dispute Resolution.

3.2.3.2. European consumer centres (Euroguichets)

The European consumer centres network (ECC-Network) acts
as an interface between the Commission and European
consumers to support better use of the internal market and
to give feedback to the Commission on market problems. The
ECCs provide information on legislation and on case-law both
at the European and at the Member State level. The ECCs also
give
information
concerning the procedures,
legal aid and orientation
first
towards other authorities. The ECCs cooperate closely within
their network and with other European networks such as
EEJ-net and FIN-NET. The Commission would like to see one
European Consumer Centre in every Member State and, as
soon as possible, also in the candidate countries.

on mediation,

assistance

advice

and

The Commission will continue to build up the ECCs'
network within the EU Member States and the candidate
countries.
In order to help the Commission to better
identify consumer needs, the ECCs will participate to the
Commission initiative ‘Interactive policymaking’, which
is
valuable
information from the market place.

a new feedback mechanism to deliver

3.2.3.3. Judicial cooperation in civil matters

The main objective of cooperation in civil law is to establish
to
better collaboration between Member States
encourage free movement of citizens. The European Council
of Tampere (15 and 16 October 1999) established a map for
the effective implementation, among others, of the civil coop-
eration provisions introduced by the Amsterdam Treaty. The
three priorities in this field are better access to justice, mutual
recognition of judicial decisions, and increased convergence in
the field of procedural law.

in order

(44) COM(2002) 196 final.

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The Commission will pursue the targets set for the effective
implementation of the civil cooperation provisions
introduced by the Amsterdam Treaty and developed
by the conclusions of
the European Council of
Tampere. The Commission will continue to update, at
regular intervals, a ‘Scoreboard’, to monitor the progress
in the adoption and implementation of
the range of
measures needed to meet these targets.

An EU Regulation on jurisdiction and the recognition and
enforcement of judgments in civil and commercial matters (45),
which has entered into force on 1 March 2002, provides for a
new set of rules of immediate consumer relevance. New rules
for the applicable law on contractual and non-contractual obli-
gations are also about to be established (46).

The Commission will take into account the consumer's
interest when Community rules on international
private law are established.

3.2.4. Support to consumer associations

Consumer associations can make an important contribution to
the proper enforcement of consumer policy measures both
through their use of
injunctions and their general market
surveillance role. They are able to identify consumer products
and services that are, for example, unsafe or of unacceptably
poor quality. In this way they complement the enforcement
and market surveillance role of the public authorities. This is
resource intensive work that frequently requires a high level of
expertise.

the

training programme

Many of the actions envisaged in support of Objective 3, such
associations
as
professionals or the online education platform, will serve to
strengthen the ability of consumer associations and of indi-
vidual
to market
the Commission will undertake
surveillance.
some specialised initiatives relating to general product safety.

to contribute

In addition,

themselves

consumers

consumer

for

3.3. Mid-term objective

3:

Proper

involvement

of

consumer organisations in EU policies

In order for consumer protection policies to be effective,
consumers themselves must have an opportunity to provide
an input into the development of policies that affect them.
This goes beyond the immediate scope of consumer policy as
such and is essential to achieve the integration of consumer
protection requirements into all other EU policies. For example,
the variety of public services and other services of general
interest which are provided through some form of market
structure is steadily increasing, and consumer interests should
be taken into account
Involving consumer
organisations also acts as a valuable ‘reality check’ on what is
being proposed. Specific actions should be developed in the
following areas:

in those areas.

3.3.1. Reviewing mechanisms for participation of consumer organi-

sations in EU policymaking

3.3.1.1. Consultation requirements

To achieve more effective and transparent legislation at the EU
level, the White Paper on Governance (47) proposes that the
consultation process, as a whole,
should take place in
accordance with commonly agreed standards. The White
Paper also recognises the impact this process will have on
the resources of civil society and that this will have to be
taken into account
in the future by all public authorities
concerned.

a

forum,

Consumer organisations have
the Consumer
Committee, for inputting into consumer policy as such. The
Consumer Committee is an advisory committee composed of
from all Member States and of
representatives
consumer
European-wide organisations. The
for
consumer organisations is to have the opportunity and the
capacity to make an input into wider EU initiatives, which
have a consumer dimension, at all stages of the EU decision-
making process.

challenge

current

A communication establishing minimum requirements
for
consultation
processes will be presented shortly to the Commission.

the Commission's

conduct of

the

The Commission will organise in 2003 a special training
course for consumer associations relating to market
surveillance in the
revised General
context of
Product Safety Directive. It will also explore the possibility
of launching further coordinated initiatives with Member
States when the Directive comes into force.

the

(45) Council Regulation (EC) No 44/2001 of 22 December 2000 on
jurisdiction and the recognition and enforcement of judgments in
civil and commercial matters (OJ L 12, 16.1.2001, p. 1).

(46) Revision of the 1980 Rome Convention on the law applicable to
contractual obligations (‘ROME I’) and completion by a new
instrument governing conflict of laws rules for non-contractual
aspects of commercial transactions (‘ROME II’).

3.3.1.2. Participation in consultation bodies and working

groups

Consumer participation within consultative bodies and working
groups will also help to ensure integration of consumer
concerns in all EU policies. Most of these consultative bodies
are in the agricultural field. New consultative bodies have also
been set up in certain fields such as transport, energy, tele-
communications or fisheries. Throughout the years, consumer
representation in such bodies has
increased haphazardly,
without a general coordinated approach.

(47) COM(2001) 428 final.

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The Commission is working towards greater transparency
as regards the activities of the different advisory bodies.
In this context,
the Commission will examine whether
consumer organisations are properly represented across
the spectrum of policies which concern them.

3.3.1.3. Standardisation work

Voluntary standards, established by the European standard-
in the concrete
isation bodies, play an important part
application of many Community measures
to
related
standards for achieving
consumer protection. The use of
public policy objectives gains legitimacy through the trans-
parency of the standardisation process and through the full
and effective
including
consumers. The participation of consumers in the European
insufficient and does not match the
standardisation is still
dominant position of producers and other economic interests.

involvement of

stakeholders,

all

The Commission will examine how it can ensure better
consumer participation in the work of standards-setting
bodies. European standardisation involves activities both at
EU level and in the national standardisation committees.
Therefore, the Commission and the Member States should
cooperate to ensure that the EU level activities are properly
coordinated and that consumer representatives are properly
involved at national level.

3.3.1.4. Consumer participation in the work of other EU insti-

tutions

3.3.2.1. Information

The growing expectations of citizens to have full and easy
access to information on European affairs call for a modern,
efficient and reliable information policy taking into account the
latest developments in research and knowledge. This is an
ongoing challenge for the Commission and for other EU insti-
tutions, which are committed to a policy of openness and
accountability. This is particularly true for consumers as EU
consumer protection policies and activities have a direct
impact on their lives. Over the last few years, the Commission
has developed various information tools, which are aimed at
the general public, at consumers or at specific target groups.
These include its website, the Consumer Voice newsletter and
centres
information campaigns. The European consumer
network (Euroguichets) plays an important role by directly
informing consumers about EU initiatives.

The Commission will pursue its efforts to improve its
information policy towards consumers. Future actions
will include information campaigns on tobacco prevention
for young people.

3.3.2.2. Education

In recent years, particularly in the context of the single market,
it has become increasingly evident that more attention should
be given to the education of consumers so that they can shop
with confidence in the full knowledge of their rights. Action at
EU level should address specific problems related to cross-
border
the European dimension of consumer
rights and the exchange of experience and good practice
between Member States. Enlargement reinforces the necessity
of this type of action.

transactions,

all

concerns

EU institutions. Consultation

The proper involvement of consumer organisations in EU
of
policies
European and national consumer organisations already takes
place with the Parliament and the Council. The Nice Treaty
specifically adds ‘consumers’ to the list of civil society represen-
tatives in the Economic and Social Committee (48). However,
consumer participation could be more systematic.

The Commission urges other EU institutions to examine
how to improve the involvement of consumers in policy-
making.

3.3.2. Consumer information and education

responsibility for
Subsidiarity implies
consumer information and education rests with the national,
regional and local authorities.

that much of

the

(48) Article 257 TEC.

online

develop

The Commission will
interactive
education tools that can be used by consumer associations
for further training of their own staff in specific aspects of
cross-border transactions,
for example financial services,
and of the EU consumer rights in the internal market. To
this end,
the Commission will make full use of best
practices developed by Member States and consumer
organisations.

3.3.3. Support and capacity building of consumer organisations

3.3.3.1. Training

programme
consumer organisations

for

staff members

from

The consumer movement varies substantially across the EU,
both in terms of
structure and capacity. The
Commission will concentrate its own efforts on capacity
building (management,
law) and will
lobbying, consumer
encourage the Member States to do likewise.

strength,

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been

for
and will

training programme
launched
has

consumer
An ambitious
professionals
be
developed over the coming years. This should help the
consumer organisation professionals to make an effective
input into the elaboration of EU policies in the main area
of consumer interest. This effort will be combined with
already existing measures to provide support to consumer
organisations.

4. CONCLUSION

EU Consumer Policy is at a critical
juncture. During the
coming years, consumers should reap tangible benefits from
the single market and the euro. They should see the concrete
results of integration of consumer interests into all EU policies.
And consumers in the enlarged European Union of 470 million
citizens
from the same high level of
protection.

should all benefit

This Commission Strategy for Consumer Policy at EU level will
provide a consistent orientation for the next five years. The
objectives are mutually reinforcing and will be implemented
through a short-term rolling programme, which will be
reviewed regularly. Each review will
actions
achieved on the basis of new data and of progress indicators
in order to adjust ongoing actions, as appropriate, and to
identify new ones.

assess

the

The Commission invites the European Parliament, the Council,
the Economic and Social Committee, the Committee of the
Regions and all
the overall
approach and the
in particular. The
three objectives
Commission also invites them to foster the adoption of the
measures proposed and to support their implementation.

interested parties

to support

3.3.3.2. Review of the legal instrument establishing a general
framework for Community activities in favour of
consumers

At EU level, the Decision of the European Parliament and the
Council establishing a general
framework for Community
activities in favour of consumers (49) provides the financial
legal basis for initiatives to support and strengthen consumer
organisations. This Decision will expire at the end of 2003.
The new general
the
framework will
objectives outlined in this strategy.

reflect and support

The Commission intends to adopt a proposal establishing
a new general framework for Community activities in
favour of consumers in 2002. This proposal will also
provide for the possibility of candidate countries partici-
in conformity with the general
pating in these activities,
rules of participation of
to EC
programmes.

candidate

countries

(49) 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 (OJ L 34, 9.2.1999,
p. 1).

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ANNEX

ROLLING PROGRAMME FOR CONSUMER POLICY (2002-2006)

INDICATIVE LIST OF ACTIONS

OBJECTIVE 1: A HIGH COMMON LEVEL OF CONSUMER PROTECTION

Action

Description

Timeframe

Safety of consumer goods and services

Commission communication on the safety of
services

Identify the needs, possibilities and priorities for Community action on
the safety of services and prepare a report on the issue

4th quarter 2002

Commission proposals on the
services

safety of

Finalise the appropriate proposals for Community action on the safety
of services

4th quarter 2003

Guidelines to ensure coordination between the
new General Product Safety Directive (GPSD)
and vertical Community legislation on product
safety

Finalise a guidance document on the relationships between the GPSD
and Community vertical legislation on product safety

2nd quarter 2003

Guidelines on notification by producers and
distributors of dangerous products

Prepare a guide on the contents, criteria and forms for information on
dangerous products to be provided, according to the GPSD, by
producers and distributors to the competent authorities

2nd quarter 2003

Decision to launch the assessment of certain
product safety standards

Identify the priorities for publication of safety standards under the new
GPSD

4th quarter 2002

Decision to publish the reference of certain
product safety standards and launch new stan-
dardisation mandates

Publish the references of certain existing safety standards and launch
some standardisation mandates under the new GPSD

4th quarter 2003

Workshop on chemicals in products/articles

Identify safety issues and potential questions for scientific committees
in relation to the release of chemicals from products and articles

2nd quarter 2002

Revision of the Toys Directive

Finalise a proposal for a revision of the Toys Directive

Revision of the Low Voltage Directive

Finalise a proposal for the revision of the Low Voltage Directive regu-
lating the safety of electrical products

2003

2003

Revision of the Cosmetics Directive

Finalise a proposal for the revision of the Directive regulating the safety
of cosmetics

2003

Revised proposal for a Directive on phthalates
in toys

Ensure a permanent solution for preventing risks to child health from
phthalates in toys

2002

Proposal
dation on fire safety in hotels

for a revised Council Recommen-

Finalise a proposal to update and reinforce the Council Recommen-
dation on fire safety in hotels

3rd quarter 2003

Legislation on consumer economic interests

Commercial practices

Proposals following the Commission's Green
Paper on EU Consumer Protection

Follow-up communication to Green Paper and associated actions

2nd quarter 2002

Further research on consumer and business attitudes to the internal
market

C 137/16

EN

Official Journal of the European Communities

8.6.2002

Action

Description

Timeframe

Review of the existing acquis

Amendment to the Timeshare Directive

Submit a proposal amending the Directive on Timeshare in order to
update it and protect consumers against the new developments that
have appeared in the timeshare market since the adoption of the
Directive

2003

Amendment to the Package Travel Directive

Submit a proposal amending the Directive on package travel in order
to update it and strengthening consumer protection in this area

2003-2004

Report on the Directive on price indication

Report on the application of
the Directive on price indication
(98/6/EC) accompanied by a proposal as requested by the Directive

1st quarter 2003

Report on the Directive on injunctions

Report on the Directive on injunctions
the protection of
consumers' interests (98/27/EC) and propose any revisions considered
necessary

for

3rd quarter 2003

Report on the Directive on distance selling

Report on the Directive on the protection of consumers in respect of
distance contracts (97/7/EC) and propose any revisions considered
necessary

2nd quarter 2001

Report on the Directive on certain aspects of
the sale of consumer goods and associated
guarantees

— Report on the Directive on certain aspects of the sale of consumer
goods and associated guarantees (99/44/EC); in particular regarding
the use made by Member States of consumers' obligation to report
a lack of conformity within a time limit

1st quarter 2003 (notifi-
cation requirement)

— Report on the application of this Directive examining in particular
the case for introducing the producer's direct liability and, if appro-
priate, accompanied by a proposal

3rd quarter 2006

Law governing consumer contracts

Follow-up to the communication on European
contract law

— Identify areas in which the diversity of national legislation in the
field of contract law may undermine the proper functioning of the
internal market and the uniform application of Community law

4th quarter 2002

— Describe in more detail the option(s) in the area of contract law
the

selected
improvement of existing EC legislation will be pursued

consultation.

following

In this

context,

the

— Develop an action plan for the chronological implementation of

the Commission policy conclusions

— Propose the coordination of research activities. These activities
could lead to the elaboration of a general frame of reference estab-
lishing common principles and terminology

Review of existing consumer contract law

Review existing contract law in order to identify inconsistencies and
gaps, with a view to simplifying and completing the consumer contract
law acquis

2004-2006

Financial services

Implementation of the measures set out in the
Financial Services action plan and the road
map

the individual

Many of
legislative proposals make, or will make,
provision for the protection of consumers. This will require wide
consultation with all stakeholders including consumers

2002-2006

Retail payments and fraud prevention action
plan on non-cash means of payment

In particular work on aspects of retail payment security and the
deployment of new means of payments. The legal and technical
security aspects are covered in the fraud prevention action plan for
non-cash means of payments and in the revision of some existing
legislative acts. The intention is to create a single phone line in the
EU for ‘card stop’ (for lost or stolen cards). It is also proposed to
include several consumer education and awareness-raising projects

2002-2006

8.6.2002

EN

Official Journal of the European Communities

C 137/17

Action

Description

Timeframe

Replace
the Consumer Credit Directive
(87/102) and its two modifications by a new,
substantially updated Directive

Amend the existing Directive in order to extend its scope to cover all
forms of consumer credit all suppliers of consumer credit; to achieve a
better balance of rights and obligations between the consumer and the
supplier of credit, and to increase the degree of harmonisation

2nd quarter 2002

for

Proposal
framework for payments
market (including provisions on refunds)

comprehensive

in the

legislative
internal

a

Transform Recommendation 97/489 on electronic means of payment
into binding legislation; update Directive 97/5 on cross-border
payments in order to add supplementary legal aspects for retail
payments in the internal market

2nd quarter 2002

Creation of a forum for financial services users
(Finuse)

Obtain input from consumers and other users of financial services on
EU initiatives

4th quarter 2002

Electronic commerce

Commission Recommendation on consumer
confidence in electronic commerce

Contribute to the introduction of EU Guidelines for good online
business practice and help to develop consumers' confidence in cross-
border e-commerce by a Recommendation setting out principles for
good online business practice and their effective implementation

2nd quarter 2002

Measures
security

to improve electronic commerce

Take a series of measures encompassing awareness-raising,
nological support, regulation and international coordination

tech-

2002

Services of general interest (SGI)

Involve consumer
evaluation and monitoring of SGI

representatives in policy,

— Develop mechanisms at EU level for involving consumer represen-
tatives in the development of policies for SGIs, and to ensure their
participation in the monitoring and evaluation of outcomes
delivered for consumers

2002-2006

— Promote, in cooperation with Member States and consumer groups,
the setting-up of bodies representing the interests of consumers in
individual SGIs

Improve the sector reporting and to strengthen
the consumer focus

Work in cooperation with sectoral DGs and consumer groups to
highlight consumer issues in sector reporting

2002-2006

on
horizontal

Communication
conducting
Commission annual
evaluation

a methodology

for
evaluations
and
report on horizontal

Produce a coherent and consistent methodology for evaluating the
performance in SGI sectors,
including assessments of the quality of
services and consumer satisfaction and to report annually on this

2002-2006

Development of a system of benchmarking in
certain areas of services of general interest

Work with Member States and other public authorities on a system of
benchmarking in areas of SGI not covered by sector reporting or the
regular horizontal evaluation

2002-2006

Monitoring of consumer satisfaction in the
area of services of general interest

— Continue regular Eurobarometer surveys and qualitative focus
group surveys in order to monitor levels of consumer satisfaction
in the SGI

2002-2006

— Develop more rigorous indicators for measuring consumer satis-

faction in the SGI

SGI — Transport

Commission
concerning
transport contracts

proposal
requirements

for

a
relating

regulation
air

to

Clarify air passenger contracts and improve the rights of consumers

2003

C 137/18

EN

Official Journal of the European Communities

8.6.2002

Action

Description

Timeframe

Produce
quality

consumer

reports on air

service

Focus on indicators of service quality including notably flight punc-
tuality, flight cancellations, denied boarding because of overbooking,
loss and damage of baggage and complaints filed by passengers

2002-2006

Commission proposals extending Community
measures protecting air passengers' rights to
other modes of transport

Extend the Community measures protecting passengers' rights as far as
possible to include other modes of transport other than air transport,
and in particular the railways, maritime transport and, as far as
possible, urban transport services. This concerns in particular service
quality and the development of quality indicators, contract conditions,
transparency of information and extra-judicial dispute settlement mech-
anisms

2002-2004

Commission proposal
international rail passenger rights

for a regulation on

Include provisions on fair contracts; consumer consultation; complaint
handling and dispute settlement mechanisms; and compensation for
delays

By the end of 2002,
beginning of 2003

Promotion of rail transport users' organisations

Promote the setting-up of a European platform of rail passenger
organisations for negotiation and consultation purposes

2002-2004

Promotion of
companies
information

voluntary

rail
to improve service quality and

actions by

Encourage rail operators to develop a voluntary charter on service
quality covering such issues as punctuality, provision of information
in electronic form, accessibility for groups with special needs, such as
persons with reduced mobility or persons travelling with their bike,
and protection of non-smokers

2002-2003

SGI — Energy

Monitor the implementation of
electricity and gas market rules

the internal

Continue to monitor the implementation of the internal electricity and
gas market rules, in particular regarding their effect on consumers

ongoing

SGI — Telecommunications

Monitor the implementation of the telecom-
munication market rules

Continue to monitor the implementation of the telecommunications
market rules, in particular regarding their effect on consumers

ongoing

Competition

Studies on the efficiency and functioning of
markets

Identify ‘less efficient’ markets with a view to remedial actions in the
interests of consumers

2002-2003

Actions
competition policy and its impact on them

inform consumers

to

about

Enable consumers to identify and thus help them to bring to the
Commission's attention anti-competitive activities

2002-2003

Organisation
of
Competition Day’

the

biannual

‘European

Organisation together with the Presidency of the biannual ‘European
Competition Day’ focusing on topics which illustrate the benefits for
the consumer deriving from competition

2002-2006

Environment

Communication on environment and health

White Paper on Integrated Product Policy

The communication will establish a strategy consisting of a holistic
environmental
approach integrating health aspects
policies with the purpose of limiting the impact of environmental
hazards to human health, paying special attention to children

into various

This will seek to draw up a strategy for implementing IPP on an EU
level. Taking the environmental problems caused by products across
their life cycle as the starting point it will seek to reduce their environ-
mental impacts. All actors having an influence on these — designers,
manufacturers, distributors, retailers, consumers and waste experts will
be involved

2002

2002

8.6.2002

EN

Official Journal of the European Communities

C 137/19

Action

Description

Timeframe

Development
Eco-label

and marketing of

the

EU

The EU Eco-label provides a guarantee for consumers that wherever
they are in the EU, any product they purchase that bears the EU
the highest European environmental standards.
Eco-label will meet
Criteria for
Increased
marketing activities will be pursued to increase the Eco-label's visibility

further product groups will be developed.

2002

Commission proposal on chemicals

their

New legislation on chemicals will be prepared, as the large majority of
chemicals have been on the market for many years without sufficient
risks. This will provide for adequate risk
knowledge about
increase the level of protection of
reduction measures, and will
human health and the environment. All
including
consumers, will have better access to information about chemicals to
make better-informed choices about the chemicals they use and are
exposed to

stakeholders,

4th quarter 2002

Commission
consumption

initiatives

on

sustainable

take
As a follow-up to the Sixth environment action programme,
forward appropriate initiatives for Community action on promotion
of sustainable production and consumption patterns

4th quarter 2004

Commission proposal for a directive to reduce
further the volatile organic compounds (VOC)
emissions during the use of products

A possible proposal for a directive to reduce further the VOC emissions
during the use of products. Consumer goods, such as paints would be
under its scope

3rd quarter 2002

Commission Recommendations on consumer
information on the fuel economy and CO2
emissions of new passenger cars

Under the Directive (1) the Commission is required to take measures to
enable the provisions on promotional
to non-printed
material. This may include internet marketing and radio and TV adver-
tising

literature

2003

International trade

Promotion of the consumer interests within EC
positions during the next Round of WTO
negotiations,
in bilateral negotiations, and in
the standardisation process

Promote and protect consumer interests, the consumer interests in the
WTO in general and in the on-going WTO Round of negotiations
launched in Doha in particular, as well as in the context of bilateral
trade relations. Maintain a dialogue with consumer organisations to
this end. Promote consumer participation in international standard-
isation

ongoing

Examine existing private labelling schemes

Examine existing private labelling schemes, such as organic labelling,
Fair Trade and Corporate Social Responsibility measures, to assess their
effectiveness and the need for further measures in achieving the
objectives of
transparency and information for consumers with a
view to sustainable development

2002-2003

(1) Directive 1999/94/EC of the European Parliament and of the Council of 13 December 1999 relating to the availability of consumer information on fuel economy and

CO2 emissions in respect of the marketing of new passenger cars (OJ L 12, 18.1.2000, p. 16).

OBJECTIVE 2: EFFECTIVE ENFORCEMENT OF CONSUMER PROTECTION RULES

Action

Description

Timeframe

Enforcement cooperation between Member States

Commission proposal
for a legal basis for
administrative cooperation between Member
States

This proposal is intended to include the setting-up of a committee of
representatives of national administrations

4th quarter 2002

C 137/20

EN

Official Journal of the European Communities

8.6.2002

Action

Description

Timeframe

Establish a website and database for Inter-
national marketing supervision network —
Europe (IMSN-Europe)

Website for information exchange purposes and a database to register
enforcement-related information

Pilot phase: 4th quarter
2002, first review: 4th
quarter 2003

Update of the CLAB (‘unfair contract terms’)
database

Update the European database on case-law about unfair contract terms
established to monitor practical enforcement of Directive 93/13/EEC

Call for tender for the
years 2000 to 2005

Enforcement aspects of product and service safety

European framework for the collection and
assessment of data on product-related injuries

Finalise the appropriate initiatives to ensure systematic collection and
assessment of data on product-related injuries

3rd quarter 2003

Guidelines to ensure the effective functioning
of the rapid alert system (RAPEX) of the GPSD

Finalise and implement guidelines on the functioning of a reinforced
RAPEX system

4th quarter 2002

Establishment of the consumer product safety
network under the GPSD

administrative

Launch
between market
surveillance and enforcement authorities to facilitate the effective and
consistent application of the new GPSD

cooperation

activities

1st quarter 2003

Strengthening of product safety enforcement
in candidate countries

Implementation of the revised General Product Safety Directive,
in
particular through candidate country participation in the reinforced
rapid alert system' (RAPEX)

2nd quarter 2003

Redress

Alternative dispute resolution (ADRs)

Support and development of the EEJ-Net

In the first phase, completion of the one-year pilot phase and report
upon its effectiveness. In the second phase continue to improve coop-
eration and the service that the EEJ-Net will provide to users

2002

Support and development of FIN-NET

FIN-NET, the EU-wide complaints network for financial services, was
set up in 2001 to facilitate consumers access to out-of-court settlement
of cross-border disputes when the consumer and their financial service
provider come from different Member States

ongoing

Promotion of the principles under the 1998
and 2001 Commission Recommendations on
ADRs

Communication on the promotion of online
dispute
in the
global information society

resolution (ODR)

services

An update of the existing database of out-of-court bodies under the
1998 Recommendation (1) will be conducted.
In addition, Member
States have been invited to notify the Commission of the details of
their national ADRs that apply the principles of the 2001 Recommen-
dation in order to create a second database and to monitor the effec-
tiveness of the application of both Recommendations on ADRs by the
Member States. Both databases will be accessible to the public on the
Europa website.

ongoing

the e-Europe initiative the Commission will adopt a
As part of
communication on promoting confidence
for
settling cross-border disputes in the Information Society. It will aim
to encourage consensus with stakeholders at global level on criteria
and guidelines for ODR certification schemes

in ODR services

2002-2003

Establishment of an EU-wide online ADR
schemes, ‘Ecodir’

Ecodir will provide a pan-European online consumer mediation service

4th quarter 2002

8.6.2002

EN

Official Journal of the European Communities

C 137/21

Action

Description

Timeframe

European consumer centres (Euroguichets) ECCs

Development of the network

— To have a centre in each Member State and extend the network to
the candidate countries. EEA countries can participate if they wish

2nd quarter 2004

Interactive policymaking — ‘your voice in
Europe’

— Develop record system

IPM involves the development of two Internet-based mechanisms to
enable the Commission to assess the impact of EU policies on the
ground. These are a feedback mechanisms which help to collect spon-
taneous reactions in the marketplace, and a consultation mechanism
designed to receive stakeholders views to new legislative proposals or
other policy initiatives. The European consumer centres will become an
that
active partner
consumers have in the internal market

in the IPM initiative by encoding problems

4th quarter 2002

2002-2006

Effective problem-solving in the internal market — Solvit

Effective problem-solving
market — Solvit

in the

internal

Solvit, which is due to be fully operational in June 2002, is a network
of coordination centres and contact points in the Member States
involving officials involved in the day-to-day practised administration
of the internal market. It will contribute to the resolution of cross-
border problems emanating from the misapplication of internal market
rules for the benefit of both citizens and businesses. A key element is a
database and the use of electronic communications to connect adminis-
trations in Member States

2002-2006

Judicial cooperation in civil matters

Commission proposal for a Council Directive
to improve access to justice in cross-border
disputes by establishing minimum common
rules relating to legal aid and other financial
aspects of civil proceedings

The proposal aims to:

— improve access to justice in cross-border disputes by establishing

minimum common rules relating to legal aid

— guarantee that an adequate level of legal aid is granted, under
certain conditions, to persons whose financial situation makes it
impossible for them to bear the cost of the proceedings, and

— facilitate the compatibility of national laws on this subject and to
establish cooperation mechanisms between Member State auth-
orities

Proposal adopted on 18
January 2002 (2)

Green Paper on measures to create a uniform
European procedure for a payment order and
on measures to simplify and speed up cross-
border litigation on small claims

Examine the systems existing in Member States with a view to
consulting on possible measures at EU level

4th quarter 2002

Green Paper on Alternative Dispute Resolution

Take stock of the existing situation and consult broadly with the view
of setting future priorities in this area

Green Paper adopted on
19 April 2002 (3)

Support to consumer associations

Organisation
consumers' associations

of

a

training

course

for

Organise a special training course for consumer associations relating to
market surveillance in the context of the revised GPSD. It will also
explore the possibility of launching further coordinated initiatives with
Member States when the Directive comes into force

2003

(1) The Commission has adopted two Recommendations on the principles applicable to the bodies responsible for the out-of-court settlement of consumer disputes
(98/257/EC, OJ L 115, 17.4.1998, p. 31) and on the principles for out-of-court bodies involved in the consensual resolution of consumer disputes (2001/310/EC, OJ L
109, 19.4.2001, p. 56).

(2) COM(2002) 13 final.
(3) COM(2002) 196 final.

C 137/22

EN

Official Journal of the European Communities

8.6.2002

OBJECTIVE 3: PROPER INVOLVEMENT OF CONSUMER ORGANISATIONS IN EU POLICIES

Action

Description

Timeframe

Reviewing mechanisms for participation of consumer organisations in EU policymaking

Consultation standards

Commission proposal for minimum standards
for the conduct of the consultation process

As part of the White Paper on Governance and of the better regulation
action plan, the Commission intends to establish minimum standards
for the conduct of the consultation process

2nd quarter 2002

Participation in EC committees and working groups

Assessment of consumer participation within
EU consultative committees

The inter-service group on consumer policy will assess and coordinate
consumer participation within EU consultative
to
determine whether and where consumer input is lacking could be
improved and further developed

committees

2nd quarter 2002

Standardisation work

Launch of a cooperation project to promote
consumer participation in standardisation

Launch coordinated action at Community and national level to ensure
the effective participation of consumer representatives in standard-
isation work and the decision-making process of European standard-
isation bodies

2003

Reinforce the cooperation between Commission Directorates-General

Organisation of regular meetings of the inter-
service group on consumer policy

Reinforce the cooperation between Commission Directorates-General
on consumer policy to improve integration of consumer concerns
with other EU policy areas

2002-2006

Consumer information and education

Information

Development of information policy tools for
consumers

Education

Development of online interactive education
tools

The Commission will pursue its efforts to improve its information
policy towards consumers.
future information
It will
campaigns on tobacco prevention for young people

focus

its

2002-2006

The Commission will develop online interactive education tools that
can be used by consumer associations for further training of their own
staff in specific aspects of cross-border transactions and of the EU
consumer rights in the internal market. The Commission will also
develop sector-specific tools on consumer items more likely to be
traded,
financial
such as cross-border services, and in particular
services. The Commission will explore with Member States how to
capitalise similar work done by Member States or by consumer organi-
sations so that tools can be developed to exchange best practices

2002

Support and capacity building of consumer organisations

Training

Training programme for staff members from
consumer organisations

— In its first phase (year 2002) the contractor will create training
material, select trainers and train them in three different areas:
management, public relations and lobbying and EC consumer law

2002-2004

— In its second phase (from beginning of 2003 until end of 2004) the
train the staff of

the first phase will

trainers coming out of
consumer organisations in these three areas

From beginning
of
2003 until end of 2004

8.6.2002

EN

Official Journal of the European Communities

C 137/23

Action

Description

Timeframe

Review of the legal instrument establishing a general framework for Community activities in favour of consumers

Commission proposal
general
in favour of consumers

a new
framework for Community activities

establishing

Proposal of a general framework, which will reflect and support the
objectives and actions outlined in this strategy, on the basis of which
specific projects can be adopted and receive Community support. It
will propose provisions to allow participation of candidate countries

3rd quarter 2002

ACTIONS TO IMPROVE THE QUALITY OF CONSUMER POLICIES

Action

Description

Timeframe

Impact assessment

Commission communication establishing a
comprehensive impact assessment mechanism

Ensuring that the impact on consumers' economic interests (in terms of
price, choice, quality, affordability, accessibility and market
trans-
parency and fairness) is properly taken into account in relevant legis-
lative and policy initiatives is essential to fulfilling the obligations of
Article 153(2) of the Treaty. The development of a comprehensive
impact assessment mechanism, as recognised by the White Paper on
Governance (1) and the Commission communication on better regu-
lation (2) is therefore essential

2nd quarter 2002

The development of a knowledge-based policy

Organisation of a conference with the Danish
Consumer Authority on consumer policy
statistics

This conference would take stock and draw attention to this particular
field in statistics (combining both quantitative and qualitative data),
highlighting economic consumer detriment studies

3rd quarter 2002

Continuation of
publication with Eurostat

the ‘Consumers in Europe’

Build on the first edition (2001) to develop the publication as a major
element of the knowledge base used for consumer policymaking

2002-2006

Production of a Eurobarometer
consumer information and representation

survey on

Produce a Eurobarometer survey to be published for the Consumer
Day (15 March 2002) and other surveys of the same kind in the
subsequent years

2002-2006

Scanner data price surveys for ‘supermarket
goods’

Continue the work done during the pilot phase (covering data
1999-2000) to produce data allowing price comparisons on super-
market goods throughout Europe

2002-2006

Surveys on business and consumer attitudes to
cross-border trading

Two surveys will analyse business and consumer attitudes to trading
and shopping cross-border in the internal market

3rd quarter 2003

Survey on the prices of
complement
dinated by Eurostat

to the regular

services,
a
surveys coor-

as

Development
comprehensive
of more
information systems and data on the safety
of goods and services, building on RAPEX
and Ehlass

If necessary, to conduct complementary surveys on prices of services

2002-2006

— Continue and reinforce the collection and assessment of data on
product-related injuries and to examine the possible extension to
service-related injuries

2002-2006

— Reinforce the operation of the RAPEX system by introducing new
operational guidelines and an Internet-based exchange framework

— Complete RAPEX by a framework for the direct exchange of
information between market surveillance authorities, as part of
the establishment of the product safety network of the General
Product Safety Directive

(1) COM(2001) 428 final.
(2) Commission communication ‘Simplifying and improving the regulatory environment’, 5 December 2001, COM(2001) 726 final.