Report from the Commission to the European Parliament and the Council on the implementation and evaluation of Community activities 1999-2001 in favour of consumers under the General Framework as established by Decision 283/1999/EC
Date: 2003-01-31
Institutions: European Commission
Subjects: activity report, consumer information, consumer movement, consumer protection, health control, product safety, veterinary inspection

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 31.01.2003
COM(2003) 42 final

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND
THE COUNCIL

on the implementation and evaluation of Community activities 1999-2001 in favour of
consumers under the General Framework as established by Decision 283/1999/EC

TABLE OF CONTENTS

1. Introduction ....................................................................................................................... 4

2. The Overall Financial Framework ...................................................................................... 4

3.

3.1

Commission Actions under Decision 283/1999/EC................................................... 5

Consumer health and safety...................................................................................... 5

3.1.1. Actions undertaken for the preparation and drawing up of opinions of the scientific

committees ............................................................................................................... 5

3.1.2.

Expertise and inspections relating to controls in food, veterinary and phytosanitary
sectors ...................................................................................................................... 6

3.1.3.

Technical expertise to assess risks relating to non-food products .............................. 7

3.1.4. Use of the expertise of the Joint Research Centre...................................................... 7

3.1.5. Dissemination of information about dangerous products and services and about

potential risks ........................................................................................................... 8

3.2.

Protecting the economic and legal interests of consumers as regards products and
services .................................................................................................................... 8

3.2.1. Actions to improve co-operation between the bodies participating in market

surveillance .............................................................................................................. 8

3.2.2. Actions to ensure the respect of consumer rights in the supply of products and

services .................................................................................................................... 8

3.2.2.1. Mechanisms for improving the settlement of consumer disputes, in particular through
pilot projects and setting up databases .................................................................... 10

3.2.3. Actions to ensure a level playing field in consumer transactions ............................. 10

3.2.3.1. The introduction of the Euro................................................................................... 11

3.2.4. Actions to monitor environmental claims................................................................ 12

3.2.5. Development of, and support for, actions facilitating access to justice and to improve
common extra-judicial procedures .......................................................................... 12

3.2.6. Actions to assess the specific risks and potential benefits for consumers in the

information society................................................................................................. 12

3.2.7. Actions to promote data protection and the protection of privacy............................ 12

3.2.8. Horizontal actions for the protection of economic and legal interests of consumers. 12

3.3.

Educating and informing consumers ....................................................................... 13

3.3.1. Actions to improve information to consumers......................................................... 13

3.3.1.1. Actions to raise awareness about safety aspects of products.................................... 14

3.3.2. Raising awareness of consumers for the need for sustainable consumption and

production .............................................................................................................. 15

2

3.3.3. Actions to improve information to consumers about specific products and services, in
particular through comparative testing .................................................................... 15

3.3.4. Actions to develop consumer education, particularly in schools.............................. 15

3.3.5. Actions to develop and support European Consumer Centres.................................. 15

3.4.

Promotion and representation of the interests of consumers .................................... 16

3.4.1.

Strengthening the representation of the interests of consumers................................ 16

3.4.2. Actions to support consumer organisations in the Member States ........................... 16

3.4.3. Actions to promote and co-ordinate consumer participation at the European level in

standardisation........................................................................................................ 17

3.4.4.

Pilot projects promoting sustainable consumption models....................................... 17

3.5.

Other Commission Actions..................................................................................... 17

4. Financial support to European consumer organisations..................................................... 17

5. Co-financing of specific projects ...................................................................................... 19

6. Concluding remarks ......................................................................................................... 20

ANNEX ............................................................................................................................... 22

3

1. INTRODUCTION

Decision 283/1999/EC of 25 January 1999 setting up a “general framework of activities to
promote consumer interests and to ensure a high level of consumer protection 1999-2003”1
constitutes the legal framework for several areas of expenditure on health and consumer
protection. Prior to this there was no legal framework other than the Treaty and the annual
Community budget defining actions eligible for Community financing.

Decision 283/1999/EC sets out the objectives,
implementing arrangements and areas of
activities for Community actions in favour of consumers. In its “Report on the Action Plan for
Consumer Policy 1999-2001 and on the General Framework for Community activities in
favour of consumers 1999-2003” of 23 August 20012, the Commission presented an overview
of the state of implementation of activities under Decision 283/1999/EC as linked to the
policy objectives laid down in the Consumer Action Plan 1999-20013 .

Article 13 of the Decision stipulates that the Commission shall submit to the European
Parliament and to the Council an annual implementation report, as well as an evaluation
report on the first three years of implementation of activities under the general framework.
This report aims to fulfil that obligation. It does therefore not cover all activities included in
the Consumer Action Plan 1999-2001, but only those financed under the terms of Article 2 of
the Decision.

The Commission actions financed are presented in Chapter 3 by specific area, as set out in
Article 4, and within each area by activity, as listed in the Annex of Decision 283/1999/EC.
The four specific areas are:

1. Consumer health and safety (Chapter 3.1)

2. Protecting the economic and legal interests of consumers (Chapter 3.2)

3. Educating and informing consumers (Chapter 3.3)

4. Promotion and representation of the interests of consumers (Chapter 3.4.)

Chapter 4 deals with the core funding of European consumer organisations and Chapter 5
with the co-financing of specific projects. Concluding remarks are in Chapter 6. The Annex
sets out the state of play concerning the evaluation of these actions in detail.

2. THE OVERALL FINANCIAL FRAMEWORK

112.5 million (excluding EFTA
The decision sets a total budget for the five-year period of
contribution) and introduces three instruments for financing activities in favour of consumers:

€

a) Commission actions (Article 2a of the Decision);

1

2

3

Official Journal No L34/1 of 09.02.99
COM (2001) 486 final
COM (1998) 0696 final

4

b) Core funding of organisations representative of European consumers with consumer and
health protection as their primary objective (Article 2b);

c) Co-financing of specific projects of consumer organisations and other independent bodies
promoting consumer interests in the Member States (Article 2c).

€

22.35 million for the year 1999,

The total commitment appropriations (without the contribution of the EFTA states) amounted
to
22.5 million for
the year 2001. In 1999, 100% of the commitment appropriations were utilised, in 2000 95%
and in 2001 92%. Table 1 shows the total commitments for expenditure in 1999-2001.

22.5 million for the year 2000 and

€

€

Table 1. Total amounts of commitments made in 1999, 2000 and 2001 under Article 2 of
Decision 283/1999/EC in

€

1999

2000

2001

Commission actions (Art. 2a)

15.022.341

15.687.971

17.306.154

European organisations (Art. 2b)4

2.778.203

1.670.185

1.545.266

Specific Projects (Art. 2c)

4.538.657

4.301.963

2.372.796

TOTAL

22.349.201

21.660.119

21.224.216

The Advisory Committee established in accordance with Article 9 of Decision 283/1999/EC
has delivered opinions on the Commission's draft measures relating to the definition of the
annual calls for projects under Articles 2 b) and c) and to the selection of beneficiaries on the
basis of these calls. The Commission has also provided the Advisory Committee with
information on Commission actions.

During the period under examination, a significant restructuring of health and consumer
protection policy within the Commission has taken place, and the policy context has shifted
accordingly. This makes it difficult to make meaningful comparisons over the years.

3.

3.1

COMMISSION ACTIONS UNDER DECISION 283/1999/EC

Consumer health and safety

3.1.1. Actions undertaken for the preparation and drawing up of opinions of the

scientific committees

In line with the principle of science-based policy making, the entire system of scientific
advice was reformed in June-October 1997 to reflect
the principles of excellence,
independence and transparency. Expenditure in the field of scientific advice mainly concerns
the indemnities of the Scientific Committees and preparatory scientific studies.

The indemnities are paid to the members of the Scientific Steering Committee and the 8
Scientific Committees established by Commission Decision 97/404/EC5 and Commission

4

5

NB amounts committed in 1999 include core funding for 1999 and 2000
Official Journal N° L 169 of 27.06.97

5

Decision 97/579/EC6, and to external experts advising the members on an ad hoc basis. From
January 1999 through 20017), a total number of 1144 meetings (working groups and plenary
meetings of the Scientific Committees) took place. These meetings led to the adoption of
around 200 scientific reports and around 400 scientific opinions by the Commission’s
Scientific Committees.

The payment of these indemnities enables the Commission to draw upon highly qualified
independent scientists to contribute to the work of the Scientific Committees. While not
intended as remuneration for the work done, the aim is to compensate scientists for the time
spent in attending meetings and drafting of reports and scientific opinions. This expenditure
thus contributes to the efficient work of the Scientific Committees and ensures that the
Commission risk management proposals in the area of food safety and consumer protection
are based on independent opinions or reports. The total amount committed for indemnity
payments in 1999-2001 for all nine Scientific Committees was

4.450.000.

€

The preparatory scientific studies are necessary to fill gaps in existing knowledge so that the
Scientific Committees can fulfil their mission or respond to crises. The studies undertaken are
short-term and highly-focused on well-defined problems that have arisen in the work of
Scientific Committees. This ensures the necessary independence to investigate problems that
are not examined elsewhere.

Such studies notably concerned: the health effects of hormones and hormone-like substances
used in animal husbandry; hair dye ingredients and their potential risk for consumers; the
quantitative assessment of the residual BSE risk in certain cattle-derived products; the use of
copper in animal feed; and the harmonisation of risk assessment. The Scientific Committees
were also informed about relevant research efforts funded by Community programmes such
as the Fifth Framework Programme for Research and Technological Development.

In 1999 the European Commission asked three eminent members of the Scientific Steering
Committee to analyze the organization of scientific advice in the light of the experience with
the new system of expert recruitment and working procedures since 1997. Their report8
recognized that the Commission has made major advances in the organization of scientific
advice. The analysis and recommendations of the three eminent scientists have contributed to
the proposals set out by the Commission in its White Paper on Food Safety of January 20009,
and to the establishment of a European Food Safety Authority.

The total commitments for this report and for preparatory scientific studies and analysis in
1999-2001 add up to about

470.000.

€

Additional expenditure related to the work of the scientific committees concerns the web
publication of the draft agendas of scientific committees, the minutes of their meetings and
the scientific opinions adopted. In addition, scientific opinions have been published on CD-
ROM and some selected scientific reports and conferences have been published in print.
These publications are essential in meeting the transparency requirements on scientific advice
and informing the scientific community at large. In addition, in certain cases preliminary

6

7

8

9

Official Journal N° L 237 of 28.8.97
Numbers given are for the period up to 20.2.02
The future of scientific advice in the EU - A European Food and Public Health Authority - December,
1999 - see also Annex, 2.3.
COM(1999) 719 final, 12 January 2000.

6

opinions are published on the web to seek comments from scientists around the world and to
ensure that all available information has been taken into consideration.

3.1.2. Expertise and inspections relating to controls

in food, veterinary and

phytosanitary sectors

The Commission’s Food and Veterinary Office (FVO) carries out on-the-spot inspections to
evaluate the food safety control systems operated by national authorities in Member States
and third countries. National experts from the Member States accompany FVO inspectors10
during many of their on-the-spot checks. On average, 112 different experts nominated by the
Member States participated in 123 FVO inspection missions each year in 1999, 2000 and
2001.

The expenditure in this area concerns the indemnities of these national experts in FVO
inspection teams. It allows the Commission to:

• call on technical expertise which it may not have among its staff of inspectors;

• improve the transparency of the FVO’s activities;

• increase its inspection activity and

• facilitate an exchange of ideas and knowledge, which leads to a greater understanding of

Community legislation and harmonisation of approach across the Member States.

National experts also participated in preparatory sessions prior to undertaking inspections.
The total expenditure for these actions in 1999-2001 adds up to

1.065.000.

€

Additional expenditure relevant
to this area of actions concerns the development and
maintenance of a computer system for the planning and management of inspections and the
web publication of inspection reports. Inspection reports are published to fulfil transparency
requirements. The comments of the authorities of the country where the inspection has taken
place are published simultaneously.

3.1.3. Technical expertise to assess risks relating to non-food products

Use of technical expertise to manage risks related to non-food products has centred on the
preparation of the revised General Product Safety Directive and the operation of the
notification systems for dangerous products. In particular, this expertise has been used to:

* Develop common EU guidelines for determining what constitutes a serious risk to consumer
health and safety within the context of the Rapid Exchange of Information system;

* Assist the Commission with technical aspects of the revision of the General Product Safety
Directive.

* Assess the risk of specific products that were subject of a risk notification within the rapid
alert system (for example stepladders, pushchairs, folding chairs).

10

See, for example, Art 4 of Commission Decision 98/139/EC of 4 February 1998 laying down certain
detailed rules concerning on-the-spot checks carried out in the veterinary field by Commission experts
in the Member States

7

The European Parliament and Council adopted the revised General Product Safety Directive
in December 2001.

In addition, a Eurobarometer survey was undertaken to gather information on consumer
perceptions of the CE marking of products. It highlighted that consumers often do not
understand the meaning of the CE mark, and mistakenly perceive it as a quality or
performance label. The Commission will address this in the forthcoming Communication on
“Enhancing the Implementation of the New Approach”.

Commitments for this type of expenditure over the three years added up to about
Technical expertise to assess risks related to foodstuffs is dealt with in 3.1.1 and in 3.1.4.

350.000.

€

3.1.4. Use of the expertise of the Joint Research Centre

The expertise of the Joint Research Centre was used to provide background scientific work to
evaluate three rapid post mortem BSE tests. The results were validated by the Scientific
Steering Committee. On this basis, the Commission has approved three post-mortem BSE
tests as laid down in Regulation 999/2001 on the prevention, control and eradication of
certain Transmissible Spongiform Encephalopathies11. The tests are widely used in all
Member States and in third countries. Expenditure amounted to approximately
1.280.000 in
1999-2001.

€

3.1.5. Dissemination of information about dangerous products and services and about

potential risks

The Rapid Exchange of Information System covers food and non-food products. It is the main
tool for exchanging and sharing information about risks to consumer health and safety
between the Commission and the Member States. The number of notifications dealt with by
the RAPEX system has steadily increased over the period under consideration, demonstrating
that the system is satisfying a growing need.

Following an internal review, and visits to and discussions with RAPEX notification points in
the Member States in 1999, significant
investments have been made to improve the
effectiveness of the system. Separate systems for food and for non-food notifications were
developed, anticipating the future extension of the system to animal feed and to import
controls on food and feed. Fax-based notification was replaced by an electronic notification
system. The new Rapid Alert System for Food and Feed has become operational in 2002.
Expenditure in this area amounted to some

800.000.

€

Other expenditure in this area includes a meeting of experts to define and prioritise the further
development of Europhyt, an electronic system for exchanging information on intercepting
contaminated consignments of plants or plant products between the Member States and the
Commission. The publication of the third updated edition of the Vademecum on Bovine
Spongiform Encephalopathy, and the acts of the International Conference on anti-microbial
resistance and its potential risk to human health were also financed.

11

Official Journal L 147/1 of 31.05.2001

8

3.2.

Protecting the economic and legal interests of consumers as regards products
and services

3.2.1. Actions to improve co-operation between the bodies participating in market

surveillance

To facilitate closer co-operation between the European members of the International Market
Supervision Network (IMSN), the Commission has made investments in the development of a
new electronic tool for rapid information exchange about specific deceptive marketing
practices and best practices in market surveillance. Experience with the system confirms that
effective administrative co-operation requires more formal arrangements, such as a legislative
framework, for this type of action. In its follow-up Communication to the Green Paper on
Consumer Protection12 the Commission undertook to present a proposal for such a legal
instrument before the end of 2002.

3.2.2. Actions to ensure the respect of consumer rights in the supply of products and

services

Actions in this area concern monitoring, data collection, implementation studies and opinion
polls related to regulatory action, in particular:

* To monitor the application and enforcement of consumer rights under Council Directive
93/13/EEC on Unfair Terms in Consumer Contracts13 and to make relevant jurisprudence in
all Member States easily accessible, the Commission set up a database of unfair contractual
terms, CLAB. Expenditure in this area relates to the collection and analysis of data and to IT
€
support to maintain and improve the user-friendliness of the database. It amounts to almost
1 million.

The CLAB experiment still requires further development and improvement. Use of the
database, while increasing, is still at a relatively low level. Indications are that the data input
requires further harmonisation. An evaluation of the functioning of CLAB is planned for
200414.

The information gathered via the CLAB database was used in the 2000 Report to the Council
and the European Parliament on the implementation of the Directive 93/13/EEC. The CLAB
database also provides a possible model for monitoring the implementation of all EU
consumer legislation. In the Commission’s view the role of national authorities in managing
this type of monitoring tool should be further developed, notably within the framework of
enforcement co-operation.

Additional expenditure relates to:

* the print publication of the acts of a conference on unfair contract terms to discuss the
application of the directive 93/13/EEC.

12

13

14

to be published in the Official Journal
Official Journal L 95, 21.04.1993
see Annex, 5.6.

9

* a study on the implementation of the General Product Safety Directive which was used as
the basis for a report by the Commission to the European Parliament and the Council15) and
for the Commission's proposal to recast the Directive on General Product Safety16).

* a preparatory study on the needs and priorities for action concerning the safety of services;
the results will be used for the planned Communication on the need for action concerning the
safety of services.

* a study on health and nutritional product claims in view of a possible revision of the
Misleading Advertising Directive17; this revision has been postponed as the issue is now
under examination within the context of the Green Paper on the future of consumer protection
and its follow-up.

* a Eurobarometer opinion poll on "Europeans and Services of General Interest"18) in 2000;
the poll aimed to measure consumer satisfaction with access, price, quality, available
information, terms and conditions of contracts and complaints handling for a number of
services, including mobile and fixed telephony, electricity, gas and water supply, postal
services, urban transport and inter-city rail services. In 2001 a focus group study provided
further insight into these issues. Expenditure amounted to almost

300 000.

€

The results were used for the Communication on Services of General Interest in Europe19) that
the Commission adopted in September 2000 and the 2001 annual Commission evaluation
report of services of general interests that forms part of the Cardiff Report on the functioning
of Community product and capital markets. They also serve as a basis for further input into
EU policy and action in this area.

* a study to analyse the impact of the Common Agricultural Policy (CAP) on consumers and
consumer prices; the results of the study served as a basis for policy input for the reform of
the CAP and for a publication targeted at consumer organisations.

The Commission also contributed to a conference organised by the Finnish Presidency on
services of general interest and consumers.

3.2.2.1. Mechanisms for improving the settlement of consumer disputes, in particular

through pilot projects and setting up databases

€

1 million was invested in setting up the European Extra-judicial Network
In 2001 more than
(EEJ-Net). The pilot phase of this network for settling consumer disputes out-of-court, in
which Norway and Iceland also participate, was launched in October 2001. In each country a
central contact point, or "clearing house" offers consumers information and assistance in
accessing existing out-of-court alternative dispute resolution (ADR) systems. They provide
help to consumers seeking redress in conflicts with suppliers from another EU country.

The network is expected to become fully operational at the end of 2002. In setting up the
network, a maximum of synergy is sought with the existing network of European Consumer

15

16

17

18

19

Commission report to the European Parliament and the Council of 29 March 2000 on the experience
acquired in the application of Directive 92/59/EEC on general product safety [COM(2000)140 final].
COM(2000)139 final of 29.3.2000
Directive 84/450/EEC, Official Journal L 250, 19.09.1984.
Eurobarometer N° 53 - October 2000
Commission Communication 'Services of General Interest in Europe':20.9.2000; COM(2000) 580

10

Information Centres. A review of this action with the Member States is planned at the end of
the pilot stage in 200320.

3.2.3. Actions to ensure a level playing field in consumer transactions

In 1999 and 2001 Eurobarometer opinion polls were conducted to assess consumer
confidence in financial services and their providers. The results demonstrated a low level of
consumer confidence and satisfaction, and provided the necessary background information for
redirecting EU policy and legislation towards better consumer protection rights in financial
services. The surveys covered banking services, insurance, credit and mortgages.

A dialogue between consumer representatives and the banking sector concerning mortgage
credit resulted in agreement on a code concerning pre-contractual information on loans for
the purchase of residential accommodation. This agreement was signed on 5 March 2001. On
1 March 2001 the Commission adopted a Recommendation endorsing the Code and inviting
the mortgage credit industry to comply with its provisions.21)

A debate on "Over-indebtedness" was held at the Consumer Council in April 2000. As a
follow-up,
the Commission gathered statistical data on the extent of cross-border
indebtedness. The results provided input to the Commission's work on combating social
exclusion. The proposed modification of the Consumer Credit Directive22 will also contribute
to more informed and prudent lending practices.

Expenditure for actions related to financial services adds up to about

€

1 million.

3.2.3.1. The introduction of the Euro

The European Commission, in particular the Health and Consumer Protection Directorate
General, has worked since 1996 to identify consumers’ needs and the best means to respond
to them in the context of the changeover to the Euro. The main objective was to facilitate the
transition to the Euro for consumers, to protect their interests and thus to foster consumer
confidence and support. Although the Member States had the main responsibility for ensuring
a smooth transition to the Euro, the Commission also made a significant contribution. The
activities in this area were part of a wider programme of consultation, co-ordination and
monitoring of all aspects related to the consumers' changeover to the Euro . They include:

* the “Euro Made Easy” actions to develop information and training materials targeted at
people likely to have difficulty in adjusting to the new currency (for example, the blind, the
deaf, the elderly, the mentally-handicapped), and to set up a network for training trainers in
the use of these materials. The latter were developed on the basis of the needs identified by
pilot groups belonging to the target population. The resulting materials were tested through
polls and qualitative studies. Staff of consumer associations and other non-governmental
organisations that work with these vulnerable groups were trained to use the materials in
teaching the target population about the Euro. Member States have used and reproduced the
Euro Made Easy materials in their information campaigns for vulnerable groups;

20

21

22

see Annex, 5.5.
Commission Recommendation on pre-contractual information to be given to consumers by lenders
offering home loans, C(2001) 477 final
COM(2002)443 final of 11.9.2002

11

* annual focus group studies and opinion polls to track the development of consumer attitudes
and the potential difficulties perceived with respect to the changeover;

* actions to encourage and monitor the implementation of good practice concerning dual
indication of prices, bank charges and consumer information. These actions included the
monitoring of the agreement between consumer and business associations on the Eurologo
commitments for strengthening consumer confidence.

An evaluation of all the European Commission activities on the introduction of the Euro is
underway23. In the meantime, the Eurobarometer opinion polls24 have given some indications
of the impact these actions have had. Almost 40% of EU citizens said they had heard about
the Euro Made Easy actions targeted at specific vulnerable groups. An additional 12% said
they had directly benefited from them. Almost 50% had seen the Eurologo in shops, and more
than 20% said the logo gave them more confidence in the shop displaying it.

Expenditure on these actions in 1999-2001 adds up to almost
7 million. Consumer
associations and other NGOs, consultants, production and distribution companies took part in
these actions.

€

3.2.4. Actions to monitor environmental claims

As a follow-up to a study on environmental claims undertaken in 1998, guidelines were
developed for an EU system for the verification and certification of environmental claims.
This work was intended to feed into legislative action as part of the planned revision of the
Directive on Misleading Advertising. The revision of this Directive has been postponed and
the issues concerned addressed in the Green Paper on the future of consumer protection.

3.2.5. Development of, and support for, actions facilitating access to justice and to

improve common extra-judicial procedures

€

Actions financed to facilitate access to justice have focused on the promotion and evaluation
of the European consumer complaint form for consumer disputes. Expenditure has amounted
to over
500 000. The aim of the complaint form is to bring about better communication
between consumers seeking redress and businesses. A Eurobarometer opinion survey25 in
1999 indicated that 7% of EU citizens had seen or heard of the form. A pilot project was
conducted in 1999 and 2000 in ten Member States to encourage the use of the complaint
form, to help consumers use it and to monitor a specific number of cases using the form. The
evaluation of the pilot project showed that
instrument for
communication and for settling consumer complaints as it led to a settlement in almost half of
the cases.

the form can be a useful

3.2.6. Actions to assess the specific risks and potential benefits for consumers in the

information society

Based on discussions with interested parties, action was taken to facilitate a stakeholder
dialogue and agreement on codes of practice and associated "trustmark" schemes as a means
of enhancing consumer confidence in e-commerce. Discussions centred on the feasibility of
developing a clear and sound framework for accreditation and independent verification. In

23

24

25

see Annex, 5.2.
data quoted are from Eurobarometer 57.1 – Spring 2002
Eurobarometer 52.1, conducted in Nov/Dec 1999

12

December 2001 the action resulted in a breakthrough agreement between consumer and
business representatives on good business practices for selling to consumers online. The
agreement paves the way for the application of EU-wide basic principles that should enable
consumers and businesses to take full advantage of electronic commerce and to make better
use of the internal market.

The Commission also contributed to a conference organised by the German presidency on
consumers and electronic commerce.

3.2.7. Actions to promote data protection and the protection of privacy

In this area DG Health and Consumer Protection has contributed to the development by other
Commission services of Community policy and legislation. No expenditure has proved
necessary.

3.2.8. Horizontal actions for the protection of economic and legal

interests of

consumers

A seminar bringing together legal experts in the use of “soft law” was organised to support
the work to identify best practice in the use of soft law, and to analyse how best practice in
this area can be made to work for consumers in the European Union.

Two seminars were held (in Portugal and Sweden) and a study carried out on the feasibility of
a general legislative framework on Fair Trading as part of the Commission's preparations for
the Green Paper on Consumer Protection. The study compared national consumer legislation
in the EU and the US and identified possibilities for the reform of EU legislation.

Expenditure for price index studies, for the collection of statistical data, for intra-EU
comparisons of the prices of consumer goods, and for the publication “Consumers in Europe -
€
Facts and Figures”26, which brings together key data on consumer policy, added up to about
500 000. Additional expenditure relates to a compilation of national and EU consumer law,
technical assistance in developing methodologies for assessing the impact of EU policy on
consumers, a Belgian Presidency conference on Consumer Affairs and meetings with
Australian and Japanese officials with a view to developing bilateral co-operation on
consumer affairs.

3.3.

Educating and informing consumers

3.3.1. Actions to improve information to consumers

The DG Health and Consumer web site has played a key role in informing consumers and
other stakeholders on policy development. These include decision-makers, scientists, opinion-
leaders, press and consumer and other organisations in the EU and elsewhere that act as
multipliers. A new health and consumer protection web site with three subject areas was
launched in July 2000. This site was updated on a daily basis (on average 200 pages per
week). The construction of the food safety and animal health site was completed at the end of
2001. Preparatory work for restructuring the existing subject areas on consumer affairs and on
public health was started. Services such as the daily “What’s New” e-mail notification for
subscribers and the mailbox were improved.

26

published by Eurostat, 2001

13

An indication of the demand satisfied by the web site is the steady increase in hits per month,
from an estimated 100 000 in 1999 to 360 000 in July 2000, and to over 1 000 000 in
December 2001. Subscriptions to the daily “What’s New” e-mail service launched in 1999
numbered 11 400 in December 2001. Surveys of visitors to the site conducted in 1999, 2000
and 2001 indicate a high level of satisfaction with the service provided27 and useful comments
for improvements were made.

The total expenditure for web site production and other IT development adds up to about
1.3 million. Since 2001, this has also included the costs of the IT development and other
support for the electronic version of the Consumer Voice Newsletter.

€

Consumer Voice was started mid-1998 as a consumer policy magazine and subsequently
widened its scope to food safety issues. It was mailed out to some 15 000 subscribers. The
multicolour print magazine with its long production and distribution schedule proved an
inadequate instrument for informing a multi-lingual audience on the fast-changing policy
developments in the area of food safety. Following an internal review in 2000, the print
publication of Consumer Voice magazine was discontinued as of 2001. To ensure the timely
information of stakeholders, opinion makers and other relays it was decided to publish a
monthly electronic newsletter instead. The newsletter gives a quick overview of recent
developments with links to the web site for more in-depth information.

The shift to a more frequent and electronically published and distributed publication has
proved to be more cost-effective and better suited to the need for transparency in policy
making. Total commitments for the Consumer Voice magazine amount to about
700 000.
The newsletter is produced with the technical support of IT staff working on the web site.

€

3.3.1.1. Actions to raise awareness about safety aspects of products

In recent years food safety has been of major concern to consumers. A Eurobarometer survey,
conducted in 1997, found that close to 68 % of European citizens were concerned about the
safety of foodstuffs and demanded better information on this matter. In an effort to restore
consumer confidence, the Commission has, in addition to its legislative agenda as set out in
the White Paper on Food Safety, launched information and education campaigns on food
safety.

These campaigns were run on a decentralised basis, being developed and executed nationally
to facilitate the adaptation of messages and the choice of instruments to the national context.
In 1998-1999 the issues of food labelling, the traceability of foodstuffs and genetically
modified organisms were addressed. In 2000-2001 the focus shifted towards a more
educational campaign on food hygiene directed at specific target groups.

An evaluation was made of the execution of the food safety campaigns in the first two years,
1998 and 199928. The findings were generally positive, but also noted considerable diversity
in the effectiveness of the different national campaigns. They were also used as the basis for a
decision to shift the emphasis of the campaigns from information to education, to narrow
down target groups and to further decentralise conceptualisation and execution.

Generally, sustained national campaigns over a number of years have shown clear benefits.
Expertise in developing communication tools on food safety has been built up. The use made

27

28

Results are available at http://europa.eu.int/comm/dgs/health_consumer/feedback/feedback04r_en.html
see Annex, 2.2.

14

in the campaigns of practical aspects of food hygiene in the home to make consumers familiar
with the concept of food safety appears to have worked well. The campaigns have generally
been successful
consumer
organisations, national authorities and public bodies, operators in the food chain) together
around joint actions on food safety.

in bringing different partners

(communication experts,

The true extent to which of the campaigns have helped to restore consumer confidence in
food safety is difficult to assess. Many factors come into play, and they differ from country to
country. There are substantial differences between countries where consumers generally trust
their national food control authorities, and countries where the competence of authorities is
questioned, or where responsibilities in the food chain are subject of intense debate. The
incidence of food crises at national level is also a major factor. National authorities thus
appear to be better placed than the Commission to decide on the future direction and follow-
up to these campaigns, by building upon the existing partnerships. The amount committed for
the 1999-2001 food safety campaigns is approximately

12.6 million.

€

As the third European Consumer Day in 2001 focused on food safety and food quality,
actions to attract media attention for this event in the Member States were integrated in the
ongoing food safety campaigns. Events were organised in 13 countries and expenditure
amounted to
230 897. The media impact of these national events, the Presidency event and a
conference that took place in Brussels was satisfactory.

€

3.3.2. Raising awareness of consumers for the need for sustainable consumption and

production

The Action Plan for Consumer Policy 1999-2001 did not provide for any policy development
or priority for this type of activity29. Action in this area was restricted to support
to
environmental policy instruments for the development of awareness raising activities such as
the eco-label for consumer products. Therefore there was no expenditure in this area.

3.3.3. Actions to improve information to consumers about specific products and

services, in particular through comparative testing

A Eurobarometer survey on labelling was conducted in 1999 to obtain information about
consumer needs and attitudes on food labelling. The results were taken into consideration in
the revision of the existing legislation on food labelling, and in the proposal on the labelling
and traceability of genetically modified food presented in July 2001.

The role of the European Consumer Centres (see 3.3.5) in conducting comparative tests and
studies on cross-border purchasing has been enhanced.

3.3.4. Actions to develop consumer education, particularly in schools

The Commission has over the years financed pilot projects to promote the introduction of
400 000 was spent to
consumer education into the national school curricula. In 1999 about
initiate a project of this kind in the UK, following similar projects in Greece, Portugal and
Spain. An analysis of the results showed that the impact of such pilot projects tends to be
restricted to the national context. The focus of the projects was mostly on the national
consumer environment, rather than on the achievements at EU level and the advantages of the
the role of the European
Single Market. The conclusion was reached,

therefore,

that

€

29

see Annex, 4.1.

15

Commission in stimulating the integration of consumer education in school curricula through
pilot projects had reached its useful limits.

"The Young Consumer Competition" has over the years been a key action in promoting
consumer education in schools. Expenditure for this contest added up to almost
2.5 million
in 1999-2001. An internal review, undertaken in 200230, concluded that the competition as
conducted over the past years is not cost-effective, but that the concept has good potential. If
the organisational set up is improved, greater coverage could possibly be achieved at lower
cost. This re-organisation is currently under way.

€

3.3.5. Actions to develop and support European Consumer Centres

Following an evaluation of the operation of the ‘Euroguichets’ transborder consumer
information pilot projects in 199731, the Commission has re-defined the mission of the
Euroguichets, as the European Consumer Centres Network. Currently, there are 14 centres in
operation in 12 Member States32). Their main tasks are to:

* disseminate information on consumer affairs developments at EU level;

* carry out comparative tests and studies on cross-border purchasing;

* assist consumers who are experiencing difficulties in transactions.

As a result of the change of emphasis the Centres are more pro-active and form a genuine
European network that facilitates close co-operation between Centres in the different
countries. The introduction of a greater variety of information tools has strengthened their
outreach. The number of consumer contacts has shown an upward trend in all countries . In
many countries the centres are also involved in the EEJ-Net and acting as clearing houses.

6 million, covering 50% of
The financial support provided to the Centres adds up to almost
the costs. The improved co-operation with Member States in setting up and financing the
Centres has allowed marked progress to be made. This co-financing arrangement with the
Member States needs to be put on a more formal and secure legal footing.

€

3.4.

Promotion and representation of the interests of consumers

3.4.1.

Strengthening the representation of the interests of consumers

The main financial instrument in this area is the support for the activities of European
consumer organisations, as defined in article 2(b) of the Decision (see Chapter 4.).

3.4.2. Actions to support consumer organisations in the Member States

The main action to support consumer organisations in the Member States has focused on
training of consumer association staff. The 1999 call for specific projects centred on training
to disseminate expertise on food safety, product safety, financial services and other priority
areas of Community policy, in particular to consumer organisations.

30

31

32

see Annex, 3.1.
see Annex 4.3.
Ireland, UK, France, Portugal, Spain (2), Luxembourg, Germany (2), Finland and Austria, Sweden,
Belgium, Italy

16

In 2001, to follow-up and reinforce this training support, the Commission decided to launch
850 000 was
its own actions for training staff from consumer organisations. About
committed in 2001 for the first phase of a three-year project. This first phase is being carried
out in 2002 and aims to create training material, select trainers and train these trainers in
management, public relations and consumer law. In a second phase (2003/2004) residential
courses will be run to allow these trainers to train the staff of consumer organisations.

€

Another way in which certain consumer organisations activities in the Member States are
supported, insofar as they coincide with the priorities set each year, is through the co-
financing of specific projects to promote the interests of consumers in the Member States.
National consumer organisations were the beneficiaries of a considerable proportion of the
grants for specific projects approved each year (see Chapter 5).

Certain Member States and consumer organisations tend to consider project-based co-
financing an implicit substitute for direct financial support to weaker, smaller or poorer
national consumer organisations. In practice the co-financing of specific projects has mainly
worked to the advantage of the stronger, well-financed organisations. It would therefore be
useful to clearly dissociate the co-financing of specific projects from support for national
consumer organisations. Project financing has proved not to be an adequate instrument for
this purpose.

3.4.3. Actions to promote and co-ordinate consumer participation at the European

level in standardisation

The main financial instrument in this area is the support for the activities of European
consumer organisations, as defined in article 2(b) of the Decision (see Chapter 4).

3.4.4.

Pilot projects promoting sustainable consumption models

An intermediate evaluation of projects related to sustainable consumption co-financed from
1995 - 1998 concluded in 2000 that most initiatives were not very effective and had limited
impact33. This type of project financing has therefore not been continued.

3.5.

Other Commission Actions

Expenditure on evaluations by specialised companies of actions in favour of consumers
500.000 over the three years (see Annex).
amounted to more than

€

4. FINANCIAL SUPPORT TO EUROPEAN CONSUMER ORGANISATIONS

Article 2b of Decision 283/1999/EC provides for financial support to European consumer
organisations under certain conditions. The European Commission has, over recent decades,
provided operating grants to European consumer organisations in recognition of
the
imbalance between the human, technical and financial resources of industry and consumer
representation at EU level. In setting eligibility criteria for awarding this financial support to
European consumer organisations, the current Decision aimed to concentrate resources on
those organisations whose core business is to defend consumer interests at European level. In
addition, such organisations must be mandated to represent the interests of consumers at
European level by the national organisations of at least half the Member States of the

33

see Annex 4.1.

17

Community. The activities of such organisations must relate to one or more of the four areas
identified in Article 4 of the Decision.

In order to provide a sound basis for judging the effectiveness of the financial support for
European consumer organisations, an evaluation of funding provided to European consumer
organisations was undertaken in 2000, covering six organisations that had received operating
grants during the period 1995-199934. This evaluation was completed in December 2001 and
showed that
the work of the European Association for the Coordination of Consumer
Representation in Standardisation (ANEC) and the European Consumers’ Organisation
(BEUC) has the highest relevance and contributes most to the protection of consumers. BEUC
in particular was found to provide the strongest representation of consumer interests at
European level. BEUC receives a Commission contribution equivalent to 35 % of its total
budget. National consumer organisations contribute the bulk of the remaining budget through
membership fees and therefore have a major influence in setting BEUC’s agenda.

With regard to EUROCOOP (European Community of Consumer Cooperatives), COFACE
(Confédération des Organisations Familiales de la C.E.), ETUC (European Trade Union
Confederation) and IEIC (Institut Européen Interregional de la Consommation) the findings
were significantly less positive. Their contributions to consumer policy and consumer
protection proved limited, and consumer protection issues not their core business. In 2001 the
Commission decided to discontinue the operating grants for EUROCOOP and COFACE,
because their activity reports demonstrated that representation of consumer interests is not
their primary activity as required by Article 5(1)35.

A new organisation, the European Consumers' Association (AEC), founded in the spring of
2000, was granted core funding for a start-up phase. On the basis of AEC’s reports on its first
three years of activities an assessment will need to be made to see whether the organisation
has succeeded in establishing itself as a viable organisation for representing consumer
interests at European level.

To support consumer participation in standardisation at the European level, the Commission
provides financial support to ANEC. ANEC was set up in 1995 following an agreement
between the Consumer Consultative Committee of the European Free Trade Organisation and
the European Commission. ANEC represents the interests of European consumers in the
European Standardisation bodies that, amongst others, elaborate standards for the safety of
products covered by the New Approach Directives. These directives define essential product
safety requirements. The European Standardisation bodies subsequently elaborate, on the
basis of the terms of reference set out by the Commission, detailed standards for product
safety.

Initially, the Commission provided 100% financing of the ANEC's expenditure for the
participation of consumer representatives in European standardisation working groups.
National consumer organisations provide a considerable amount of the expertise used for this
work free ofcharge. Apart from a 5% contribution from EFTA, ANEC has been unable to find
alternative funding sources.

34

35

see Annex 2.1.
Funding of the operational costs of ETUC consumer representation activities was already discontinued
in 1997. As of 1999, IEIC activities did not qualify for this type of funding, because the organisation
did not comply with the eligibility requirement of representing consumer organisations in half the
Member States.

18

As a result, the core funding provided to ANEC for representing consumer interests in the
development of safety standards for consumer products has been around 95% of its running
costs over the past three years. Member States representatives in the Advisory Committee
have agreed to this high level of funding, while discussing alternative funding options. Until
such alternatives arefound, the continuity of consumer input into the EU standardisation
process will be dependent on this high level of financing.

The financial support granted to cover the running costs of European consumer organisations
amounted to about

4.5 million (see Table 2).

€

Table 2. Annual operating grants allocated to European Consumer Organisations

Organisation

1999

BEUC

ANEC

EUROCOOP

COFACE

AEC

Total 36

450.000

803.203

100.000

70.000

-

2000

525.000

830.000

90.000

70.000

80.185

2001

600.000

830.000

-

-

42.308

1.423.203

1.595.185

1.472.308

5. CO-FINANCING OF SPECIFIC PROJECTS

In providing detailed criteria for awarding financial support to specific projects promoting the
interests of consumers in the Member States, the current Decision aimed to rationalise project
financing. As provided for in the Decision, calls for projects were published annually37.
Decisions on allocations were made on the basis of the criteria as outlined in the
implementing Articles and with the assistance of the Advisory Committee.

Table 3. Overview of Specific Projects Applications, Allocations and Expenditure

Year

1999

2000

2001

36

37

Applications Approved Withdrawn Co-financed

Total

€

205

167

97

49

36

23

8

1

2

41

35

21

4.538.657

4.301.963

2.372.796

NB: These amounts do not correspond to the total yearly amounts of commitments in Table 1 because a
major part of the commitments have been made in the previous year.
Official Journal C289/14 of 17.9.98 for 1999, C191/15 of 8.7.1999 for 2000, C116/7 of 26.4.2000 for
2001.

19

There has been a gradual decline in the number of applications submitted in response to the
Commission's call for projects (See Table 3). This has been due largely to a stricter definition
of eligible projects in the calls for projects. Another reason may be the requirement to
contribute, in principle, a minimum of 50% to the total project expenditure. The main
beneficiaries of this type of co-financing have been national consumer organisations and other
national, European and international NGOs active in the promotion of consumer interests.

In order to improve the overall impact of co-financing specific projects, the Commission has
generally sought to concentrate the available funding on fewer projects, whilst, at the same
time, encouraging consumer organisations to join forces on projects of joint interest. In
practice too few innovative projects or projects with a high relevance to EU consumer policy
€
have been submitted and financed. The average size of projects remains modest (between
200 000 and 250 000 in 2001), but has increased by comparison with previous years.

The detailed procedural rules and eligibility criteria set out in the Decision have succeeded in
making the process for the allocation of project grants more transparent, but at a high
administrative cost. This high cost is not matched by the added value at EU level of the
projects that are co-financed. In addition, the costs of project development and of meeting the
requirements for the presentation of a project are burdensome for the applicants, especially
consumer organisations and other NGOs. The annual cycle of calls for projects and setting
priority areas also means that sustained results are difficult to achieve. An external evaluation
of specific project financing will become available in 200338.

The co-financing of specific projects amounted to about
2000 and 2.4 million in 2001 (See Table 3).

€

4.5 million in 1999, 4.3 million in

6. CONCLUDING REMARKS

Decision 283/1999/EC was adopted to satisfy the immediate need for a legal framework for
expenditure in favour of consumers following a judgement of the European Court of Justice in
1998 (C106/96). The general impact of the Decision has been to reinforce an existing trend
towards better budgetary planning and less ad hoc decision making. Before 1999 the key
parameters for such decisions were laid down on an annual basis by the budgetary authority in
the commentary to the budget lines for the following year. Decision 283/1999/EC has fixed a
multi-annual programme of expenditure, set out clear procedures, eligibility and award
criteria for financial support and defined possible areas for action for a 5-year period. This has
enabled substantial progress to be made in terms of forward planning, a high level of budget
utilisation as well as the increased transparency of procedures.

The historical circumstance that the Decision preceded the adoption of the Consumer Action
Plan 1999-2001 and the White Paper on Food Safety of January 200039 prompted a deliberate
choice to keep its scope relatively wide and its objectives very general. This flexibility has
proved useful, but does not make an overall evaluation of the extent to which the objectives
have been achieved easy to arrive at. The Decision, on the other hand, has provided
considerable procedural detail on the co-financing of specific projects. This has resulted in
greater transparency in the application and allocation process.

38

39

See Annex, 5.1.
The White Paper on Food Safety foresaw a legislative proposal to provide a “uniform legal basis to
ensure adequate Community financial support of actions necessary to enhance food safety” for
December 2000 (Action 79, p. 51, 52), but this proposal has since been cancelled.

20

Commission actions (as under Article 2a of the Decision) in favour of consumers have taken
three years, almost 75 % of the total
up the bulk of the expenditure over the past
commitments. Amongst the most important actions financed are the Scientific Committees,
scientific studies and technical support for legislative activities (for example validation of
BSE tests) and improvements in rapid alert systems. Other important actions include opinion
polls on consumer attitudes, food safety information and education campaigns, and actions
related to the introduction of
rights
implementation. Actions to facilitate access to justice and to extra-judicial redress, and to set
up and support the European Consumer Centres Network were undertaken in co-operation
with the Member States. The policy relevance of these actions was high, as in general was
their effectiveness.

the Euro, and actions

to monitor consumer

Almost 10% of the total commitments were for financial support to European consumer
organisations, under the terms of Article 2b of the Decision. The policy relevance and
effectiveness of this expenditure has improved over the past three years. The eligibility
criteria for this type of financial support, as defined in the Decision, proved effective in
concentrating resources on those organisations whose core business is to defend consumer
interests at European level. At the same time, it also fostered new initiatives in this field.
Practical experience indicates that
further clarification of the criteria with regard to
independence and the role of such organisations in representing consumer interests may be
useful.

The third category of expenditure was the co-financing of specific projects in favour of
consumer interests in the Member States. This has proved to be the least effective instrument
over the past three years. Some 17% of the total commitments were used to co-finance
specific projects. The evaluation and allocation process, and the monitoring of the execution
of such projects demanded an administrative investment that proved disproportionate to the
policy relevance and impact of the projects financed.

Experience with implementing the instruments as provided for in the Decision, particularly
the specific project co-financing, also brought to the fore the question of the effective use of
EU funds to strengthen national consumer organisations. The role of the EU budget in
supporting national consumer organisations generally requires clarification. Consumer
organisations in certain countries are weak in political and financial
terms due to
fragmentation, a small membership base and/or little or no financial support from their
national governments. More than a decade of indirect EU support for such organisations,
mainly through project co-financing, has, not surprisingly, proved insufficient to compensate
for these deficiencies. More direct support for national organisations, through core funding,
would, however, run counter to the principle of subsidiarity. It would, moreover, be
impracticable, not least because it would require a common definition of a national consumer
organisation across the EU. Financial support for the operating costs of national organisations
should, therefore, remain a national responsibility.

For its part, the Commission can make a complementary contribution through its direct
actions such as the ongoing training programme for the staff of consumer organisations. It can
also encourage Member States to give due attention to the needs of the national consumer
organisations by facilitating the exchange of best practice. The development of a formal
framework for administrative co-operation, which is one of the priorities of the Commission’s

21

new Consumer Policy Strategy40, could also open up the possibility of jointly funded
initiatives to support consumer organisations.

Any future legal framework for expenditure in favour of consumers should contain a better
alignment of policy and budgetary frameworks. Important shifts in the policy context, such as
enlargement and new governance, and the adoption of the Consumer Policy Strategy 2002-
2006 also require adjustments. On the basis of the Strategy the Commission can now more
its policy objectives
effectively define the instruments and actions needed to meet

40

Official Journal C 137 of 08.06.2002

22

ANNEX

Overview of the evaluation of actions undertaken under Decision 283/1999/EC

1. Introduction : evaluation arrangements for consumer policy actions

DG Health and Consumer Protection has in 1999 started to develop its evaluation function,
but initially budgetary allocations and human resources were limited. In September 2000 a
new Audit and Evaluation Unit was created which as a priority focused on setting up an audit
capacity and the reorganisation of financial circuits. In 2001 the evaluation function was
reorganised to enhance the integration of evaluation as a fully integrated management tool for
the execution of core activities.

Given the variety of actions covered by Decision 283/1999/EC and the very general character
of its objectives, a single overall evaluation of all actions undertaken under the general
framework 1999-2001 has been judged inappropriate. Instead, a choice was made to evaluate
multi-annual key actions or individual actions, notably in those areas where results could
serve to orient spending and policy needs and priorities. This allows for an in-depth analysis
of the actions concerned.

Of the funding available under Decision 283/1999/EC, about
500.000 were committed for
the evaluation of actions by external specialised companies during the period 1999-2001.
Other actions were subject to internal evaluations. The evaluation of actions is an ongoing
process that will be completed by 2005 or 200641. This annex aims to give an overview of the
state of play of this evaluation process.

€

2. External evaluations of actions undertaken under Decision 283/1999/EC :

2.1. Operating grants to European consumer organisations 1996-1999

The evaluation42 aims to make a full analysis of the consumer policy environment in which
European consumer organisations operate and to evaluate their effectiveness and relevance.
The basic methodological approach included a strategic analysis of six organisations, a
historical analysis of the grants in terms of desired impacts, deliverables, service scope and
target groups, and comparisons.

This evaluation concerns a period when operating grants were awarded to BEUC43, ANEC44,
as well as COFACE45, EUROCOOP46, IEIC47 and ETUC48 for representing consumer

41

42

43

44

45

46

47

Evaluations are launched when a series of (multi-annual) actions are completed, final reports received,
examined and approved. Procedures for the attribution of contracts and for the execution of actions
under Decision 283/1999/EC started in January 1999. By mid 2002, a number of actions were
completed, whereas others were ongoing or continuing. External evaluations are available for actions
launched since January 1999 and completed by early 2001 at the latest. Internal evaluations cover
actions launched since January 1999 and completed by the end of 2001 or beginning of 2002.
Evaluation undertaken by ‘The Evaluation Parthership”. Final report “Evaluation of Subventions 1996-
1999 - European Consumer Organisations”, December 2001.
Bureau Européen des Unions de Consommateurs
European Association for the Coordination of Consumer Representation in Standardisation
Confédération des Organisations Familiales de la C.E.
European Community of Consumer Cooperatives
Institut Européen Interregional de la Consommation

23

interests at European level. From 1996-1998 these grants were provided on the basis of the
commentary included in the annual Community budget. As of 1999 they were awarded on the
basis of the eligibility criteria and procedural arrangements set out in the Decision.

The basic findings of the evaluators clearly demonstrated the usefulness and relevance of the
activities of BEUC and ANEC, and seriously questioned the operating grants for the activities
of the other four organisations. The evaluation further recommended the Commission
examine options for :

a) increased funding for strengthening the consumer voice in vital areas of EU policy,
including matched funding from the Member States;

b) a more operational and inclusive definition of a European consumer organisation;

c) more EU level support to strengthen consumer representation in candidate countries, good
practice development, training and network building initiatives and research efforts;

d) increased funding for assistance by European experts in consumer affairs in areas where
capacity and capabilities are stretched;

e) the use of the European Consumer Centres Network and Eurobarometers to collect views
of targeted consumer groups on European consumer organisations.

The evaluation has notably proved helpful in providing further evidence concerning the
relevance and usefulness of the activities of the organisations examined. It has therefore
contributed to our decision to concentrate this type of funding on organisations that have
consumer representation as their core business. Funding of the operational costs of ETUC
consumer representation activities was already discontinued in 1997. As of 1999, IEIC
activities did not qualify for this type of funding, because the organisation did not comply
with the eligibility requirement of representing consumer organisations in half the Member
States. Subsequent
to the findings of the evaluation, funding of operational costs of
EUROCOOP and COFACE was also discontinued in 2001.

The feasibility of implementing the additional recommendations of the evaluator has been
examined and taken into consideration in the preparation of and discussions with stakeholders
on the revision of Decision 283/1999/EC. The Consumer Policy Strategy 2002-200649 has as
one of its three main objectives to promote the involvement of consumer organisations in EU
policy making. The proposal for a Decision that is to replace 283/1999/EC introduces specific
new instruments to strengthen the consumer voice at Community level. Member States
however have shown no preparedness to match Community funding for operational costs of
European consumer organisations.

The proposal for a Decision to replace Decision 283/1999/EC includes a revised definition of
a European consumer organisation. Its aim is to further increase the effectiveness of consumer
representation at Community level and to further focus resources on organisations that are
independent of commerce and industry and that have consumer representation as their core
business. The proposal will also make provisions facilitating actions to strengthen consumer
organisations in candidate countries. Actions concerning the provision of expertise, training
and good practice exchange are ongoing, and will be continued and expanded as of 2004.

48

49

European Trade Union Confederation
COM(2002)208 final of 8.6.2002

24

It has, on the other hand, not been judged necessary to dedicate further resources to the
collection of views about European consumer organisations, given that Eurobarometer
surveys continuously confirm that consumers place great trust in consumer organisations.

2.2. Food Safety Information Campaigns 1998-1999

This evaluation50 concerns the implementation of the first two years of the food safety
information campaigns. Its purpose is to ascertain the impact, methodology, efficient targeting
and reach of the different national campaigns with a view to assess their added value and
examine possible ways to improve the impact of the information campaigns. The approach
followed included desk research on policy and campaign documents, as well as interviews
with competent EC officials, national campaign co-ordinators and the external co-ordinator’s
staff. The evaluators also conducted a telephone survey of a random sample of 150
respondents in 13 countries, and a written survey on a selection of teachers and pupils from
100 schools in 10 countries.

Findings were generally positive, and advocated a multi-annual approach to information
actions. The execution of the campaigns integrated around three-quarters of all requirements
and objectives. The overall effectiveness of the various national campaigns was found to be
moderate. The evaluators also noted considerable diversity in the effectiveness of the different
national campaigns. Some score significantly better than average and some proved to be
disappointing. Opinions concerning the role of the external co-ordinator were divided as some
campaign managers identified an added value whilst others saw none.

The key general recommendations were to clarify the decentralised approach to implementing
the campaigns, and to narrow the objectives and target groups. The evaluators further gave a
number of practical recommendations for the implementation of future campaigns. The key
recommendations of the evaluation were used in the short term, to the extent possible, in the
2001/2002 campaign, launched in April 2001. The recommendations will be further exploited
in the development of future information campaigns.

2.3. Review of the Scientific Advice System 1997-1999

In relation to the expenditure for the functioning of the Scientific Committees, the Report of
three experts of the Scientific Steering Committee51 of 1999 reviewed the existing system
for the provision of scientific advice to the Commission and presented recommendations for
the future organisation of scientific advice.

The report recognized that the Commission had made major advances in the organization of
scientific advice. The transfer of the scientific advisory system to DG Health and Consumer
Protection in 1997 resulted in the establishment of independent scientific committees working
for the clear objective to protect consumer health. But in the view of the authors the system
had made only a modest contribution to restoring public confidence in food safety. The
scientists therefore proposed further reform of the scientific advice system, and notably the
establishment of a fully independent organization for scientific advice with stakeholder
involvement and more resources for risk communication. The analysis and recommendations
of the three eminent scientists have contributed to the development of the proposals set out by

50

51

Evaluation undertaken by ‘Research voor Beleid International’, Leiden. Final report “Evaluation of the
European Food Safety Campaign” - March 2001.
The future of scientific advice in the EU - A European Food and Public Health Authority’ - December,
1999

25

the Commission in its White Paper on Food Safety of January 200052, and to the
establishment of a European Food Safety Authority.

3. Internal Evaluations of actions undertaken under Decision 283/1999/EC :

3.1. Young Consumer’ Contest 1999 - 2001

An internal interim appraisal was carried out in 2002 of the implementation of the Young
Consumer Contest. The aim of this action as undertaken since 1993 is to encourage young
people to become more aware of consumer issues and to become responsible consumers. The
event has become one of the main Community initiatives in the field of consumer education,
in follow-up to a Council Resolution on Consumer Education of 198653.

In view of the relatively slow increase in overall participation, and the actual decrease in the
number of participating schools in 2002, as opposed to a steady increase in costs, an internal
appraisal54 was made in the spring of 2002. Its key objective was to determine the
effectiveness and efficiency of the European Young Consumer Contest, notably with respect
to informing and soliciting the participation of schools in the contest. It sought to determine
whether the contest should be continued, and if so, in which form. It also aimed to identify
options to improve the cost efficiency ratio.

The appraisal is mainly based on an analysis of the 1999 and 2000 competitions, notably of
the reports of
the contractors, on an informal survey conducted among consumer
organisations in 1998, and a telephone interview with the main contractor responsible for the
execution of the Contest in ten Member States. Its main findings underlined that the number
of participants has remained limited to around 2 000 schools, and that the participation rate is
not developing sufficiently to have any real impact in terms of integration of consumer affairs
in the school curriculum. Overall cost effectiveness proved low, but with large differences
between countries. The execution of the contest by private contractors, who are mostly not
part of the national educational structures or of the consumer world, may in part account for
this.

The overall conclusion of the appraisal was that the basic concept of the contest is good, but
that the strategy for its execution needs to be improved. In particular, it recommended to
entrust the organisation of the contest to a network of Education Ministries, with which the
Directorate General for Education and Culture also co-operates. This could ensure increased
participation and a better cost-effectiveness.

Accordingly, a decision was taken to continue the action under these (changed) terms in 2003,
by way of experiment, and to review the results in 2004.

4. External evaluations of actions undertaken outside the framework of Decision
283/1999/EC :

Evaluations undertaken in 1999 and before concerned actions financed in previous years,
outside the current legal framework. While two of these evaluations resulted in decisions to
discontinue the actions concerned, a third concerns an action that is still ongoing and to be
continued.

52

53

54

COM(1999) 719 final, 12 January 2000.
See 86/C184/07, in O.J. C 107 of 23.6.1986
Internal Evaluation of the European Young Consumer Contest, 13 June 2002.

26

4.1. Sustainable Consumption actions and projects 1995-1998

At the instigation notably of the European Parliament, the Commission supported in the years
1995-1998 about 50 projects related to sustainable consumption. The evaluation55 was
launched to assess their utility, to decide whether these types of actions should be repeated in
the future and what possible improvements are necessary. The exercise was carried out on a
project-by-project basis, on the basis of project files examination and selected field visits. The
methodology followed is a logical framework technique.

The findings of the evaluation of sustainable consumption activities notably underlined the
need for a political decision concerning the policy contribution of DG Health and Consumer
Protection in this area, in view of its core competencies and its limited human resources. It
financing and technical assistance actions on sustainable
recommended that project
consumption be discontinued until an official policy paper setting out objectives and an action
plan were adopted.

These results contributed to the identification of sustainable consumption as an area of
negative priority within the framework of consumer policy. It was decided that DG Health
and Consumer Protection should restrict itself to core consumer policy activities, and that
environmental policy instruments are better suited to achieving sustainable consumption
objectives.

4.2. Consumerland action 1995-1999

A mid-term external evaluation of the Consumerland action was launched in 1999 in view of
a proposal to allocate more funding to this activity. The action was initiated in 1995 as an
attempt to use IT tools to communicate consumer information. ‘Consumerland’ creates a
virtual world in which the European-wide aspects of consumer protection are communicated
to a target group of children, adult consumers and consumer organisations. Its objective is to
increase consumer confidence in exploring the advantages of the Single Market. A virtual
townscape environment and three modules (Toy Shop, Food Shop and Travel Agency) were
created as part of the project.

Before developing further modules, the Commission conducted an internal appraisal, and
subsequently decided to carry out an external evaluation56 of the relevance, efficiency,
effectiveness, impact and European added value of the initiative. The approach included a
review of the technical adequacy of the product, a review of the user appreciation of the
product and an operational review of Consumerland as a whole. The external evaluation
mainly focused on the use of the product by the three target groups. Special focus was given
to the quality of the software, its user friendliness and its respond time both for CD-ROM use
and Internet use.

The findings of the evaluator confirmed that the efficiency and effectiveness of the project in
meeting its desired aims had been poor, and made a number of recommendations for a
possible re-launch. On the basis of the results of the internal and external evaluation the
Commission decided to discontinue the project.

55

56

Evaluation undertaken by ‘Economisti Associati’, Bologna. Final report November 2001.
Evaluation undertaken by The Evaluation Partnership, Final report “Evaluation of Consumerland
informatics project”, December 2000.

27

4.3.Trans-border consumer information pilot projects (“Euroguichets”)

This evaluation57 covered a total of 17 pilot projects on trans-border consumer information
that were co-financed from the consumer policy budget since 1991. It focused on the cost-
effectiveness of the activities of each pilot project and its effectiveness in the national context.
It also considered their location in terms of cost-effectiveness, effectiveness in the national
context and the global impact on consumers in the EU.

The findings demonstrate that the overall cost/benefit ratio of the pilot project scheme is quite
good. The majority of the pilot projects co-financed are evaluated as successful or partially
successful; some failed to reach their targets. The evaluation proposed to enhance the
Community effort for European consumer information, to extend the scope of the activities
beyond trans-border regions and to set up a European-wide consumer information network
with a Centre in each Member State.

These recommendations have gradually been implemented in cooperation with the Member
States since 1998. In particular, the pilot projects have been reorganised into a network of
European Consumer Centres. The focus of the action has shifted, towards providing an
information and advice service to a wider, national audience. Additional tasks, such as price
monitoring and comparisons, have been added.

5. External evaluations that have been launched/planned :

5.1. Co-financing of specific projects 1999-2001

This evaluation aims to judge the implementation of the approach to project funding defined
in Decision 283/1999/EEC. The instrument of project co-financing, and the detailed criteria
set out in the Decision for awarding project grants, have proved unsatisfactory, in terms of
return of value for money and in terms of administrative efficiency. Such problems were
identified by the Commission in an internal review, by the Member States represented in the
Advisory Committee, as well as by consumer organisations represented in the Consumer
Committee. The external evaluation will, amongst others, serve to verify the grounds for this
dissatisfaction and help to develop options for reorienting project funding.

An open call for tenders has been launched. The work is to be completed in 2003, and will be
taken into account in the further decision making on the proposal for a Decision to replace
Decision 283/1999/EC.

5.2. Information programme “The euro: one currency for Europe, 1996-2002”

This external evaluation will analyse the effect the Commission's communication activity had
in facilitating the introduction of the Euro. It will in particular, analyse the repercussions this
programme has had in the national or local, public or private communication campaigns, and
therefore in the final state of preparation and confidence of consumers and business in
changing to the Euro. This evaluation will also cover the actions financed by the Health and
Consumer Protection budget as complementary elements of the Prince program.

An open call for tenders for this evaluation has been published in the Official Journal in
August 2002 and the contract has been awarded. The work will start at the beginning of 2003.

57

Evaluation undertaken by Wilhelm Consulting, final report “Evaluation of the transborder consumer
information pilot projects”, June 1997

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5.3. Implementation of the Consumer Action Plan 1999-2001

The main purpose of this evaluation is to analyse the experience gained in implementing the
Consumer Action Plan, with the exception of food safety actions. The evaluation is to
examine the logic of the objectives of the Plan in respect of the Treaty, and the
appropriateness of the actions selected to meet the objectives. It is also to verify whether the
actions were implemented as planned and to give an overall qualitative analysis of their
impact.

A restricted call for tenders for this external ex post evaluation has been launched.

5.4. European Consumer Centres Network 1998-2002

An external evaluation of the development and functioning of the European Consumer
Centres Network during the period 1998 – 2002 is planned for 2003. The network is now
established in 12 Member States, and preparations for setting up new Centres in two
additional Member States are well advanced. Candidate countries have already shown interest
in becoming part of the network as of 2004. The evaluation will, amongst others, consider the
implementation of the recommendations of the evaluation undertaken in 1997, and the
evolution of the tasks executed by the Centres.

5.5. Review of the pilot phase of the European Extra-Judicial Network 2001-2003

The EEJ-Network start-up and pilot phase has since October 2001 resulted in the
establishment of national clearing houses participating in the network in all 15 Member
States, as well as in Norway and Iceland. To consolidate the initiative, the pilot phase has
been extended until end of March 2003. To review the functioning of the network, a
conference with all relevant stakeholders and the Member States is planned for the spring of
2003. The Commission will subsequently present a comprehensive review report to the
European Parliament and the Council, outlining the results and the future strategy for the
development of the network.

5.6. CLAB-database 1996-2002

To monitor the application and enforcement of consumer rights under Council Directive
93/13/EEC on Unfair Terms in Consumer Contracts58, and to make relevant jurisprudence in
all Member States easily accessible, the Commission set up a database of unfair contractual
terms, named CLAB, in 1996. An evaluation of the functioning of CLAB is planned for 2004.
This evaluation is also meant to provide useful input for the future development of an
instrument for monitoring the application and enforcement of all Community consumer
protection legislation.

6. Ex-ante impact assessment of Consumer Policy Strategy 2002-2006

The objectives and priorities set out in the Consumer Policy Strategy were the subject of an ex
ante impact assessment59. The assessment report analyses the consumer policy situation at the
end of 2001 to establish a base-line position. It then examines the intervention logic of the
strategy and the main areas of expected impact.

58

59

Official Journal L 95, 21.04.1993
Ex ante impact assessment of the New Consumer Policy Strategy, undertaken by Evaluation
Partnership, final report January 2002

29

Its conclusions broadly endorse the objectives and priorities of the Strategy. The assessment
identifies a clear logic of the interventions proposed, both in terms of how its actions support
the policy objectives and in terms of the areas of impact.

The assessors also support the necessity of the Community intervention in support of the
policy objectives. They conclude it is unlikely that Community funds will be used for actions
the Member States would have carried out themselves, and expect the actions will have a
good European added value. The assessors however expressed concern about the sufficiency
of the proposed actions. Future annual work programmes must therefore focus on actions that
have the highest impact/resource ratio.

30