Opinion of the European Economic and Social Committee on the "Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on consumer policy strategy 2002-2006" (COM(2002) 208 final)
Date: 2003-02-26
Institutions: European Economic and Social Committee
Subjects: EU Member State, administrative cooperation, consumer movement, consumer policy, consumer protection, electronic commerce

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II

(Preparatory Acts)

ECONOMIC AND SOCIAL COMMITTEE

397th PLENARY SESSION, 26 AND 27 FEBRUARY 2003

Opinion of the European Economic and Social Committee on the ‘Communication from the
Commission to the European Parliament, the Council, the European Economic and Social
Committee and the Committee of the Regions on consumer policy strategy 2002-2006’

(COM(2002) 208 final)

(2003/C 95/01)

On 7 May 2002, the Commission decided to consult the European Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the above-mentioned
communication.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 29 January 2003. The rapporteur was
Mrs Davison.

At its 397th plenary session on 26 and 27 February 2003 (meeting of 26 February), the European
Economic and Social Committee adopted the following opinion by 84 votes to one, with two abstentions.

1.

Introduction

1.1.
The Commission sets out three priorities for consumer
policy, focused on the commercial practice issues covered in
the Green Paper on Consumers’ Protection and on the safety
of services:

— a high common level of consumer protection;

— effective enforcement, especially through administrative
co-operation between Member States and better redress
mechanisms;

— involvement of consumer organisations in EU policies by
reviewing mechanisms and providing education and
capacity building.

1.2.
The Committee endorses the Commission’s priorities
as an ambitious extension of existing policies concerning the
importance to consumers of the successful completion of the
Single Market. Well over eighty different actions are presented
in the Commission’s annexed indicative list. The Strategy
comes at a time of changing consumer expectations and when

EU citizens are due to expand to 470 million. It follows on the
Green Paper on Consumers’ Protection (1) and reflects the
rapidly changing and increasingly complex situation;
the
impact of the information society, the advent of the euro and
new consumer attitudes towards risk, sustainable and ethical
consumption.

1.2.1.
In the light of the decision taken at Seville by the
Council of Ministers to remove consumer affairs from the
Council for the Internal Market, Consumer Affairs and Tourism
to a new Employment, Social Policy, Health and Consumer
Affairs Council, the Committee asks the Council to ensure that
the interests of consumers in the Single Market continue to be
central to discussions.

1.2.2.
The Committee is in favour of maximum harmonis-
ation but considers that the protection of consumers must be
at the highest level. Any reduction in consumer protection
would be particularly serious at a time when the EU is
preparing for the accession of new Member States.

(1) OJ C 125, 27.5.2002.

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1.3.

In particular:

1.3.1.
The Committee supports the Commission in its
efforts to extend and develop consumer protection which has
special benefits for those least able to defend themselves in an
increasingly complex and technological environment. It also
endorses the parallel need for appropriate information (1) in
the welcome context that consumer and citizen interests are
increasingly converging and being represented together.

1.3.2.
The Committee also endorses the importance of
recognising that consumer policies cannot be developed in
isolation, and that their systematic integration into all other
relevant EU policy areas is essential in line with the Amsterdam
Treaty, article 153. The Committee therefore believes that
integration of consumer protection into other Community
policy areas should constitute a fourth priority, on the same
footing as the other three mentioned above.

1.3.3.
The Committee welcomes the revision of the Nice
Treaty which expands the role of consumer representation,
now naming consumers as key representatives as members of
the Committee. Such recognition, and consequent support for
effective, meaningful and relevant policies, will provide the
means of bringing the EU closer to its citizens.

1.3.4.
The Committee draws attention to the low level of
resources allocated to Community work focusing on con-
sumers and consumer associations’ projects in sharp contrast
with other Community policies, and calls upon the budgetary
authorities to increase both funding and staffing in this area.

2. Process of the new strategy

The Commission emphasises the need for impact
2.1.
assessment and information for consumers. As a corollary,
the Committee considers that there should also be impact
assessments of consumer policies for businesses.

2.2.
The Committee has already expressed its concern
about the lack of consistent, comparative EU statistics in
several areas. For consumers certain statistics are of particular
importance, most notably concerning complaints and product-
related accidents. The Committee feels that the research and
consequent statistics supplied by the European Home and
Leisure Accident Surveillance System (EHLASS) should be
developed and used by all Member States and candidate
countries.

2.3.
The Committee also strongly supports the provision
by its constituent organisations of consumer information and
education on EU issues. The Commission can strengthen the
consumer movement at
the same time, and ensure that
information is provided in a form consistent with consumer
needs and understanding, by enabling appropriate consumer
organisations to disseminate information through the variety
of popular channels that they have at their disposal. This will
complement the information provided also by business. There
are strong links between protection and education, with
consumer education increasingly being seen as part of a
lifelong learning.

2.4.
The Committee stresses the importance of an on-going
R & D programme which should include background research
for consumer policy decisions. Relevant research by businesses,
trade unions and consumer organisations should be taken into
account because reliable European information is essential.

2.4.1.
The Commission could implement such R & D by
setting up a network of academics researching consumer
policies in order to establish a data-base on consumer detri-
ment.

2.4.2.
Consumer organisations and ‘other legal entities’
could take advantage of the new provisions in the 6th R & D
Programme allowing them to apply for funding under six key
areas, one of which is safety.

2.4.3.
The Commission should consider the possibility of
establishing an EU Research Institute for Consumer Affairs
following the example, in the case of the environment, of the
European Environment Agency. The Committee would also
support study centres at national and regional level which the
Commission could assist by various non-financial means.

3. Main issues covered by the Commission and com-

mented on by the Committee

The Committee reacts in particular to the following major
areas of interest:

3.1. The Euro

( 1) The Committee will shortly be producing an Own-Initiative

Opinion on consumer education.

3.1.1.
The Commission should draw lessons from the
different experience of consumers in various Member States
on the introduction of the Euro in order to advise new
entrants. It should also check costs of cross-border transfers.

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3.2.

Safety

3.3. Commercial practices

The Committee notes with approval

3.2.1.
that many
aspects of safety are covered in the Commission’s rolling
programme providing an indicative list of actions, under all
three objectives.

In its Opinions (1), the Committee too has always
3.2.2.
attached prime importance to safety proposals, both indirectly
— such as child-resistant packaging — and directly — such as
toy safety or product safety, where it played a significant role
in encouraging the revision of the General Product Safety
Directive (GPSD).

3.2.2.1.
Bearing in mind the importance of the GPSD, now
in a state of transposition, both in the Member States and the
accession countries as part of their adherence to the acquis,
the Committee asks the Commission to recognise that the
greatest number of deaths and seriously disabling injuries in
the EU involve home and leisure accidents. This is more than
fourteen times that of workplace deaths and nearly twice that
of motor vehicle deaths. Priority must, therefore, now be given
to product safety, including a special emphasis in the accession
countries, where accidents are much higher still than in the
present Member States.

3.2.2.2.
The Committee urges the Commission to expand
the European Home and Leisure Accident Surveillance System
(EHLASS) — crucial to the collection of statistics — which is
briefly mentioned for the first time under its third objective in
the annex. Such a comprehensive and co-ordinated collection
system of
injury data must serve as the cornerstone for
consumer safety policy.

3.2.2.3.
The Committee also urges the Commission to
establish a plan to support carefully targeted campaigns
to enhance public awareness of consumer safety. Research
indicates that over 80 % of accidents (2) are preventable. There
is also an increasing need for education in methods of risk
management and assessment.

3.2.3.
The Committee welcomes proposed action on the
development of standards and the safety of services which
(with few exceptions — e.g. on installations) are not covered
by the revised GPSD. It awaits, for comment, the Commission’s
Communication on the safety of services, whether sectoral or
general.

3.3.1.
In its opinion on the Green Paper on Consumer
Protection (3), the Committee welcomed the Commission’s
new approach of general legislation backed up by codes whilst
requesting clarification of the proposal. The proposed follow-
up communication is therefore welcome as an opportunity
both for simplification and consumer protection. The Com-
mittee supports the need to avoid excessively-detailed regu-
lation, which is neither in the interest of the consumers nor
business, and to seek out a range of practical alternatives such
as co-regulation.
It also points to the need to introduce
progressively a high maximum level of harmonisation of
consumer protection legislation by the most appropriate
means, whether through framework directives or recommen-
dation of best practices. This method can overcome the
problem for consumers of applying the principle of mutual
recognition and country of origin. The Committee therefore
looks forward to commenting on a Commission proposal for
a framework directive as recommended in the Green Paper
on Consumers’ Protection. This will provide a simple legal
framework backed by codes of practice.

3.3.2.
The Committee once again reiterates the importance
of integrating consumer policies systematically into EU legis-
lation, and calls for accountability of the Directorate-General
responsible (e.g. transport, energy, environment, competition)
and an indication of the effect of such policies on consumers
as well as business activities. It also points to the need for
setting up clear procedures for consulting or appointing
consumers to committees or working groups, and for funding
methods to support them.

3.3.3.
The Committee recommends the review and amend-
ment of Directives including those on distance selling, time-
share, package travel, indication of prices and guarantees in
this context.

3.4. Consumer contracts

The Committee endorses the need for a review and
3.4.1.
clarification of existing contract
law in order to remove
existing inconsistencies and it would stress the importance of
a common EU cooling-off period to encourage cross-border
trade and transparency. This should be at the highest level to
enable the consumer to correspond with a different country.

( 1) OJ C 51, 23.2.2000; OJ C 117, 26.4.2000: OJ C 367, 20.12.2000;

OJ C 125, 27.5.2002.

( 2) European Consumer Safety Association (ECOSA).

(3) OJ C 125, 27.5.2002.

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3.5.

Financial services

3.5.1.
The potential for cross-border trade by consumers
has hardly begun to be tapped. A secure and transparent
environment is required. The new legal framework should
encourage the extra consumer protection provided by some
credit card issuers in the case of purchases that go wrong,
ensure security of credit and bank cards on-line (for example
by more effective use of pin numbers and electronic signatures)
and cover on-line children’s ‘pocket money’ accounts.

3.6.

Electronic commerce

3.6.1.
Speedy implementation of the E-Commerce directive
is required. Whilst welcoming the stakeholders’ agreement on
a European trustmark, the Committee would like to see more
child protection included given the high use of the Internet by
children,
including for shopping. Consumers need speedy
access to justice if confidence in E-commerce is to expand (1).
Business and consumer organisations’ co-operation on Alter-
native Dispute Resolution on-line is to be welcomed. Of
course, the option to go to Court if necessary remains.

3.7.

Services of a general interest

3.7.1.
The Committee would emphasise the principle of
consumer representation and also the need to bear in mind
the special needs of low income consumers and those in
accession countries facing particular upheaval as privatisation
leads to changes in prices and in the nature of services.
Member States can learn from each other’s best practice in
maintaining access to essential services such as electricity for
low income consumers. A study in this area would be very
useful.

3.7.2.
The Committee reiterates here the importance of
integration in different DGs, since a wide range of public
services such as energy, telecommunications and transport are
involved.

The

transport

integration of

3.7.2.1.
increasingly
important and the Committee would like to see proposed
protection for consumers in the air extended to other forms of
travel. It welcomes proposals for compensating consumers for
cancellations and overbooked flights and for the additional
consideration of disabled passengers (2).

is

3.7.3.
The Committee would welcome a recommendation
on the rights of consumers in services of a general interest
pending publication of a proposed directive.

3.8. The World Trade Organisation

3.8.1.
The Committee would emphasise the importance of
the social, environmental, health and consumer aspects of the
trade agenda. The WTO needs to appeal to non-trade special-
ists’ expertise on trade related issues, such as the environment
and consumers (1).
for labour,
environment and health, but one is needed for consumer
protection.

International bodies exist

The EESC notes that this is the only part of the Commission’s
Communication which deals with global issues such as trade,
labelling, and standardisation in view of the fact that con-
sumers do not operate in a solely European context, the
EESC urges the Commission to place greater emphasis on
involvement in world issues.

3.9.

Enforcement

The most carefully drafted Regulations and Directives are of
little practical use unless they are successfully transposed and
enforced. We urge the Commission to comply with its
commitment to prioritise the effective enforcement of existing
regulation and co-operation between enforcement bodies,
which should be the first step in improving the current level
of cross-border consumer protection. The Committee, which
deals fully with this subject in its Opinion on the Green Paper
on Consumer Protection, emphasises the essential stages of
successful enforcement:

3.9.1.
the importance of developing research-based systems
of data collection and assessment (e.g. on the safety of services,
or EHLASS);

( 1) See for example ‘the OECD Guidelines for Consumer Protection

in the Context of Electronic Commerce’.

(2) OJ C 155, 29.5.2001.

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3.9.2.
the need to develop the ‘System for the Rapid
Exchange of Information’ (‘RAPEX’) so that competent auth-
orities nominated by the Member States can swiftly exchange
information and communicate urgent warnings;

3.11. Consumer information and education

3.9.3.
the dependence on soundly-structured national
enforcement systems staffed by well-trained, competent auth-
orities belonging to a single (rather than multiple) administrat-
ive organisation. The Committee is concerned that accession
countries may have transposed legislation but may not yet
have the infrastructure to enforce it; it notes with interest the
active support voluntarily provided by some Member States.
Enforcement issues are further covered in the Committee
Opinion on the Green Paper on Consumers’ Protection;

rapid access to justice for individual consumers. This
3.9.4.
needs to be simple and speedy but redress in cross-border
disputes is neither. The Committee therefore welcomes the
Commission’s efforts through EEJ-NET and ADR.

3.10. Consultation of consumer organisations

It is important that consumer organisations are
3.10.1.
consulted in all
just
issues affecting consumers and not
consumer policy. The Commission rightly points out that this
has resource implications. People who give up their time to
attend advisory committees need prompt payment of expenses.
Sponsoring consumer organisations need to be in a position
to provide policy, research and administrative support. A
model for raising extra funding could be developed, whereby
businesses are given the opportunity to donate to a foundation
dedicated to funding consumer work.

3.10.2.
For its part, the Committee supports the work of its
consumer and environment category. Consumer organisations
are regularly consulted by the Committee on subjects that
concern them, such as the WTO and have been consulted by
the Committee on the Future of the Europe Convention.

3.10.3.
The Committee would like to see further support
for an increase in the role of the Consumers’ Consultative
Committee and better organisation of other advisory com-
mittees so that these can function more effectively on behalf
of consumers. Provision must be made for representation of
members from accession countries.

The Committee accepts that to date information and education
have been largely a matter for individual Member States.
However, the provision of consumer information at EU level
should be encouraged, for example through projects, and
the European dimension duly recognised (1). The Committee
supports the idea of a common website for EU consumer
organisations to provide information and to act as a portal to
their own sites.

The Committee recognises the importance of infor-
3.11.1.
mation by an even greater range of methods in a technological
society. Great benefits are apparent, accompanied by new and
unfamiliar risks. While recognising the role of consumer
organisations, as trustworthy providers of information particu-
larly to a ‘popular’ audience, the Committee also appreciates
the contribution of industry and its development of user-
friendly communications (e.g. in instructions for use, point-of-
sale leaflets, issue of warnings and cautions). The Committee
has called on industry and consumer organisations together to
provide such information with computers on child safety on-
line for example. There is room for co-operation like this on
improving information to consumers. Given the language
barriers to trade in the EU, the Committee welcomes the
Commission’s current attention to labelling issues.

3.11.2.
The Committee considers the Commission’s views
on consumer education are limited and must be expanded.
Consumer education should be integrated into existing EU
educational programmes, for example internet safety into the
E-learning programme. The limitation shows itself in two ways
in the present text:
its restriction to knowledge and to an
emphasis exclusively on rights.

3.11.2.1.
In the first case, knowledge is undoubtedly
important — increasing and developing throughout a lifetime,
but so are general life skills, as well as those of wise-choosing
and decision-making. In the second instance, rights — and a
clear understanding and application of them — are essential,
but so is the growing acceptance of responsibility, including
responsibility towards wider issues such as the environment
and sustainable development. In this respect the information
programme of DG Environment and DG Development are
welcome. The EESC has specifically supported voluntary EU
schemes of eco- and fair trade labelling designed to encourage
responsible purchasing.

(1) The Committee will shortly be producing an Own-Initiative

Opinion on consumer education.

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3.11.3.
The Committee welcomes the Commission’s contri-
bution to the training of consumer professionals, recognising
that though training is not education, it provides the practical
means of achieving it.

4. Conclusion

The Committee welcomes the Commission Communication
on consumer policy strategy 2002-2006. The EESC supports

Brussels, 26 February 2003.

the highest

consumers must be

maximum harmonisation but considers that the protection
of
level. Speedy
at
implementation of the E-commerce directive is needed to
help protect consumers on-line. The Committee supports
stronger enforcement of existing legislation and co-operation
between enforcement bodies. It favours integration of con-
sumer policies into other relevant policy areas including
education.

The President

of the European Economic and Social Committee

Roger BRIESCH

Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of
the European Parliament and of the Council on drug precursors’

(COM(2002) 494 final — 2002/0217 (COD))

(2003/C 95/02)

On 14 October 2002 the Council decided to consult the European Economic and Social Committee,
under Article 95 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 29 January 2003. The rapporteur was
Mrs Le Nouail.

At its 397th plenary session on 26 and 27 February 2003 (meeting of 26 February), the European
Economic and Social Committee adopted the following opinion by 106 votes to 2, with 3 abstentions.

1.

Introduction

1.1.
Combating organised drug trafficking is a priority for
the Member States. Efforts are being made to improve database
systems and crime detection techniques, as well as increasing
resources in a number of countries. At
the same time,
involving
international cooperation continues to develop,
certain international organisations in addition to Interpol and
the World Customs Organisation.

1.3.
Combating the diversion of controlled chemical sub-
stances and precursors is an integral part of increased inter-
national cooperation. Controls already in force suggest that an
estimated 1 500 tonnes of the 2,5 million tonne annual
production of acetic anhydride are diverted to the manufacture
of heroin. The EU accounts for some 20 % of the world’s acetic
anhydride production.

1.2.
The production and trafficking of drugs continues to
be the main activity of criminal organisations in the EU
(Europol 2001/EMCDDA 2002). These criminal organisations
the opportunities afforded by the
take full advantage of
globalisation of the market economy, particularly through the
use of the latest technology.

1.3.1. Measures to prevent the diversion of acetic anhydride
aimed at identifying the origin of chemical substances have
made it possible to intercept eleven shipments of around
230 tonnes of acetic anhydride, which could have been used
to produce between 55 and 230 tonnes of heroin.