Decision No 20/2004/EC of the European Parliament and of the Council of 8 December 2003 establishing a general framework for financing Community actions in support of consumer policy for the years 2004 to 2007 (Text with EEA relevance)
Date: 2003-12-08
Institutions: Council of the European Union, European Parliament
Subjects: EU policy, consumer policy, consumer protection

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(Acts whose publication is obligatory)

DECISION No 20/2004/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 8 December 2003

establishing a general framework for financing Community actions in support of consumer policy
for the years 2004 to 2007

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 153 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and
Social Committee (1),

Acting in accordance with the procedure laid down in Article
251 of the Treaty (2),

Whereas:

(1)

(2)

(3)

Consumer policy makes a crucial contribution to two of
the Commission's strategic objectives laid down in the
Commission communication on the strategic objectives
2000 to 2005 ‘Shaping the new Europe’ (3), namely
promoting a new and economic social agenda in order
to modernise the European economy and ensuring a
better quality of life for Europe's citizens.

The consumer policy strategy 2002 to 2006 establishes
three key objectives. These will be implemented through
actions included in a rolling programme to be reviewed
regularly by the Commission.

The objectives and actions in the consumer policy
strategy should steer the allocation of funds for actions
implemented under this framework. In addition, activ-
ities intended to integrate consumer interests into other
areas of activity in accordance with Article 153 of the
Treaty should be given high priority together with the
three key objectives of the consumer policy strategy.

(4)

(5)

(6)

(7)

In line with the consumer policy strategy, consumer
policy within the scope of this framework should cover
the safety of services and non-food products, and the
economic interests of EU consumers. Actions related to
food safety are not covered by this framework.

The general objectives of the European Union include,
according to Article 2 of the Treaty on European Union,
the achievement of balanced and sustainable develop-
ment.
In line with the Johannesburg Declaration on
Sustainable Development, the plan of implementation of
the World Summit on Sustainable Development and the
Cardiff process, actions should be taken in order to
achieve sustainable development.

This framework should provide for actions by the Com-
munity, in accordance with the principle of subsidiarity
as laid down in Article 5 of the Treaty, to support and
build the capacity of organisations and bodies which
work to promote consumer interests at Community,
national or regional level.

In addition to the actions contained in this framework,
the Commission should also ensure that consumer orga-
nisations and other relevant non-governmental organisa-
tions can contribute to the implementation of
the
consumer policy strategy through their involvement in
the work of the European consumer consultative group
as set up by Commission Decision 2003/709/EC (4).

(1) OJ C 234, 30.9.2003, p. 86.
(2) Opinion of the European Parliament of 24 September 2003 (not yet
Journal) and Council decision of 1

published in the Official
December 2003.

(3) OJ C 81, 21.3.2000, p. 1.

(8)

This framework should provide for actions jointly under-
taken by the Commission and one or more Member
States to implement the objectives of consumer policy.

(4) OJ L 258, 10.10.2003, p. 35.

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(9)

(10)

(11)

(12)

(13)

(14)

(15)

It is of general European interest within the meaning of
Article 108(1)(b) of Council Regulation (EC, Euratom)
No 1605/2002 of 25 June 2002 on the Financial Regu-
lation applicable to the general budget of the European
Communities (1), hereinafter referred to as ‘the Financial
Regulation’, that the health, safety and economic inter-
ests of consumers, as well as consumer interests in the
development of standards for products and services, be
represented at Community level.

This Decision lays down, for the entire duration of this
framework, a financial framework constituting the prime
reference, within the meaning of point 33 of the Interin-
stitutional Agreement of 6 May 1999 between the Euro-
pean Parliament, the Council and the Commission on
budgetary discipline and improvement of the budgetary
procedure (2),
for the budgetary authority during the
annual budgetary procedure.

To improve the effectiveness and impact of the activities
of European consumer organisations and of consumer
organisations representing consumer
interests in the
development of standards for products and services at
Community level,
financial contributions for eligible
organisations may be subject to framework partnership
agreements for the duration of this framework.

In order to improve administrative efficiency, and the
effectiveness and impact of specific projects, calls for
specific projects should be published at least every two
years and support should be provided for up to a
maximum of 75 % of the cost of the eligible expenses
for implementing the projects.

The Agreement on the European Economic Area (herein-
after referred to as ‘the EEA Agreement’) provides that
the countries of the European Free Trade Association
participating in the European Economic Area (herein-
after referred to as ‘EFTA/EEA countries’) should,
inter
alia, strengthen and broaden cooperation within the
framework of the Community's activities in the field of
consumer protection.

This general framework should be open to the participa-
in accordance with the
tion of associated countries,
conditions laid down in the respective bilateral agree-
ments establishing the general principles for their partici-
pation in Community programmes.

In order to increase the value and impact of this frame-
work, continuous monitoring and regular evaluation of
the actions undertaken should be carried out, with a
view, where appropriate, to making necessary adjust-
ments.

(1) OJ L 248, 16.9.2002, p. 1.
(2) OJ C 172, 18.6.1999, p. 1. Agreement as amended by Decision
2003/429/EC of the European Parliament and of the Council (OJ L
147, 14.6.2003, p. 25).

(16)

The measures necessary for the implementation of this
Decision should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down
the procedures for the exercise of implementing powers
conferred on the Commission (3),

HAVE DECIDED AS FOLLOWS:

Article 1

Scope

1.
This Decision establishes a general framework for Com-
munity actions in support of consumer policy, hereinafter
referred to as ‘the framework’, for the period set out in Article
5(1).

2.
The actions to be undertaken under this framework shall
supplement the actions undertaken by and in the Member
States to protect the health, safety and economic interests of
to information and
consumers and to promote their right
education and to organise themselves in order to safeguard
their interests.

Article 2

Areas of action

The actions to be undertaken under this framework shall
concern the following specific areas:

(a) protection of consumer health and safety with respect to

services and non-food products;

(b) protection of the economic and legal

interests of consu-

mers;

(c) promotion of consumer information and education;

(d) promotion of the capacity of consumer organisations to

contribute at European level.

Article 3

Objectives of the actions

The actions to be taken under this framework shall help to
achieve the following general objectives:

(a) a high common level of consumer protection, in particular
through the establishment of common consumer protection
rules and practices and the integration of consumer inter-
ests into other Community policies;

(b) effective enforcement of consumer protection rules, in par-
ticular
through market surveillance, administrative and
enforcement cooperation, consumer access to information
about services and non-food products and consumer access
to mechanisms
the resolution of complaints and
disputes and

for

(3) OJ L 184, 17.7.1999, p. 23.

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(c) proper involvement of consumer organisations in the devel-
opment of consumer policy and other Community policies
affecting consumer interests.

The renewal of the financial contributions for actions 16
4.
and 17 to eligible organisations that in the preceding year have
proved actively and effectively to represent consumer interests
shall not be subject to the rule of gradual decrease.

Article 4

Types of action

The financial contributions for action 18 will,

5.
in prin-
ciple, be 50 %, and in no event exceed 75 %, of the eligible
expenses for implementing the project. The Commission shall
set out clearly which specific projects will be eligible for a
financial contribution of more than 50 %.

The actions to be taken under this framework are listed

1.
in the Annex by objectives.

Actions 1 to 8, 11 to 15 and 19 are directly implemented

2.
by the Commission.

3.
Actions 9 and 10 are jointly financed by the Community
and one or more Member States, or by the Community and the
competent authorities of
the third countries participating
pursuant to Article 9.

Actions 16, 17 and 18 benefit from financial contribu-

4.
tions by the Community.

Article 5

Funding

1.
The financial framework for the implementation of this
Decision for the period from 1 January 2004 to 31 December
2007 is set at EUR 72 million, of which EUR 54 million shall
cover the period until 31 December 2006.

2.
For the period following 31 December 2006, the amount
proposed shall be deemed to be confirmed if it is consistent
with the financial perspectives in force for the period commen-
cing in 2007.

3.
The annual appropriations shall be authorised by the
budgetary authority within the limits of the financial perspec-
tives.

Article 6

Financial contribution

1.
The Community contribution to joint actions 9 and 10
will, in principle, be 50 %, and in no event exceed 70 %, of the
total cost of the action. The Commission shall set out clearly
which joint actions will be eligible for a financial contribution
of more than 50 %.

The financial contributions for action 16 shall not exceed

2.
50 %, of the expenditure for carrying out eligible activities.

The financial contributions for action 17 shall not exceed

3.
95 % of the expenditure for carrying out eligible activities.

Article 7

Beneficiaries

1.
The financial contributions for joint actions 9 and 10
may be awarded to a public body or a non-profit-making body
designated by the Member State or the competent authority
concerned and agreed by the Commission.

The financial contributions for action 16 may be awarded

2.
to European consumer organisations which:

(a) are non-governmental, non-profit making, independent of
industry, commercial and business or other conflicting
interests, and have as their primary objectives and activities
the promotion and protection of the health, safety and
economic interests of consumers in the Community;

(b) have been mandated to represent the interests of consumers
at Community level by national consumer organisations in
at least half of the Member States that are representative, in
accordance with national rules or practice, of consumers
and are active at regional or national level, and

(c) have provided to the Commission satisfactory accounts of
their membership, internal rules and sources of funding.

The financial contributions for action 17 may be awarded

3.
to European consumer organisations which:

(a) are non-governmental, non-profit-making, independent of
industry, commercial and business or other conflicting
interests, and have as their primary objectives and activities
to represent consumer
in the standardisation
interests
process at Community level, and

(b) have been mandated in at least two thirds of the Member
the interests of consumers at Com-

States to represent
munity level:

— by bodies representative,

in accordance with national
rules or practice, of national consumer organisations in
the Member States, or

— in the absence of such bodies, by national consumer
organisations in the Member States that are representa-
tive, in accordance with national rules or practice, of
consumers and are active at national level.

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The financial contributions for action 18 may be awarded
4.
to any legal person or association of legal persons, including
appropriate independent public bodies and regional consumer
organisations,
and
commerce and is actually responsible for the implementation
of the projects.

independently of

industry

that

acts

Article 8

Exclusions

Applicants or tenderers and contractors who are found guilty
of making false declarations, or are found to have seriously
failed to meet their contractual obligations, shall be excluded
from the award of further contracts as set out in Article 96 of
the Financial Regulation.

Article 9

Participation of third countries

The framework shall be open to the participation of:

(a) the EFTA/EEA countries in accordance with the conditions

established in the EEA Agreement;

(b) the associated countries, in accordance with the conditions
laid down in the respective bilateral agreements establishing
the general principles for their participation in Community
programmes.

Article 10

Consistency and complementarity

The Commission shall ensure that

the actions imple-
1.
mented under this framework are consistent with the consumer
policy strategy.

2.
The Commission shall ensure that there is consistency
and complementarity between the actions implemented under
this framework and other Community programmes and initia-
tives.

(d) in the case of calls for proposals, the selection and award
criteria for actions 16, 17 and 18, the criteria for financial
contributions of more than 50 % for action 18, and the
indicative amount available for each of
these calls for
proposals, in accordance with the relevant provisions of the
Financial Regulation and taking into account to the extent
possible the need to set simple administrative requirements
in particular in the case of small amounts of
financial
contributions for specific projects.

Article 12

Publication and procedures

1.
The Commission shall publish the following in the Official
Journal of the European Union and on the Internet site of the
Commission:

(a) a call for proposals for actions 16 and 17 and

(b) a call for proposals for action 18 describing the priorities

for action to be undertaken, at least every two years.

At an early stage in the evaluation process of applications
2.
for financial contributions, the Commission shall
inform the
applicants if they are not eligible or if their application does
not provide the information that is necessary to verify the
application's conformity with the selection criteria.

3.
The Commission shall, within three months of the dead-
line for the submission of applications, decide on the attribu-
tion of financial contributions for actions 16, 17 and 18.

4.
A list of the recipients of financial contributions and a list
of the actions funded under this framework shall be published
each year on the Internet site of the Commission with indica-
tion of the amounts.

Article 13

Monitoring and evaluation

Article 11

Work programme

The Commission shall adopt an annual work programme
including:

(a) the priorities for action under each objective;

1.
The Commission shall ensure effective and regular moni-
toring of the actions undertaken under this framework and
shall present to the European Parliament and to the Council a
midterm report on the implementation of this framework by
31 December 2005. The Commission shall inform the Euro-
pean Parliament annually if
the decision-making procedure
concerning applications for actions 16, 17 and 18 exceeds the
three-month period as set out in Article 12(3).

(b) the breakdown of the annual budget among the types of

action identified in Article 4;

(c) the planned timing of the calls for tenders, the joint actions

and the calls for proposals;

2.
The Commission shall present to the European Parliament
and to the Council an evaluation report on actions carried out
under this framework before submitting a proposal
for its
possible renewal, and in any case by 31 December 2007 at the
latest.

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Article 14

3.

The Committee shall adopt its rules of procedure.

Implementation of measures

1.
The Commission shall be responsible for the management
and implementation of this Decision in accordance with the
Financial Regulation.

2.
The measures provided for in Article 4(3) and (4) and in
Article 11 shall be adopted in accordance with the procedure
referred to in Article 15(2).

Article 16

Entry into force

This Decision will enter into force on the third day after its
publication in the Official Journal of the European Union.

Article 15

Committee procedure

Done at Brussels, 8 December 2003.

1.

The Commission shall be assisted by a Committee.

2. Where reference is made to this paragraph, Articles 3 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

For the European Parliament

For the Council

The President

P. COX

The President

F. FRATTINI

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ANNEX

THE ACTIONS REFERRED TO IN ARTICLE 4 LISTED BY OBJECTIVES

Objective (a) A high common level of consumer protection

Action 1:

Scientific advice, risk analysis including comparative assessment and assessment of risk reduction options
relevant to consumer health and safety regarding non-food products and services.

Action 2:

Preparation of legislative and other regulatory initiatives and promotion of self-regulatory initiatives,
including, inter alia:

2.1. Comparative analysis of markets and regulatory systems

2.2. Legal and technical expertise for policy development on the safety of services

2.3. Technical expertise for the development of standardisation mandates for products and services

2.4. Legal and technical expertise for policy development on the economic interests of consumers

2.5. Workshops with stakeholders and experts.

Action 3: Monitoring and assessment of market developments with an impact on the economic and other interests
inventory and analysis of consumer complaints and

inter alia, price surveys,

of consumers,
surveys of changes in the structure of markets.

including,

Action 4:

The collection and exchange of data and information that provide an evidence base for the development
of consumer policy and for the integration of consumer interests in other EU policies, including, inter alia,
surveys of consumer and business attitudes, collection and analysis of statistical and other relevant data.

Objective (b): Effective enforcement of consumer protection rules

Action 5:

Coordination of surveillance and enforcement actions, including, inter alia:

5.1. Development of IT tools (e.g. databases, information and communication systems) for enforcement

cooperation

5.2. Training, seminars and exchanges of enforcement officials for joint enforcement actions

5.3. Planning and development of joint enforcement actions

5.4. Pilot joint enforcement actions.

Action 6:

Development of easily and publicly accessible databases covering the application of and case-law on
consumer rights deriving from Community consumer protection legislation, including the completion and
improvement of the database on unfair contract terms.

Action 7: Monitoring and assessment of the safety of non-food products and services, including, inter alia:

7.1. Reinforcement and extension of the scope of the RAPEX alert system, taking developments in market

surveillance information exchange into account

7.2. Technical analysis of alert notifications

7.3. Collection and assessment of data on the risks posed by specific consumer products and services

7.4. Development of the consumer product safety network as provided for in Directive 2001/95/EC (1).

Action 8: Monitoring of the functioning and assessment of the impact of alternative dispute resolution schemes, in
particular of on-line schemes and their effectiveness in settling cross-border complaints and disputes, as
well as technical assistance for the further development of the European extrajudicial network system.

(1) Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on general product safety (OJ L 11,

15.1.2002, p. 4).

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Action 9:

( Joi nt A c ti on ) Financial contributions for public or non-profit bodies constituting Community networks
that provide information and assistance to consumers to help them exercise their rights and obtain access
to appropriate dispute resolution (the European consumer centres network and the clearing houses of the
European extrajudicial network, under the conditions set out in Article 7(1).

Action 10:

( Joi nt A c ti on ) Financial contributions for specific joint surveillance and enforcement actions to improve
administrative and enforcement cooperation on Community consumer protection legislation, including the
General Product Safety Directive, and other actions in the context of administrative cooperation, under the
conditions set out in Article 7(1).

Objective (c): Proper involvement of consumer organisations in EU policies

Action 11:

Provision of specific technical and legal expertise to consumer organisations to support their participation
in, and input into, consultation processes on Community legislative and non-legislative policy initiatives,
in relevant policy areas, such as internal market policies, services of general interest and the 10-year frame-
work programme on sustainable production and consumption, as well as to support their contribution to
market surveillance.

Action 12: Representation of the interests of European consumers in international forums, including international

standardisation bodies and international trade organisations.

Action 13: Training for staff members of regional, national and European consumer organisations and other capacity
building actions, including training courses in project development and project application procedures,
Internet forum on specific projects, workshops and meetings to promote project partnership.

Action 14:

Information actions about consumer rights conferred by consumer protection legislation and other Com-
munity consumer protection measures, particularly in the new Member States, in cooperation with their
consumer organisations.

Action 15: Consumer education, including the actions targeted at young consumers, and the development of on-line
interactive consumer education tools on consumer rights in the internal market and on cross-border trans-
actions.

Action 16:

Financial contributions to the functioning of European consumer organisations, under the conditions set
out in Article 7(2).

Action 17:

Financial contributions to the functioning of European consumer organisations representing consumer
interests in the development of standards for products and services at Community level, under the condi-
tions set out in Article 7(3).

Objectives (a), (b) and (c):

Action 18:

Financial contributions for specific projects at Community or national level in support of consumer policy
objectives as defined in Article 3, under the conditions set out in Article 7(4), including, amongst others,
financial contributions for:

— specific projects undertaken by consumer organisations and aiming to accelerate the effective imple-

mentation of the acquis communautaire on consumer protection in the new Member States,

— specific projects promoting the cross-border exchange of information and best practice concerning the

integration of consumer rights into other policies.

Action 19:

Evaluation of actions undertaken under this framework.