Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the enforcement of the consumer acquis
Date: 2009-07-02
Institutions: European Commission
Subjects: Community acquis, application of EU law, consumer information, consumer protection, simplification of legislation, single market

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.7.2009 
COM(2009) 330 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

on the enforcement of the consumer acquis 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

on the enforcement of the consumer acquis 

(Text with EEA relevance) 

1. 

INTRODUCTION 

The 493 million consumers in the EU are central to the effective functioning of the 
internal  market.  Since  consumer  expenditure  generates  half  of  the  EU's  wealth, 
consumers  have  a  crucial  role  to  play  in  achieving  the  Lisbon  agenda  goals  of 
increasing growth, employment and competition.  

The perception that the EU consumer protection rules are enforced swiftly acts as a 
driver for increasing consumer confidence and as a deterrent to businesses seeking to 
evade  those  rules.  This  in  turn  creates  a  fair  and  level  playing  field  for  all  actors 
concerned.  Effective  enforcement  is  therefore  a  priority  for  consumer  policy.  It  is 
also  a  key  component  of  the  Commission  single  market  policy  given  that  the 
implementation  and  enforcement  of  the  rules is  fundamental  for  the  benefits  of  the 
single market to materialise for citizens. 

Within  the  range  of  activities  aimed  at  ensuring  compliance  with  consumer 
protection rules enforcement by public authorities occupies a central role because it 
underpins all other strategies and is a prerequisite for their success. The effectiveness 
of public enforcement and market surveillance provides a forceful deterrent to traders 
otherwise  tempted  to  evade  the  rules  and  acts  as  a  stimulus  to  other  measures 
improving  the  functioning  of  markets  and  trader  behaviour.  The  visibility  of 
enforcement  activities  and  their  results  is  instrumental  to  achieving  this.  Consumer 
trust can only be reinforced if consumers are aware of what is happening in markets 
and know  that  those who do not play  by the rules will not get away with it. In the 
same vein, information campaigns will not have the desired impact unless consumers 
are  confident  that  in  asserting  their  rights  they  are  backed  by  the  threat  of 
enforcement.  

Given  the  current  global  economic  downturn,  strong  and  consistent  enforcement  is 
all the more important as the crisis leads to increased consumer vulnerability and low 
compliance levels may lead to additional consumer detriment. In addition, effective 
enforcement  strengthens  consumer  confidence  weakened  by  the  crisis  which 
contributes  to  consumer  spending  as  a  key  driving  force  of  recovery.  Enhancing 
market surveillance and enforcement mechanisms to encourage consumer confidence 
is  paramount,  as  consumer  spending  will  be  an  important  factor  in  economic 
recovery.  The  current  economic  crisis  also  brings  new  challenges  to  enforcers  who 
may  face  increasing  downward  pressure  on  resources  and  must  carefully  establish 
their priorities and maximise the impact of their enforcement activities. 

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Moreover,  European  consumers  remain  reluctant  to  reap  the  benefits  that  market 
integration provides. One reason for this is that consumers do not feel confident that 
their  rights  will  be  equally  protected  when  buying  abroad1.  In  a  single  market, 
consumers should not be concerned with where a trader is established since it should 
not influence the level of protection against unfair commercial practices. A particular 
challenge for the EU therefore is to secure a consistently high level of enforcement 
across its territory. It is the purpose of this Communication to take stock of ongoing 
Commission work and to explore the potential for future initiatives in the context of 
a comprehensive analysis of enforcement related activities. 

2. 

THE CHALLENGES TO EFFECTIVE ENFORCEMENT 

2.1. 

The  fundamentals  –  the  interplay  between  public  enforcement  and  other 
measures to ensure compliance 

Enforcement in consumer policy encompasses a spectrum of activities undertaken by 
a  variety  of  actors,  using  different  instruments,  to  ensure  that  consumer  rights  are 
respected.  These  include  formal  enforcement  proceedings,  primarily  undertaken  by 
public  enforcement  authorities,  which  are  in  the  focus  of  this  Communication,  but 
also  consumers  acting  to  defend  their  own  rights  through  private  enforcement  or 
other  dispute-resolution  mechanisms.  An  effective  enforcement  response  combines 
activities  which  promote  compliance  through  information  of  consumers  and 
businesses, with more formal enforcement measures.  

Effective enforcement depends on the availability of data which enable enforcers to 
target  their  efforts  at  markets  which  are  failing  consumers  and  provide  a  solid 
evidence base for enforcement actions. Similarly evidence should be gathered on the 
impact and effectiveness of the chosen mix of enforcement measures.  

It also presupposes that there are competent bodies in place with adequate powers to 
ensure  that  the  rules  are  applied.  This  includes  proportionate,  accessible  and 
dissuasive remedies and sanctions.  

The  traditional  view  of  enforcement  of  consumer  protection  has  been  that  public 
authorities  apply  hard  law.  Today,  alternatives  exist  where  consumers  may  directly 
seek  redress.  Newer  forms  of  ensuring  compliance  are  also  emerging.  Alternative 
Dispute Resolution (ADR) schemes or out-of-court settlement mechanisms can be an 
expedient  and  attractive  alternative  for  consumers  who  have  been  unsuccessful  in 
informally resolving their dispute with a trader. 

Co-regulation  and  self-regulatory  measures  can  both 
industry's 
commitment to secure a high level of compliance (for example the Toy Safety Pact 
and  the  Citizen's  Energy  Forum)  and  as  an  alternative  or  a  complement  to  formal 
legislation (the advertising round table or the bank switching code). In the latter case, 
it  is  essential  that  the  measure  not  only  establishes  expected  standards  but  also 
includes monitoring mechanisms and a complaint handling procedure.  

reinforce 

1 

Of  the  33%  of  Europeans  who  shopped  online  in  2008,  only  7%  did  so  cross-border  (Special 
Eurobarometer 298: October 2008). 

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Public  enforcement  actions  and  enforcement  actions  by  self-regulatory  bodies  can 
therefore  complement  one  another:  the  former  providing  a  supportive  legal  and 
judicial context and the latter extra resource for straightforward cases. 

The Unfair Commercial Practices (UCP) Directive2 is a good example of this since it 
maintains  the  view  that  self-regulation  can  support  judicial  and  administrative 
enforcement  and  clarifies  the  role  code  owners  can  play  in  enforcement.  Member 
States  may  rely  on  self-regulatory  dispute  settlements  to  enhance  the  level  of 
consumer  protection  and  maximize  compliance  with  the  legislation.  However,  the 
Directive  is  clear  in  that  self-regulation  cannot  replace  judicial  or  administrative 
means  of  enforcement.  It  reinforces  the  effectiveness  of  codes  of  conducts  by 
requiring Member States to enforce the self-regulatory rules against traders who have 
undertaken to be bound by the codes. 

As a result, the bodies that police self-regulatory codes provided they meet criteria of 
efficacy,  legitimacy,  accountability  and  consistency  can  maximise  the  impact  of 
limited resources.  

2.2. 

The challenges 

Consumer markets evolve rapidly, creating new challenges for enforcers. Firstly, as 
products,  services  and  sales  channels  become  increasingly  sophisticated  and 
consumers  have  to  make  ever  more  complex  choices  resulting  in  enhanced  risk  of 
detriment, enforcement techniques must be adapted accordingly. Where appropriate, 
a review of the regulatory framework may also be needed to fill any regulatory gaps. 

Secondly, the cross-border dimension of consumer markets is growing rapidly with 
the  emergence  of  e-commerce.  Factors  such  as  enlargement  of  the  internal  market 
and the increasing globalisation of trade also contribute to the increased cross-border 
dimension  of  consumer  markets.  This  brings  new  challenges  to  enforcers  who  are 
constrained by jurisdictional boundaries.  

the 

Thirdly,  effective  cross-border  enforcement  policy  is  in  turn  hampered  by  the 
fragmentation  of 
the  minimum 
harmonisation  clauses  contained  in  many  of  the  EU  consumer  directives.  Cross-
border enforcement calls for agreement on the principles determining the applicable 
law  and  the  reconciliation  of  differing  administrative  capacities  and  enforcement 
traditions in Member States.  

framework 

regulatory 

resulting 

from 

Fourthly,  effective  enforcement  is  achieved  by  making  the  best  use  of  the  tools 
available  to  enforcers.  Targeting  areas  for  investigation  should  be  guided  by  a 
consistent set of criteria which should notably include the dimension of problems in a 
given sector (for example as evidenced by the number of complaints), the impact of 
improvements on consumer welfare and the potential detriment for consumers if no 
action is taken.  

Lastly, achieving a high level of compliance is a matter of giving a clear signal to the 
market  that  a  credible  risk  exists  of  being  detected,  caught  and  punished.  This 
approach needs to be coupled with proportionate and dissuasive sanctions. 

2 

OJ L 149, 11.6.2005. 

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2.3. 

The Commission's role 

Article  153  EC  Treaty  establishes  the  role  of  the  Community  in  promoting  the 
interest of consumers and lays down the objective to ensure a high level of consumer 
protection.  The  enforcement  of  the  consumer  acquis  against  traders  is  the  Member 
States' responsibility and frontline enforcement takes place at national level. 

Against this background of decentralised enforcement, the Commission's task3 is to 
ensure  that  the  EU  regulatory  framework  attains  the  highest  possible  standard  of 
consumer protection and creates both consumer and business confidence in order to 
achieve a single and seamless single market.  

By  virtue  of  its  role  as  guardian  of  the  Treaty,  the  Commission  monitors  Member 
States' transposition and implementation of directives as well as the implementation 
of  directly  applicable  rules.  Where  a  Member  State  does  not  comply  with  its 
enforcement  obligations, 
the  Commission,  where  appropriate,  will  bring 
infringement proceedings pursuant to Article 226 EC Treaty. 

The  Commission  also  contributes  to  addressing  the  difficulties  enforcers  face  by 
ensuring that effective mechanisms are established at EU level to ensure that cross-
border cases can be expediently resolved. The Commission uses its role as facilitator 
to initiate and coordinate joint enforcement actions at EU level. It also plays a central 
role  in  the  exchange  of  best  practice  and  provides  additional  support  through 
trainings  and  by  providing  financial  support  for  common  market  surveillance  and 
enforcement activities undertaken by the national enforcement authorities.  

Article 153(3)(b) EC Treaty also lays down a role for the Community in supporting, 
supplementing  and  monitoring  national  consumer  policies.  Monitoring  and 
benchmarking enforcement is an important element in delivering an internal market 
that  works  for  consumers.  The  Commission's  tools  providing  supporting  and 
supplementing  measures  to  increase  transparency  have  to  be  further  evaluated. 
Increased  transparency  can  be  especially  important  where  consumer  detriment  is 
neither confined to a single Member State nor related to cross-border situations, but 
where  a  given  practice  of  a  given  company  affects  consumers  in  several  or  all 
Member  States.  In  such  cases  with  a  European  dimension,  the  Commission  can 
usefully go first in addressing the problem and trying to identify a solution.  

The  same  provision  could  also  constitute  a  basis  for  future  legal  instruments  that 
would  enable  the  Commission  to  better  support  and  supplement  the  enforcement 
work by Member States.  

3. 

MOVING UP A GEAR  

Addressing  the  challenges  that  enforcers  face  is  critical  to  delivering  tangible 
benefits to consumers. To achieve this objective, the Commission has identified five 
priority action areas: 

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In accordance with its obligations under Article 211 EC Treaty. 

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• 

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• 

• 

• 

Develop  stronger  and  more  effective  cross-border  enforcement  cooperation 
mechanisms; 

Strengthening  the  transparency  and  visibility  of  market  surveillance  and 
enforcement activities; 

Improved knowledge sharing and developing a common understanding of  the 
rules; 

Better market monitoring – developing a stronger evidence based approach; 

Stepping up international cooperation. 

3.1. 

Developing  stronger  and  more  effective  cross-border  enforcement  cooperation 
mechanisms 

Experience shows that active cooperation between enforcement authorities is one of 
the  most  effective  means  of  addressing  the  challenges  enforcers  face.  Information 
sharing, investigative assistance, notification and coordination of market surveillance 
and  enforcement  actions  are  key  elements  underpinning  effective  cooperation 
frameworks between authorities.  

Several  EU  sectoral  instruments  set  up  such  cooperative  frameworks  and  this 
Communication will focus on the following: 

• 

• 

The  General  Product  Safety  (GPSD)  Directive4  and  the  New  Legislative 
Framework  (NLF)5  establish  a  EU  market  surveillance  framework  to  assist 
Member  States'  authorities  in  monitoring  products  on  the  market  and 
establishes  a  rapid  alert  system  (RAPEX)  between  market  surveillance 
authorities  through  which  they  have  to  inform  each  other  when  measures  are 
taken against consumer products posing a serious risk to consumers' health and 
safety. 

The  Consumer  Protection  Cooperation  (CPC)  Regulation6  brings  together 
national public authorities responsible for the enforcement of the EU consumer 
acquis.  This  CPC  Network  gives  authorities  the  means  to  prevent  businesses 
undertaking cross-border activities that are harmful to consumers. It sets out a 
common  framework  under  which  these  authorities  are  to  work  together  and 
provides for minimum investigative and enforcement powers. 

Having  begun  in  2002,  the  product  safety  activities  are  more  developed  than  the 
CPC.  The  valuable  insight  gained  through  the  GPSD  is  being  used  by  the 
Commission to develop and consolidate the CPC Network, which started operating at 
the end of 2006.  

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OJ L 11, 15.1.2002. 
OJ L 218, 13.8.2008. The New Legislative Framework (NLF) i.e. the Regulation (EC) No 765/2008 and 
Decision No 768/2008/EC reviews the existing horizontal provisions for the free movement of goods. It 
introduces  a  set  of  European  rules  for  accreditation, sets  the  essential  provisions  for  an  effective  and 
robust market surveillance system and enhances the existing horizontal provisions. 
OJ L 364, 27.10.2004. 

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In order to facilitate the cooperation within the framework created by the GPSD and 
CPC Regulations, the Commission provides specific IT-tools (RAPEX and CPCS) to 
support  the  exchange  of  information  which  are  being  upgraded  to  ensure  a  swifter 
processing of all notifications and requests. 

The implementation of both instruments is regularly reviewed. The last reviews were 
carried  out  in  2008.  Both  reports  concluded  that  the  instruments  were  capable  of 
providing  consumers  with  a  high  level  of  protection  as  long  as  the  rules  were 
properly  applied.  Some  shortcomings  were  identified,  such  as  a  lack  of  adequate 
resources, difficulties with the IT-tool and issues concerning applicable law. Further 
details can be drawn from the relevant reports7. 

The  Commission  also  supports  the  Member  States  with  their  cooperation  activities 
by providing financial contributions to joint cross-border activities. A key advantage 
of  these  joint  activities  is  that  the  results  benefit  all  of  the  networks  members.  In 
product safety, this has resulted in 13 joint market surveillance actions focusing on 
specific product groups, such as lighters, lighting chains and playground equipment. 
The  Commission  has  also  financially  contributed  to  two  CPC  joint  enforcement 
projects, one investigating bogus holiday club offer and the other on airline charges. 

The Commission has initiated the following measures in product safety with a view 
to improving its impact: 

(a)  The review of the legislative framework for the marketing of goods (the NLF) 
enhances  the  functioning  of  the  internal  market  and  in  that  context  raised  the 
level of product safety and reinforced market surveillance and the traceability 
of goods.  

(b)  The  guidelines  used  by  the  rapid  alert  system,  RAPEX,  are  being  revised  to 

improve the functioning of the system. 

(c)  A  new  approach  to  market  surveillance  is  emerging  which  introduces  more 
systematic controls upstream in the production and supply chains and targeted 
controls  at  entry  points  into  the  internal  market  and  reinforced  cooperation 
between  customs  authorities  and  market  surveillance  authorities.  A  pilot 
project for a selected range of high risk goods/or sectors will be carried out. 

The  EU  market  surveillance  framework  also  promotes  the  cooperation  between  the 
national  surveillance  authorities  which  takes  two  main  forms.  Firstly,  public 
authorities  and  economic  operators  make  use  of  jointly  agreed  instruments  such  as 
codes  of  conduct8  or  guidelines  concerning  the  application  of  voluntary  measures9. 
Secondly, Member State authorities interact closely with economic operators in the 
cases  of  'voluntary'  measures  by  providing  pre-notification  and  post-notification 
guidance  or  agreeing  with  the  economic  operators  on  the  application  of  such 
measures10.  The  experience  with  the  RAPEX  system  shows  that  this  cooperative 

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GPSD: COM(2008) 905; CPC: COM(2009)336 final. 
http://ec.europa.eu/consumers/safety/projects/docs/tie_voluntary_agreement.pdf 
http://ec.europa.eu/consumers/safety/projects/docs/safety_vol_agr_retailers-importers.pdf 
http://ec.europa.eu/consumers/cons_safe/action_guide_en.pdf 
OJ L 381, 28.12.2004. 

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market  surveillance  is  of  crucial  importance  to  the  accurate  implementation  of 
corrective measures.  

For  the  CPC  Network,  the  Commission's  current  priority  is  to  consolidate  its 
operations.  The  main  objective  is  to  ensure  that  it  reaches  a  comparable  level  of 
enforcement in all the Member States. 

The  CPC  Network  review  indicates  that  the  handling  of  cross-border  cases  is 
experiencing  difficulties  as  a  result  of  the  authorities'  administrative  capacities, 
particularly  with  regard  to  the  lack  of  resources  available.  The  current  economic 
crisis risks further aggravating this at a time when consistent enforcement is all the 
more  important.  The  Commission  is  engaged  in  a  dialogue  with  Member  States  to 
examine  how  adequate  resources  can  be  secured  in  order  to  comply  with  existing 
obligations under the CPC Regulation. Where a Member State does not comply with 
these  obligations,  the  Commission,  where  appropriate,  will  bring  infringement 
proceedings pursuant to Article 226 EC Treaty. 

The  Commission  has  initiated  a  series  of  actions  to  enhance  the  CPC  Network's 
operations:  

(a)  Concerted enforcement actions are carried out on an annual basis. In targeted 
inquiries (”sweeps”), national authorities simultaneously screen a given sector 
for compliance with EU legislation and take appropriate enforcement actions. 
Two  sweeps  have  been  carried  out  by  the  Network:  the  first  in  2007  on 
websites selling airline tickets and the second in 2008 on websites offering ring 
tones  for  mobile  phones.  Given  the  positive  experience  gathered  from  these 
first two exercises, the Network is now exploring ways to combine the sweeps 
with other tools such as mystery shopping activities;  

(b)  An  annual  Enforcement  Action  Plan  is  adopted  by  the  Network.  The 
Commission  will  consider  agreeing  with  Member  States  a  high  level  multi-
annual framework for the annual enforcement action plans. Increased attention 
could also be given to basing decisions on the choice of targeted sectors on a 
consistent set of criteria for prioritization including risk assessment. A group of 
authorities  is  working  towards  reinforcing  this  risk  based  approach  in  the 
framework of a 2008 common activity. The project's recommendations will be 
used  to  improve  the  Network's  programming  procedures.  The  Network  will 
also benefit from the data provided by the Consumer Markets Scoreboard and 
enforcement indicators.  

(c)  Dedicated  workshops  on  specific  themes  are  being  organised  to  arrive  at  a 
common  approach  to  addressing  issues  identified  by  the  CPC  authorities. 
Examples for this are the workshops on applicable law and on how to optimize 
the network's operations in 2009. 

Currently  the  Commission's  approach  is  posited  on  realising  the  potential  of  the 
decentralised model inherent in the GPSD and CPC Regulation. It may be desirable 
at  a  later  stage  to  reconsider  the  administrative  architecture,  in  order  to  promote 
greater  synergies,  in  line  with  recent  developments  in  other  areas  of  European 
regulation.  

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3.2. 

Strengthening transparency and visibility 

The  visibility  of  the  results  of  market  surveillance  and  enforcement  activities  are 
integral  elements  of  a  coherent  enforcement  strategy.  They  ensure  that  the 
marketplace knows that there is a credible possibility of being detected, investigated, 
and  punished.  This  is  crucial  both  for  reinforcing  consumers'  trust  in  market 
governance  and  for  achieving  a  deterrence  effect  and  therefore  essential  for  a  well 
functioning market. In this context, the Commission has undertaken the following: 

• 

• 

It  has  established  a  Communicators’  network  with  Member  States 
representatives to develop a common approach for the communication of CPC 
Network actions; 

It has given, through targeted media activities, more visibility at EU level to 
the enforcement work carried out by national enforcement authorities in order 
to maximise their impact.  

Practical  experience  gathered  in  concerted  enforcement  activities  has  demonstrated 
the  legal  complexity  related  to  the  publication  of  results.  The  media  activities 
surrounding  the  first  joint  action  on  airline  websites  in  2007  showed  important 
differences in the legal rules and administrative practices of the Member States and 
in  their  approach  to  communication.  The  investigative  work  of  enforcement 
authorities is often subject to strict confidentiality rules. The Commission also faces 
legal  constraints  in  making  public  the  results  of  its  own  activities  in  support  of 
national consumer policies. 

In  view  of  the  need  for  greater  transparency  and  legal  certainty  in  this  area,  the 
Commission will explore ways in which it can communicate market information to 
enable  consumers  to  make  well-informed  choices.  The  aim  of  any  future 
Commission  initiative  would  be  to  facilitate  the  publication  of  the  results  of  future 
studies  and  compliance  monitoring  including  the  breakdown  of  these  results  by 
individual  companies.  Such  an  initiative  would  take  account  of  the  legitimate 
interests  of  the  companies  concerned  and  of  the  fact  that  the  Commission  cannot 
itself formally pronounce on the existence of an infringement. 

3.3. 

Improved knowledge sharing and developing a common understanding of rules  

One  of  the  major  advantages  of  the  cooperation  networks  described  above  is  that 
they  provide  a  privileged  environment  in  which  authorities  exchange  best  practice. 
This  pooling  of  knowledge  contributes  towards  achieving  a  higher  standard  of 
consumer protection as well as a more uniform approach to EU enforcement.  

Experience confirms that providing assistance to cross-border activities has proved to 
be essential in driving progress in this area. Encouraging such exchanges is a priority 
for the Commission which acts as a facilitator:  

• 

Developing guidelines and handbooks in cooperation with Member States to 
ensure the smooth running of existing networks (e.g. RAPEX guidelines11);  

11 

OJ L 381, 28.12.2004. 

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• 

Setting  up  databases  to  store  key  documents  such  as  guidelines,  handbooks, 
legislation  and  case  law.  Examples  for  this  are  the  EU  Consumer  Law 
Compendium,  which  links  the  directives  under  review,  ECJ  jurisprudence, 
national  transposition  measures  as  well  as  national  case-law,  and  the  new 
Unfair  Commercial  Practices  database  which  is  under  development  and  will 
provide  shared  information  on  the  national  rules,  enforcement  decisions, 
national  and  EU  case-law  and  other  documents  such  as  academic  articles, 
studies and national guidelines;  

• 

Providing  financial  contributions 
framework for the exchange of best practice and common working methods. 

to  joint  projects  which  establish  a 

One example of importance is the 'Enhancing Market Surveillance through Best 
Practice' (EMARS) project in product safety. This three year joint action ended in 
2008 and delivered a wide range of results that will be taken forward in a follow up 
project  that  started  in  2009:  a  knowledge  base  and  Rapid  Advice  Forum,  a  best 
practice handbook and a new training strategy, the latter to complement the training 
schemes for market surveillance at national level. Another project, carried out by the 
CPC  Network,  was  to  develop  a  common  methodology  for  carrying  out  internet 
sweeps that will be tested in the 2009 joint exercise. 

The Commission is developing advisory guidance through discussions in workshops 
as well as by issuing interpretative guidelines on EU consumer laws. An example for 
this is the work initiated by the Commission to issue interpretative guidelines on the 
new  concepts  introduced  by  the  Unfair  Commercial  Practices  Directive  The  CPC 
Network’s daily case handling has revealed complexities and a lack of consensus in 
the interpretation of EU consumer laws. This has contributed to the slow handling of 
cross-border cases. 

The  Commission  will  address  this  shortcoming  through  establishing  a  mechanism 
by  which  a  consensus  is  reached  on  a  common  understanding  of  the  consumer 
regulatory  framework.  This  can  take  the  form  of  web  based  tools  to  support  a 
centralised processing of questions related to transposition and interpretation, vade-
mecums,  frequently  asked  questions  or  handbooks  in  either  paper  or  electronic 
format.  The  aim  is  to  propose  guidelines  to  national  enforcers  which  aim  at 
establishing  a  common  understanding  of  the  rules.  As  a  first  step,  a  series  of  CPC 
committee workshops were organised in 2009. 

3.4. 

Better market monitoring (developing an evidence based approach) 

Policies that deliver in practice depend on objective facts and figures as an evidence 
base  for  policy  development  to  devise  enforcement  strategies  and  set  priorities  as 
well as to assess the effectiveness of enforcement.  

An  evidence  based  approach  is  of  particular  importance  when  different  priorities 
compete  for  limited  resources.  Evidence  and  analysis  contributes  to  focus 
enforcement efforts and so maximize the use of resources available by addressing the 
right issues with the appropriate measures. It generates  a  culture  of peer review on 
benchmarking to stimulate the development of a strong enforcement culture. Such an 
approach  is  equally  effective  in  assessing  the  impact  of  binding  legal  rules  and 
voluntary measures adopted via self-regulation. 

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The  Commission  has  developed  new  tools  to  monitor  market  outcomes  and 
benchmark  the  consumer  environment  in  terms  of  compliance,  enforcement  and 
empowerment  of  consumers 
indicators  which  will  detect 
through  specific 
shortcomings and failures that require further investigative and/or corrective action. 
These tools include: 

• 

• 

The Consumer Markets Scoreboard12, established in 2008, monitors markets 
from a consumers’ perspective and annually assesses whether these markets are 
functioning effectively by a two-step process. The screening of markets as the 
first  phase  is  carried  out  on  the  basis  of  five  key  performance  indicators: 
complaints, satisfaction, prices, switching and safety. These indicators can also 
be  used  to  identify  areas  where  further  investigative  analysis  may  be  needed. 
These  data  also  give  indications  of  problems  that  could  be  used  to  identify 
enforcement priorities at national and/or EU level; 

As  a  second  step  of  the  Consumer  Markets  Scoreboard  mechanism, in-depth 
analysis  examines  markets  in  more  detail  from  a  consumer  perspective  and 
targeted  at  specific  consumer  issues  where  the  Scoreboard  finds  preliminary 
indications  that  they  are  failing  consumers.  The  objective  is  to  identify  the 
reasons  behind  the  problems  detected  in  relation  to  consumer  policy  and  the 
consumer  acquis.  The  Consumer  Markets  Scoreboard  complements  and  feeds 
into a broader market monitoring exercise where the Commission considers an 
in-depth  study  of  markets  in  their  entirety  necessary  as  a  result  of  a 
comprehensive screening of all elements of market functioning from a demand 
and  a  supply  side  perspective.  On  this  basis,  appropriate  solutions  will  be 
proposed. 

•  Work  to  develop  a  harmonised  methodology  for  classifying  consumer 
complaints.  This  will  provide  a  common  framework  for  the  collection  of 
complaints and facilitate the comparability of data. The methodology is to be 
used on voluntary basis; 

• 

Detailed surveys of consumer and retailer experience aim to identify general 
compliance  issues.  This  work  will  be  reinforced  with  the  development  of 
further enforcement indicators, through a new tool to monitor media attention 
and  national  input  and  output  data.  The  2009  Consumer  Markets  Scoreboard 
contained  a  first  set  of  indicators  which  will  provide  a  benchmarking  for 
enforcement across the EU.  

4. 

STEPPING UP INTERNATIONAL COOPERATION 

In  an  increasingly  globalised  world,  the  rationale  for  stronger  cooperation  between 
enforcement  authorities  also  applies  to  relations  with  authorities  outside  the  EU, 
notably  with  those  countries  that  already  have  strong  economic  ties  with  the  EU. 
Goods  are  increasingly  produced  outside  the  EU  and  imported  from  around  the 
world,  notably  from  China.  Ensuring  the  safety  of  products  circulating  within  the 
internal  market  also  necessitates  combining  efforts  with  non-EU  authorities  and/or 

12 

First  and  Second  Editions of  the  Consumer  Market  Scoreboard  -  COM(2008) 31  and COM(2009) 25 
final. 

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economic  operators.  The  Commission's  approach  combines  different  instruments  to 
promote EU consumer protection standards:  

• 

Pursue formal agreements with enforcement authorities in third countries.  

The  CPC  Regulation  provides  a  legal  basis  for  entering  into  international 
cooperation agreements. Contacts with the US and Swiss authorities are being 
stepped up to explore options for cooperation with the CPC Network.  

Practical working relationships with the enforcement authorities in the US and 
China are well established in the area of product safety. This has resulted in a 
number of administrative arrangements on cooperation13 as well as substantial 
practical improvements in the Chinese approach to consumer safety.  

• 

Promote  the  collaboration  of  enforcement  authorities  on  a  global  platform  by 
disseminating best practice14.  

5. 

SUPPORTING ENFORCEMENT  

An  effective  consumer  policy  depends  on  consumers  and  businesses  knowing  their 
rights  and  obligations  under  existing  legislation  as  well  as  on  their  ability  to  apply 
them to their commercial transactions. While the credible option of enforcement by 
public  authorities  is  indispensable  and  provides  a  powerful  incentive  for  traders  to 
comply, the measures described in this section are instrumental in putting consumers 
in a position to defend their rights and to facilitate enforcement. 

5.1. 

Informed consumers are empowered consumers 

Informed  consumers  who  know  where  to  turn  in  the  event  of  non-compliance  and 
their ability to recognise and report infringements are important elements to detecting 
non-compliant  behaviour.  The  Commission  therefore  attaches  high  importance  to 
ensuring  that  consumers  are  aware  of  their  rights  and  supplements  Member  States’ 
policies  to  inform  and  educate  consumers  in  a  variety  of  ways  such  as  information 
campaigns in Member States, user-friendly websites15, for example the eYouGuide, a 
user-friendly online guide presenting consumers' rights in the digital environment16, 
and the EU Consumer Day, an annual event which champions consumer rights across 
the EU through a range of coordinated activities. 

13 

14 

15 
16 

the  European  Commission  and 

The  Memorandum  of  Understanding  between 
the  General 
Administration  for  Quality  Supervision,  Inspection  and  Quarantine  (AQSIQ)  and  the  Roadmap  for 
Safer Toys between the European Commission and AQSIQ. 
ICPEN,  the  International  Consumers  Protection  and  Enforcement  Network  -  the  Commission  has  an 
observer status and most of the CPC Network are members. 
http://www.isitfair.eu/ and http://ec.europa.eu/eyouguide 
With a particular focus on e-commerce and the online environment, the Commission has recently made 
available  to  consumers  the  eYouGuide,  an  informative  website  aimed  at  clarifying  existing  rights 
applicable online and provided at EU level. It provides links to the competent authorities and consumer 
organisations if consumers wish to exercise their rights or seek redress. 

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The Commission also co-finances the European Consumer Centres Network (ECC-
Net)17  which  provides  practical  information  and  advice  on  consumer  rights  and 
assists with cross-border complaints. 

The  Commission  also  attaches  importance  to  working  with  consumer  organisations 
and to support them in the vital work that they do. Consumer organisations also play 
an important role  through  their  work on comparative  testing of products and act as 
"watchdogs" on the market". Specific actions, such as training for national consumer 
organisations, aim at improving their capacity to act more effectively at the EU and 
national level.  

5.2. 

Adequate means to seek redress 

The  ultimate  goal  of  EU  consumer  policy  is  to  create  an  environment  in  which 
consumers  can  purchase  goods  and  services  without  having  regard  to  national 
borders  and  secure  in  the  knowledge  that  effective  and  expedient  remedial  action 
exists should something go wrong.  

A number of mechanisms have been put in place at EU level which includes: a small 
claims procedure18 for cross-border disputes which, since 2009, simplifies, speeds up 
and reduces the costs of litigation for claims not exceeding € 2 000; a Directive on 
certain aspects of mediation in civil and commercial matters19 seeks to reinforce the 
use  of  mediation  in  Member  States,  and  the  Injunctions  Directive20  establishes  a 
common  procedure  to  allow  a  qualified  body  in  one  Member  State  to  seek  an 
injunction in another to bring about the cessation of an infringement.  

The  Commission  also  encourages  the  establishment  of  ADR  Mechanisms  and  has 
sought  to  promote  them  by  adopting  two  Recommendations21  establishing  the 
principles, procedures and quality criteria applicable to these ADR bodies. 

The Commission also facilitates consumer access to non-judicial procedures in cross-
border  disputes  through  different  networks.  The  ECC-Net  acts  as  contact  point 
relaying  information  for  the  400  ADR-bodies  notified  by  Member  States.  It  also 
cooperates  with  other  EU-wide  networks  such  as  FIN-Net22,  an  out-of-court 
complaints  handling  scheme  for  financial  services  and  SOLVIT23  which  addresses 
problems arising from the misapplication of internal market rules. 

The Commission is also examining the issue of collective redress24 for cases where a 
group  of  consumers  has  been  affected  by  the  same  or  similar  infringement  by  a 
single  trader.  Collective  redress  mechanisms  can  provide  an  alternative  where 
consumers  decide  that  taking  action  individually  is  not  feasible  as  all  too  often 
litigation costs may be disproportionate to the value of the claim. 

17 
18 
19 
20 
21 
22 
23 
24 

2007 ECC-Net Annual Report: http://ec.europa.eu/consumers/reports/reports_en.htm#ecc-net 
OJ L 199, 31.7.2007. 
OJ L 136, 24.5.2008. 
OJ L 166, 11.6.1998. 
OJ L 115, 17.4.1998 and OJ L 109, 19.4.2001. 
http://ec.europa.eu/internal_market/finservices-retail/finnet/index_en.htm 
http://ec.europa.eu/solvit/ 
Green Paper on Consumer Collective Redress - COM(2008) 794. 

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6. 

CONCLUSIONS 

An effective consumer enforcement policy is central to the functioning of the single 
market and is a Commission priority for the years ahead. As guardian of the Treaties, 
the  Commission  will  continue  to  facilitate,  support  and  assist  Member  States  in 
achieving  this  goal.  The  Commission  will  also  explore  options  to  review  both  the 
formal and informal CPC enforcement mechanisms.  

To  ensure  that  the  consumer  aquis  is  being  correctly  applied,  the  Commission  will 
continue with its  transposition checks  and  compliance  monitoring  exercises. Where 
appropriate,  it  will  begin  infringement  proceedings  against  any  Member  State  that 
fails to meet its obligations under the relevant rules.  

Even  in  the  current  economic  climate  enforcement  challenges  can  be  met  by 
reverting  to  the  wide  variety  of  instruments  available  to  enforcers  and  through 
establishing strong and effective cross-border mechanisms that are able to adapt and 
function effectively in a rapidly evolving market environment; developing a common 
understanding of the rules to be applied; improving the means by which markets are 
monitored  as  well  as  the  transparency  of  information  collected  in  such  monitoring 
and the visibility of enforcement work and by stepping up international cooperation 
with third countries.  

Both  the  Commission  and  the  national  enforcement  authorities  need  to  increase 
efforts  to  meet  today's  complex  challenges,  if  we  are  to  attain  the  objective  of 
achieving  the  highest  level  of  consumer  protection  within  the  European  Union  and 
furnish  consumers  with  the  confidence  to  exploit  the  single  market  to  its  full 
potential. 

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