Opinion of the European Economic and Social Committee – Strengthening Consumer Information Requirements in the EU (own-initiative opinion)
Date: 2024-09-19
Institutions: European Economic and Social Committee
Subjects: consumer information, consumer law, consumer policy, defective product, market supervision, product quality, single market








C_202406876EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2024/6876


28.11.2024







Opinion of the European Economic and Social Committee


Strengthening Consumer Information Requirements in the EU


(own-initiative opinion)

(C/2024/6876)


Rapporteur: 
Bernardo HERNÁNDEZ BATALLER






Advisor


Alejandro SALCEDO AZNAL




 


 




Plenary Assembly decision


18.1.2024




Legal basis


Rule 52(2) of the Rules of Procedure




Section responsible


Single Market, Production and Consumption




Adopted in section


26.6.2024




Adopted at plenary session


19.9.2024




Plenary session No


590




Outcome of vote
(for/against/abstentions)


143/103/13




1.   Conclusions and recommendations









1.1.


Given consumers’ increasing social and environmental awareness, the EESC believes it would be appropriate to update and systematise consumer rights in order to improve consumers’ knowledge and facilitate responsible consumption, while also preventing all forms of exclusion, especially of a digital, energy and financial nature. Efforts to map rights should also serve to bring about a necessary harmonisation of the concepts associated with responsible consumption, which include, among others, those linked to social and environmental sustainability and equal access to the market for products, goods and services, taking into account the vulnerable situations of the different consumer groups.












1.2.


The EESC also believes that current technological innovations offer solutions that make it possible to ensure the right to accessible, understandable and readable information in the single market, through devices and tools specific to the ongoing digital transformation (such as smart labels for product monitoring) or through emerging disruptive technology (such as robotics, artificial intelligence, blockchain and virtual reality, among others).












1.3.


Furthermore, while welcoming the Commission’s efforts to empower consumers as part of the green transition, the EESC points out the need to ensure the effective implementation of the corresponding Directive, as well as of all other existing provisions aimed at consumer protection. It is also essential to continue improving the level of this protection by broadening its scope, so that consumers can also receive information on the social and labour conditions in the places in which goods are produced and services are provided.












1.4.


Given the imbalance in the relationships between market participants resulting from consumers’ information asymmetry, and in accordance with the precautionary principle, the EESC considers it necessary to implement traceability mechanisms to address the social and employment risks identified, so that national authorities can take the necessary precautionary measures in a coordinated way. The EESC takes the view that websites containing consumer information should have a more neutral design and be free from dark patterns.












1.5.


Finally, the EESC is concerned about the practices of some service providers on online platforms and search engines that may jeopardise consumer rights, and about illegal content that could affect the protection of younger consumers. In this regard, the EESC points out the need to improve actions to monitor and control consumers’ right to information, taking the necessary measures to ensure that they effectively eradicate these practices.




2.   Background









2.1.


The New Consumer Agenda ‘Strengthening consumer resilience for sustainable recovery’ for 2020-2025 is the framework for the EU’s programme of actions to develop its consumer protection policies and includes, among other things, the following priority areas:






(a)


protection of vulnerable groups – meeting the specific needs of consumers in situations which may be due, among other things, to the non-specific social circumstances of individual consumers or groups of consumers;










(b)


consumer protection in the global context – ensuring the safety of imports and protecting EU consumers against unfair practices by operators not based in the EU, through market surveillance and closer cooperation with the relevant authorities of the EU’s partner countries.
















2.2.


In addition, consumer information and the effective enforcement of consumer rights are among the sectoral measures of this New Consumer Agenda, whose legislative acts to this end include the Directive on empowering consumers for the green transition (1), the Regulation on cooperation between national authorities responsible for the enforcement of consumer protection laws (2) and the Regulation on general product safety (3), to cite just a few examples relevant to this opinion.












2.3.


In addition, the Directive on empowering consumers for the green transition amends the Directives on unfair commercial practices and on consumer rights, which has a positive impact on consumer information. This information, however, is incomplete, as the requirement for information on the characteristics of products, goods and services does not include aspects relating to the social and labour conditions in which these products, goods and services are produced, distributed and provided.












2.4.


Meanwhile, the Regulation on cooperation between national authorities responsible for the enforcement of consumer protection laws allows information to be exchanged between national authorities, which facilitates decision-making and joint action to ensure that compliance with the rules is monitored in a comprehensive and efficient way.












2.5.


Similarly, the General Product Safety Regulation provides for the Safety Gate rapid alert system for the exchange of information and stipulates that the Commission is to further develop and modernise this system. One area where work is required is the inclusion of irregular commercial practices of a social and labour nature in the assessment procedures, so that precautionary measures can be taken.












2.6.


In addition to the background information given above, the Sustainable Development Goals (SDGs) under the UN’s 2030 Agenda should also be taken into account, highlighting, given the link between their targets and the aim of this opinion, SDG 5 on gender equality, SDG 8 on decent work and economic growth, SDG 10 on reducing inequality within and among countries, and SDG 12 on ensuring sustainable consumption and production patterns.




3.   Consumer information in the current EU legislative framework









3.1.


The regulatory framework for consumer rights protection policies ensures access to the information required to protect consumers against practices that pose risks to their health, safety or economic interests. However, it does not cover information on practices relating to consumers’ purchasing decisions based on social and labour criteria.












3.2.


Nevertheless, initiatives have been developed to provide information on, disseminate and promote ethical commercial practices that either align with the principles of fair trade or that promote more solidarity-based, accessible and inclusive consumption, which has helped consumers become more aware when choosing brands and products, encouraging them to go beyond satisfying their wants and needs by making choices that most closely align with their personal values.












3.3.


Consumers should therefore be provided with accessible and understandable information that they can use to make informed purchasing choices, integrating both rational and emotional criteria that can guide them when choosing brands and products, especially when making purchases across different sales channels.












3.4.


Improving consumer information by including social and labour aspects should not affect other information provided about the product or service in question, or affect the accessibility or readability of such information. Nor should this information be excessive or superfluous due to overly extensive or irrelevant content, or lead to confusion and misunderstanding.












3.5.


Broadening the information available to consumers also contributes to improving market transparency, in that it facilitates a greater balance in the contractual relationships established in that regard, thus preventing unfair commercial practices from developing.












3.6.


However, in order for this improved information to work, it is imperative to ensure that it truthfully reflects the characteristics of products and services. Socialwashing practices need to be addressed in order to ensure policies and practices that are genuinely geared towards corporate social responsibility and that respect social and environmental standards, and to ensure that actions and communications aimed at consumers are transparent, in order to avoid misleading information.












3.7.


In conclusion, improving consumer information does not only require that the content of this information be presented in an appropriate way; it also necessitates monitoring and control actions by national authorities to verify the information and adopt, where necessary, appropriate measures, especially on issues relating to cybersecurity and the protection of consumers’ digital rights.




4.   EESC proposals to strengthen consumer information requirements in the EU









4.1.


The EESC proposes that the Commission and the Member States carry out an evaluation of the current legislation in order to assess whether it is adequate enough to protect consumer rights relating to information on the environmental, social and labour aspects of products and services, and whether its application is equally effective in online commerce, or whether it needs to be adapted to the characteristics of particular goods, products, activities and services, and to the channel through which commercial transactions are carried out.












4.2.


The EESC urges the Commission and the Member States to develop information and awareness-raising campaigns to make consumers aware of the efforts made to improve the information provided to them, and to promote its use in purchasing decisions.












4.3.


The EESC also urges the Commission and the Member States to review and update consumer rights, providing a definition for responsible consumption and specifying its areas of development, in order to facilitate the joint and coordinated planning and implementation of their actions.












4.4.


The EESC also believes it is appropriate to introduce a ‘one-stop shop’ at EU level to protect consumers, bringing together sectoral procedures to facilitate consumer information and the effective exercise of consumer rights.












4.5.


Finally, the EESC suggests assessing whether there is a need to extend the application of the current early detection mechanisms to ensure improved information on the traceability of products and services along their value chains, especially in sales channels where tracing is more complex.






Brussels, 19 September 2024.


The President


of the European Economic and Social Committee

Oliver RÖPKE
               





(1)  Directive (EU) 2024/825 of the European Parliament and of the Council of 28 February 2024 amending Directives 2005/29/EC and 2011/83/EU as regards empowering consumers for the green transition through better protection against unfair practices and through better information (OJ L, 2024/825, 6.3.2024, ELI: http://data.europa.eu/eli/dir/2024/825/oj).

(2)  Regulation (EC) No 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the enforcement of consumer protection laws and repealing Regulation (EC) No 2006/2004 (OJ L 345, 27.12.2017, p. 1).

(3)  Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on general product safety, amending Regulation (EU) No 1025/2012 of the European Parliament and of the Council and Directive (EU) 2020/1828 of the European Parliament and the Council, and repealing Directive 2001/95/EC of the European Parliament and of the Council and Council Directive 87/357/EEC (OJ L 135, 23.5.2023, p. 1).





ANNEX

The following paragraph(s) of the section opinion was (were) amended to reflect the amendment adopted by the assembly but received more than one quarter of the votes cast (Rule 74(4) of the Rules of Procedure):
1.   Conclusions and recommendations









1.1.


The European Economic and Social Committee (EESC) welcomes the recent progress in empowering consumers in the green transition. It urges the Member States to implement effectively the recently adopted Directive on empowering consumers for the green transition, which will ensure better and more harmonised information on the durability and repairability of products.












1.2.


The EESC suggests that accessible, readable and understandable information should be made available to all people, especially those with disabilities, and when it comes to goods and services from third countries. However, this should not create unnecessary red tape for small and medium-sized enterprises.












1.3.


Successful consumer regulation that takes into account the need for consumer protection, but also the need for a simple and workable framework for businesses, especially for SMEs, strengthens consumer confidence in the single market and its actors, and contributes to more economic growth and job creation through increased trust in consumption.












1.4.


The EU consumer rights acquis is perceived as complicated, fragmented and especially difficult for small businesses to comply with. The EU consumer rules should be simplified and streamlined in order to make it easier for businesses to comply with them and to ensure that consumers are aware of their rights.












1.5.


The right to consumer information in the internal market can be realised by using smart labels to monitor the state of products, by promoting the digital transition, and by developing robotics, artificial intelligence, blockchain and virtual reality.












1.6.


The EESC urges the Commission to report on Regulation (EU) 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the enforcement of consumer protection laws (hereinafter ‘Regulation (EU) 2017/2394’). The evaluation report is needed to analyse any further needs for updates to the consumer protection authorities’ cooperation framework.












1.7.


The EU consumer rights acquis is perceived as complicated, fragmented and especially difficult for small businesses to comply with. The EU consumer rules should be simplified and streamlined in order to make it easier for businesses to comply with them and to ensure that consumers are aware of their rights. Further harmonisation of consumer rights in the EU would also encourage cross-border trade in the single market, thereby also enriching the consumer choice available to citizens.












1.8.


The EESC calls for the Commission and the Member States to ensure that consumers and businesses are informed in a clear manner about their rights and obligations in consumer legislation, for example through an updated catalogue of consumer rights. The use of alternative dispute resolution (ADR) should also be encouraged in consumer disputes.












1.9.


Finally, the EESC is concerned about the actions of providers of online platform services and search engines with regard to consumers’ right to information, and the obligation to apply reasonable, proportionate and effective measures to reduce systemic risks and illegal content, in particular to protect minors. In this regard, the EESC calls for equality between EU and non-EU operators when it comes to compliance along the entire value chain.




2.   Background









2.1.


The EU’s consumer policy programme is based on the New Consumer Agenda (hereinafter ‘the Agenda’). The Agenda seeks to provide an updated vision for the EU’s consumer protection policy for the 2020-2025 period, under the heading ‘Strengthening consumer resilience for sustainable recovery’.












2.1.1.


The agenda includes the following key priority areas:






(a)


green transition – ensuring that sustainable products and lifestyles are available to all;










(b)


digital transformation – creating a safer digital space for consumers where their rights are protected;










(c)


effective enforcement and redress – dealing with misleading environmental claims and unfair commercial practices in relation to online influencing techniques and personalisation;










(d)


protection of vulnerable groups – meeting the specific needs of consumers in situations which may be due, among other things, to the non-specific social circumstances of individual consumers or groups of consumers;










(e)


consumer protection in the global context – ensuring the safety of imports and protecting EU consumers against unfair practices by operators not based in the EU, through market surveillance and closer cooperation with the relevant authorities of the EU’s partner countries.
















2.2.


The agenda also provides for other measures specific to the sector, including providing consumer information and enforcing consumer rights effectively. In this regard, within the framework of Regulation (EU) 2017/2394, the Member States’ public authorities form a European network to facilitate the exchange of information and joint action against infringements of consumer protection laws.












2.3.


Moreover, Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on general product safety (hereinafter ‘Regulation (EU) 2023/988’), which seeks to improve how the internal market operates while ensuring a high level of consumer protection, stipulates that the Commission will further develop, modernise and maintain the Safety Gate Rapid Alert System for the exchange of information on corrective measures.












2.4.


Recently, the Parliament and the Council adopted a directive to empower consumers for the green transition. The directive aims to enhance consumer rights by amending the Unfair Commercial Practices Directive and the Consumer Rights Directive and adapting them for the green transition and the circular economy (1).












2.5.


While the Consumer Rights Directive requires traders to provide consumers with information on the main features of goods or services and their durability and reparability, it does not cover traceability of the social and labour dimensions. However, these are already covered by legislation on other matters.












2.6.


As part of a broader analysis, the 2030 Agenda Sustainable Development Goals (SDGs) and related targets should also be taken into account. Although most SDGs concern consumer information and protection policies, which play a very important role in meeting the goals, it is worth highlighting the shared responsibility that consumers may have for some of them through their consumption habits. These Sustainable Development Goals are SDG 12 Ensure sustainable production and consumption patterns, SDG 5 Gender equality, SDG 8 Decent work and economic growth and SDG 10 Reduce inequality within and among countries.




3.   Consumer information in the current EU legislative framework









3.1.


In terms of the various elements that could be considered to make up responsible consumption (e.g. healthy, safe, sustainable, ethical and solidarity-based, inclusive and accessible), it is fair to say that the EU’s regulation and policies on consumer information and protection sufficiently guarantee their rights to healthy and safe consumption, as well as the protection of their economic and legal interests. However, there is no similar level of protection when it comes to information on the ethical, solidarity-based, inclusive and accessible dimensions of consumption.












3.2.


That said, there has been some progress on promoting and raising awareness of ethical and solidarity-based consumption, especially through initiatives to promote fair trade, and inclusive or accessible consumption, with the aim of protecting vulnerable groups.












3.3.


Consumers today are better informed due to the widespread availability of information through digital technologies, increased transparency from companies, increased regulatory requirements, and proactive consumer behaviour. This enhanced access to information enables them to make more educated and conscientious purchasing decisions, reflecting a significant shift from past consumer behaviour, when information was more limited and harder to obtain. Yet, empowering consumers for the green transition, as well as increasing consumers’ awareness of relevant aspects is an important task in which consumer organisations have an important role to play.












3.4.


Consumers increasingly rely on other criteria as well as quality and price when making purchases. Such criteria make consumers jointly responsible in socio-environmental matters, such as those mentioned above. However, these other criteria are integrated on the basis of informed decisions that can bring about a change in habits, creating an interest that needs to be met through purchases that provide a sense of wellbeing. This runs counter to the emotional experience of buying things on impulse, reducing the tension caused by the desire to have them.












3.5.


The nature of the various purchasing criteria represents a consumption externality that is either positive or negative, depending on the purchase’s impact on third parties (with a third party considered to be any external factor, whether tangible or not).












3.6.


Therefore, improving the information needed to make informed purchases means knowing about the positive or negative externalities of products. This influences whether consumers buy them or not, meaning that they can exercise their power on the market through their purchases.












3.7.


However, the EESC is concerned about excessive bureaucracy, especially for medium-sized and small enterprises, as some of it may be unnecessary and could in some cases make it more difficult to carry out their normal operations. The Committee also believes that a more neutral and streamlined consumer law framework would be better for both consumers and businesses. Successful consumer regulation that takes into account the need for consumer protection, but also the need for a simple and workable framework for businesses, especially for SMEs, strengthens consumer confidence in the single market and its actors, and contributes to more economic growth and job creation through increased trust in consumption. It should also be noted that businesses have a market-driven incentive to provide sustainability information to consumers as this enhances reputations and builds customer and investor loyalty, which ultimately leads to a competitive advantage.












3.8.


Furthermore, if consumers are better informed, it provides more symmetry of information and transparency among different market players, making it more difficult to carry out unfair practices and balancing the power of consumers with that of other players. After all, if commercial transactions are to be fair, consumers must have all the information known by each trader about the product, goods or services being traded.












3.9.


At the same time, providing better information can initially make it easier for people to compare products and make more informed purchase decisions. It can mean that that information is then passed on to other consumers who either do not have it or are unable to express their level of awareness through their purchases. The result is an instructive effect that quickly spreads information about purchasing decisions among consumers and their networks. To this end, the consumer and environmental complaint directories already provided for in the Commission’s recent legislation should be enhanced.












3.10.


However, this multiplier effect of better information must be accompanied by monitoring to ensure a faithful match between the information content and the real characteristics of the products, thereby consolidating loyalty to the product and brand (2). Promoting the use of alternative dispute resolution systems, as the EESC has already called for, can help overcome existing differences.












3.11.


Technological applications can currently get round space constraints that make it difficult to set out information on labelling clearly. In this context, the work undertaken on the digital product passport is a clear step forward, and the EESC looks forward to its implementation.












3.12.


With regard to better information on websites that sell products and activities (as long as it is useful and not excessive), while providing more information does not pose a problem of space, it must be presented in a way that it is accessible and does not redirect users to other websites that are difficult to navigate in order to read it. This has already been laid down in law, and so there is a need to check whether this obligation has been properly met.












3.13.


In the digital field, civil society organisations should play an active role when it comes to consumers’ right to receive information from providers of online platform services and search engines. This also applies to the steps that such providers take to address systemic risks they identify when assessing the risks that they, and related systems, generate, including algorithmic systems or those based on using their services.












3.13.1.


Social change means there is a need to tackle the latest challenges, such as mass data collection, verification of data, disruption from threats, hybrid threats, cybersecurity, disinformation and information manipulation. These are linked to traditional consumer information problems, for example from issues with funeral services in different Member States to emerging problems relating to the digital world.












3.14.


Including the right to repair products, as already called for by the EESC, also helps invest in human resources, in addition to being environmentally friendly and sustainable.




4.   EESC proposals to strengthen consumer information requirements in the EU









4.1.


Increasing consumer confidence by providing better information on relevant aspects of products and services can be achieved by taking both proactive and reactive measures. The former include product labelling and contractual information on services, as well as information and publicity campaigns to that end, while also providing the necessary financial resources to small and medium-sized enterprises. Empowering consumers for the green transition and increasing their awareness of their rights is an important task in which consumer organisations have an crucial role to play.












4.1.1.


In addition, Regulation (EU) 2017/2394 needs to be evaluated in order to analyse any further needs for updates to the consumer protection authorities’ cooperation framework.












4.2.


A one-stop-shop for consumer protection should also be set up, supporting consumer information rights, and putting an end to the current sector-specific approach that is more asymmetric.












4.3.


Finally, it should be pointed out that this initiative also aims to improve the traceability of goods and services available, given that the role of intermediaries can make this difficult. This particularly applies to e-commerce, where tracing may not always be effective and could be built into the digital product passport in all those cases where it is not provided for.





Outcome of the vote:







In favour:


116




Against:


127




Abstention:


11






(1)  
            COM(2022) 143 final.


(2)  
            Enrico Letta (2024): ‘Much more than a market - Speed, Security, Solidarity. Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens
            ’.







APPENDIX


In accordance with Article 74(5) of the Rules of Procedure of the European Economic and Social Committee and the implementing rules adopted on 15 November 2022, the following statement is attached as an appendix:

The adopted proposal for an opinion addresses the socio-environmental traceability of products. In particular, the proposal puts forth three specific initiatives:







(a)



To include information on the origin of raw materials and on the manufacturing and distribution processes on product labels so that consumers can gauge the environmental and social impact of placing a product on the market.






This information is already mandatory in the agri-food, health and taxation sectors, among others. It is therefore considered appropriate also to require them in the area of consumer protection, with the corresponding adjustments.







(b)



To establish a social, ethical and labour assessment system, similar to the existing system for assessing food and safety risks, in order to be able to objectively assess the impact of products on a socio-occupational level. The uniform use of this system would help Member States take preventive measures. A warning label with warning symbols could also be included, where appropriate, much like those used for household chemical products currently on the market, for example.











(c)



To extend the current rapid alert notification system for products in light of the extensive and positive experience with it thus far, and the cost savings it would entail if other reasons for exchanging notifications were added, for example concerning the social, ethical or labour aspects of products.






This traceability would also allow the Member States to effectively implement precautionary measures to combat irregular commercial practices such as socialwashing in the information provided on products, much in the same way that greenwashing practices are dealt with in the recently adopted Directive on empowering consumers for the green transition, which this proposal aims to enhance by broadening its objectives.


Furthermore, this proposal for an opinion not only addresses the priority issues identified by the European Union, such as socially responsible economic activities and measures to promote consumer information and the protection of consumer rights in order to promote responsible consumption, but also seeks a regulatory framework necessary for their development.


It is considered that, in the same way that progress has been achieved in the environmental field, a proposal is needed that would strengthen the rights of more than 400 million consumers and ensure fair competition in the European single market. This proposal, which is based on data on alert notifications related to product safety, would primarily affect the production and market entry of third-country companies and non-European multinational corporations. At the same time, it would also protect the market for European small and medium-sized enterprises, without affecting their product distribution activities or creating additional administrative burdens.


The EESC believes that the existence of the current social and labour laws does not justify not having a specific regulation in the field of consumer protection that would allow for the full exercise of consumer rights and provide for the prevention mechanisms proposed in this opinion.


Finally, this proposal for an opinion also aims to address the concerns regarding these issues expressed by consumer organisations and social, labour and fair trade organisations.


We must remember that this Committee gives equal importance to economic and social issues, as reflected in its name.




ELI: http://data.europa.eu/eli/C/2024/6876/oj
ISSN 1977-091X (electronic edition)