CELEX: 51997PC0136
Language: en
Date: 1997-04-04
Title: Amended proposal for a European Parliament and Council Directive on consumer protection in the indication of the prices of products offered to consumers

i( i(
           *
                    COMMISSION OF THE EUROPEAN COMMUNITIES
 it          it
•to          -it
  it          ft
                                                  Brussels, 04.04.1997
                                                 COM(97) 136 final
                                                 95/0148 (COD)
                             OPINION OF THE COMMISSION
                   pursuant to Article 189 b(2)(d) of the EC Treaty, on the
                     European Parliament's amendments to the Council's
                               common position regarding the
                                        Proposal for a
                 EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE
                    on consumer protection in the indication of the prices
                              of products offered to consumers
                  AMENDING THE PROPOSAL OF THE COMMISSION
                        pursuant to Article 189a(2) of the EC Treaty
 ---pagebreak---  ---pagebreak---                             OPINION OF THE COMMISSION
 I. REVIEW OF THE PROCEDURE
 On 12 July 1995 the Commission of the European Communities adopted the proposal
 for a Directive on consumer protection in the indication of the prices of products
 offered to consumers. The Economic and Social Committee delivered its opinion at
 its 331st plenary session of 20 and 21 December 1995, acting on a proposal from its
 rapporteur Mr Folias.
 On 18 April 1996 the European Parliament adopted a legislative resolution
 embodying the opinion of the European Parliament, acting on a proposal from its
rapporteur, Mrs Oomen-Ruijten. Following this resolution the Commission presented
 its amended proposal on 24 June 1996.
 On 27 September 1996 the Council adopted the common position on the above-
mentioned proposal for a Directive. On the same day the Commission presented the
European Parliament with its communication on the common position of the Council.
Acting on a proposal from its rapporteur, Mrs Oomen Ruijten, the European
Parliament on 18 February 1997 adopted its recommendation for the second reading
on the common position.
In accordance with Article 189b (2) (d) of the Treaty, the Commission must deliver
an opinion for the attention of the Council on the amendments adopted by Parliament.
In this particular case the opinion amends the proposal from the Commission in
accordance with Article 189a (2).
II. COMMENTS ON THE AMENDMENTS
The 22 amendments adopted by the European Parliament address three main
concerns. Most of the proposed amendments clarify the wording and flesh out the
scope of the text. Parliament has also taken into account the particular situation of
certain small retail businesses. However, instead of the solution in the common
position, namely the possibility of an exemption for the Member Stales and (he option
of proposing another system three years after the end of the transposition period,
Parliament preferred a longer adaptation period with an obligation on the Member
States to provide retailers with specific information on the transposition of the
Directive. Finally, Parliament emphasised the importance of consumer information by
providing for double pricing in euros and in national currency at the time the single
currency is introduced.
 ---pagebreak---  L Clarification andfleshingout of the text
 These modifications of a more technical nature (amendments Nos 1, 2, 3, 5, 6, 7, 8,
  11, 12, 13, 14, 17, 18, 19 and 22) do not substantially change the common position.
 The Commission has endorsed all these amendments. Some flesh out the recitals
 (amendments Nos 1, 2, 3 and 8) or delete certain recitals (amendments Nos 5, 6 and
 7) which do not contain any additional information over and above that of the
 articles themselves. Other amendments flesh out the definitions and scope of the
 common position (amendments Nos 11, 12, 13, 18 and 19) or adapt the wording of
 the common position to the Parliament's amendments (amendments Nos 6, 7, 14 and
 17). Amendment No 22 again introduces an obligation on the Member States to
 communicate in particular the penalties applicable to infringements of the national
 instruments transposing the Directive.
 Amendment No 24 was not accepted by the Commission. This amendment concerns
 the detailed procedures governing price indications. The Commission believes that
the Member States are best qualified to regulate these matters.
 2. Small retail businesses
Amendments Nos 10, 20 and 21 on the situation of small retail businesses have been
 accepted by the Commission. The Parliament's solution, already taken up by the
Commission at the first reading, is to provide for a longer adaptation period than that
initially foreseen (amendment No 20). For example, this would make it possible to
better recoup the investment in price marking technology over an extended period. In
this connection, amendment No 10 emphasises the importance of technological
progress. To facilitate application of the mechanism, amendment No 21 imposes a
special obligation on the Member States to provide particular information on the
transposition rules to retail businesses, in particular small retailers.
3. Introduction of the single currency
Amendments Nos 9, 15 and 16 concern double pricing rules (euro/national currency)
during the transitional period, in connection with the introduction of the single
currency. These amendments have not been taken up by the Commission in this
proposal. While emphasising that price transparency is a priority in the framework of
implementing Economic and Monetary Union, the Commission does not consider that
this proposal for a Directive is the appropriate place for such rules. The Commission
believes that it is too early at this stage to lay down such details, and that
accompanying measures should be the subject of a more general instrument.
HI. AMENDED PROPOSAL
Bearing in mind the above, and in accordance with Article 189a (2), the
Commission's amended proposal adopts amendments Nos 1, 2, 3, 5, 6, 7, 8, 10, 11,
12, 13, 14, 17, 18, 19, 20, 2 land 22.
 ---pagebreak---          Amended proposal for a European Parliament and
  Council Directive on consumer protection in the indication
  of the prices of products offered to consumers
            COMMON POSITION                                   AMENDED PROPOSAL
 THE EUROPEAN PARLIAMENT AND THE unchanged
 COUNCIL OF THE EUROPEAN UNION,
 Having regard to the Treaty establishing unchanged
 the European Community, and in
 particular Article 129a (2) thereof,
 Having regard to the proposal from the unchanged
 Commission^),
 Having regard to the opinion of the unchanged
 Economic and Social Committee( ),
 Acting in accordance with the procedure unchanged
 laid down in Article 189b of the
 Treaty(3),
                                                     1. Whereas transparent operation of the
                                                     market and correct information is of
                                                     benefit to consumer protection and to
                                                     healthy competition between enterprises
                                                     and products:
 1. Whereas consumers must be                        2. Whereas consumers must be
guaranteed a high level of protection;               guaranteed a high level of protection;
whereas        the     Community         should      whereas        the      Community    should
contribute thereto by specific action                contribute thereto by specific action
which supports and supplements the                   which supports and supplements the
policy pursued by the Member States                  policy pursued by the Member States
regarding adequate information of                    regarding precise, transparent and
consumers on the prices of products                  unambiguous information of consumers
offered to them:                                     on the prices of products offered to them;
2. Whereas the Council Resolution of 3. unchanged
14 April 1975 on a preliminary
1
  OJNoC260, 5.10.1995, p. 5.
2
  OJNoC82, 19.3.1996, p. 32.
3
  Opinion of the European Parliament of 18 April 1996 (OJ No C 141, 13.5.1996, p. 191),
  Council common position of 27 September 1996 (OJ No C 333, 7.11.1996, p. 7) and
  Decision of the European Parliament of... (not yet published in the Official Journal).
 ---pagebreak--- programme of the European Economic
Community for a consumer protection
and information policy^) and the Council
Resolution of 19 May 1981 on a second
programme of the European Economic
Community for a consumer protection
and information policy( ) provide for the
establishment of common principles for
indicating prices;
3. Whereas these principles have been 4. unchanged
established by Directive 79/581/EEC(6)
and Directive 88/314/EEC(7) concerning
the indication of prices of certain
foodstuffs and non-food products;
4. Whereas the link between the 5. unchanged
indication of the unit price of products
and their pre-packaging in pre-established
quantities or capacities corresponding to
the values of the ranges adopted at
Community level has proved overly
complex to apply; whereas it is thus
necessary to abandon this link in favour
of a new, simplified mechanism and in
the interest of the consumer, without
prejudice to the rules governing
packaging standardisation;
5. Whereas the obligation to indicate the           6. Whereas the obligation to indicate the
selling price and the unit price                    selling price and the unit price
contributes substantially to improving              contributes substantially to improving
consumer information notably at the                 consumer information, as this is the
moment of purchasing, as this is the                easiest way to enable consumers to
easiest way to enable consumers to                  evaluate and compare the price of
evaluate and compare the price of                   products in an optimum manner and
products in an optimum manner and                   hence to make informed choices on the
hence to make informed choices on the               basis of simple comparisons;
basis of simple comparisons;
4
  OJ No C 92, 25.4.1975, p. 2.
5
  OJNoC 133, 3.6.1981, p. 1.
6
  OJ No L 158, 26.6.1979, p. 19. Directive as last amended by Directive 95/58/EC
  (OJNoL299, 12.12.1995, p. 11).
7
  OJ No L 142, 9.6.1988, p. 19. Directive as last amended by Directive 95/58/EC
  (OJ No L 299, 12.12.1995, p. 11).
 ---pagebreak--- 6. Whereas, therefore, there should be a 7. unchanged
general obligation to indicate both the
selling price and the unit for all products
except for products sold in bulk, where
the selling price cannot be determined
until the consumer indicates how much of
the product is required;
7. Whereas Member States may decide deleted
not to apply the above mentioned
obligation to products supplied in the
course of the provision of a service and
for sales by auction and sales of works of
art and antiques;
8. Whereas it is necessary to take into deleted
account the fact that certain products are
customarily sold in quantities different
from one kilogram, one litre, one metre,
one square metre or cubic metre; whereas
 it is thus appropriate to allow Member
 States to authorise that the unit price refer
to a decimal or submultiple of those
 quantities or to a different single unit of
 quantity, taking into account the nature of
the product and the quantities in which it
 is customarily sold in the Member State
 concerned;
 9. Whereas the obligation to indicate the deleted
unit price may entail an excessive burden
 for certain small retail businesses under
 certain circumstances and whereas
 Member States should therefore be
 allowed to refrain from applying this
 obligation in such cases;
 10. Whereas Member States should also         8. Whereas Member States should also
remain free to waive the obligation to         remain free to waive the obligation to
 indicate the unit price in the case of        indicate the unit price in the case of
products for which such price indication       products for which such price indication
would not be significant or would be           would not be meaningful or would be
 ---pagebreak---  liable to cause confusion, for instance    liable to cause confusion, for instance
when indication of the quantity is not      when indication of the quantity is not
 relevant for price comparison purposes,    relevant for price comparison purposes,
 or when different products are marketed    or when different products are marketed
 in the same packaging;                     in the same packaging;
  11. Whereas in the case of non-food 9. unchanged
 products, Member States, with a view to
 facilitating application of the mechanism
 implemented, are free to draw up a list of
 products or categories of products for
which the obligation to indicate the unit
price remains applicable;
 12. Whereas Community-level rules can 10. unchanged
 ensure homogenous and transparent
 information that will benefit all
 consumers in the context of the internal
market; whereas the new, simplified
 approach is both necessary and sufficient
to achieve this objective;
 13. Whereas particular attention should     11. Whereas particular attention should
be paid to small retail businesses;         be paid to the adjustments which have to
whereas, to this end, the Commission        be made in small retail businesses, in
should, in its report on the application of particular     taking    into     account
this Directive to be presented no later     technological developments and the
than five years after publication thereof   planned timetable for introduction of the
in the Official Journal of the European     single currency: whereas to this end the
Communities, take particular account of     Commission shall, one year before the
the experience gleaned in the application   final deadline for general application of
of this Directive by small retail           the mechanism, present a report assessing
businesses, inter alia regarding trends and the situation:
technological development in selling
methods,
HAVE ADOPTED THIS DIRECTIVE:
Article 1
The purpose of this Directive is to unchanged
stipulate the indication of the selling
price and the price per unit of
measurement of products offered by
traders to consumers in order to improve
 ---pagebreak--- consumer information and to facilitate
companion of price»
Article 2
For the purpose of this Directive:
 a) selling price shall mean the price for a a) 'selling price' shall mean the final
unit of the product or a given quantity to price for a unit of the product, including
the product;                                 VAT, all other taxes and the costs of all
                                              services which the consumer is obliged to
                                              pay for in addition:
b) unit price shall mean the price for one b) 'unit price' shall mean the final price.
kilogram, one litre, one metre, one square including VAT, all other taxes and the
metre or cubic metre of the product;          costs of all services which the consumer
                                              is obliged to pay for in addition, for one
                                             kilogram, one litre, one metre, one square
                                             metre, one cubic metre or one item of the
                                             product or any other quantity which is
                                             widely and customarily used in the
                                             Member States in the marketing of
                                             specific products:
c) products sold in bulk shall mean unchanged
products which are not pre-packaged and
are measured in the presence of the
consumer;
d) trader shall mean any natural or legal unchanged
person who sells or offers for sale
products which fall within his
commercial or professional activity;
e) consumer shall mean any natural unchanged
person who buys a product for purposes
that do not fall within the sphere of his
commercial or professional activity;
Article 3
1. The selling price and the unit price 1. The selling price and the unit price
shall be indicated for all products referred shall be indicated for all products referred
 ---pagebreak--- to in Article 1, the indication of the unit to in Article 1, the indication of the unit
price being subject to the provisions of price being subject to the provisions of
Article 7.                                   Article 6.
2. Member States may decide not to 2. Member States may decide not to
apply paragraph 1              to:           apply paragraph 1 to:
- products supplied in the course of the - products supplied in the course of the
provision of a service,                      provision of a service,
- sales by auction and sales of works of - sales by auction and sales of works of
art and antiques.                            art and antiques.
                                             Member States may decide not to apply
                                             the obligation to indicate the unit price
                                             to:
                                             - products sold in vending machines.
                                             - itinerant traders and personal in-home
                                             sales:
                                             - foodstuffs sold in catering
                                             establishments, cinemas and theatres
                                             houses, cinemas and theatres, educational
                                             establishments, recreational
                                             establishments, staff shops at the
                                             workplace, hospitals, canteens and
                                             similar institutions:
3. For products sold in bulk, only the unit unchanged
price must be indicated.
4. Any advertisement which mentions the      4. Any advertisement which mentions the
selling price of products referred to in     selling price of products referred to in
Article 1 shall also indicate the unit price Article 1 shall also indicate the unit price
subject to Article 7.                        subject to Article 6.
Article 4
1. The selling price and the unit price unchanged
must be unambiguous, easily identifiable
and clearly legible.
 ---pagebreak---  2, The selling price and the unit price deleted
  shall relate to the final price of the
  product under the conditions laid down
  by the Member States.
  3. The unit price shall refer to a quantity 2. unchanged
  declared in accordance with national and
 Community provisions.
 Where national or Community provisions
 require the indication of the net weight
 and the net drained weight for certain
 pre-packed products, it shall be sufficient
 to indicate the unit price of the net
 drained weight.
Articles
 Member States shall lay down detailed unchanged
 rules (e.g. marking or labelling) for
 indicating prices.
Article 6
Members States may stipulate that the deleted
unit price shall refer to a decimal
multiple or submultiple of the quantities
referred to in Article 2 (b) or to a single
unit of quantity which is different from
those referred to in Article 2 (b), taking
into account the nature of the product and
the quantities in which it is customarily
sold in the Member State concerned.
Article 7                                     Article 6
1. Member States may waive the                1. Member States may waive the
obligation to indicate the unit price of      obligation to indicate the unit price of
products for which such indication would      products for which such indication is
not be significant because of the             meaningless because of the products'
 ---pagebreak---  products' nature or purpose or would be nature or purpose or would be liable to
 liable to create confusion.                      create confusion.
 2. Member States may waive the deleted
 obligation to indicate the unit price of the
 products for which indication of length,
 mass, surface or volume is not required
 by national or Community provisions.
 This applies in particular to products sold
 by individual item or singly.
 3. With a view to implementing                   2. With a view to implementing
 paragraphs 1 and 2, Member States may,           paragraph 1. Member States may, in the
 in the case of non-food products,                case of non-food products, establish a list
 establish a list of the products or product      of the products or product categories to
 categories to which the obligation to            which the obligation to indicate the unit
 indicate the unit price shall remain             price shall remain applicable.
 applicable.
Article 8                                        Article 7
 Member States may provide that the              Members States may provide that the
 obligation to indicate the umt price of         obligation to indicate the unit price of
products other than those sold in bulk,          products other than those marketed in
which are sold in certain small retail           bulk which are sold by certain small retail
businesses, shall not apply, subject to          businesses shall apply at the latest six
Article 13, if the obligation to indicate        years after publication of this Directive,
the unit price would constitute an               if the obligation to indicate the unit price
excessive burden for these businesses            from the date provided for in Article 12
because of the number of products on             (I) is likely to constitute an excessive
sale, the sales area, the nature of the place   burden for these businesses.
of sale, specific conditions of sale where
the product is not directly accessible for
the consumer or certain forms of
business, such as certain types of itinerant
trade.
                                                Article 8
                                                Member States shall provide appropriate
                                                measures to inform retailers of the
                                                national law transposing this Directive. In
                                                particular. Member States shall work
                                                with professional organisations to provide
                                                appropriate information to ensure that
                                                small retailers are adequately informed of
                                             10
 ---pagebreak---                                                the provisions of this Directive.
Article 9
Member States shall lay down penalties unchanged
 for infringements of national provisions
 adopted in application of this Directive,
 and shall take all necessary measures to
 ensure that these are enforced. These
penalties must be effective, proportionate
and dissuasive.
Article 10
 1. The transition period of nine years unchanged
mentioned in Article 1 of Directive
95/58/EC of the European Parliament and
of the Council of 29 November 1995
amending Directive 79/581/EEC on
consumer protection in the indication of
the prices of foodstuffs and Directive
88/314/EEC on consumer protection in
the indication of the prices of non-food
products(8) shall be extended until the
date referred to in Article 12 (1) of this
Directive.
2.     Directives      79/5 81/EEC     and unchanged
88/314/EEC shall be repealed with effect
from the date referred to in Article 12 (1)
of this Directive.
Article 11
This Directive shall not prevent Member unchanged
States from adopting or maintaining
provisions which are more favourable as
regards consumer information and
comparison of prices, without prejudice
to their obligations under the Treaty.
  OJNoL299, 12.12.1995, p. 11.
                                            11
 ---pagebreak--- Article 12
 1. Member States shall bring into force unchanged
 the laws, regulations and administrative
 provisions necessary to comply with this
Directive not later than ...(*). They shall
forthwith inform the Commission
thereof. The provisions adopted shall be
 applicable as of that date.
When Member States adopt these unchanged
measures, they shall contain a reference
to this Directive or shall be accompanied
by such reference at the time of their
official publication. The methods of
making such reference shall be laid down
by Member States.
2. Member States shall communicate to unchanged
the Commission the text of the provisions
of national law which they adopt in the
field governed by this Directive.
                                                      3. Member States shall communicate the
                                                      provisions governing the penalties
                                                      provided for in Article 9. and any later
                                                      amendments thereto.
Article 13
The Commission shall, not more than                   The Commission shall, not more than
three years after the date referred to in             three years after the date referred to in
Article 12 (1), submit to the European                Article 12 (1), submit to the European
Parliament       and the           Council       a    Parliament       and  the    Council    a
comprehensive report on the application               comprehensive report on the application
of this Directive, in particular on the               of this Directive, in particular on the
application of Article 8, accompanied, if             application of Article 7, accompanied, if
appropriate, by a proposal.                           appropriate, by a proposal.
The European Parliament and the Council The European Parliament and the Council
shall, on this basis, re-examine the shall, on this basis, re-examine the
  24 months following the date of publication in the Official Journal.
                                                   12
 ---pagebreak--- provisions of Article 8.                     provisions of Article 7.
Article 14
This Directive shall enter into force on unchanged
the day of its publication in the Official
Journal of the European Communities.
Article 15
This Directive is addressed to the unchanged
Member States.
Done at Brussels,
For the European Parliament          For the Council,
The President                         The President
                                           13
 ---pagebreak---                                                                   ISSN 0254-1475
                                                            COM(97) 136 final
                                              DOCUMENTS
EN                                                                            10
                                     Catalogue number : CB-CO-97-123-EN-C
                                                             ISBN 92-78-17525-0
Office for Official Publications of the European Communities
L-2985 Luxembourg
                                              4M