CELEX: 51996PC0264
Language: en
Date: 1996-06-24
Title: Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON CONSUMER PROTECTION IN THE INDICATION OF THE PRICES OF PRODUCTS OFFERED TO CONSUMERS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                         Brussels, 24.06.1996
                                          COM(96) 264 final
                                          95/0148 (COD)
                       Amended proposal for a
     EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE
ON CONSUMER PROTECTION IN THE INDICATION OF THE
   PRICES OF PRODUCTS OFFERED TO CONSUMERS
      (presented by the Commission pursuant to Article 189 a (2)
                          of the EC-Treaty)
 ---pagebreak---  ---pagebreak---                                  Explanatory memorandum
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 the proposal of its rapporteur Mr Folias.
On 18 April 1996 the European Parliament adopted a legislative resolution embodying
the opinion of the European Parliament, acting on the proposal of its rapporteur,
Mrs Oomen-Ruitjen. In this resolution Parliament invites the Commission to modify its
proposal on the basis of the proposed amendments.
The "Consumer Affairs" Council met on 23 April 1996 in Luxembourg under the Italian
Presidency. It came to a unanimous political agreement on the common position
concerning the above-mentioned proposal for a directive.
II      COMMENTS ON THE MODIFICATIONS
The 22 amendments adopted by the European Parliament can be seen as a response to
four main concerns. Firstly, in a certain number of amendments, Parliament pinpointed
the remit of the text proposed by the Commission, notably the objective and the scope of
the mechanism. These aspects do not substantially modify the Commission's proposal.
Secondly, it took into account the supplementary costs which might be imposed on small
retail businesses by providing for a permanent follow-up by the Commission and financial
 ---pagebreak--- support for information for programmes targeted at small businesses. However, instead
of a permanent or temporary exemption for certain small businesses, Parliament opted for
a longer adaptation period. Thirdly, Parliament also wanted to emphasise the importance
of consumer information in the context of introducing the single currency by provided for
dual price labelling and training of employees in businesses. Finally, Parliament
jettisoned without ambiguity the link between the obligation to indicate the unit price and
the exemption for products sold in ranges.
1.       Clarification of the text
As regards Parliament's first concern, the Commission shares its viewpoint. Hence in its
amended proposal the Commission has incorporated Amendments 1, 2 and 9 (in respect
of letters (a) and )b) of former Article 2), 10, 11, 12, 13, 16, 20, 21 and 24 to clarify and
pinpoint the proposed mechanism. In seven cases (Amendments 2, 3, 5, 11, 16, 20 and
24) the Commission has reformulated the text by making drafting changes or changes
of a technical legislative nature, without, therefore, making any substantive modifications.
The approval of amendment 16 made a modification of the recitals 15 and 16 necessary.
Concerning the amendment 24 the Commission has in addition separated the amendment
and has incorporated it into Articles 1(2) and 3(2). This implies that, in respect of the
items refered to in Article 3(2), the obligation of mentioning the selling price, but not the
unit price, will remain. The approval of amendment 24 made it also necessary to modify
article 7. Amendment 9 (in respect of letter (c)) has not been taken up by the
Commission, because its definition of the retail trade is too ambiguous and overbroad.
Amendment 14 concerns labelling methods. The Commission considers that Member
States are in a better position to lay down detailed procedures in this domain, as a
function of local circumstances; hence this amendment has not been taken up.
2.       Small retail businesses
The new mechanism imposes some additional burdens on trade. But the European
Parliament is particularly concerned with this sector, and notably with small retail
businesses.
As for the Commission, it has tried to find a solution which is not too heavy, while
upholding the objective of providing the necessary information.
Amendments 6 and 22 propose a report on the situation of small retail businesses one
year after the. deadline for transposai. In the Commission's experience a period of one
year is not long enough to acquire experience in the application of the Directive such as
to draw up a report. Hence a minimum period of two years would be necessary. Such a
period will allow the Commission to scrutinize in depth the economic impact of the
Directive on small retail businesses.
Amendment 19 concerns financial support for certain small retail businesses. The
Commission does not consider that financial support for information programmes targeted
at small retail businesses is a realistic solution. Firstly, the problem of small retail
businesses is too complex to be regulated definitively at Community level. More
 specifically, the nature of the aid depends entirely on factors which the Commission can
neither know nor influence. In certain Member States, where the entire retail trade already
 ---pagebreak--- applies unit prices, such an aid would not be justified. Moreover, criteria would have to
be laid down. It is also important for Member States to be in a position to fully assess the
nature of the potential difficulties, particularly if these difficulties are directly bound up
with the enforcement of the mechanism. After all, at least in the case of foodstuffs, many
of the rules have already been in force for several years anyhow. Finally, investments in
price indication technology make economic sense, because this technology constitutes a
marketing and inventory management tool. The costs involved are not substantial,
especially as small retail businesses enjoy an adjustment period allowing them to stagger
the costs over an extended period.
For this reason the Commission welcomes the solution contained in Parliament's
Amendment 18 on small retail businesses: a generous adaptation period of six additional
years after the date of entry into effect of the provisions adopted under the Directive.
Moreover, the Commission is willing to provide particulars pertaining to costs and hence
has incorporated Amendment 5.
3.      Introduction of the Single Currency
Parliament wanted to emphasise the importance of consumer information in the context
of the move to the single currency. Hence it proposed Amendments 4, 15, 17 and 23 on
the transitional period for the introduction of the single currency, so as to familiarise
customers with the relative values of the currencies. While agreeing that price
transparency is a priority on the road to Economic and Monetary Union, the Commission
considers it premature to spell out the details at this stage and holds that accompanying
measures should be the subject of an overall approach.
4.      Abandonment of the link with ranges
The Commission has incorporated Amendment 3. This amendment specifies that the
ranges have a distinct function and clearly abandons the link with ranges.
 ---pagebreak--- Ill    OVERVIEW
                  OPINION OF THE COMMISSION CONCERNING THE
                     PROPOSED PARLIAMENTARY AMENDMENTS
      No of           Provisions concerned          Commission      New numbering
    amendment
  1               recital - 1 (new)               accepted       Recital 1
  2               recital 1                       accepted       Recital 2
  3               recital 6a (new)               accepted        Recital 8
  4               recital 12a (new)              rejected
  5               recital 17a (new)              accepted        Recital 20
  6               recital 19                     rejected
  9               Article 2 a) and b)            accepted        Article 2
  9               Article 2 c)                   rejected
  10              Article 3, paragraph 2         accepted        Article 4 paragraph 3
  11              Article 3, paragraph 2         accepted        Article 4 paragraph 4
  12              Article 4, paragraph 2         accepted        Deleted
  13              Article 4, paragraph 3         accepted        Article 4 paragraph 2
  14              Article 5                      rejected
  15              Article 5 a (new)              rejected
  16              Article 6                      accepted        Article 6
  17              Article 6, paragraph 3a (new)  rejected
  18              Article 7, first sentence      accepted        Article 7, first sentence
  19              Article 7a (new)               rejected
 20               Article 9                      accepted        Article 9
 21               Article 10 paragraph 1         accepted        Article 10
 22               Article 11 paragraph 1         rejected
 23               Article 6 paragraph 3 b (new)  rejected
 24               Article la (new)               accepted        Article 1, paragraph 2,
                                                                 and Article 3,
                                                                 paragraph 2
 The above table shows that the Commission has accepted 14 out the 22 amendments
                           voted by the European Parliament.
 ---pagebreak---                                AMENDED PROPOSAL FOR A
        EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE
   ON CONSUMER PROTECTION IN THE INDICATION OF THE
          PRICES OF PRODUCTS OFFERED TO CONSUMERS
INITIAL PROPOSAL                                      AMENDED PROPOSAL
The European Parliament and the Council      Unchanged
of the European Union
Having regard to the Treaty establishing the Unchanged
European Community, and in particular
Article 129a(2) thereof,
Having regard to the proposal from the       Unchanged
Commission1
Having regard to the opinion of the          Unchanged
Economic and Social Committee2
Acting in conformity with the procedure      Unchanged
provided for in Article 189b of the Treaty
establishing the European Community,
                                             1.      Whereas transparent operation of the
                                             market and correct information can be of
                                             benefit to consumer protection and to
                                             healthy competition between enterprises and
                                             their products
        1  OJ No C 260, 5.10.1995, p.5.
        2  OJ No C 82, 19.3.1996, p.32.
 ---pagebreak---  1.     Whereas consumers must be                                    2.      Whereas, consumers must therefore
 guaranteed a high level of protection;                              be guaranteed a high level of protection;
whereas the Community should contribute                              whereas the Community should contribute
thereto by specific actions which provide                            thereto by specific actions which provide
for adequate information of consumers on                             for precise, transparent and unambiguous
the prices of products offered to them;
                                                                     information of consumers on the prices of
                                                                     products offered to them;
2.      Whereas the                      Community's                 3.      Unchanged
programmes for a consumer protection and
information policy3 provide for the
establishment of common principles for
indicating prices;
3.      Whereas these principles have been                                  Unchanged
established by Council Directive
79/581/EEC of 19 June 19794 as amended
by Council Directive 88/315/EEC of 7 June
 19885 and Council Directive 88/314/EEC of
7 June 19886 concerning the indication of
prices of foodstuffs and non-food products;
4.      Whereas the obligation to indicate                                  Unchanged
the selling price and the price per unit of
measurement contributes substantially to
improving consumer information by
providing consumers with essential data in
order to make reasoned choices;
5.      Whereas, however, the mechanism                                     Unchanged
adopted included a certain number of
exceptions to the general obligation to
indicate the unit price, notably when
products are marketed in quantities or
capacities corresponding to the values of the
ranges adopted at Community level.
        3 OJ No C 92, 25.4.1975, p.2 and OJ No C 133, 3.6.1981, p.2.
        4 OJ No L 158, 26.6.1979, p.19.
        5 O J N o L 142, 9.6.1988, p.23.
        6 OJ No L 142, 9.6.1988, p.19.
 ---pagebreak---  6.      Whereas this link between indication          Unchanged
of the unit price of products and
standardisation of packaging introduced
rigidities into the implementation of the
mechanism adopted, which has proven
overly complex to apply; whereas it is thus
necessary to abandon this link in the
interests of simplification, without prejudice
to the rules governing packaging
standardization;
                                               8.      Whereas producers and traders
                                               having resort to ranees may retain and
                                               further develop them, provided, however,
                                               that they also indicate the unit price;
7.       Whereas, therefore, account should    9.      Unchanged
be taken of all the difficulties encountered
in implementing the mechanism provided
for in the above-mentioned Directives and
a new and simplified mechanism proposed
which will enable the main objective to be
achieved more easily, namely adequate
information of consumers;
8.       Whereas indicating the selling price  10.     Unchanged
and the unit price is the easiest way to
enable consumers to evaluate and compare
the nature and quality of products in an
optimum manner and hence to make
informed choices on the basis of simple
comparisons;
9.       Whereas, therefore, the general       11.     Unchanged
obligation to indicate both the selling price
and the unit price for all products should be
maintained except for products marketed in
bulk, where the selling price cannot be
determined until the final consumer
indicates how much of the product he
requires;
10.      Whereas only Community-level rules    12.     Unchanged
can ensure homogenous and transparent
information that will benefit all consumers
in the context of the internal market;
whereas the new, simplified approach is
 ---pagebreak--- both necessary and sufficient to achieve this
objective;
 11.    Whereas,        moreover,        price  13.     Unchanged
transparency is a priority in the run-up to
Economic and Monetary Union, and must
therefore be significantly improved and
arrangements made for its entry into effect
in good time for the transition to the single
currency;
 12.    Whereas introduction of the single      14.     Unchanged
currency will be greatly facilitated by
providing consumers with simple yardsticks
for comparing the prices of products;
13.     Whereas there is a need to take into    15.     Unchanged
account the fact that certain products are
widely and customarily sold in quantities
different from the values of the base
quantity referred to in the Directive;
whereas it is thus advisable to allow
Member States, in certain cases, to authorise
that the unit price be indicated in relation to
the quantity value which custom has
enshrined;
14.     Whereas Member States must be           16.     Unchanged
free to adapt the obligation to indicate the
unit price for certain trades of forms of
trade, and also to determine that such
indication is not necessary for a certain
number of products, when it does not
provide useful information for consumers;
15.     Whereas Member States should also       17.     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 meaningful or would be liable      would not be meaningful; whereas this is
to cause confusion; whereas this is the case    the case notably when indication of the
notably when indication of the quantity is      quantity is not a relevant particular for price
not a relevant particular for price             comparison purposes, or when different
comparison purposes, or when different          products are marketed in the same
products are marketed in the same               packaging;
packaging;
 ---pagebreak---  16.     Whereas in the case of non-food       18.     Whereas in the case of non-food
products, Member States, with a view to       products, Member States, with a view to
facilitating application of the mechanism     facilitating application of the mechanism
implemented, are free to draw up a list of    implemented, shall draw up, a list of
products or categories of products for which  products for which the obligation to indicate
the obligation to indicate the unit price     the unit price remains applicable;
remains applicable;
 17.     Whereas trends in distribution       19.      Unchanged
methods must be taken into consideration;
whereas solutions must be found to permit
optimum information of consumers on
product prices at the lowest possible
marginal cost;
                                              20.      Whereas it is therefore essential that
                                              before the application of the mechanism, the
                                              Commission should draw up. in cooperation
                                              with the governments and competent
                                              national bodies, an accurate statement of the
                                              total costs of the Directive to retail
                                              businesses, especially in the small and
                                              medium-sized sector:
18.      Whereas a variable adaptation period 21.      Unchanged
should be provided for depending on the
economic operators concerned in order to
enable them to make the detailed
arrangements for indicating unit prices;
19.      Whereas particular attention should  22.      Unchanged
be paid to the adaptations required in small
retail businesses, notably taking into
account technological trends and the
envisaged timetable for the introduction of
the single currency; whereas to this end the
Commission shall present an evaluation
report on the situation two years before the
final deadline for the general application of
the mechanism,
HAVE ADOPTED THIS DIRECTIVE
 ---pagebreak---  Article 1
 The purpose of this Directive is to stipulate    1. Unchanged
 indication of the selling price and the price
per unit of measurement of products offered
 by traders to final consumers, so as to
 improve consumer information and to allow
easy comparison of prices, wherever such
 comparison is relevant.
                                                 2. The following are excluded from this
                                                 directive:
                                                 - auctions
                                                   private sales.
Article 2
For the purposes of this Directive:              For the purposes of this Directive:
a)       "selling price" means the price for a   a)      "selling price" means the final price
given quantity of the product;                   for a given quantity of the product,
                                                 including VAT, all other taxes and the costs
                                                 of all services which the consumer is
                                                 obliged to pay for in addition;
b)       "unit price" means the price for one    b)      "unit price" means the final price,
kilogram, one litre, one metre, one square       including VAT, all other taxes and the costs
metre or cubic metre of the product or any       of all services which the consumer is
other quantity which is widely and               obliged to pay for in addition, for one
customarily used in the Member States in         kilogramme, one litre, one metre, one
the marketing of specific products;              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" means           c)      "products sold in bulk" means
products which are not pre-packaged and/or       products which are not pre-packaged and/or
are not measured or weighed except in the        not measured or weighed except in the
presence of the final consumer.                  presence of the final consumer.
                                              10
 ---pagebreak--- Article 3
 1.      The selling price and the unit price     1. Unchanged
shall be indicated for all products referred
to in Article 1, subject to the provisions of
Article 6.
                                                 2. The obligation to indicate the price per
                                                 unit measurement shall not apply to:
                                                 - foodstuffs sold in hotels, cafes,
                                                 restaurants, public houses, cinemas and
                                                 theatres, teaching institutions, leisure
                                                 centres, staff shops, hospitals, canteens and
                                                 similar establishments,
                                                 - itinerant traders.
                                                 - products sold in means of transport.
                                                 - products sold in vending machines.
2.      For products sold in bulk, the unit      3.      For products sold in bulk only the
price must be indicated for all products         unit price must be indicated for all products
referred to in Article 1, since the selling      referred to in Article 1.
price cannot be determined prior to the
request expressed by the final consumer.
                                                 4.      The above paragraphs shall apply
                                                 also to any type of advertising in which a
                                                 price is mentioned.
Article 4
1.      The selling price and the unit price             Unchanged
must be unambiguous, easily identifiable
and clearly legible.
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 the        2.      The unit price shall refer to the
quantity declared, in accordance with            quantity declared, in accordance with
national and Community provisions, and           national and Community provisions
notably net quantities of products.
                                              11
 ---pagebreak--- Article 5
Member States shall lay down the detailed         Unchanged
rules for indicating prices, notably as
regards prices applying to quantities that are
widely and customarily used, referred to in
Article 2(b).
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
not be meaningful because of the products'        meaningful because of the products' nature
nature or purpose, and products for which         or purpose.
such indication would not provide the
consumer with adequate information or
would be liable to create confusion.
2.      Member States may waive the               2.       Deleted
obligation to indicate the unit price of
products for which indication of length,
mass 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 the           2. In the case of non-food products,
provisions set out in paragraphs 1 and 2          Member States shall establish a list of the
above, the Member States may, in the case         products to which the obligation to indicate
of non-food products, establish a list of the     the unit price shall remain applicable. This
products or product categories to which the       list shall be drawn up in a practical way by
obligation to indicate the unit price shall       using a common nomenclature. The
remain applicable.                                Commission shall provide a framework so
                                                  that the lists in the various Member States
                                                  are as consistent as possible in terms of
                                                  content.
Article 7
Member States may provide that the                Member States may provide that the
obligation to indicate the unit price of          obligation to indicate the unit price of
products other than those marketed in bulk        products other than those marketed in bulk
which are sold by certain small retail            which are sold by certain small retail
businesses shall apply at the latest by 6         businesses shall apply at the latest bv six
June 2001, if the obligation to indicate the      years after publication of this Directive, if
unit price from 7 June 1997
                                               12
 ---pagebreak---                                                  the obligation to indicate the unit price by
                                                 the date provided for in Article 10(0.
-       is likely to constitute a excessive      -       is likely to constitute a excessive
burden for these businesses                      burden for these businesses
or                                               or
-       is impracticable because of the          -       is  impracticable because of the
number of products on sale, the sales area,      number of   products on sale, the sales area,
the nature of the place of sale or specific      the nature  of the place of sale or specific
conditions applicable to certain forms of        conditions   applicable to certain forms of
business, such as certain types of itinerant     business.
trade.
Article 8
Member States shall lay down penalties for       unchanged
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 9
                                                 1.      In Article 10, first sentence, first line
                                                 of the Council Directive 79/581/EEC of 19
                                                 June 1979. and in the article 10. first
                                                 sentence, first line of the Council directive
                                                 88/314/CEE of 7 June 1988. the words "a
                                                 period of 9 years" shall be replaced bv the
                                                 words "a period expiring on the date
                                                 referred      to in Article 10(1) of
                                                 Directive 96/.../EC
Council Directive 79/5 81/EEC of 19 June         2.      Council Directive 79/581/EEC of
1979, as amended by Council Directive            19 June 1979, as amended by Council
88/315/EEC of 7 June 1988 and Directive          Directive 88/315/EEC of 7 June 1988,
88/314/EEC of 7 June 1988 shall be               Council Directive 88/314/EEC of 7 June
repealed with effect from 7 June 1997.           1988 and the European Parliament and
                                                 Council Directive 95/58/EC of 29
                                                 November 19957 shall be repealed with
                                                 effect from the date referred to in
                                                 Article 10m.
        7  OJ No L 299, 12.12.1995, p . l l .
                                              13
 ---pagebreak---  Article 10
  1.     Member States shall bring into force    1.     Member States shall bring into force
 the laws, regulations and administrative       the laws, regulations and administrative
 provisions necessary to comply with this       provisions necessary to comply with this
 Directive by 6 June 1997 at the latest. They   Directive two years after publication of the
 shall forthwith inform the Commission          Directive at the latest. They shall forthwith
 thereof. The provisions adopted shall be       inform the Commission thereof. The
 applicable as of 7 June 1997.                  provisions adopted shall be applicable two
                                                years after application of the Directive.
 2.      When Member States adopt these         2.      Unchanged
 provisions, these shall contain a reference to
 this Directive or shall be accompanied by
 such a reference at the time of their official
publication. The procedure for such
reference shall be adopted by the Member
 States.
3.       Member States shall communicate to     3.     Unchanged
the Commission the text of the provisions
of national law which they adopt in the
field governed by this Directive. In
particular, they shall indicate the rules
adopted pursuant to Articles 5, 6 and 7,
and any later amendments thereto.
4.       Member States shall communicate        4.     Unchanged
the provisions governing the penalties
provided for in Article 8, and any later
amendments thereto.
Article 11
1.       The Commission shall, not more         1.     Unchanged
than two years after the date referred to in
Article 10(1), submit to the European
Parliament and the Council an initial report
on the application of the provisions of
Article 7.
2.       The Commission shall, not more         2.     Unchanged
than four years after the date referred to in
Article 10(1), submit to the European
Parliament and the Council a global report
on the application of this Directive.
Article 12
This Directive is addressed to the Member       Unchanged
States.
                                             ^
 ---pagebreak---  ---pagebreak---                                                                   ISSN 0254-1475
                                                            COM(96) 264 final
                                              DOCUMENTS
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                                                             ISBN 92-78-05303-1
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