Date of release : 07-03-2005

Policy area : Competitiveness (Internal market, Industry and Research) Competitiveness (Internal market, Industry and Research)

Event : Competitiveness Council

At the meeting of the Competitiveness Council on 7 March, Jeannot Krecké, Minister for the Economy and Foreign Trade, announced to his colleagues that the European Parliament adopted the directive proposal on unfair commercial practices on second reading. The amendments voted on by the Parliament were the object of a balanced compromise negotiated in close collaboration with the Luxembourg Presidency of the Council and the European Commission over the past three months.

The directive protects consumers by establishing the principle of banning unfair or dishonest business practices and aims to eliminate deceitful and aggressive commercial practices. To the extent that this issue will now be subject to uniform regulation in all the Member States of the European Union, consumers will be able to contract with businesses in other countries with the same level of confidence as when dealing with businesses in their immediate vicinity. In addition, it will be easier for companies to offer their products and services throughout Europe, as they will now be subject to a single set of European regulations. Consequently, this new directive, while strengthening consumer protection, will also have a positive effect on the internal market.

Besides a general clause that bans practices contrary to professional standards that could deceptively influence consumer behaviour, attached to the directive is a blacklist of defined practices that are unambiguously considered to be abusive, such as undesired personal visits to the home of the consumer, or the practice of holding out to the consumer the prospect of advantages or lower prices while the consumer would actually incur charges to benefit from those advantages or lower prices.

The directive sets forth additional specific measures of protection for vulnerable consumers, especially children. For example, advertising that preys on the gullibility of children and incites them to make purchases is forbidden.

As the Presidency reached an agreement with the Parliament, the Council of Ministers will formally adopt the new directive in June. It must then be transposed into national law by the Member States in the course of 2007.