European Union Directives currently require EU nations to pass
consumer protection laws, but there are a number of options
available to countries regarding what rights they enforce.
The European Commission has argued that a total review of
consumer rights law in Europe is needed, as is more consistency
between countries if cross-border commerce is to take off.
The UK Government has said that it recognises that the EU
Directives, which have developed over time, are not good enough for
their current purpose.
"It is acknowledged that the existing legislative framework does
not adequately reflect new market developments such as the rapid
growth in e-commerce and mobile commerce (m-commerce) in recent
years," said the Government's consultation, which is being run by
the Department of Business, Enterprise and Regulatory Reform
(BERR). "There are also inconsistencies between the Directives, for
example in their definitions of key terms."
The proposed Consumer Directive would replace four existing EU
laws: the Doorstep Selling Directive, the Unfair Terms in Consumer
Contracts Directive, the Distance Selling Directive and the
Consumer Sales and Guarantees Directive.
Minister for consumer affairs Gareth Thomas said that he backed
the move to update legislation.
"Full harmonisation means that no Member State will be able to
prescribe stronger rules of protection in the areas covered by the
Directive. Business will be free to offer more to consumers in
terms of commercial guarantees just as they do now, but for traders
selling armchairs in Athens, lampshades in Lisbon, or sofas in
Stockholm, a uniform set of consumer rights should increase their
willingness to sell cross-border," he said.
"I welcome this proposal from the European Commission as a
positive step in opening up the internal market. Expanding the
choice and boosting the confidence of consumers, as well as
reducing burdens on business, is crucial to the success of our
European economy," he said.
If the Directive were passed in its current form, consumers
across all 27 EU member states would be entitled to "a 14 day
cooling-off period for purchases made online or on the door-step;
consistent protections when goods are not delivered; clearer rules
on the responsibilities of both traders and consumers in returning
goods; [and] stronger protections [when] buying at home from
doorstep-sellers," said a BERR statement.
One area where the UK may disagree with EU plans is in relation
to entitlement to a refund for faulty goods. The UK has an
automatic refund entitlement, but that is not demanded by any EU
Directive. Under current plans that automatic right would disappear
and consumers would only be allowed to demand their money back if
repair or replacement options were not available.
The Law Commission and the Scottish Law Commission are
consulting seperately on that issue.
Thomas said that while it is a good idea to foster cross border
commerce, the UK's consumer laws also need to be protected.
"While in the UK our rules can sometimes be complex we have a
strong and effective consumer protection regime," he said. "I am
determined to ensure that we retain a strong level of consumer
protection that is fair on business; unnecessary costs on business
are inevitably passed on to the consumer."
BERR has asked for responses to the consultation by 2nd February
next year.
