Resolved cases
She returned the goods within the cooling off period that she was entitled to under the EU...
Lectures
Resolved cases
The new EU Consumer Rights Directive has been formally adopted today by Member States in the EU's Council of Ministers. The new legislation will strengthen consumers' rights in all 27 EU countries, particularly when shopping online. After publication in the EU's Official Journal, governments will have two years to implement the rules at national level. The approval follows an overwhelming vote to back the rules by the European Parliament on 23 June 2011. The European Commission put forward the proposal in October 2008. The final agreement between Parliament and Council on the Consumer Rights Directive was brokered by EU Justice Commissioner Viviane Reding in June this year.
An EU-wide right for consumers to change their minds about purchase decisions within two weeks and clearer pricing rules for internet sales were provisionally agreed by MEPs and Council representatives. These changes are to be incorporated in a new EU directive to improve consumer protection, especially in internet sales, and clarify rules for businesses. More safety for consumers shopping on line and common rules for businesses - these are the headlines of the political agreement between the Parliament and the Council on the Consumer Rights Directive", commented Parliament's rapporteur Andreas Schwab.
What the new rules will mean
• 14 days to change your mind
The new rules will stipulate a 14-day EU-wide withdrawal period for distance and off-premises sales (i.e. those in which the consumer cannot see the good before buying it), during which consumers may change their minds. If they regret the purchase, for whatever reason, they may return it. The price paid by the consumer for the good must be refunded within 14 days of the withdrawal. This is a major step forward for consumer rights. Digital goods, such as music, films or software programmes, will be exempted from the right of withdrawal. The sale will be regarded as concluded from the moment downloading begins.
• Delivery and responsibility for the parcel
Under the new rules, any good ordered at a distance must be delivered to the buyer within 30 days, otherwise the consumer will have the right to cancel the purchase. The trader is responsible for any damage or loss of the good during delivery.
• The right to make informed choices
It should be clear to consumers from whom they are buying, exactly what they are buying and how much it will cost when shopping online or ordering from a catalogue. The identity and address of the seller must always be clear.
The new information rights will also put an end to hidden charges, such as those associated with the "pre-ticked boxes" sometimes used in internet sales. In addition, the buyer will have to knowingly accept the total price before a sale is concluded.
• No extra red tape for small firms and tradesmen
To avoid creating administrative burdens for the local grocer or the workman doing home repairs, "day-to-day transactions" where the good is delivered "immediately" will be exempted from the information rules. If a consumer calls a tradesman to deliver a service at his home, such as replacing a broken window with a new pane, at a cost of less than €200, the information need not be in writing, but may be delivered orally.For urgent repairs, such as a burst water pipe, a right of withdrawal is considered inappropriate and will thus not apply.
The Council still needs to give its green light, but Parliament's negotiators hope to receive its final confirmation by Thursday 9 June. The deal will then need to be formally approved by Parliament in a plenary vote and by the Council. Parliament is expected to vote on the agreement at its June II or July plenary session.
Information from: http://www.europarl.europa.eu/en/pressroom/content/20110607IPR20822/html/Breakthrough-in-consumer-rights-negotiations
Committee: Internal Market and Consumer Protection
Date: June 7 2011
Brussels, 18 January 2011
A Greek consumer was charged by his bank twice while shopping in London. A Greek ADR led to the bank refunding the second charge to the consumer. In another case, a French consumer shopping in France asked to withdraw from a contract but was charged a €150 penalty. Following a French ADR the consumer was able to withdraw from the contract without charge. Today, the European Commission launched a public consultation on alternative dispute resolution schemes (ADR) for consumers. The Commission's aim is to increase consumer confidence in shopping in the Single Market by ensuring easier, faster and cheaper out-of-court (non-judicial) resolution of disputes between a consumer and a trader.
Currently, there are at least 750 ADR schemes in the EU, but consumers cannot always get the help they need. It is estimated that losses incurred by EU consumers who had problems constitute around 0.3% of Europe's GDP. The results of this consultation, open until 15/3/2011, will be used to shape the Commission's legislative proposal scheduled for November 2011.
John Dalli, the EU Health and Consumer Commissioner said: "All EU consumers should have at their disposal a simple, quick and inexpensive way to resolve their disputes with traders. The purpose of the consultation launched today is to lead to an initiative which will ensure that consumers feel more confident in the Single Market, feel safer shopping cross-border and that the burden on national courts is reduced". To conclude: "I invite all interested parties, including citizens, to participate to this on-line consultation".
Alternative Dispute Resolution (ADR)
ADR refers to schemes available to help consumers resolve disputes with traders when they have a problem with goods or services.
The defining characteristic of ADR is that it is non-judicial. It involves a neutral third party, such as an arbitrator or mediator, who can propose a solution or bring the parties together to help find a solution. ADR does not cover customer complaint handling systems by business, amicable settlements directly between a consumer and a trader, or mediation processes within the judicial system. It primarily concerns individual cases, but can also handle together several individual cases when they are similar.
ADR bodies have been more widely set up to solve disputes in the telecommunications, travel/tourism and financial services sectors. The need for ADR schemes is becoming pressing in the online environment given the increase in online shopping (from 22% in 2004 to 37% in 2009). Nevertheless, cross-border online transactions remain low (8%). One reason is the lack of confidence consumers have when shopping abroad. Indeed, 71% of consumers consider the resolution of problems more difficult when shopping abroad.
The Commission has already been active in promoting ADR. Two Recommendations on consumer ADR exist which establish a number of minimum guarantees, such as independence, that ADR schemes should respect. Several Directives either encourage or oblige Member States to set up ADR schemes in specific sectors (e.g. energy and telecommunications). The recent Directive on Mediation (to be implemented by May 2011) encourages judges to invite parties to settle their case via mediation.
Three main problems remain:
1) The absence of ADR schemes in some market sectors or regions of the EU
2) Limited awareness and lack of transparency: 40% of retailers do not know about ADR schemes, and there is little access to information for retailers and consumers. In 2009, only 3% of EU consumers took their case to an ADR body, and only 9% of European retailers actually used an ADR scheme.
3) Traders' reluctance to engage: 64% of ADR schemes are voluntary and only 6% of European traders are members of any scheme. Traders do not always comply with decisions reached since these are non-binding.
Further action at EU level is therefore needed in order to set up an EU-wide system as foreseen in the Commission work programme 2011.
Next steps
The consultation launched today will run for 8 weeks until 15 March 2011
A public hearing will be held in the European Parliament in late Spring 2011
The Commission's legislative proposal is scheduled for November 2011
For more information on ADR and other forms of redress in Member States:
European Commission is launching a campaign to raise awareness of passenger rights.
With the holiday season fast approaching and millions of Europeans intending on travelling within and outside the European Union, there are some travel considerations that Europeans should be aware of. Whether these concern travelling with a pet, thinking of importing non-EU food products into the EU or resolving travel disputes with an operator, these tips provide a useful insight into the ways in which the EU is working to help and assist EU travellers.
