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This independent blog collects news about projects or achievements in regulatory reform / better regulation. It is edited by Charles H. Montin. All opinions expressed are given on a personal basis.
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01 July 2011

Consumer rights improved in EU law after much discussion

Last week the European Parliament adopted, after much discussion (see previous post), the text of a new directive on consumer rights which had been under discussion since 2008 (on the basis of Commission proposal (2008)614)). The text still needs to be finallly voted by the European Council (planned for September) and published in the official journal. To take effect, the new rules will need to be transposed into national law before 2013.
The Commission press release lists 10 areas where the rights of consumers have been improved. The changes focus on eliminating hidden charges, increasing price transparency when making online payments to internet merchant accounts. What is special about this directive from a BR point of view? The lengthy discussion has shown how difficult it is to agree on a European-wide set of standards, even when the case is clear that EU law is outdated (in this case it predated the digital revolution). The UK, Austria and other member states have criticised the initial draft as offering guarantees lower than those in force in their respective national legislations.
According to a 27 June Euractiv dossier (the best analysis online of the recent development), "Consumer groups are broadly satisfied with new consumer rights legislation in Europe, but SMEs fear the law will increase administrative burdens on small traders." The reform may lift one of the obstacles to enhanced cross-border online trade (the outdated EU legal framework) though business cite legislative differences between EU countries as their main reason for not selling across borders.

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