The Malta Independent 24 May 2024, Friday
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Revising EU Consumer laws

Malta Independent Thursday, 22 February 2007, 00:00 Last update: about 11 years ago

Consumers – as a basic component of any economy – require a regulated environment that encourages trust. Legislation protecting consumers has long been in force. The European Union considers the promotion of consumer rights, prosperity and well-being as core values.

The EU acquis provides the minimum level of protection that should be afforded. Member states are free to legislate further in this sector, providing for a more favourable environment.

The concept of an internal market however presents a number of problems, particularly if there is any inconsistency in its application by the states, and in the case of businesses wishing to offer their services across borders.

A Eurobarometer survey conducted in October 2006 showed that 56 per cent of consumers believe that, when buying from businesses in other member states, they are less likely to find respect for consumer protection laws. Another 71 per cent are of the opinion that it would be harder to resolve problems and 65 per cent would find it problematic to return a product in such cross-border purchases. Such figures seem to point to an acute difficulty.

At this stage, it must be pointed out that an EU-wide network has been set up, specifically to offer assistance to consumers. The European Consumers Centres, found in various European countries, not only provide information and give advice with regard to complaints, but also assist in the resolution of disputes.

Recent developments, such as music downloads and on-line auctions, raise various issues that current legislation may not be able to tackle well. The same holds for the widespread use of software.

The European Commission admits that most of the applicable directives are not based on principles but are rather prescriptive and the evolving market can easily fall through a number of legal lacunae.

A process which commenced in 2004 seeks to review current EU legislation in the context of the drive to simplify and complete the current regulatory framework. On 8 February, a green paper outlining the review was published by the commission. The process has been limited to eight specific directives which refer to unjust contracts, holiday packages, timeshare deals, distance selling, indication of prices, and certain aspects of sales and associated guarantees.

The degree to which harmonisation should be effected, is being considered, besides other approaches. Various options are being mooted out by the commission in order to regain consumer confidence in the internal market. The need to make the process as least cumbersome as possible poses some difficulties.

It remains to be seen how stakeholders will make use of the three-month period of open consultation. The issues in question definitely affect a wide audience.

Will the commission be able to attain its target – that of ensuring that wherever one is in the EU, or wherever one buys from, one’s rights are the same? The current extensive consultation process augurs well, particularly if users’ experiences are also taken into consideration in the drive to improve the current legal framework.

Julian Micallef is a Consultation Coordinator at Forum Malta fl-Ewropa

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