51999IR0181

Opinion of the Committee of the Regions on the Communication from the "Commission on the Consumer Policy Action Plan 1999-2001"

(2000/C 57/12)

THE COMMITTEE OF THE REGIONS,

having regard to the Communication from the Commission on the Consumer Policy Action Plan 1999-2001 (COM(1998) 696 final);

having regard to the decision taken by its Bureau on 15 July 1998, under the fourth paragraph of Article 198c of the Treaty establishing the European Community, to draw up an opinion on the subject and to direct Commission 5 (Social Policy, Public Health, Consumer Protection, Research and Tourism) to undertake the preparatory work;

having regard to the Draft Opinion (CdR 181/99 rev. 2) adopted by Commission 5 on 6 September 1999 (rapporteur: Mr Jung, D, PPE);

unanimously adopted the following opinion at its 31st plenary session of 17 and 18 November 1999 (meeting of 18 November).

1. Introduction

1.1. Point of departure

1.1.1. The globalisation of the markets and technological developments are having an increasingly far-reaching and sustained impact on services, products and marketing methods. Consumers are offered an ever wider choice of an ever growing range of new products. Increasingly too, these products are no longer manufactured in the consumer's own Member State, or even in the European Union. Technical innovation and scientific progress are ushering in more and more complex and modern production processes and inputs, the long-term effects of which (on inter alia consumer health and safety) cannot, as yet, be predicted beyond all doubt.

1.1.2. This development means new tasks for consumer policy, and will, as a result, have an impact on how that policy is framed in the future. European consumers expect high health and safety standards from products and services; such expectations have been the benchmark for the future policy of both Member States and the European Union, particularly in terms of enforcement, risk assessment and legislative capacity. With developments here changing rapidly, consumers are required to have extensive knowledge and judgement skills, which they have not, to date, always been able to acquire in every field. As a result, the European Commission expects governments in the Member States to come under increasing pressure to act, and feels that what will be needed in future is not only better cooperation and coordination in relation, among other things, to regulation, but also more flexible and more responsive approaches and more objective policymaking involving independent scientific assessment. Furthermore, consumers must have wider and better access to information.

1.1.3. In the service sector too, markets - and with them consumer expectations - are changing. For instance, an increasing number of non-specialist consumers are seeking complex financial services, such as privately run pension plans. Unlike goods, however, services are tailored more to individual consumer needs, making comparisons with other providers difficult, and thus reducing competitive pressure. Future consumer policy in this field will have to take account of the increasing complexity of the supply side, including the legislation, which, to some extent, is already in place.

1.1.4. Over the past few years, liberalisation has wrought a lasting change in the provision of certain services which used to be exclusively publicly run. These services were liberalised mainly to benefit consumers through increased competition. The European Commission notes that, in fact, supplementary measures may be needed to achieve the successful outcome desired.

1.1.5. The rapid spread of new information and communication technologies, particularly the internet, is revolutionising marketing and selling methods. Via the internet, consumers can access a wide range of desired information and resources. At the same time, risks may be involved, not least since the legal framework for electronic commerce is not yet complete. At European level, the need to move on this issue is opening up a whole range of areas for action.

1.2. Background

1.2.1. Under the Amsterdam Treaty, the newly drafted Article 153 requires the Community to ensure a high level of consumer protection and to promote the interests of consumers. Under this article, the Community must also contribute both to protecting consumers' health, safety and economic interests and to promoting their right to information and education and their right to organise themselves in order to safeguard their interests.

1.2.2. The Maastricht Treaty was first to recognise a high level of consumer protection as an EU Treaty objective in its own right. Under the Amsterdam Treaty, Article 153 confirms, reinforces and develops this objective further. Another key element in the ongoing development of consumer policy is that, in future, consumer protection requirements are to be taken into account when formulating and implementing other Community policies and activities.

1.2.3. The Committee of the Regions had also called for such a reinforcement of consumer rights, and for confirmation in the Amsterdam Treaty of consumer policy as a policy area in its own right, in its opinion of 13 June 1996 on the communication from the Commission on priorities for consumer policy 1996-1998(1).

1.3. Purpose

In this opinion, the Committee of the Regions is seeking

- to make a further contribution to improving consumer protection and consumer rights in the European Union;

- to support the European Commission in implementing its Consumer Policy Action Plan 1999-2001;

- to make proposals on improving consumer protection;

- to highlight the responsibility borne by Member States and local and regional authorities in making consumer protection a reality in Europe;

- to promote active cooperation in consumer policy between the European Commission, the Member States, regional and local authorities, industry, consumer associations and consumers themselves.

2. Content of the Consumer Policy Action Plan 1999-2001

The European Commission's Consumer Policy Action Plan 1999-2001 outlines a framework of tasks designed to give a more powerful voice to consumers throughout the European Union, to ensure a high level of health and safety and to guarantee full respect for the economic interests of EU consumers. The European Commission's aim in pursuing these three priority objectives is to put consumer protection on track for the next millennium.

2.1. A more powerful voice for the consumer throughout the EU

2.1.1. The European Commission proceeds from the assumption that consumers bear a certain responsibility of their own to look after and further their interests. However, ever more complex scenarios and the steady growth of available data - a result, not least, of developments in the information society - mean that, to do this, consumers have to rely on effective and objective support. This is particularly true of certain sections of society.

2.1.2. Efficient consumer associations are essential to effective consumer representation. Such associations need financial and technical support in order to be able to inform, advise and represent consumers effectively, appropriately and independently. To this end, annex 1 of the European Commission communication proposes training courses for consumer associations as flanking measures to existing vocational training schemes; further training is also proposed.

2.1.3. The European Commission underscores the importance of dialogue as a means of ensuring that appropriate account is taken of consumer interests relative to the interests of other social players. This applies not only to dialogue between consumers and business and between local, regional and national authorities and the European Commission, but also to dialogue between the European Commission and both non-Community countries and international organisations.

2.1.4. To give consumers a more powerful voice, the Commission is planning not only to step up consultation with consumer associations within the European decision-making process, but also and in particular to promote specific dialogue between consumers and business to enable them, where possible, to agree on self-regulation as a means of resolving potential or existing conflicts. In order to take appropriate account of consumer concerns, the European Commission's Consumer Committee is in future to be consulted on matters relating to enforcement, training and European Union information campaigns. The Commission is seeking to promote consumer-business dialogue by providing resources to stage (annual) grassroots-level sectoral dialogues between the two sides.

2.1.5. Dialogue between the European Commission and consumers using the European single market is to be deepened and widened by setting up additional Euroguichets, European consumer information and advice offices; increasingly, Euroguichets are also to carry out public relations work in cooperation with consumer associations. To improve the flow of information for all concerned and for beneficiaries of these facilities, the European Commission is planning to network its offices and the Euroguichets.

2.1.6. The European Commission also feels that it is vital to promote consumer education in the Member States. The Union is to help in this field by working together with national, regional and local authorities to promote exchanges of good practice in integrating consumer education into the school system. The Commission will thereby seek to focus on the development of teaching materials, teacher training and the interaction between schools and their local environments.

2.2. A high level of health and safety for EU consumers

2.2.1. Over the next three years, the European Commission's priorities in this field will be as follows:

- science-based policymaking

- safer products

- safer services

- better enforcement, monitoring and response to emergencies.

2.2.2. The Commission action plan points out the increasing risks to consumer health and safety as a result of more complex products and services, and highlights the need for a consistent and objective approach to policymaking, based on independent scientific risk assessment. In this regard, the European Commission also feels that it is imperative to ensure rapid identification and assessment of unforeseen hazards to consumer health and safety, and a fast and appropriate response.

2.2.3. The European Commission is thus seeking to make the work of the scientific committees stronger and more efficient by, among other things, producing harmonised guidelines on their procedures and methodologies. In this connection, the Commission also plans to study the introduction of "peer reviews" and the establishment of a cooperation network between the scientific committees and relevant national bodies. In addition, the Commission intends to examine how far the dynamics of the overall risk management process can be improved as part of a coherent approach to risk analysis. The action plan also makes reference to the development of guidelines on the extensive application of the precautionary principle at European level.

2.2.4. Hazards for consumers do not stop at the EU's external borders. The aim is therefore also to come to an international consensus on risk analysis in the field of food and product safety and on the introduction of the precautionary principle.

2.2.5. In the field of food law, the action plan announces the intention to publish a communication on areas of particular relevance to consumers, namely food labelling, hygiene and inspection, and to draft a proposal for a framework directive on food law. Furthermore, plans are under way to simplify and tighten up the veterinary hygiene directives and the food hygiene directive. Changes to existing legislation are also aimed at reinforcing auto-control by operators throughout the whole food chain and at more intensive Commission auditing of national controls.

2.2.6. As well as announcing publication of a report on the implementation of the directive on general product safety and proposals for its revision, the action plan also promises, among other things, to improve the child safety of products and childcare articles through new or revised product standards.

2.2.7. To improve consumer protection in the service sector, proposals are to be put forward, where required, on service safety and the liability of service providers.

2.2.8. The rapid alert system for hazardous consumer goods is to be improved and upgraded. In addition, a network of experts to be called upon in emergencies is to be constituted. With the help of the Food and Veterinary Office in Dublin, the objective of safer foodstuffs is also to be reached by means of a risk management system and by introducing controls over the whole food production chain, including checks on the control services. The Commission explicitly states that infringement proceedings may be pursued to ensure that Community legislation is transposed and applied in the Member States.

2.3. Full respect for the economic interests of EU consumers

2.3.1. In this section, the European Commission points out the extensive regulatory framework already in place to promote consumer interests. One job over the next few years will, in its view, be to update this framework and fill remaining gaps. The Commission also feels that efforts must be made to ensure that existing legislation is effectively enforced. Hence, better administrative cooperation is, in the Commission's view, another priority objective. Moreover, the Commission is planning action to improve both enforcement and the transposition of existing legislation into national law. The Commission also calls for a balance to be struck between regulatory and non-regulatory approaches (the area of soft law).

2.3.2. As part of the review of existing directives, the European Commission plans to submit proposals to bring consumer credit legislation into line with current credit offering methods and practices. The Commission will also examine the different approaches to combating over-indebtedness and, if necessary, issue recommendations. Consideration is also to be given to possible improvements in the existing regulatory framework for insurance intermediaries in order to make it easier to conclude cross-border contracts. Moreover, the European Commission will examine whether the recommendations set out in its communication "Boosting customers' confidence in electronic means of payment in the single market" have been properly implemented. If that is found not to be the case, the Commission will propose a directive in this area.

2.3.3. The Commission's work on the euro will focus on monitoring the three existing recommendations in this field. Legislation is being considered here on dual display of prices and measures to promote consumers' interests in the area of electronic money.

2.3.4. The European Commission also intends to make use of the reporting requirements relating to existing legislation in order to review that legislation thoroughly. The following reports are to be submitted as part of the action programme:

By the end of 1999:

- report concerning the application of the directive on unfair contract terms

- report on the feasibility of establishing effective means to deal with consumers' complaints

- report on the application of the directive on comparative and misleading advertising.

By the end of 2001:

- report on the implementation of the directive on distance selling

No given time frame:

- report on the application of the directive on injunctions.

In addition to this review of current legislation, the Commission also announces proposals to fill the gaps in the existing regulatory framework. These proposals are expected to address the sale of "miracle products", misleading health claims and pyramid selling.

2.3.5. Other key tasks for the Commission under this action programme include enforcement, and monitoring the transposition of Community law. Enforcement implies facilitating and improving administrative cooperation between Member States, between Member States and the European Commission, and between Member States and consumer associations. There is also to be better coordination of enforcement by national agencies.

2.3.6. In the field of access to justice for consumers, the Commission's top priority is the practical application of the directive on injunctions. Backing is also to be given to implementing the measures and recommendations set out in the communication on out-of-court settlement. In addition, the Commission plans to consider whether there is a need to make it easier for consumers to take legal action collectively.

2.3.7. Finally, the Commission will also take steps to better integrate consumers' economic interests into other EU policy areas. In the first place, the Consumer Policy Action Plan mentions services of general interest. Here, the aim is to secure the right balance between the requisite market liberalization and consumers' desire for real choice in terms of affordability, quality of service and the transparency of what is on offer. The Commission also intends to bring consumer concerns more forcefully to bear in matters relating to the information society. The information society may have the potential to deliver major benefits to consumers, but it also puts their interests at risk, particularly as regards security of payment systems and the apportionment of responsibility and liability.

3. General comments

3.1. The Committee of the Regions is pleased to note that, pursuant to the Amsterdam Treaty, the European Commission has published a communication on the Consumer Policy Action Plan 1999-2001. This communication sets out future consumer policy measures and activities in the light of the Amsterdam Treaty and indicates the sectors in which the Commission intends to focus its efforts over the next three years.

3.2. The Committee of the Regions feels that the high level of consumer protection in the European Union - enshrined in Article 153 of the Amsterdam Treaty and an objective in its own right - is a necessary supplement to the European single market. In this respect too, the Committee expressly welcomes publication of the European Commission's Consumer Policy Action Plan.

3.3. The Committee feels that this Commission action plan covering the period 1999-2001 is a fundamental tool for the further development of European-level consumer protection. The Committee would however point out the general nature of the action plan; in this respect, when it comes to implementation, it will be essential to flesh out the relevant measures and, above all, to carefully examine the need for Union legislation before any action is taken.

3.4. The Committee of the Regions backs both the approach put forward by the European Commission to reinforce consumer policy at European level and the priorities it sets out: a stronger voice for EU consumers, high standards of consumer health and safety and full respect for the economic interests of consumers in the Union. The Committee would stress, however, that under Article 153 of the Amsterdam Treaty, the European Union is enjoined merely to "contribute" to this objective.

3.5. The Committee of the Regions would emphasise that the Community's consumer protection policy should not be framed along defensive lines but, after careful consideration, should address current areas of difficulty constructively and supportively. It should particularly encourage European consumers to play an active part in this process.

3.6. The Committee of the Regions would however also stress that Community consumer policy must be in accord with the principles of subsidiarity and proportionality pursuant to Article 5 of the Amsterdam Treaty. The Committee urges compliance with the subsidiarity principle particularly with regard to the Commission's intention to become more involved in enforcement, and would point out that enforcement of EU legislation is a matter for the Member States and, in some cases, the regions.

3.7. Consumers do have a certain responsibility to look after their own interests; however, especially in such areas as the establishment of a functioning market, the liberalisation of services of public interest, health issues and when it comes to analysing the vast amounts of new data available in particular via new media, the Committee feels that consumers depend on protection from the authorities and support from consumer associations. As a sine qua non for the exercise of their rights, EU citizens' right to information, to organise themselves and to education must be considered fundamental and must be promoted. That said, the Committee of the Regions would also point out that, as part of the process of economic and social development within the European Union (e.g. the issue of population ageing(2)), authorities and consumer organisations increasingly come up against concerns from groups of people who are materially or personally handicapped in some way and thus prevented from taking full responsibility for themselves as consumers; this makes them particularly reliant on support.

3.8. The Committee of the Regions is pleased that the European Commission both highlights the value of proficient and effective consumer associations and intends to promote them. This is of key importance, not only for consumers, but also for consumer policy at local, regional, national and European level. Consumer associations must be in a position to harness and assess the ever increasing volume of data in order to be able (i) to provide effective advice to consumers and, (ii) to properly represent consumer interests at a political level within the decision-making process.

3.9. This is also a basis for meaningful dialogue between consumers and industry as equal partners. In this connection, the Committee particularly welcomes the Commission's plan to promote regular sectoral dialogue aimed at framing self-regulatory measures. Not only can such an approach, involving as little legislative input as possible, help relieve the pressure on legislative bodies, but it can above all help boost players' sense of responsibility at local and regional level. The Committee of the Regions would stress, however, that this approach must not be allowed to develop to the detriment of consumers and that, in the final analysis, the option of legislation must be retained in the interests of consumer protection.

3.10. The Committee of the Regions also particularly welcomes the priority treatment given by the European Commission to systematic consumer consultation, as well as moves for more coordinated sectoral consultation and the planned setting-up of a network of expertise on consumer issues.

The Committee feels that this network, which, using modern means of communication, could be relatively cheap to run, should include not only the Euroguichets, but also the regional and local authorities and existing consumer organisations. In the interests of optimising the transparency that is fundamental if people are to accept the European Union and have confidence in the single market, the Committee of the Regions also endorses the proposal to systematically catalogue, summarise and publish current European and national consumer law.

3.11. The Committee particularly welcomes the European Commission's intention to take better account of consumers' economic interests in other policy areas too. The Committee feels that this will inevitably result in making other EU policies even more consistent with consumer protection than they have been to date.

4. Specific comments

4.1. The Committee of the Regions would stress that paying greater attention to consumer interests can considerably boost public support for the European Union. Popular disapproval is most apparent in fields where expected EU action - on health or in the foodstuffs sector, for example - fails to materialise or is inadequate. European consumer policy is of key strategic importance in bringing ordinary people closer to the European Union.

4.2. Children and young people have rapidly growing access to modern means of communication. As a result, the Committee of the Regions feels it is particularly important that this section of society be educated on how to become open, yet critical consumers who, above all, are aware of their own responsibilities; this is also a task for schools. Furthermore, young people today move much more naturally within the single market than was the case even just a few years ago. It is thus also logical to include the European dimension of consumer protection in education targets. For this reason, the Committee of the Regions, while pointing out the need to respect the subsidiarity principle, endorses the Commission's offer of help in this area.

4.3. The Committee of the Regions welcomes the Commission's future intention to adopt a science-based approach to risk analysis and assessment when drafting measures and decisions. The BSE affair, and the profound loss of European consumer confidence as a result, highlighted all too clearly the need for such an approach at European level. In future, any food brought into circulation must be guaranteed safe, healthy and fit for human consumption.

4.4. It is essential, for guaranteed food safety, to ensure that the entire food production chain - from manufacture to sale to the final consumer - is thoroughly and effectively covered. Member States and regional and local authorities are called upon to optimise and, with European Commission support, to better harmonise their control activities. In this connection, the Commission is asked to draft and submit a framework directive on overall food law as quickly as possible, establishing the basic principles of Community food law and clearly defining the responsibilities of the players concerned.

4.5. The Committee of the Regions welcomes the Commission's intention to submit a communication on follow-up measures in those areas of particular relevance to consumers, namely food labelling, hygiene and inspection. In this connection, the Commission is called upon to substantially extend the food labelling obligation so that consumers are fully informed about the contents, ingredients and origin of all foodstuffs. This also applies in particular to foodstuffs which contain or are produced from or with the aid of genetically modified organisms. The Committee of the Regions would point out that comprehensive food labelling is also required in the interests of consumers who suffer from allergies. Full details of contents and ingredients are essential to enable this group of consumers to select foodstuffs without risk.

4.6. The precautionary principle must also be a key consideration for the European Commission, Member States and regional and local authorities. The Committee of the Regions calls on the European Commission to give this principle form and substance so that it can be put into practice, and to draw up clear, effective guidelines for its application.

4.7. The Committee of the Regions would stress that the uniform and proper application of Community law in the Member States is essential both to the operation of the European single market and to consumer confidence, and must be monitored. Checks on the performance of the relevant inspection services and authorities - including the use of audit techniques - are deemed an appropriate means of determining whether, in the field of food monitoring, the requisite control measures are being carried out effectively and consistently across the entire single market. This helps ensure the uniform application of Community law. The Committee would, however, stress here that the remit for foodstuff control lies - and must remain - with the Member States and regional and local authorities.

4.8. The Committee of the Regions backs the Commission's intention to mandate the European standard-setting organisations to draw up new product standards or to revise existing ones, particularly in relation to child safety and childcare products. However, appropriate provision should be made to involve European consumers in the forthcoming standard-setting procedures.

4.9. The Committee welcomes the Commission's plan to improve and upgrade the rapid alert system for hazardous consumer goods. In order to ensure that, particularly in the food sector, the appropriate authorities in the Member States are able to respond quickly and effectively, warnings must focus on cases of acute health risk. These authorities must also be given the requisite information on the distribution routes of hazardous products so that they can take immediate, targeted action. Communications of a more general nature should be easily distinguishable from warnings.

4.10. The Committee of the Regions recognises that self-regulatory commitments by industry or voluntary agreements between consumer associations and industry are a welcome supplement or alternative to legislation. However, such commitments and agreements must be commensurate with the aim of a high level of consumer protection. Moreover, proper implementation and monitoring of these tools is vital if they are to be effective.

4.11. The Committee of the Regions expressly welcomes the Commission's intention to update current rules on consumer credit, bringing them into line with current marketing methods and conditions.

4.12. European consumers are very keen to be able to take part fully in the opportunities offered by electronic communication and evolving e-commerce. This requires not only considerable developments on the technical front, but also further adjustments to the legal framework. The Committee of the Regions specifically points out that the framework designed to secure consumer protection in the information society can only sensibly be laid down at European and world level.

4.13. In the current debate on the draft directive on the distance marketing of financial services, Member States broadly agree that the starting point for the discussions should be the arrangements set out in the general distance selling directive. There is also agreement to reject full harmonisation under this directive, given current levels of harmonisation in the field of civil law. The Committee of the Regions backs the view that setting minimum standards has priority here, since this allows Member States to secure a higher level of protection.

4.14. The Committee of the Regions welcomes the European Commission's intention to examine whether there is a given need to make it easier for consumers to take legal action collectively. However, the Committee would point out the fundamental reservations felt in some Member States against any further expansion of the right to bring collective actions since, in these countries, individual consumer rights are assumed to be easily accessible to all.

5. Conclusions

5.1. European consumers will judge the EU's consumer policy above all by its ability to ensure that only unblemished, healthy foodstuffs and safe products and goods are put into circulation in the European Union. For this reason, the Committee of the Regions feels that this should be a key plank of the work to be done over the next three years. Also from the point of view of consumer protection, the Committee would, in future, like to see more attention devoted to the high levels of drugs, particularly antibiotics, used in animal feed and thus in the production of foodstuffs of animal origin, as well as to hygiene standards.

5.2. The Committee of the Regions would call on the Commission to be forceful in its representation of European consumers' health, safety and economic interests in the relevant international bodies and in international trade relations.

5.3. Moreover, the Committee of the Regions would stress the need to forge ahead with the approximation of European consumer protection law on the basis of minimum standards. Thus, in line with the Treaty, Member States retain the option, where required, of going beyond the minimum level of protection nationally, and also of taking appropriate account of specific national factors in implementation.

5.4. The Committee of the Regions recognises that European consumers are increasingly interested in information on the origin and composition of products on the market. The Commission is therefore called upon to substantially extend the food labelling obligation in the interests of consumer protection. Furthermore, the Committee would also like to see legislation to facilitate the provision of data on products' regional origin.

5.5. Given increasing market globalisation, consumers must be protected from violations on the part of international operators. The Community should therefore also redouble its efforts in those areas dealing with consumer protection on the global markets.

5.6. The Committee of the Regions welcomes the fact that the European Commission considers stronger consumer representation at European and international level as a policy objective in its own right. The Committee therefore calls on the Commission to give the necessary importance to consumer protection within the enlargement process too and to support the candidate countries in particular in framing national consumer protection arrangements of their own. As part of this process, the Committee feels it is essential to build up lasting, transnational cooperation among regional consumer protection organisations from both current and prospective Member States.

5.7. The Committee of the Regions backs moves to standardise rights in the consumer protection directives. It makes sense, for example, to harmonise the different withdrawal rights and deadlines, to have standard definitions of consumers and enterprises and to develop a standard form of words in the international private law clause.

5.8. The Committee of the Regions believes that, as the key point of contact for ordinary consumers, it is more important to upgrade and network existing consumer protection organisations at national, regional and local level than to set up further Euroguichets.

5.9. The Committee of the Regions welcomes the plan to systematically catalogue, summarise and publish current European, regional and national consumer law. It also proposes including companies' self-regulatory commitments in a databank of this kind.

5.10. The Committee would ask the European Commission to keep it informed, at appropriate intervals, on the implementation of the action plan and on progress made.

Brussels, 18 November 1999.

The President

of the Committee of the Regions

Manfred DAMMEYER

(1) CdR 221/96 fin - OJ C 337, 11.11.1996, p. 49.

(2) Cf. CdR 388/97 fin - OJ C 251, 10.8.1998, p. 36 - Opinion of the Committee of the Regions on the demographic situation in the European Union, 1997.