Europaudvalget 2015-16
EUU Alm.del Bilag 862
Offentligt
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NOTE
September 2016
Response by the Danish government to the open consultation for the
Fitness Check of EU consumer and marketing law
General remarks
The Danish government welcomes and supports the Commissions effort
to check whether Unfair Commercial Practices Directive (2005/29/EC),
Price Indication Directive (98/6/EC), Misleading and Comparative Ad-
vertising Directive (2006/114/EC), Injunctions Directive (2009/22/EC),
Sales and Guarantees Directive (1999/44/EC) and Unfair Contract Terms
Directive (93/13/EEC) are fit for purpose and have no unintended conse-
quences.
It is important that the consumer legislation strikes a reasonable balance
between the interest of the consumers and the traders. The fundamental
rights for the consumers should be ensured while the companies should
not be imposed unnecessary burdens. In this regard, the Danish govern-
ment supports the Fitness Check in order to make the regulatory frame-
work better by reducing barriers, and removing unnecessary burdens to
make it easier for businesses to trade and for consumers to buy goods
across borders.
Activating consumers and reducing burdens
The consumption expenditure of households accounted for at least half of
GDP in the majority of EU Member States in 2014.
1
Thus, the consumers
are a vital part of the growth creation in the EU and the behaviour of con-
sumers is essential in creating well functioning markets.
The environment, in which consumers, act has changed over the past 20
years because of the digitisation and new technologies. New business
1
http://ec.europa.eu/eurostat/statistics-
explained/index.php/National_accounts_and_GDP#Household_consumption
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models challenge the traditional concept of producers, consumers and the
point of sale. And new digital possibilities provide the consumer with
tools to e.g. compare products, prices and share user reviews. The devel-
opment has led to a change in relations in power between the consumers
and the traders and empowered consumers.
The development in behavioural economics has led to recognition of the
consumer not acting rational in every purchase situation, even when pre-
sented to adequate information. A modern consumer and marketing legis-
lation should pay attention to the actual behaviour of the consumer and
reducing burdens on companies by among others abolishing the approach
on more information is better information.
Coverage
The Danish Government acknowledges the directives chosen, however
we find one directive missing. The Commission has decided the E-
Commerce Directive should not be a part of the Fitness Check. However,
there are a number of information obligations in the E-Commerce Di-
rective linked to the information obligations in the chosen directives
which are subject to the Fitness Check. The Danish government is of the
opinion that the Commission should include the information obligations
in the E-Commerce Directive in the Fitness Check of the consumer ac-
quis, see below.
Information obligations
The consumer legislation is comprehensive and places a great amount of
information obligations on the traders. E-commerce companies are e.g.
obliged to comply with a large number of different contractual or pre-
contractual information obligations. Hence, consumer contracts are often
long. This is burdensome to both the traders and the consumers, whom
are expected to read and understand extensive contractual information in
a purchase situation. The Danish government urges the Commission to
look at the information obligations in the directives in order to streamline
the obligations, including the information obligations stemming from the
E-Commerce Directive. In this regard, the Danish government is of the
opinion that only the most important and beneficial information should be
given the consumers in a purchase situation and be presented in a simple
and legible manner.
Behavioural insights should be used in creating optimal information at
the right time and in the right context. Furthermore, the impact of the
information on consumer behaviour should be tested in a true environ-
ment before implementing new rules in order to secure effectiveness.
This could be done in selected countries.
Enforcement of the EU-legislation
In our dialogue with Danish businesses the lack of enforcement of the EU
consumer legislation is frequently mentioned as an issue that might com-
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plicate cross-border sales and distort competition. The Danish govern-
ment therefore welcomes the revision of the CPC-regulation and a more
formalized and coordinated cooperation between the enforcement au-
thorities.
Implementation guidelines should be published at the same time as new
legislation
When new legislation is published in the Official Journal it should be
followed by implementation guidelines describing the intentions of the
content of the legislation and why the co-legislators have crafted the leg-
islation in a given way. It will help to ensure a more unified implementa-
tion and enforcement of the given legislation. Further, later guidelines
published as a consequence of among others rulings of the European
Court of Justice should be crafted together with the member states and
not only by the Commission.
Coherence within the consumer acquis
It is important to ensure overall consistency and coherence between the
different consumer instruments in order to avoid a fragmented legislation.
In this regard, several stakeholders have pointed out that it is undesirable
that definitions differ from one consumer instrument to another. As an
example it is mentioned that the definition of ‘digital content’ in the
Commission proposal for a directive on certain aspects concerning con-
tracts for the delivery of digital content differs from the Consumer Rights
Directive’s definition of the same concept. Further, it has been pointed
out that the pre-contractual information requirements stemming from
different consumer instruments often overlap and that they should be
streamlined to the furthest extent possible.
On that basis, the Danish government invites the Commission to assess
the possibility of aligning the consumer legislation in order to remove
unnecessary burdens and to ensure greater coherence in the legislation to
the benefit of both consumers and traders.
Specific remarks
Unfair Commercial Practices Directive (2005/29/EEC)
The scope of the UCPD
There is a need for clarification of when commercial practices fall outside
the scope of the UCPD. According to the new guidelines, the UCPD does
not cover national rules intended to protect interests which are not of an
economic nature. Conversely, national rules that aim to protect the eco-
nomic interest of consumers, in conjunction with other rules, do fall with-
in the scope. It is not entirely clear when a national rule falls outside the
UCPD. Even if the scope of a rule is to protect interest that relates to taste
and decency, the same rule often also aims to protect the economic inter-
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est of consumers, e.g. commercial solicitation in the streets (recital 7 in
the UCPD). In this example the aim is to protect consumers against ag-
gressive marketing from a cultural perspective. But it is also to ensure,
that consumers do not feel pressured to make a deal with a trader.
Further, it is unclear, whether it is only provisions that aims to protect
taste and decency, health and safety and contract law that falls outside the
scope of the UCPD or if it is all national rules that intend to protect inter-
ests, which are not of an economic nature.
Inconsistent in the use of terms
The use of terms in the UCPD is inconsistent. As an example, article 5
(2) (b) states, that a commercial practice is unfair if it materially distorts
or is likely to materially distort the economic behaviour. According to
article 6 a commercial practice is misleading and thus unfair if it causes
or is likely to cause the consumer to take a transactional decision that the
consumer would not have taken otherwise. These two phrases should be
interpreted uniformly. Since the wording is inconsistent, it may raise
doubts.
Another example is the use of the term of "commercial communications".
This term is defined differently in UCPD article 2 (d), compared to article
2 (f) in the E-Commerce Directive.
The terms “marketing” and “advertisement” are also used inconsistently
in different directives.
Hidden marketing in social media
It is essential that the UCPD is evaluated in terms of the technological
developments that have occurred since its creation. Social media such as
Facebook, Instagram and blogs enable users to create profiles and com-
municate with each other. It is uncertain how the assessment of the term
in article 7 (3) of "limitations of space or time" and the "measures as the
operator has taken to make information available to consumers by other
means" should be interpreted in relation to the new marketing opportuni-
ties in the social media.
Vulnerable consumers
In article 5(3) consumers can be vulnerable where certain characteristics
such as age, physical or mental infirmity or credulity make them particu-
larly susceptible to a commercial practice or to the underlying product. It
is unclear whether the listing of vulnerable consumers in the UCPD is
exhaustive. This leads to uncertainty in relation to the interpretation of
the rule.
Invitation to purchase
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It is unclear when something is “an invitation to purchase” according to
article 2 (i), or whether it is only marketing. This is important in relation
to the businesses obligations to provide the correct price information.
Price Indication Directive (1998/6/EC)
It is important to have regulation regarding price information. But there is
a need to update the existing directive, which was adopted in 1998, when
E-Commerce was practically non-existing. Therefore the directive has not
taken a position on whether it applies in both physical stores and online.
The rules should also be evaluated in conjunction with the rules in the
UCPD and Directive 2006/123/EC on services in the internal market. For
example pricing of services is highly relevant, especially when booking
travel services on the internet.
Injunctions Directive (2009/22/EEC)
The Danish consumer enforcement authorities have never used the In-
junctions Directive. In connection with the revision of the CPC Regula-
tion it should be considered whether the Injunctions Directive is relevant,
or if it might be appropriate to incorporate some of the provisions into the
CPC Regulation.
Commission Proposal for a Directive on certain aspects concerning con-
tracts for the online and other distance sales of goods
In the Consumer Sales Directive the deadline for pursuing remedies in
case of non-conformity is set at two years from delivery of the goods.
This corresponds to the deadline suggested in the proposal for a directive
on online and other distance sales of goods. However, the possibility set
out in the Consumer Sales Directive for a Member State to require that
the consumer notifies the seller about the lack of conformity within a
certain deadline is not included in the mentioned proposal for a directive.
Furthermore, the proposal extends the period of time during which the
consumer asking for a remedy in case of non-conformity does not have to
prove that the defect existed at the time of delivery from 6 months to 2
years (presumption of non-conformity).
Some Danish stakeholders argue that the suggested extension of the peri-
od of presumption of non-conformity which lays the burden of proof ex-
clusively on the trader for 2 years imposes an unnecessary burden on the
traders, who in general already provide warranties with a warranty period
longer than 2 years.
Other stakeholders argue that it is important to ensure uniform rules re-
gardless of whether a sale happens online or offline and thereby avoid
fragmentation of the regulation of consumer protection in connection
with a sale.
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As stated above, the Danish government finds it important that a reasona-
ble balance is struck between the interest of the consumers and the trad-
ers, and that consistency between the different consumer instruments is
ensured.
Unfair Contract Terms Directive (1993/13/EEC)
The Danish government supports rules on unfair contract terms. The Dan-
ish authorities are not aware of any malpractice in relation to the Unfair
Contract Terms Directive. This is seen as an indication that the rules have
the intended effect and therefore it is not deemed necessary to introduce a
“black list” of contract terms that are always prohibited.
However, some stakeholders suggest that it might be relevant to examine
whether – within certain sectors, including supply of digital content –
there is a need for a black list of contract terms.
Consumer Rights Directive (2011//83/EU)
The Danish stakeholder organisations have on several occasions stressed
the practical challenges related to the right to return used goods according
to article 14 (2) in the Consumer Rights Directive. They argue that it is
difficult for the traders to re-sell the returned used goods subsequently
and that there is uncertainty about the calculation of the diminished value
of the goods.
On that basis, the Danish government invites the Commission to examine
the benefits of this specific article further in the light of the criteria set out
for REFIT, including the criteria regarding efficiency, relevance and EU
added value.
In this connection, it is noted that the rule in article 13 (3) (d) in the
Commission Proposal for a Directive on certain aspects concerning con-
tracts for the online and other distance sales of goods is almost similar to
Article 14 (2) in the Consumer Rights Directive.