Directive on Unfair Commercial Practices

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Unit B2 Consumer contract and marketing law
Directive on Unfair Commercial Practices Overview
, priorities and next steps Giuseppe Abbamonte,
Head of Unit Consumer contract and marketing
law
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UCP Directive Our priorities in 2009

• 1 - Adequate transposition
• 2 - Uniform interpretation
• 3 - Effective enforcement
• Crucial in order to achieve the aim of the UCP
  Directive uniform protection of consumers across
  the internal market and legal certainty for
  traders.

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UCP Adequate transposition
Unit B2 Consumer contract and marketing law

• 25 MS have transposed LU and ES cases referred
  to the ECJ (judgment on LU, C-282/08)
• Inadequate transposition two main concerns
• Concepts and provisions of the Directive
  inadequatly transposed
• Inadequate screening - more restrictive national
  rules on commercial practices which fall within
  the scope of UCPD
• Administrative and political contacts in 2008
• 4 references for preliminary rulings (2 BE, DE,
  AT) - Opinion of the Advocate General on joint
  offers in BE, no judgment yet
• Infringement proceedings have started and will
  continue in 2009
• EP resolution on UCP transposition and
  implementation (13/01/2009)  In cross-border
  transactions, consumers and businesses are
  hampered by incorrect and delayed transpositions
  of Directives by Member States .

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UCP Uniform interpretation

• EP resolution on UCP transposition and
  implementation (13/01/2009)  calls on the
  Commission to use this database to set up a
  single point of access website where both
  undertakings and consumers can retrieve
  information on the legislation in force in Member
  States .
• UCP Database
• - call for tender end of 2008
• - evaluation of the offers and signature of the
  contract 1st half of 2009
• Open access to all legislation, ECJ case-law,
  relevant national case-law and decisions,
  academic sources

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UCP Uniform interpretation Guidelines

• 3 working groups with the national authorities in
  2008 need for guidance on certain concepts (e.g.
  invitation to purchase material information use
  of the word  free )
• The Commission has started consultations (65
  responses received so far) and will continue to
  do so missions in certain MS workshop with
  national authorities before Summer break
  contacts with stakeholders.
• Scope and content of the guidelines more
  information in our afternoon session

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UCP - Effective enforcement
Unit B2 Consumer contract and marketing law

• 2 Sweeps in 2008 (airlines mobile phone
  services) partly using UCP Directive as legal
  basis price must be inclusive of taxes no
  hidden charges free means free no hidden
  subscription
• Further Sweeps in 2009
•  Health check  on the airline websites in May
  2009
• Improving enforcement, in particular cross-border
  more discussion in our morning session
• Improving awareness
• www.isitfair.eu
• Future digital guide for consumers
• Some ECCs suggest to have joint cross-border
  communication campaigns

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UCP - Effective enforcement - Targeting sectors
and practices
Unit B2 Consumer contract and marketing law

• Most problematic sectors and practices (according
  to the 57 responses received to the
  questionnaire)
• - n1 for ECCs (cross-border) timeshare related
  products and holiday clubs / aggressive
  practices, pressure selling, omission of
  information
• - n1 for national enforcers misleading or
  incomplete price in telecom services and
  financial services
• - fake lotteries and prize draws
• - unsolicited commercial communications (spams,
  SMS)
• - unsolicited supply of (cultural) products
• - new online services (astrology, health checks,
  online dating) hidden charges usage of word
   free  hidden subscription
• - internet services false free offers hidden
  subscription hidden charges omission of
  information or misleading information (in
  particular on the broadband speed).
• - airlines and car rental websites

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UCP Effective enforcement Targeting sectors
and practices

• The Commission will make a summary of the replies
  including
• a list of the most common unfair commercial
  practices
• a list of the most problematic sectors
• a list of the communication actions carried out
  by enforcers, ECCs and stakeholders
• This document will be discussed in our next
  working group on UCP enforcement (autumn 2009).

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UCP Next steps

• Infringment proceedings
• Guidelines
• Report on the application of UCP Directive to be
  submitted to the EP by June 2011
• Thank you for attention