Towards a true European Market for retail financial services- responses published

On 14 July 2016 the EU Commission has published the responses (those authorized for publication out of 428 responses received), including a very informative summary of responses (available here) in regard to the Green Paper on retail financial services.

The Green Paper is part of the comprehensive public consultation towards a 'true European market for retail financial services' that the EU Commission launched on 10  December 2015 (on which we have reported earlier). The Green Paper aims to explore the ways in which the EU market for retail financial services, i.e. insurance, loans, payments, current and savings accounts and other retail investments could be further opened up while maintaining an adequate level of consumer protection. It seeks to identify the barriers that consumers and firms face in making full use of the Single Market and the ways in which these barriers could be overcome, including the best use of technology.

Towards a true European Market for retail financial services

In December 2015 the Commission commenced a comprehensive consultation on steps to take to create a 'true European market for retail financial services'. Stakeholders, including consumers are invited give their views on the ways to improve choice, transparency and competition in retail financial products and services, and ways to facilitate the cross-border provision of these products and services. The consultation is focused around insurance, mortgage, loans, payments and bank accounts.

The consultation seeks to engage stakeholders in various ways. Consumers can record and share their experiences, and consumers and interested stakeholders had already a chance to participate in a live chat with the Commission (see our earlier post here). Besides these, stakeholders can also submit their written responses to the questions outlined in the Green Paper on retail financial services.

In line with the general framework of the consultation, the Green Paper seeks our input on how to improve cross-border access to financial services, and thereby improve competition in retail financial services sector and improve consumer choice in products and services. The Commission aims to identify the specific barriers that consumers and firms face in using the internal market, and identify the ways to overcome those barriers, including the best use of digital technology.

Responses can be submitted by 18 March 2016.

Green paper on the Safety of Tourism Accommodation Services

The European Commission opened yesterday a public consultation with regard to the consumer safety when using tourism accommodation. While it is up to the Member States to assure the safety of tourism accommodation services, the European Commission recognizes that due to the often cross-border character of these services some quality and safety measures' standardisation could be needed. Even if as the result of the consultation it is decided that the measures used in different Member States do not need to be harmonised despite their variety, it may be necessary to ensure better information provision to tourists, so that they know what safety standards to expect in which countries and that their protection is adequate across Europe. The consultation is open until 30 November 2014 and the questionnaire may be filled by anyone interested in this matter on this website. The Green Paper is available here. We will report on the results of this consultation and any further steps taken in this legislative area next year.

Green paper on geographical indications (GIs) for non-agricultural products

Scottish tartans soon protected as GI?

While others are on holiday, the Commission launched a Green Paper consultation on a possible extenision of geographical indication protection to non-agricultural products. All interested stakeholders are invited to send their comments and suggestions by 28 October 2014.

A GI is a sign, usually a name, used on goods that have a specific geographical origin and possess qualities, characteristics or a reputation essentially attributable to that place of origin. Contrary to other intellectual property rights such as trademarks or patents, GIs are available to all producers whose products originate in the defined geographical area and comply with the specifications set out for the GI.

To date, unitary GI protection at EU level is provided for wines, spirit drinks, aromatised wines, agricultural products and foodstuff only. However, the EU is bound by rules on protecting GIs under TRIPS, which covers both agricultural and non-agricultural products.

If you are interested in how non-agricultural products are protected as GIs in the Member States at the moment, have a look at this study mandated by the Commission. Enjoy the rest of the summer!

European Retail Action Plan

Yesterday the European Commission adopted a European Retail Action Plan and a Green Paper launching consultation on unfair trading practices in the B2B food and non-food supply chain. These initiatives list as one of their priorities the need to empower consumers through better information, as well as to improve accessibility to retail services. Clearly, further actions of the EU institutions in this field will heavily influence European consumers. 

The idea is that the European Commission will set up a permanent Group on Retail Competitiveness that will be charged with further development of "specific objectives for the areas identified, monitor progress achieved, issue recommendations to ensure full implementation of the actions included in this Plan and, where necessary, will advise the Commission on additional new actions that could be proposed". (Commission adopts a European Retail Action Plan and consults on unfair trading practices) The next three months are also devoted to receiving and analysing responses to the public consultation on unfair trading practices in the B2B sector (open until 30 April 2013).

Pursuing the Digital Agenda - the Commission's e-Commerce Action Plan and Green Paper

As promised, here is some more news on the European Commission's initiatives for the digital market: Today, the Commission presented its Action Plan on e-commerce and other online services, aimed at building trust in the digital single market. The Action Plan forms part of the measures that were announced in the Digital Agenda and Single Market Act. The Commission expects that enhancing trust in the digital market will benefit different groups of stakeholders, including consumers (p 3):

'More e-commerce will generate tangible benefits for consumers such as lower prices, more choice and better quality of goods and services, thanks to cross-border trade and easier comparison of offers. The overall gain for consumers would be around EUR 204 billion (1.7% of European GDP) if e-commerce reached 15% of retail sales and if the obstacles to the Single Market were removed. Vulnerable people (the elderly, those with reduced mobility, those isolated in rural areas, those with low purchasing power) will particularly benefit and Europe will thus be better placed to meet the demographic challenges of today.'

The Action Plan is aimed at removing the following obstacles to the digital market (p 4):
'- the supply of legal, cross-border online services is still inadequate;
- there is not enough information for online service operators or protection for internet users;
- payment and delivery systems are still inadequate;
- there are too many cases of abuse and disputes that are difficult to settle;
- insufficient use is made of high-speed communication networks and hi-tech solutions.'

Accordingly, the Commission sets five priorities (p 5 ff):
'- develop the legal and cross-border offer of online products and services;
- improve operator information and consumer protection;
- reliable and efficient payment and delivery systems;
- combating abuse and resolving disputes more effectively;
- deploy high-speed networks and advanced technological solutions.'

More information is available in the Commission's press release (in French), in the Q&A section and on Vice-President Neelie Kroes' blog.

Together with the Action Plan, a Green Paper was presented on card, internet and mobile payments. The Green Paper initiates a consultation period, running till 11 April 2012, during which the Commission seeks to obtain the views of stakeholders on enhancing the possibilities to make online payments. The aim is to create 'a secure and transparent integrated payments environment throughout the EU'.

See also the press release and Q&A page.

(Un)acknowledged legislators

In celebration of today's Dutch poetry day, tomorrow's European data protection day and tomorrow's tomorrow's European contract law, here are some pages for

iConsumers: an eYou guide on digital rights

citizens, organisations and public authorities with an interest in European contract law: a possibility to take part in the public consultation on the Commission's green paper regarding this field (deadline Monday 31 January 2011!)

and other poets.

To choose or not to choose?

Consumers may like to think that they have choices: what to buy, where to buy, with whom to buy. One area in which consumers do not have a choice, however, is that which concerns their rights. Even if consumer law only lays down minimum rules for consumer protection and otherwise leaves it to the parties to decide upon the terms of their contract, it is mostly not the consumer who makes that decision: his counterparty, the seller or trader does. Standard terms of contract have become... well, the standard.

It does not have to be like that. In an article published in the online Erasmus Law Review, which can be found here, Gerhard Wagner suggests a new way in which consumer law could ensure legal certainty whilst at the same time allowing more room for flexibility. He suggests that the usefulness of mandatory rules is negligible as long as sufficient court control of standard terms exists. Where court control is not sufficient, flexibility could be created by introducing several 'options' that can be used instead of mandatory law.

This discussion is relevant and very timely: whilst Wagner discusses the proposal for a Consumer Rights Directive, the same issues are now at stake in the consultation on the Commission's Green Paper for European Contract Law. The 'optional instrument' proposed in the Green Paper can create an alternative to national laws. Whilst this can create more 'options' for businesses and consumers to trade in the EU internal market, I believe we have to be careful to be too optimistic. For who makes the choice between these options: is that not still the business deciding under which terms and conditions to offer its products?

Towards an optional instrument?

Last Wednesday, 27 October, the Legal Affairs Committee of the European Parliament organised an inter-parliamentary meeting on the idea of an optional instrument (OI) for European contract law. On the basis of a number of briefing papers from experts in the field, members of national parliaments and of the EP reflected on the possible advantages and the political attainability of enacting such a facultative set of rules that parties may choose to apply to their contract. The briefing papers can be found on the EP’s website.

Topics that were discussed include:

- the need for an OI, from the point of view of consumers’ organisations, business representatives, judges, and the European Commission;

- the extent to which an OI might increase legal certainty and foster cross-border trade;

- the material, territorial and personal scope of an OI;

- the relation of an OI with substantive rules of national law and rules of private international law.

The workshop was organised with the aim of giving members of national parliaments the opportunity to express their views on the policy direction that the EU should pursue in the field of European contract law, on which the European Commission published a Green Paper and launched a public consultation last Summer (see an earlier post on this blog).

For those of you who are following the discussion on the Green Paper, some upcoming conferences may be of interest:

- 10 November 2010, conference organised by the Centre for the Study of European Contract Law (CSECL) in Amsterdam (in Dutch; the full programme may be found here);

- 3 December 2010, colloquium organised in Brussels on ‘European Contract Law: To an optional tool for the practitioners’ (programme available here)

To be continued...

The Commission's Green Paper on European Contract Law is there!

This morning the European Commission presented its Green Paper on policy options for progress towards a European Contract Law for consumers and businesses. Options under consideration include:

- model contract rules;

- a 'toolbox' for EU lawmakers;

- a Contract Law Recommendation (in the style of the US Uniform Commercial Code);

- an optional instrument for European Contract Law ('28th regime');

- harmonisation of national contract laws by means of a Directive;

- full harmonisation of national contract laws by means of a Regulation; and...

- a full-fledged European Civil Code.

A public consultation on this strategic policy paper will run till 31 January 2011.

For more information see the press release of the Commission. Contributions to the public consultation can be posted through the Commission's website.