Informal guidelines are now available for the application of Regulation 261/2004 (denied boarding, cancellation and delay of flights) regarding the eruption of the Icelandic volcano Eyjafjallajökull. The guidelines have been formulated by the European Commission and the national enforcement bodies (NEBs).
The guiding principle is that airlines are not sanctioned if they can prove that, taking into consideration the special circumstances at hand, they have sincerely tried to fulfill the Regulation's obligations. At the same time the informal guidelines stress that NEBs shall apply sanctions if airlines have taken advantage of the volcano crisis.
Click here to download the document "Non paper - proposed informal guidelines on the application of some articles of (EC) Regulation 261/2004" (source of the document: Dutch parliamentary discussions; click here for the Government's letter to Parliament).
A new website from DG Justice, created on 1 July 2010, offers a clear and concise overview of recent developments in European contract law and consumer rights. You can find it here.
It was a summer vacation time not only for the authors of this blog but also, luckily, for the ECJ and many other authorities that could significantly influence European consumer law. Soon, the regular updates will follow. I hope the readers of this blog managed to get a proper consumer treatment during their travels.
The European Commision has decided to set up a Financial Services User Group. Its main task will be to advise the EC on issues affecting users of financial services e.g. retail banking, mortgage credit and insurances. It will also provide insight, opinion and advice on the practical implementation of relevant policy initiatives. The group will be composed of 20 members, who will be individually appointed to represent the interests of consumers, retail investors and micro-enterprises, and invididual experts with expertise in financial services from the perspective of the financial services user. The EC aims to strengthen the representation of consumers, retail investors and other users of financial services at EU level by creating this group. A call for expression of interest has been launched - deadline for application: 30 September 2010. You may apply here.
The DG Sanco have collaborated on creating a video clip on online shopping some time ago. The European Commission would like to hear the opinion of the consumers on this video clip, in order to be able to improve the way in which they communicate their consumer policy. The survey is available in English, French, German, Dutch, Swedish and Danish. The English survey may be filled in on this website.
I watched the video and I have to say it's quite funny and creative. However, I'm not entirely sure what is supposed to be the message behind this video clip. It seems to show the trivial benefits of concluding transactions online rather than offline. I don't know why they would want the consumers to go take a look at the website they are trying to promote, since the video clip itself does not present any potential problems with the online transactions. So if the message of the DG Sanco was: 'consumers, conclude more contracts online!' - I think they managed to convey it. If it was, however, supposed to sound: 'consumers, online transactions are more convenient if you know your rights online, so please check your rights on our website' - then they should give some more thought to broadcasting this video clip.
The Faculty of Law and Administration of the University of Silesia in Katowice, Poland organizes a conference 23-24 September 2010 on 'The influence of European consumer law on national legal systems'. Registration for the conference is possible until 10 September 2010.
The aim of the conference is to discuss the most recent developments in European Private Law, and additionally the impact of European consumer legislation on the indigenous legal systems of Member States, with a focus on the Polish example. This conference takes place in light of the ongoing harmonisation of private law in the EU, and EU consumer law in particular, as well as the current drafting of the new Civil Code for Poland, which is likely to be heavily influenced by European consumer law. The guests invited for the first day of the conference include representatives of the European Parliament, the European Commission and international experts involved in the process of drafting the Common Frame of Reference. They will present new EU ideas concerning the future of private law harmonisation and the ‘optional instrument’. Discussing these issues is particularly interesting in the context of the recent developments in the area of private law at the European level, i.e. the commencement of work of the Expert Group established by the European Commission and the publication of Communication of the Commission on the future of private law in the EU, as well as the upcoming Polish Presidency in 2011. The second day of the conference will focus on the impact of EU consumer law on national legal systems, taking the example of drafting the new Polish Civil Code. During this session, members and academics who work for the Polish Civil Law Codification Commission will analyse the problems arising from the implementation of EU consumer legislation into a system of private law based on a civil code. The speakers will concentrate on the problems relating to the differences between the structure and systematics of a national legal system based on a civil code, and European consumer law based on directives. They will also discuss the possibility of using legal instruments such as the DCFR as a source of inspiration in overcoming the difficulties.
Yesterday, the OECD presented its new Consumer Policy Toolkit (which we referred to in an earlier post on behavioural studies). The toolkit is meant to advise consumer authorities on 'how to assess areas where markets may be failing consumers and how best to address the problems consumers may face'. More information is available on the OECD's website.
On 2nd and 3rd July the European Coalition for Responsible Credit held its international stakeholder conference ‘Financial Services Providers and Consumer Protection - Two Worlds?’ at Hamburg. The symposium, gathered consumer organisations, financial service providers, policy makers, academics and politicians to discuss current issues in retail markets for financial services in Europe and elsewhere. Issues that were discussed include national reports on consumer credit and banking, a comparison of bankruptcy laws, bank reporting on responsible lending, financial literacy, and consumer information overload.
Whenever you as an academic researcher get the chance to attend this type of events straightforward you get the flavor of the progressive nature of consumer credit law in various European legal systems. Which basically have increasingly developed into a combination of private and public regulation, attributable to the fact, that, through mandatory law it combines economic (transparent, competitive market) and social concerns (such as social consequences of over-indebtedness) in a private law setting. Hence, a balancing act between stimulating financial services and safeguarding economic interests of consumers.
The panel on ‘information overload at the point of sale‘ conformed by Sarah Linch(European Commission), Prof. Geraint Howells(Uni. Manchester), Dr. Bernhard Dychhoff (VW Financial Services) explored quite interesting topics through their presentations. The lectures in this panel touched upon the provision of ‘adequate explanations’ related to credit. This duty encapsulated in article 5(6) European Consumer Credit Directive apparently aims at enhancing contractual fairness between contracting parties. At the same moment, the article may provide an opportunity to empower consumers in their contracting position. Since has been introduced as flexible element in the Directive it will provide a range of possible options for a Member States regarding implementation.
The panelists agreed with the need of consumer testing as regards of ‘Standard European Consumer Credit Information’ (Annex II of the Directive), which also regulates the form in which specific information must be conveyed to consumers in the pre-contractual stage. Such standardisation of information apparently aims at avoiding information overload and at maintaining or allowing the comparability of different offers. As a result the suggestion to focus on duties to disclose a summary or short-form contract in plain language, highlighting rather than hiding key terms seems less meddlesome than one might suspect.
Nevertheless, standardization may not necessarily help consumers directly nor level the playing field for them; for example, if they fail to use or understand the information provided. The ideal of transparency, though laudable, may lead to an increase in information, yet not necessarily facilitate accessibility and simplicity. At the bottom line, in striving for simplicity it must be borne in mind that borrowers are heterogeneous in their preferences and concerns.
There are following categories in which you can apply:
financial contribution for the functioning of European consumer organizations;
financial contribution to the operation of European consumer organizations representing consumer interests in the development of standards for products and services at European Union level;
financial contribution to the European Consumer Centres Network;
specific joint actions;
specific joint surveillance actions;
exchange of officials in the area of consumer protection cooperation;
exchange of officials in the area of consumer product safety (deadline for this one: 19 July 2010).
In the past few years the European Commission (and other European institutions have realized that consumer behaviour science might give them valuable insights as to how the European consumer law should develop. In order to research that link and find out exactly how to apply consumer behaviour findings to law, or how to shape consumer behaviour, more and more funds are spent on researching consumer behaviour.
The brochure that has just been published at the DG SANCO's website introducers the reader to the science of consumer behaviour. The purpose of the brochure is to present some of the principles of the consumer behaviour and to gain an understanding of the importance of their application in DG SANCO. Firstly, consumer behaviour is being defined and e.g. certain factors influencing decision-making process are being presented. Secondly, the reasons for exploring consumer behaviour are mentioned in the brochure.
"Understanding motivations and the main determinants behind consumer- and healthrelated behaviour is essential for policy-making because it allows us to better define the most effective tools for influencing behaviours and implementing the most effective policies."
Further, the brochure discussed practical applications of consumer behaviour as well as various tools for shaping consumer behaviour. Finally, it is specified for which areas of DG SANCO consumer behaviour is applicable.
The brochure presents rather basic findings and does not introduce any 'surprise' material. However, it is good to know that DG SANCO intends to continue its work with/on consumer behaviour. In the goals defined for DG SANCO for the coming years you may find a commitment to follow consumer trends on a regular basis and to put the consumer at the centre of all policies. One way of doing that, defined by DG SANCO itself, is to improve cooperation between academics and policy makers and to introduce scientific findings into policy decisions. I heartily approve the course set out by DG SANCO in this brochure.
