EU crackdown on rogue traders

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By Anna McLauchlin
- 13th May 2004

EU competition ministers will vet two EU proposals aiming for a better deal for consumers across Europe on Tuesday.

A political agreement is expected on a new law targeting shady business practices such as fake 'liquidation' sales and 'pyramid' selling schemes.

MEPs and EU governments have already had one stab at ironing out differences on the law, the most controversial of which is the commission's idea to include a 'country of origin' principle.

This means if a business meets standards in its home country it must be allowed to offer its wares in any other EU state.

Some member states, including the UK, the Netherlands, Luxembourg and Estonia are all in favour of this principle which underpins the EU internal market, but others are more sceptical.

A commission spokesman insisted this would be fully included in the final agreement, COM/2003/356.

"I would like to stress that the internal market clause is not being deleted", he told journalists on Friday.

And ministers are also expected to give the thumbs up to a second law, COM/2003/443 which will enhance consumer protection against rogue traders.

It will create a pan-European network of authorities with the power to crack down on cross border scams such as suspect prize draws or marketing to children.

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