By Martin Banks - 4th February 2011
We are deeply disappointed with the vote
Ben Butters
Business groups have condemned MEPs for supporting a proposed new consumers' rights directive.
The draft legislation covers the information to be given to consumers before purchase and rules on repairs and "cooling off" periods for goods which are returned.
The law, designed to clarify the rights of consumers when buying goods abroad, also includes contract terms for all kinds of sale, be it online or in a shop.
MEPs were divided over the merits of the draft law but narrowly backed the directive in a vote by parliament's internal market committee.
Committee chairman, UK Tory MEP Malcolm Harbour, said, "This is the most complex piece of legislation since the birth of the internal market. The council has had 65 meetings and it is only the first reading."
His EPP colleague Andreas Schwab said, "We must have a strong set of common rules all over Europe. It is true member states lose a bit of flexibility but for a common market this is necessary."
However, several business groups have branded the directive as harmful to business, with Eurochambres describing it as "potentially disastrous."
Its director of EU affairs Ben Butters said, "We are deeply disappointed with the vote.
"It establishes the possibility that millions of businesses across Europe will be obliged to change their consumer contracts while at the same time respecting 27 different legal regimes. We now look to the plenary and the negotiations with council to mitigate this potentially disastrous committee outcome."
A spokesman for EuroCommerce said, "The committee has missed an opportunity to remove the obstacles which hinder the internal market for businesses and consumers. The text as it now stands is an unfortunate step back after so many years of discussions.
"The original commission proposal was intended to provide more confidence in the internal market. However, as amended in IMCO, it will increase legal fragmentation, creating more market barriers and extra compliance costs, and so undermining business activities across Europe and especially e-business."
Further criticism came from UEAPME, the employers' organisation.
Its enterprise policy director Luc Hendrickx said, "The vote on the consumer rights directive is overall a setback for SMEs. The reinsertion of the two chapters that were deleted by the council defies reason, as according to member states it will increase the burden on authorities that will have to transpose the directive without clear benefits.
"MEPs should have concentrated on where Europe is able to provide added value, rather than pretending to regulate every single aspect, including those on which a full harmonisation of national legislation is simply impossible.
"This is not 'better regulation' by any stretch of the imagination."
