OPINION OF THE COMMISSION pursuant to Article 189 b(2)(d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on consumer protection in the indication of the prices of products offered to consumers
COMMISSION OF THE EUROPEAN COMMUNITIES i( i( * it •to it it -it ft Brussels, 04. 04. 1997 COM(97) 136 final 95/0148 (COD) OPINION OF THE COMMISSION pursuant to Article 189 b(2)(d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on consumer protection in the indication of the prices of products offered to consumers AMENDING THE PROPOSAL OF THE COMMISSION pursuant to Article 189a(2) of the EC Treaty OPINION OF THE COMMISSION I. REVIEW OF THE PROCEDURE On 12 July 1995 the Commission of the European Communities adopted the proposal for a Directive on consumer protection in the indication of the prices of products offered to consumers. The Economic and Social Committee delivered its opinion at its 331st plenary session of 20 and 21 December 1995, acting on a proposal from its rapporteur Mr Folias. On 18 April 1996 the European Parliament adopted a legislative resolution embodying the opinion of the European Parliament, acting on a proposal from its rapporteur, Mrs Oomen-Ruijten. Following this resolution the Commission presented its amended proposal on 24 June 1996. On 27 September 1996 the Council adopted the common position on the above- mentioned proposal for a Directive. On the same day the Commission presented the European Parliament with its communication on the common position of the Council. Acting on a proposal from its rapporteur, Mrs Oomen Ruijten, the European Parliament on 18 February 1997 adopted its recommendation for the second reading on the common position. In accordance with Article 189b (2) (d) of the Treaty, the Commission must deliver an opinion for the attention of the Council on the amendments adopted by Parliament. In this particular case the opinion amends the proposal from the Commission in accordance with Article 189a (2). II. COMMENTS ON THE AMENDMENTS The 22 amendments adopted by the European Parliament address three main concerns. Most of the proposed amendments clarify the wording and flesh out the scope of the text. Parliament has also taken into account the particular situation of certain small retail businesses. However, instead of the solution in the common position, namely the possibility of an exemption for the Member Stales and (he option of proposing another system three years after the end of the transposition period, Parliament preferred a longer adaptation period with an obligation on the Member States to provide retailers with specific information on the transposition of the Directive. Finally, Parliament emphasised the importance of consumer information by providing for double pricing in euros and in national currency at the time the single currency is introduced. L Clarification and fleshing out of the text These modifications of a more technical nature (amendments Nos 1, 2, 3, 5, 6, 7, 8, 11, 12, 13, 14, 17, 18, 19 and 22) do not substantially change the common position. The Commission has endorsed all these amendments. Some flesh out the recitals (amendments Nos 1, 2, 3 and 8) or delete certain recitals (amendments Nos 5, 6 and 7) which do not contain any additional information over and above that of the articles themselves. Other amendments flesh out the definitions and scope of the common position (amendments Nos 11, 12, 13, 18 and 19) or adapt the wording of the common position to the Parliament's amendments (amendments Nos 6, 7, 14 and 17). Amendment No 22 again introduces an obligation on the Member States to communicate in particular the penalties applicable to infringements of the national instruments transposing the Directive. Amendment No 24 was not accepted by the Commission. This amendment concerns the detailed procedures governing price indications. The Commission believes that the Member States are best qualified to regulate these matters. 2. Small retail businesses Amendments Nos 10, 20 and 21 on the situation of small retail businesses have been accepted by the Commission. The Parliament's solution, already taken up by the Commission at the first reading, is to provide for a longer adaptation period than that initially foreseen (amendment No 20). For example, this would make it possible to better recoup the investment in price marking technology over an extended period. In this connection, amendment No 10 emphasises the importance of technological progress. To facilitate application of the mechanism, amendment No 21 imposes a special obligation on the Member States to provide particular information on the transposition rules to retail businesses, in particular small retailers. 3. Introduction of the single currency Amendments Nos 9, 15 and 16 concern double pricing rules (euro/national currency) during the transitional period, in connection with the introduction of the single currency. These amendments have not been taken up by the Commission in this proposal. While emphasising that price transparency is a priority in the framework of implementing Economic and Monetary Union, the Commission does not consider that this proposal for a Directive is the appropriate place for such rules. The Commission believes that it is too early at this stage to lay down such details, and that accompanying measures should be the subject of a more general instrument. HI. AMENDED PROPOSAL Bearing in mind the above, and in accordance with Article 189a (2), the Commission's amended proposal adopts amendments Nos 1, 2, 3, 5, 6, 7, 8, 10, 11, 12, 13, 14, 17, 18, 19, 20, 2 land 22. Amended proposal for a European Parliament and Council Directive on consumer protection in the indication of the prices of products offered to consumers COMMON POSITION AMENDED PROPOSAL THE EUROPEAN PARLIAMENT AND THE unchanged COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing unchanged the European Community, and particular Article 129a (2) thereof, in Having regard to the proposal from the unchanged Commission^), Having regard to the opinion of the unchanged Economic and Social Committee( ), Acting in accordance with the procedure unchanged in Article 189b of the laid down Treaty(3), 1. Whereas transparent operation of the market and correct information is of benefit to consumer protection and to healthy competition between enterprises and products: 2. Whereas consumers must be guaranteed a high level of protection; should the Community whereas contribute thereto by specific action which supports and supplements the policy pursued by the Member States and regarding precise, unambiguous information of consumers on the prices of products offered to them; transparent 1. Whereas consumers must be guaranteed a high level of protection; should the Community whereas contribute thereto by specific action which supports and supplements the policy pursued by the Member States of regarding consumers on the prices of products offered to them: information adequate 2. Whereas the Council Resolution of 3. unchanged 14 April a preliminary 1975 on 1OJNoC260, 5. 10. 1995, p. 5. 2OJNoC82, 19. 3. 1996, p. 32. 3 Opinion of the European Parliament of 18 April 1996 (OJ No C 141, 13. 5. 1996, p. 191), Council common position of 27 September 1996 (OJ No C 333, 7. 11. 1996, p. 7) and Decision of the European Parliament of. (not yet published in the Official Journal). programme of the European Economic Community for a consumer protection and information policy^) and the Council Resolution of 19 May 1981 on a second programme of the European Economic Community for a consumer protection and information policy( ) provide for the establishment of common principles for indicating prices; 3. Whereas these principles have been 4. unchanged established by Directive 79/581/EEC(6) and Directive 88/314/EEC(7) concerning the indication of prices of certain foodstuffs and non-food products; the 5. unchanged the link between 4. Whereas indication of the unit price of products and their pre-packaging in pre-established quantities or capacities corresponding to the values of the ranges adopted at Community level has proved overly complex to apply; whereas it is thus necessary to abandon this link in favour of a new, simplified mechanism and in the interest of the consumer, without prejudice governing to packaging standardisation; rules the 5. Whereas the obligation to indicate the the unit price selling price and contributes substantially to improving consumer information notably at the moment of purchasing, as this is the easiest way to enable consumers to evaluate and compare the price of products in an optimum manner and hence to make informed choices on the basis of simple comparisons; 6. Whereas the obligation to indicate the the unit price selling price and contributes substantially to improving consumer information, as this is the easiest way to enable consumers to evaluate and compare the price of products in an optimum manner and hence to make informed choices on the basis of simple comparisons; 4 OJ No C 92, 25. 4. 1975, p. 2. 5OJNoC 133, 3. 6. 1981, p. 1. 6 OJ No L 158, 26. 6. 1979, p. 19. Directive as last amended by Directive 95/58/EC (OJNoL299, 12. 12. 1995, p. 11). 7 OJ No L 142, 9. 6. 1988, p. 19. Directive as last amended by Directive 95/58/EC (OJ No L 299, 12. 12. 1995, p. 11). 6. Whereas, therefore, there should be a 7. unchanged general obligation to indicate both the selling price and the unit for all products except for products sold in bulk, where the selling price cannot be determined until the consumer indicates how much of the product is required; 7. Whereas Member States may decide deleted the above mentioned not to apply obligation to products supplied in the course of the provision of a service and for sales by auction and sales of works of art and antiques; 8. Whereas it is necessary to take into deleted account the fact that certain products are customarily sold in quantities different from one kilogram, one litre, one metre, one square metre or cubic metre; whereas it is thus appropriate to allow Member States to authorise that the unit price refer to a decimal or submultiple of those quantities or to a different single unit of quantity, taking into account the nature of the product and the quantities in which it is customarily sold in the Member State concerned; 9. Whereas the obligation to indicate the deleted unit price may entail an excessive burden for certain small retail businesses under and whereas certain Member States should therefore be allowed to refrain from applying this obligation in such cases; circumstances 10. Whereas Member States should also remain free to waive the obligation to indicate the unit price in the case of products for which such price indication would not be significant or would be 8. Whereas Member States should also remain free to waive the obligation to indicate the unit price in the case of products for which such price indication would not be meaningful or would be liable to cause confusion, for instance when indication of the quantity is not relevant for price comparison purposes, or when different products are marketed in the same packaging; liable to cause confusion, for instance when indication of the quantity is not relevant for price comparison purposes, or when different products are marketed in the same packaging; 11. Whereas in the case of non-food 9. unchanged products, Member States, with a view to facilitating application of the mechanism implemented, are free to draw up a list of products or categories of products for which the obligation to indicate the unit price remains applicable; that will benefit 12. Whereas Community-level rules can transparent ensure homogenous and information all consumers in the context of the internal market; whereas the new, simplified approach is both necessary and sufficient to achieve this objective; 13. Whereas particular attention should be paid to small retail businesses; whereas, to this end, the Commission should, in its report on the application of this Directive to be presented no later than five years after publication thereof in the Official Journal of the European Communities, take particular account of the experience gleaned in the application of small retail businesses, inter alia regarding trends and technological development in selling methods, this Directive by 10. unchanged into 11. Whereas particular attention should be paid to the adjustments which have to be made in small retail businesses, in account taking particular technological developments and the planned timetable for introduction of the single currency: whereas to this end the Commission shall, one year before the final deadline for general application of the mechanism, present a report assessing the situation: HAVE ADOPTED THIS DIRECTIVE: Article 1 The purpose of this Directive is to unchanged stipulate the indication of the selling price and the price per unit of measurement of products offered by traders to consumers in order to improve consumer information and to facilitate companion of price» Article 2 For the purpose of this Directive: a) selling price shall mean the price for a unit of the product or a given quantity to the product; b) unit price shall mean the price for one kilogram, one litre, one metre, one square metre or cubic metre of the product; a) 'selling price' shall mean the final price for a unit of the product, including VAT, all other taxes and the costs of all services which the consumer is obliged to pay for in addition: b) 'unit price' shall mean the final price. including VAT, all other taxes and the costs of all services which the consumer is obliged to pay for in addition, for one kilogram, one litre, one metre, one square metre, one cubic metre or one item of the product or any other quantity which is widely and customarily used the the marketing of Member States specific products: in in c) products sold in bulk shall mean products which are not pre-packaged and are measured in the presence of the consumer; unchanged d) trader shall mean any natural or legal unchanged person who sells or offers for sale his fall within products which commercial or professional activity; e) consumer shall mean any natural person who buys a product for purposes that do not fall within the sphere of his commercial or professional activity; unchanged Article 3 1. The selling price and the unit price shall be indicated for all products referred 1. The selling price and the unit price shall be indicated for all products referred to in Article 1, the indication of the unit to in Article 1, the indication of the unit price being subject to the provisions of price being subject to the provisions of Article 7. Article 6. 2. Member States may decide not to 2. Member States may decide not to apply paragraph 1 apply paragraph 1 to: to: - products supplied in the course of the - products supplied in the course of the provision of a service, provision of a service, - sales by auction and sales of works of - sales by auction and sales of works of art and antiques. art and antiques. Member States may decide not to apply the obligation to indicate the unit price to: - products sold in vending machines. - itinerant traders and personal in-home sales: - foodstuffs sold in catering establishments, cinemas and theatres houses, cinemas and theatres, educational establishments, recreational establishments, staff shops at the workplace, hospitals, canteens and similar institutions: 3. For products sold in bulk, only the unit unchanged price must be indicated. 4. Any advertisement which mentions the selling price of products referred to in Article 1 shall also indicate the unit price subject to Article 7. 4. Any advertisement which mentions the selling price of products referred to in Article 1 shall also indicate the unit price subject to Article 6. Article 4 1. The selling price and the unit price unchanged must be unambiguous, easily identifiable and clearly legible. 2, The selling price and the unit price deleted shall relate to the final price of the product under the conditions laid down by the Member States. 3. The unit price shall refer to a quantity 2. unchanged declared in accordance with national and Community provisions. Where national or Community provisions require the indication of the net weight and the net drained weight for certain pre-packed products, it shall be sufficient to indicate the unit price of the net drained weight. Articles Member States shall lay down detailed unchanged rules (e. g. marking or labelling) for indicating prices. Article 6 Members States may stipulate that the deleted unit price shall refer to a decimal multiple or submultiple of the quantities referred to in Article 2 (b) or to a single unit of quantity which is different from those referred to in Article 2 (b), taking into account the nature of the product and the quantities in which it is customarily sold in the Member State concerned. Article 7 Article 6 the 1. Member States may waive obligation to indicate the unit price of obligation to indicate the unit price of products for which such indication would products for which such indication is the meaningless because of the products' not be significant because of the 1. Member States may waive products' nature or purpose or would be nature or purpose or would be liable to liable to create confusion. create confusion. the deleted 2. Member States may waive obligation to indicate the unit price of the products for which indication of length, mass, surface or volume is not required by national or Community provisions. This applies in particular to products sold by individual item or singly. to 3. With a view implementing paragraphs 1 and 2, Member States may, in the case of non-food products, establish a list of the products or product categories to which the obligation to indicate the unit price shall remain applicable. to 2. With a view implementing paragraph 1. Member States may, in the case of non-food products, establish a list of the products or product categories to which the obligation to indicate the unit price shall remain applicable. Article 8 Article 7 Members States may provide that the obligation to indicate the unit price of products other than those marketed in bulk which are sold by certain small retail businesses shall apply at the latest six years after publication of this Directive, if the obligation to indicate the unit price from the date provided for in Article 12 (I) is likely to constitute an excessive burden for these businesses. Member States may provide that the obligation to indicate the umt price of products other than those sold in bulk, which are sold in certain small retail businesses, shall not apply, subject to Article 13, if the obligation to indicate the unit price would constitute an excessive burden for these businesses because of the number of products on sale, the sales area, the nature of the place of sale, specific conditions of sale where the product is not directly accessible for the consumer or certain forms of business, such as certain types of itinerant trade. Article 8 Member States shall provide appropriate measures to inform retailers of the national law transposing this Directive. In particular. Member States shall work with professional organisations to provide appropriate information to ensure that small retailers are adequately informed of 10 the provisions of this Directive. Article 9 Member States shall lay down penalties unchanged for infringements of national provisions adopted in application of this Directive, and shall take all necessary measures to ensure that these are enforced. These penalties must be effective, proportionate and dissuasive. Article 10 1. The transition period of nine years unchanged in Article 1 of Directive mentioned 95/58/EC of the European Parliament and of the Council of 29 November 1995 amending Directive 79/581/EEC on consumer protection in the indication of the prices of foodstuffs and Directive 88/314/EEC on consumer protection in the indication of the prices of non-food products(8) shall be extended until the date referred to in Article 12 (1) of this Directive. Directives 79/5 81/EEC 2. 88/314/EEC shall be repealed with effect from the date referred to in Article 12 (1) of this Directive. and unchanged Article 11 This Directive shall not prevent Member unchanged States from adopting or maintaining provisions which are more favourable as regards information and comparison of prices, without prejudice to their obligations under the Treaty. consumer OJNoL299, 12. 12. 1995, p. 11. 11 Article 12 1. Member States shall bring into force unchanged the laws, regulations and administrative provisions necessary to comply with this Directive not later than. (*). They shall forthwith the Commission thereof. The provisions adopted shall be applicable as of that date. inform these unchanged When Member States adopt measures, they shall contain a reference to this Directive or shall be accompanied by such reference at the time of their official publication. The methods of making such reference shall be laid down by Member States. 2. Member States shall communicate to unchanged the Commission the text of the provisions of national law which they adopt in the field governed by this Directive. 3. Member States shall communicate the provisions the penalties provided for in Article 9. and any later amendments thereto. governing Article 13 The Commission shall, not more than three years after the date referred to in Article 12 (1), submit to the European Parliament a comprehensive report on the application of this Directive, in particular on the application of Article 8, accompanied, if appropriate, by a proposal. the Council and The Commission shall, not more than three years after the date referred to in Article 12 (1), submit to the European Parliament a comprehensive report on the application of this Directive, in particular on the application of Article 7, accompanied, if appropriate, by a proposal. the Council and The European Parliament and the Council The European Parliament and the Council shall, on this basis, re-examine the shall, on this basis, re-examine the 24 months following the date of publication in the Official Journal. 12 provisions of Article 8. provisions of Article 7. Article 14 This Directive shall enter into force on unchanged the day of its publication in the Official Journal of the European Communities. is addressed to the unchanged Article 15 This Directive Member States. Done at Brussels, For the European Parliament The President For the Council, The President 13 ISSN 0254-1475 COM(97) 136 final DOCUMENTS EN 10 Catalogue number : CB-CO-97-123-EN-C ISBN 92-78-17525-0 Office for Official Publications of the European Communities L-2985 Luxembourg 4M