Amended 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 Brussels, 24. 06. 1996 COM(96) 264 final 95/0148 (COD) Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON CONSUMER PROTECTION IN THE INDICATION OF THE PRICES OF PRODUCTS OFFERED TO CONSUMERS (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) Explanatory memorandum 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 the proposal of its rapporteur Mr Folias. On 18 April 1996 the European Parliament adopted a legislative resolution embodying the opinion of the European Parliament, acting on the proposal of its rapporteur, Mrs Oomen-Ruitjen. In this resolution Parliament invites the Commission to modify its proposal on the basis of the proposed amendments. The "Consumer Affairs" Council met on 23 April 1996 in Luxembourg under the Italian Presidency. It came to a unanimous political agreement on the common position concerning the above-mentioned proposal for a directive. II COMMENTS ON THE MODIFICATIONS The 22 amendments adopted by the European Parliament can be seen as a response to four main concerns. Firstly, in a certain number of amendments, Parliament pinpointed the remit of the text proposed by the Commission, notably the objective and the scope of the mechanism. These aspects do not substantially modify the Commission's proposal. Secondly, it took into account the supplementary costs which might be imposed on small retail businesses by providing for a permanent follow-up by the Commission and financial support for information for programmes targeted at small businesses. However, instead of a permanent or temporary exemption for certain small businesses, Parliament opted for a longer adaptation period. Thirdly, Parliament also wanted to emphasise the importance of consumer information in the context of introducing the single currency by provided for dual price labelling and training of employees in businesses. Finally, Parliament jettisoned without ambiguity the link between the obligation to indicate the unit price and the exemption for products sold in ranges. 1. Clarification of the text As regards Parliament's first concern, the Commission shares its viewpoint. Hence in its amended proposal the Commission has incorporated Amendments 1, 2 and 9 (in respect of letters (a) and )b) of former Article 2), 10, 11, 12, 13, 16, 20, 21 and 24 to clarify and pinpoint the proposed mechanism. In seven cases (Amendments 2, 3, 5, 11, 16, 20 and 24) the Commission has reformulated the text by making drafting changes or changes of a technical legislative nature, without, therefore, making any substantive modifications. The approval of amendment 16 made a modification of the recitals 15 and 16 necessary. Concerning the amendment 24 the Commission has in addition separated the amendment and has incorporated it into Articles 1(2) and 3(2). This implies that, in respect of the items refered to in Article 3(2), the obligation of mentioning the selling price, but not the unit price, will remain. The approval of amendment 24 made it also necessary to modify article 7. Amendment 9 (in respect of letter (c)) has not been taken up by the Commission, because its definition of the retail trade is too ambiguous and overbroad. Amendment 14 concerns labelling methods. The Commission considers that Member States are in a better position to lay down detailed procedures in this domain, as a function of local circumstances; hence this amendment has not been taken up. 2. Small retail businesses The new mechanism imposes some additional burdens on trade. But the European Parliament is particularly concerned with this sector, and notably with small retail businesses. As for the Commission, it has tried to find a solution which is not too heavy, while upholding the objective of providing the necessary information. Amendments 6 and 22 propose a report on the situation of small retail businesses one year after the. deadline for transposai. In the Commission's experience a period of one year is not long enough to acquire experience in the application of the Directive such as to draw up a report. Hence a minimum period of two years would be necessary. Such a period will allow the Commission to scrutinize in depth the economic impact of the Directive on small retail businesses. Amendment 19 concerns financial support for certain small retail businesses. The Commission does not consider that financial support for information programmes targeted at small retail businesses is a realistic solution. Firstly, the problem of small retail businesses is too complex to be regulated definitively at Community level. More specifically, the nature of the aid depends entirely on factors which the Commission can neither know nor influence. In certain Member States, where the entire retail trade already applies unit prices, such an aid would not be justified. Moreover, criteria would have to be laid down. It is also important for Member States to be in a position to fully assess the nature of the potential difficulties, particularly if these difficulties are directly bound up with the enforcement of the mechanism. After all, at least in the case of foodstuffs, many of the rules have already been in force for several years anyhow. Finally, investments in price indication technology make economic sense, because this technology constitutes a marketing and inventory management tool. The costs involved are not substantial, especially as small retail businesses enjoy an adjustment period allowing them to stagger the costs over an extended period. For this reason the Commission welcomes the solution contained in Parliament's Amendment 18 on small retail businesses: a generous adaptation period of six additional years after the date of entry into effect of the provisions adopted under the Directive. Moreover, the Commission is willing to provide particulars pertaining to costs and hence has incorporated Amendment 5. 3. Introduction of the Single Currency Parliament wanted to emphasise the importance of consumer information in the context of the move to the single currency. Hence it proposed Amendments 4, 15, 17 and 23 on the transitional period for the introduction of the single currency, so as to familiarise customers with the relative values of the currencies. While agreeing that price transparency is a priority on the road to Economic and Monetary Union, the Commission considers it premature to spell out the details at this stage and holds that accompanying measures should be the subject of an overall approach. 4. Abandonment of the link with ranges The Commission has incorporated Amendment 3. This amendment specifies that the ranges have a distinct function and clearly abandons the link with ranges. Ill OVERVIEW OPINION OF THE COMMISSION CONCERNING THE PROPOSED PARLIAMENTARY AMENDMENTS No of amendment 1 2 3 4 5 6 9 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Provisions concerned Commission New numbering recital - 1 (new) recital 1 recital 6a (new) recital 12a (new) recital 17a (new) recital 19 Article 2 a) and b) Article 2 c) Article 3, paragraph 2 Article 3, paragraph 2 Article 4, paragraph 2 Article 4, paragraph 3 Article 5 Article 5 a (new) Article 6 Article 6, paragraph 3a (new) Article 7, first sentence Article 7a (new) Article 9 Article 10 paragraph 1 Article 11 paragraph 1 Article 6 paragraph 3 b (new) Article la (new) accepted accepted accepted rejected accepted rejected accepted rejected accepted accepted accepted accepted rejected rejected accepted rejected accepted rejected accepted accepted rejected rejected accepted Recital 1 Recital 2 Recital 8 Recital 20 Article 2 Article 4 paragraph 3 Article 4 paragraph 4 Deleted Article 4 paragraph 2 Article 6 Article 7, first sentence Article 9 Article 10 Article 1, paragraph 2, and Article 3, paragraph 2 The above table shows that the Commission has accepted 14 out the 22 amendments voted by the European Parliament. AMENDED PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON CONSUMER PROTECTION IN THE INDICATION OF THE PRICES OF PRODUCTS OFFERED TO CONSUMERS INITIAL PROPOSAL AMENDED PROPOSAL The European Parliament and the Council of the European Union Having regard to the Treaty establishing the European Community, and in particular Article 129a(2) thereof, Unchanged Unchanged Having regard to the proposal from the Commission1 Unchanged Having regard to the opinion of the Economic and Social Committee2 Unchanged Acting in conformity with the procedure provided for in Article 189b of the Treaty establishing the European Community, Unchanged 1. Whereas transparent operation of the market and correct information can be of benefit to consumer protection and to healthy competition between enterprises and their products 1 OJ No C 260, 5. 10. 1995, p. 5. 2 OJ No C 82, 19. 3. 1996, p. 32. Whereas, consumers must therefore 2. be guaranteed a high level of protection; whereas the Community should contribute thereto by specific actions which provide for precise, transparent and unambiguous information of consumers on the prices of products offered to them; 3. Unchanged Unchanged Unchanged Unchanged Whereas consumers must be 1. guaranteed a high level of protection; whereas the Community should contribute thereto by specific actions which provide for adequate information of consumers on the prices of products offered to them; Whereas 2. Community's the programmes for a consumer protection and policy3 provide information the establishment of common principles for indicating prices; for Whereas these principles have been 3. established by Council Directive 79/581/EEC of 19 June 19794 as amended by Council Directive 88/315/EEC of 7 June 19885 and Council Directive 88/314/EEC of 7 June 19886 concerning the indication of prices of foodstuffs and non-food products; Whereas the obligation to indicate 4. the selling price and the price per unit of measurement contributes substantially to by improving providing consumers with essential data in order to make reasoned choices; information consumer Whereas, however, the mechanism 5. adopted included a certain number of exceptions to the general obligation to the unit price, notably when indicate products are marketed in quantities or capacities corresponding to the values of the ranges adopted at Community level. 3 OJ No C 92, 25. 4. 1975, p. 2 and OJ No C 133, 3. 6. 1981, p. 2. 4 OJ No L 158, 26. 6. 1979, p. 19. 5 O J N oL 142, 9. 6. 1988, p. 23. 6 OJ No L 142, 9. 6. 1988, p. 19. Whereas this link between indication 6. the unit price of products and of standardisation of packaging introduced rigidities into the implementation of the mechanism adopted, which has proven overly complex to apply; whereas it is thus Unchanged to abandon this link in the necessary interests of simplification, without prejudice to packaging rules the standardization; governing 8. traders Whereas producers and having resort to ranees may retain and further develop them, provided, however, that they also indicate the unit price; 9. Unchanged 10. Unchanged 11. Unchanged 7. Whereas, therefore, account should be taken of all the difficulties encountered in implementing the mechanism provided for in the above-mentioned Directives and a new and simplified mechanism proposed which will enable the main objective to be achieved more easily, namely adequate information of consumers; Whereas indicating the selling price 8. and the unit price is the easiest way to enable consumers to evaluate and compare the nature and quality of products in an optimum manner and hence to make informed choices on the basis of simple comparisons; Whereas, therefore, 9. the general obligation to indicate both the selling price and the unit price for all products should be maintained except for products marketed in bulk, where the selling price cannot be determined until consumer the indicates how much of the product he requires; final 10. Whereas only Community-level rules can ensure homogenous and transparent information that will benefit all consumers in the context of the internal market; whereas the new, simplified approach is 12. Unchanged 13. Unchanged 14. Unchanged 15. Unchanged both necessary and sufficient to achieve this objective; price 11. Whereas, moreover, transparency is a priority in the run-up to Economic and Monetary Union, and must therefore be significantly improved and arrangements made for its entry into effect in good time for the transition to the single currency; 12. Whereas introduction of the single currency will be greatly facilitated by providing consumers with simple yardsticks for comparing the prices of products; 13. Whereas there is a need to take into account the fact that certain products are widely and customarily sold in quantities the values of the base different the Directive; quantity to allow is thus advisable whereas Member States, in certain cases, to authorise that the unit price be indicated in relation to the quantity value which custom has enshrined; from referred it in to 16. Unchanged 14. Whereas Member States must be free to adapt the obligation to indicate the unit price for certain trades of forms of trade, and also to determine that such indication is not necessary for a certain number of products, when it does not provide useful information for consumers; 15. 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; whereas this is the case notably when indication of the quantity is for price not comparison purposes, or when different products are marketed same packaging; relevant particular the in a 17. 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; whereas this is the case notably when indication of the quantity is not a relevant particular for price comparison purposes, or when different products are marketed same packaging; the in 16. Whereas in the case of non-food 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; 17. Whereas in distribution trends methods must be taken into consideration; whereas solutions must be found to permit information of consumers on optimum product prices at lowest possible marginal cost; the 18. Whereas in the case of non-food products, Member States, with a view to facilitating application of the mechanism shall draw up, a list of implemented, products for which the obligation to indicate the unit price remains applicable; 19. Unchanged 20. Whereas it is therefore essential that before the application of the mechanism, the Commission should draw up. in cooperation with the governments and competent national bodies, an accurate statement of the total costs of retail businesses, especially in the small and medium-sized sector: the Directive to 21. Unchanged 22. Unchanged 18. Whereas a variable adaptation period should be provided for depending on the economic operators concerned in order to enable the detailed to make arrangements for indicating unit prices; them technological taking trends and 19. Whereas particular attention should be paid to the adaptations required in small retail businesses, notably into the account envisaged timetable for the introduction of the single currency; whereas to this end the Commission shall present an evaluation report on the situation two years before the final deadline for the general application of the mechanism, HAVE ADOPTED THIS DIRECTIVE Article 1 The purpose of this Directive is to stipulate indication of the selling price and the price per unit of measurement of products offered by traders to final consumers, so as to improve consumer information and to allow easy comparison of prices, wherever such comparison is relevant. 1. Unchanged 2. The following are excluded from this directive: - auctions private sales. Article 2 For the purposes of this Directive: For the purposes of this Directive: "selling price" means the price for a a) given quantity of the product; b) "unit price" means the price for one kilogram, one litre, one metre, one square metre or cubic metre of the product or any is widely and other quantity which customarily used in the Member States in the marketing of specific products; "selling price" means the final price a) the product, for a given quantity of including VAT, all other taxes and the costs of all services which the consumer is obliged to pay for in addition; b) "unit price" means 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 kilogramme, 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 in the Member States in the marketing of specific products. "products sold c) in bulk" means products which are not pre-packaged and/or are not measured or weighed except in the presence of the final consumer. "products sold c) in bulk" means products which are not pre-packaged and/or not measured or weighed except in the presence of the final consumer. 10 Article 3 1. The selling price and the unit price shall be indicated for all products referred to in Article 1, subject to the provisions of Article 6. 1. Unchanged foodstuffs in hotels, 2. The obligation to indicate the price per unit measurement shall not apply to: cafes, sold - restaurants, public houses, cinemas and theatres, leisure centres, staff shops, hospitals, canteens and similar establishments, - itinerant traders. - products sold in means of transport. - products sold in vending machines. institutions, teaching 2. For products sold in bulk, the unit price must be indicated for all products referred to in Article 1, since the selling price cannot be determined prior to the request expressed by the final consumer. 3. For products sold in bulk only the unit price must be indicated for all products referred to in Article 1. 4. The above paragraphs shall apply also to any type of advertising in which a price is mentioned. Article 4 1. The selling price and the unit price must be unambiguous, easily identifiable and clearly legible. 2. The selling price and the unit price shall relate to the final price of the product under the conditions laid down by the Member States. The unit price shall refer to the 3. quantity declared, in accordance with national and Community provisions, and notably net quantities of products. 11 Unchanged Deleted The unit price shall refer to the in accordance with 2. quantity declared, national and Community provisions Article 5 Member States shall lay down the detailed indicating prices, notably as rules for regards prices applying to quantities that are widely and customarily used, referred to in Article 2(b). Unchanged Article 6 Member States may waive the 1. obligation to indicate the unit price of products for which such indication would not be meaningful because of the products' nature or purpose, and products for which such indication would not provide the consumer with adequate information or would be liable to create confusion. 2. the Member States may waive obligation to indicate the unit price of products for which indication of length, mass or volume is not required by national or Community provisions. This applies in particular to products sold by individual item or singly. 3. With a view to implementing the provisions set out in paragraphs 1 and 2 above, the 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 7 that Member States may provide 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 by 6 June 2001, if the obligation to indicate the unit price from 7 June 1997 12 the Member States may waive 1. obligation to indicate the unit price of products for which such indication is not meaningful because of the products' nature or purpose. 2. Deleted 2. In the case of non-food products, Member States shall establish a list of the products to which the obligation to indicate the unit price shall remain applicable. This list shall be drawn up in a practical way by using a common nomenclature. The Commission shall provide a framework so that the lists in the various Member States are as consistent as possible in terms of content. that Member States may provide 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 bv six years after publication of this Directive, if the obligation to indicate the unit price by the date provided for in Article 10(0. is likely to constitute a excessive - burden for these businesses is likely to constitute a excessive - burden for these businesses or or is impracticable because of - the number of products on sale, the sales area, the nature of the place of sale or specific conditions applicable to certain forms of business, such as certain types of itinerant trade. is impracticable because of - the number of products on sale, the sales area, the nature of the place of sale or specific conditions applicable to certain forms of business. Article 8 Member States shall lay down penalties 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 9 unchanged 1. In Article 10, first sentence, first line of the Council Directive 79/581/EEC of 19 1979. and in the article 10. first June sentence, first line of the Council directive 88/314/CEE of 7 June 1988. the words "a period of 9 years" shall be replaced bv the words "a period expiring on the date referred of Directive 96/. /EC in Article 10(1) to Council Directive 79/5 81/EEC of 19 June 1979, as amended by Council Directive 88/315/EEC of 7 June 1988 and Directive 88/314/EEC of 7 June 1988 shall be repealed with effect from 7 June 1997. 7 OJ No L 299, 12. 12. 1995, p. l l. 13 2. Council Directive 79/581/EEC of 19 June 1979, as amended by Council Directive 88/315/EEC of 7 June 1988, Council Directive 88/314/EEC of 7 June 1988 and the European Parliament and Council Directive 29 November 19957 shall be repealed with in from effect Article 10m. the date 95/58/EC referred of to Article 10 1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 6 June 1997 at the latest. They shall forthwith the Commission inform thereof. The provisions adopted shall be applicable as of 7 June 1997. 2. When Member States adopt these provisions, these shall contain a reference to this Directive or shall be accompanied by such a reference at the time of their official such publication. The procedure reference shall be adopted by the Member States. for Member States shall communicate to 3. the Commission the text of the provisions of national law which they adopt in the field governed by In particular, they shall indicate the rules adopted pursuant to Articles 5, 6 and 7, and any later amendments thereto. this Directive. Member States shall communicate 4. the provisions governing the penalties provided for in Article 8, and any later amendments thereto. Article 11 to 1. The Commission shall, not more than two years after the date referred to in Article 10(1), submit the European Parliament and the Council an initial report on the application of the provisions of Article 7. The Commission shall, not more 2. than four years after the date referred to in Article 10(1), submit the European Parliament and the Council a global report on the application of this Directive. to 1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive two years after publication of the Directive at the latest. They shall forthwith inform thereof. The provisions adopted shall be applicable two years after application of the Directive. the Commission 2. Unchanged 3. Unchanged 4. Unchanged 1. Unchanged 2. Unchanged Article 12 This Directive is addressed to the Member States. Unchanged ^ ISSN 0254-1475 COM(96) 264 final DOCUMENTS EN 10 Catalogue number : CB-CO-96-275-EN-C ISBN 92-78-05303-1 Office for Official Publications of the European Communities L-2985 Luxembourg IS