Prague, 28 January 2014 Oscar ARIAS – Managing Director
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Transcript of Prague, 28 January 2014 Oscar ARIAS – Managing Director
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Prague, 28 January 2014Oscar ARIAS – Managing Director
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Agenda
1. Presentation of DSE2. EU Consumer Legislation – Our Views
a) Current EU Legislation: comprehensive and stringent
b) Implementation and Enforcement: lagging behindi. An Example: the UCP Directiveii. A national case study: the ‘Smejdi’
c) Suggested actions aheadi. In generalii. In cross-border situations
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Presentation of DSE
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“…make sure that the nucleus of the European
sustainable and customer oriented direct selling industry
has a strong say in the relevant legislative process in
Brussels” (extract from constituent meeting January 2007).
DSE was created in 2007 to …
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• Represent before the EU Institutions the interests of the European
Direct Selling companies with the highest ethical standards
• 15 members: 5 national associations + 10 companies
• +/- 50% of turnover in direct selling in Europe
• Members with superior customer and after sales services
• Production made in the EU
• Excellent relationship with EU legislator and consumer
organisations
DSE Core Values and Data
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Members
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EU Consumer Legislation - Our views
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2. EU Consumer Legislation – Our Views
a) Current EU legislation is modern, comprehensive, detailed and stringent
Unfair Commercial Practices Directive (UCPD) (2005/29/EC)
Consumers Right Directive (2011/83/EU) Alternative Dispute Resolution / Online Dispute
Resolution (ADR / ODR) (2013)
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2. EU Consumer Legislation – Our Views
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2. EU Consumer Legislation – Our Views
b) … Implementation and Enforcement of EU Legislation is lagging behind !
…To date, serious implementation and enforcement problems:1.More than 8 years after the adoption of the UCPD, the implementation varies substantially across the EU2.Different interpretations of prohibition of pyramid schemes3.Bans and restrictions at national level not allowed by the UCPD
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2. EU Consumer Legislation – Our Views
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2. EU Consumer Legislation – Our Views
EU Commission should fulfill its responsibility to ensure proper implementation of EU legislation. However…1.EU Parliament Resolution Jan 2009 on transposition, implementation and enforcement of UCPD: most problems still unresolved today!2.EU Commission pre-infringement pilot-case letters sent to 26 EU MS since 20113.After 3 years of consultation with MS, only 1 MS has been brought to the EU Court of Justice
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2. EU Consumer Legislation – Our Views
A national case study: ‘Smejdi’ (I/III)
The Issue1.Crook companies target vulnerable consumers (mainly elderly) through:
1. Product demonstrations excursions2. Aggressive and misleading practices (e.g. flyers,
threat, upholding personal IDs, preventing from using mobile phones, etc.)
2.Hundreds of victims, particularly in CZ and SK
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2. EU Consumer Legislation – Our Views
A national case study: ‘Smejdi’ (II/III)
Actions undertaken so far in 20131.Czech Republic:
• Total fines below 1€ million• 80% of inspected events use illegal practices
(insufficient enforcement of legislation and fines)2.Slovakia:
• Total fines of circa 0.25€ million• New law, increasing the fines from current
maximum of 3.000€ to 16.000€
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2. EU Consumer Legislation – Our Views
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2. EU Consumer Legislation – Our Views
c) Suggested actions ahead (I/III)i. In general
1.Put correct implementation of EU legislation as a top priority for the EU Commission2.Speed-up consultations Commission-MS3.Strengthen the proactivity of the Commission in monitoring the implementation of EU legislation, particularly as regards full harmonization legislation4.Work more closely with consumers associations and business representatives ahead of non-legislative actions against a sector (e.g. sweep investigations)
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2. EU Consumer Legislation – Our Views
c) Suggested actions ahead (II/III)ii. In cross-border situations
1.EU complaint system accessible online to citizens2.Additional powers for national enforcers:
Name and shame Carry out test purchases for investigation
purposes3.Common standards in CPC Regulation to overcome procedural differences amongst MS
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2. EU Consumer Legislation – Our Views
c) Suggested actions ahead (III/III)ii. In cross-border situations
1.Suggested approaches for EU-wide infringements:1. Obligation for MS to notify cases of EU relevance so
to trigger joint enforcement action2. Obligation for the concerned MS to conduct a joint
enforcement action3. Obligation for MS to alert other MS when suspected
similar practices4. Single action for EU level infringements (allow EU
single + MS joint enforcement actions)
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Thank you!Oscar ARIAS
Managing DirectorAv. Toison d’Or 511060 Brussels, BE
Gsm: (+32) 476 907 867Email: [email protected]