Explain why consumer protection is vital to maintain and promote a single market.
Suzanne K. Menzies.
Outcome 4.
Tutor: Michelle Semple.
Contents.
Part 1 - ..................................................................................................... 3 -
* Explain why consumer protection is vital to maintain and promote a single market.
Part 2 - .....................................................................................................
* Accurately identify the different national standards of consumer protection and trade and highlight why these differing standards can act as a barrier to the free movement of goods.
Part 3 -........................................................................................................
* Accurately explain the following Directives which govern and promote a Single Market:
* Misleading Advertising
* Consumer Credit
* Price Indication
Conclusion..................................................................................................
Appendix
Bibliography..............................................................................
Introduction.
Whilst the European Union stands almost economically and socially stable, this has been a lengthy, complex progression. Achieved through key developments: such as the single market. Subsequently, these fundamentals have contributed to the structure and functions of Europe.
Through EU law enforcement, minimum, common standards have been set. Examples of which include:
* Distance selling
* Product labelling
* Canvassing
These standards grant consumers the reassurance that their purchase is of a high quality; regardless of origin, that they have legal guarantees to protect them should the product/ service prove defective or unsatisfactory and that they have the right to attain information of the purchase.
In this assessment, firstly, I am going to identify the consumer protection measures that are currently in use in the European Union, identify the different national standards of consumer protection and trade within the EU, highlighting the reason they become barriers to trade. Finally I will show the Directives governing: misleading advertising, consumer credit and price indication, that have been enforced to and promote a single market.
Part 1.
Explain why consumer protection is vital to maintain and promote a single market.
Within the model single market, consumers are given the opportunity to purchase both products and services, having more choices and at relatively lower prices. However, the free movement of goods concept cannot operate properly without laws that protect its consumers. For, if the products (or services respectfully), that were traded did not provide its expected standards then the consumer market simply would not purchase.
Consumer policy has not always been a topic placed high on the EU's agenda. The Treaty of Rome recognised consumer protection on a much greater extent that had previously been the case:
Article 153 (129a):
"The Community shall contribute to protecting the health, safety and economic interests of consumers as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests"
(European Parliament Fact Sheets: 4.10.1).
The Single European Act (1986) established consumer policy (D Swann: 1992). Later, this led to the launch of the Independent Consumer Policy Service: its policies included consumer representation and product safety. As pressure grew during the 90s from consumer groups to further develop consumer policy, the Treaty of the European Union adapted consumer protection.
Therefore it stands as the job of European Law to effectively ensure the safety of consumers, whilst maintaining the prevention of competition, (see later p--). This is because, without laws in place to protect the consumer, the businesses and industries of Europe's single market could undoubtedly be insincere with consumers. The single market and all it stands for, could run the risk of being undermined if its consumers did not hold the utmost confidence in the standards of its products and services.
The scope of legislative measures concerning consumer protection therefore covers: health and safety; it protects consumer's legal and economic interests; it provides them with the right to information and ultimately European legislation enables consumers the right to redress.
Consumer Health and Safety.
This basic element adopts the need for general safety measures to be in place that are designed to prevent the marketing of dangerous products. It is the job of the Standardisation Committee (CEN), to constantly revise and develop existing standards as markets change and new categories are created.
Achievements include:
* The ...
This is a preview of the whole essay
The scope of legislative measures concerning consumer protection therefore covers: health and safety; it protects consumer's legal and economic interests; it provides them with the right to information and ultimately European legislation enables consumers the right to redress.
Consumer Health and Safety.
This basic element adopts the need for general safety measures to be in place that are designed to prevent the marketing of dangerous products. It is the job of the Standardisation Committee (CEN), to constantly revise and develop existing standards as markets change and new categories are created.
Achievements include:
* The General Product Safety Directive: (92/ 59), states that manufacturers must only market their products if they are safe under accepted normal conditions. Where there are possible risks, stated guidelines should exist.
* The Community System for the Exchange of Information: (Council Decision 93/ 580). An exchange medium, from which Member States have access to information regarding dangers that could arise from all consumer products. (The only products exceptional to this requirement are products for professional or pharmaceutical use). Consequently, some products have been pronounced dangerous; such as toys, these have been withdrawn from the market place.
Toys - (Directive 88/ 378).
There are now stipulated basic safety requirements in place, relating to physical/ mechanical danger, toxicity and flammability. These requirements are compulsory and therefore all products sold in the European Single Market, whether of EU origin or not, must meet them.
CE Mark.
CE' stands for Conformitée Européenne.
which translated literally, means 'European Conformity'.
The CE Marking has strict definitions that is can only be
applied if it is drawn in the correct form,
(minimum size 5mm).
(Taken from http://www.cetest.nl/ce-sign-ttf.htm)
This recognisable mark is given to toys and all other products, (: Medical Devices, Telecommunications Products, Gas Appliances, etc.) which fulfil the necessary standards.
Therefore, only certified toys can be sold in the single market.
The CE Mark ensures a consumer that a product has conformed to these common standards (: safety, packaging, labelling, etc.). It is worth notating that although this law stands, national governments still have the power to ban a product that they still believe to be unsafe, even if it holds this mark. However, this ban must be justified to the European Commission and if they do not agree with the national government, the case may be taken to the European Court of Justice and considered contrary to Community rules on free trade.
Protection of Consumer's Economic and Legal Interests.
This legislative area was considered necessary in order of giving consumers community-wide legal rights that would aid and protect, should they need them.
Community rules enforced with regards to the following:
* Standards on flammability of materials in furniture.
* Rules on testing, registering and display of pharmaceutical, medical and cosmetic products.
* Household gas-burning appliances
* Mandatory health controls & labelling requirements for food/ agricultural products.
The scope of the protection saw directives being enforced which vetoed a community-wide ban on:
* Misleading advertising
* Consumer credit/Electronic & cross-border payments - in relation to the Forth Freedom of Capital, banks should provide written information to the client about charges, etc.
* Price indication (discussed further in part 3 - pg--)
* Protecting the consumer in distance selling and doorstep sales: purchaser's agreement now permits consumers to a minimum of one week from which they can withdraw from their purchase.
* Package holidays - compensation for changes or cancellations must be provided.
This element also provides the right to information.
From the outset of consumer protection, it has been believed that there should be a wider availability of information. There was need to develop existing legislation which covered wider policy areas, especially in the light of the new technology age of emailing and the Internet.
The main stipulation here though, was emphasising on packaging, labelling, (best before markings, ingredients, etc) and safety.
The European Commission gives full support to consumer organisations that carry out price surveys/ comparative tests of products, (such as the UK Which company, see later pg --).
Cosmetics have also been a product area that has undergone improvement, with regards to product labelling and therefore is a good example. Measures have been adopted with the aim of improving the safety of cosmetic products by protecting consumers through ingredient inventories and more informative labelling. Also labels will show whether the product has been animal tested, although since the enforcement of Directive 76/ 768, animal testing is now prohibited by the European Parliament.
It was during the 90s that consumer groups pushed consumer policy to the top of the EU's agenda, particularly as this was the time of the BSE crisis. In 1996, the British Government announced that there could be a possible link between Bovine Spongiform Encephalopathy (BSE) and Creutzfeldt-Jacob Disease (CJD: the human form of BSE - 'mad cow disease'. Therefore, incase of a link and due to public reaction, led to the EU renewing its emphasis on consumer policy, especially in the food safety field. Eventually, the Commission issued a proposal (March 97) stating that by the year 2000, meet products, mainly beef, should be labelled with the country of origin. There were widespread protests on BSE, with some countries loosing their faith in British Beef. The French were at the head of this and did not lift their ban until 46 788800.
Therefore, to date, all foodstuffs have directives that have been adopted covering:
* Additives
* Labelling & packaging materials in contact with foodstuffs
* Frozen diet & novel foods
* Milk products & imitations
* The regulation of biological products & pesticide residues on fruit and vegetables
* Promotion of quality products
* Installation of a rapid European-wide warning system for any causes of contamination.
The Right to Redress.
*
Part 2.
Accurately identify the different national standards of consumer protection and trade and highlight why these differing standards can act as a barrier to the free movement of goods.
For the structure of a single internal market to function at its foremost, it goes without saying that national laws and standards need to be harmonised in numerous business areas. This is an essential part of the promotion of the free movement of goods. As already established: barriers to trade have to be abolished and measures have been adopted throughout the European Union's development in prevention of this.
Part 3.
Accurately explain the following Directives that govern and promote a Single Market: Misleading Adverting Consumer Credit-Price Indication.
Conclusion.
Appendix 1.
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£1,000 over 12 months | £3,000 over 36 months | £5,000 over 36 months | £7,000 over 48 months | £10,000 over 60 months | £15,000 over 60 months | £20,000 over 60 months |
Lender
APR
Monthly Repayments
Total Amount Payable
Extra Cost
Nationwide
7.9
£86.82
£1,041.84
£0.00
Royal Bank of Scotland
22.6
£92.89
£1,114.68
£72.84
Natwest
20.9
£92.22
£1,106.64
£64.80
HSBC
9.8
£91.78
£1,101.36
£59.52
Barclays
7.9
£91.05
£1,092.60
£50.76
LloydsTSB
7.9
£91.02
£1,092.24
£50.40
Alliance & Leicester
7.0
£90.63
£1,087.56
£45.72
Figures correct as at 08 November 2002. Source of information: Internet where available and brochures. Monthly repayments are without insurance.
Appendix 2.
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Appendix 3.
Taken from BBC News Pages: http://news.bbc.co.uk/1/hi/uk/678141.stm
Wednesday, 15 March, 2000, 12:10 GMT
Sweet victory for UK chocolate
The chocolate dispute began in 1973
British chocolate will go on sale across Europe after a 27-year battle between the UK and its EU partners is finally resolved.
European MPs have voted to allow chocolate made with up to 5% vegetable fats or up to 20% milk content to be sold in all 15 member states.
The decision will affect some of Britain's best-known brands including Mars and Kit Kat.
All EU countries will have to sell high milk content chocolate bars and chocolate containing vegetable fats, such as those made by leading UK manufacturers, but the products will be labelled as Family Milk chocolate on exports.
The dispute has divided the EU since 1973 when Britain, along with Ireland and Denmark, won an opt out from EU law saying only cocoa butter could be used in chocolate.
But so-called chocolate 'purists', led by Belgium and France, have long campaigned against vegetable oil use. They ban their own chocolate from containing vegetable fats.
Labour Euro MP and consumer affairs spokesman Philip Whitehead said: "It has taken nearly 30 years to be able to buy a Cadbury's Flake as easily in Madrid or Munich as in Manchester.
"Consumers will now be able to buy the chocolate they want, where they want it."
The chocolate campaign is among the longest running of Britain's disputes with its European neighbours, stretching back to when the country first joined the EU.
Cadbury's 'family milk chocolate'
Since 1973, EU law has allowed each member state to decide whether or not to ban the use of vegetable fats in its own and imported chocolate.
Until Wednesday's ruling, seven EU countries allow vegetable fat and eight - Belgium, France, Italy, Spain, Luxembourg, Germany, Greece and Holland - chose not to sell the product.
In February 1984 the European Commission tried to resolve the row, suggesting that UK chocolate should have unfettered access to the rest of Europe but the move failed.
Now UK-style milk chocolate with 20% milk content will have to be labelled 'family milk chocolate' in continental Europe but just 'milk chocolate' at home.
And chocolate with a maximum of 5% vegetable fats will have the words 'contains vegetable fats in addition to cocoa butter'.
During the 27-year history of the dispute some of the best brains in Brussels and EU member states have spent time grappling with questions such as whether chocolate containing vegetable fat is worthy of the name chocolate.
And successive British governments have had to fend off attempts to label the British product as 'vegelate' - and even attempts to ban it altogether
*Other related reports include:
Breakthrough in euro chocolate war
The British chocolate industry is looking forward to opening up a vast new market for its products, after the end of a 25-year wrangle over exports to the European Union.
" 85% relevance | 01/07/1999 |
EU moves to end chocolate war
While the cross-Channel beef war rumbles on, the UK has moved a step closer to resolving another European trade dispute, this time involving chocolate.
" 85% relevance | 28/10/1999 |
Sweet victory for UK chocolate
British chocolate will go on sale across Europe after a 27-year battle between the UK and its EU partners is finally resolved.
" 86% relevance | 15/03/2000 |
Bibliography.
Books.
* European Community Law
Routledge: 1995.
Andrew Charlesworth & Holly Cullen
* The Single European Market & Beyond:
- A study of the wider implications of the SEA.
Routledge: 1992.
Dennis Swann.
* European Encyclopaedia
* The Single Market.
Luxembourg: 1996.
European Commission.
Websites.
* Europa: www.europa.eu.int
* European Parliament: www.europarl.eu.int
- Factsheets -
4.10.1 - Consumer Policy: Principles & Instruments.
4.10.2 - Consumer Protection Measures.
* CE Mark www.ce-mark.com
* CE Mark www.cetest.nl
* Swedish Consumer Policy www.english.konsumentverket.se
* Which www.whichwebtrader.which.net/webtrader
*
* Nationwide www.nationwide.co.uk
* Bank of Scotland www.bankofscotland.co.uk
Other Sources.
* All college notes and handouts.
Single European Markets - Outcome 4, Suzanne K Menzies.
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