Brussels, 27 February 2007
"The crucial role of Consumer policy in generating growth and creating jobs is not well understood at EU level", said Commissioner Kuneva. "Consumer Policy is just as important as competition policy in making markets work. A competitive retail sector is essential to competitiveness. But relatively little has been done at EU level. I hope to unleash the potential of a completed retail internal market. The contribution of consumer measures to competition is sometimes misunderstood: informed and empowered consumers can turn up the competitive pressure. Markets that are responsive to consumer needs are essential to the modern knowledge–based economy. Consumers are often the source of inspiration for new technologies and a key driver of innovation. I strongly believe that consumer policy should be included in the next version of the Lisbon guidelines for Growth and Jobs."
Contributing to growth and jobs
Contributions EU consumer policy can bring to growth and jobs include:
The retail internal market
The EU internal markethas the potential to be the largest retail market in the world in economic terms. However it remains largely fragmented with most transactions still taking place within national markets, and with a lack of competitive pressure to reduce price divergence. An integrated retail internal market where consumers could compare and purchase from retailers throughout the EU would significantly sharpen competition and reward the most efficient retailers. It could also help boost the EU's external competitiveness if it became an attractive destination for e-commerce shoppers from around the world.
The value of consumer protection measures
Information asymmetries in the market, especially for non-repeat purchases, create an imbalance between the information available to the retailer and the consumer. Information may be incomplete – or even deliberately untruthful, misleading or deceptive. Consumer legislation to require all advertising and commercial practices to be truthful, accurate and non-misleading and non-deceptive is required. Better informed consumers who are able to make a free choice are essential towards the efficient functioning of the market. They can drive forward a more efficient allocation of resources and higher economic welfare. Consumers also incur search costs in obtaining information. Market transparency about price, quality, choice and after-sales services is also essential. But this information also needs to be comparable as well as accurate and transparent.
Consumer Strategy 2007-2013
The Competitiveness dimension will be at the heart of the forthcoming consumer policy strategy 2007-2013. The three main objectives of the Strategy will be:
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