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Brussels, 2 October 2007
Visit of Commissioner Kuneva to the United States, 2-5 October 2007: frequently asked questions about EU-US relations on consumer protection
Where do EU and US regulators meet to discuss co-operation on consumer protection?
Co-operation with the US on consumer policy takes place both directly with US counterparts and also under the wider umbrella of EU-US regulatory co-operation.
The Commission and the US government adopted guidelines on EU-US Regulatory Co-operation in 2002 and developed a yearly Roadmap for EU-US Regulatory Cooperation.
The 2005 Roadmap outlines three distinct regulatory "dialogues":
The April 2007 EU-US Summit has given a new impetus to consumer protection co-operation with the adoption of the framework on transatlantic economic integration and the creation of a "Transatlantic Economic Council" (TEC). The TEC aims to oversee the work of regulatory dialogues through the implementation of a work programme and to facilitate closer cooperation between the EU and the US administrations, legislators and stakeholders. The first full meeting of the TEC will take place on 9 November 2007 in Washington.
What do EU and US authorities do on product safety and market surveillance?
On non-food consumer product safety, there is continuous contact and good
cooperation between the Commission and US authorities, in particular the
Consumer Product Safety Commission - CPSC. This is largely based on "Guidelines
for information exchange and on administrative cooperation" between the CPSC
and the Commission agreed in February 2005. The provisions of these
guidelines allow for exchanges of non-sensitive information concerning dangerous
consumer products found on the market.
Do EU and US authorities co-operate to stop rogue traders?
Cooperation among enforcement authorities is one, if not the only, effective means to stop rogue traders operating across borders. The EU Regulation on Consumer Protection Cooperation (CPC) was adopted with this purpose and it therefore foresees the possibility to sign cooperation agreements with third countries (if confirmed by a mandate from the Council of Ministers).
Following the adoption of the U.S. Safe Web Act in late 2006, which provides for US cooperation with foreign governments in the fight against cross-border fraud and deception (particularly spam, spyware, and internet fraud), the European Commission and the FTC are exploring possible avenues of joint action. The EU will work within the scope of its Consumer Protection Cooperation regime, implemented through a network of national enforcement bodies.
Is there any EU-US dialogue on Unfair Commercial Practices (UCP)?
The EU Unfair Commercial Practices (UCP) directive aims at clarifying consumers’ rights and simplifying cross-border trade. It will give consumers the same high level of protection against unfair practices and rogue traders whether they are buying from their shop at their street corner or purchasing from a website based in another EU country. Businesses will be able to advertise and market to all 480 million consumers in the EU, in the same way as to their domestic customers. UCP is a "full harmonisation" directive, which means that Member States may not retain more restrictive or prescriptive national laws.
However, Member States may retain more specific rules for financial services and immovable property because of the complexity of such products. Deadline for transposition into national laws was 12 June 2007. Member States must apply the new laws by 12 December 2007. The Commission and the FTC have started a regulatory dialogue aiming at increasing convergence in their legislation concerning unfair commercial practices. Topics discussed include a comparison between U.S. substantive legal tests and corresponding tests in UCP (e.g. the modulation of the reasonable consumer test in case of vulnerable consumers; mutual recognition, country of origin and applicable law).
What is the Transatlantic Consumer Dialogue (TACD)?
The TACD is the network of US and EU consumer organisations, which develops
and agrees joint consumer policy recommendations to the US government and the
European Commission in the context of the EU-US Economic Partnership. The TACD
includes 65 consumer organisations (45 EU and national organisations and 20 US
organisations). It was launched in 1998. It effectively conveys consumers’
views to governments on both sides of Atlantic. The TACD is key in contributing
to the dialogues between EU and US authorities by bringing the point of view of
consumer representatives to that dialogue.