A3-0284/94

Resolution on the Commission Green Paper on guarantees for consumer goods and after-sales services

The European Parliament,

-having regard to the Commission Green Paper of 15 November 1993 on guarantees for consumer goods and after-sales services (COM(93)0509 - C3-0474/93),

-having regard to Articles 100a(3) and 129a of the EC Treaty concerning the attainment of a high level of consumer protection,

-having regard to its resolution of 11 March 1992 on the consumer protection requirements to be taken into account in the completion of the internal market,

-having regard to the report of the Committee on the Environment, Public Health and Consumer Protection and the opinion of the Committee on Legal Affairs and Citizens' Rights (A3-0284/94),

A.whereas the freedom of movement of goods and services applies not only to professional traders but also to private individuals, and whereas consumers are entitled to purchase goods and services in a Member State under the same conditions as those resident there,

B.having regard to the need to enable the consumer actually to benefit from the advantages of the internal market, and believing therefore that conditions should be created whereby the freedom of movement of the consumer as a purchaser of goods and services is assured in the European Union,

C.whereas it should be made easy for the consumer to benefit from the advantages of purchasing in another Member State,

D.whereas there is as yet no sign of retail purchasing in another Member State developing on a systematic basis, apart from the cross-border shopping which has always taken place,

E.whereas the reluctance of consumers to purchase on a systematic basis movable consumer durables in a Member State other than their Member State of residence can be the result, inter alia, of (anticipated) problems with guarantees and after-sales service,

F.whereas there are considerable differences from one Member State to another in the scope and duration of rights under the legal guarantee, and whereas differing commercial practices have developed as regards the contractual promise of indemnity,

G.whereas, in the field of the legal guarantee, there are regulations in all Member States, based on many years, sometimes centuries, of tradition and administration of justice and comprise a sensitive set of provisions incorporated in an overall system,

H.whereas most consumers are unaware of the relevant statutory provisions and probable contractual terms in their own, to say nothing of other Member States,

I.whereas consumers justifiably expect to be entitled to the same rights as regards guarantees and after-sales service throughout the internal market which has been in existence since 1 January 1993, irrespective of the Member State in which the vendor of an economic good is resident,

J.whereas the Green Paper considers only guarantees and service relating to the purchase of moveable consumer goods which are durable and new and this restriction is considered regrettable since consumers' problems in cross-border shopping are more broadly-based,

K.whereas there is in theory a clear distinction between legal guarantee, commercial guarantee and after-sales service, whereas confusion can arise in practice particularly between the legal guarantee and the commercial guarantee, and whereas this may give rise to particular problems for cross-border purchasing,

L.whereas consumers, who often only know about the commercial guarantee and are unaware of the existence of the legal guarantee, frequently believe that their rights are limited to the terms of the commercial guarantee and consequently fail to invoke their rights under the legal guarantee,

M.whereas the problems encountered by consumers in cross-border shopping arise partly from the lack of a general legal framework applying to commercial guarantees, in view of the different guarantee conditions applying in the various Member States, as well as geographical restrictions on commercial guarantees,

N.having regard to the Commission Green Paper of 16 November 1993 on access of consumers to justice and the settlement of consumer disputes in the single market (COM(93)0576), which has shown once again that consumers still have no satisfactory cross-border access to justice in order to invoke their cross-border rights under a guarantee,

O.whereas it is essential for consumers to be able to make use of accessible procedures in order to invoke their rights under a guarantee, regardless of the Member State in which they purchased the product or service covered by the guarantee,

P.whereas it is necessary in this connection that accessible procedures should exist for consumers to enable them to invoke guarantee or other rights, and whereas an effective system must be developed to deal with cross-border complaints in this area,

Q.whereas it is essential for the consumer to be fully and clearly informed about legal and other provisions and codes of conduct governing guarantees and after-sales service in the European Union, including procedures enabling consumers to invoke their rights,

R.whereas Community action on after-sales service guarantees is needed in the European Union with a view to setting a European minimum level which can be relied on by consumers and businesses,

1.Considers that a certain harmonization of laws on retail sales and obligations in the European Union is desirable not only to permit trouble-free shopping by consumers in another Member State but also to prevent distortions or restrictions of competition and obstacles to trade for manufacturers, importers or vendors, and therefore requests the Commission to make concrete proposals on this subject;

2.Considers the harmonization of national legislation on 'legal guarantees' to be pointless for reasons of subsidiarity and the resulting differences in interpreting the law;

3.Calls on the Commission to submit a proposal for a directive on legal guarantees before the end of 1994, with a view to formulating certain minimum requirements for legal guarantees in the Member States to protect and promote the interests of consumers; the proposal should be based on:

-a minimum level of harmonization with a view to consumer protection, using objective criteria (consumer goods) to demarcate the area of application of the directive;

-clear terminology and options for interpretation of terms;

-joint liability of manufacturer and vendor in respect of the legal guarantee;

-legal transfer of rights to the person entitled to invoke the guarantee;

-binding nature of the legal guarantee;

4.Assumes that there is no obligation in principle for the manufacturer or importer/purchaser to provide a commercial guarantee, but considers that, where such a commercial guarantee is given, this must conform to a number of basic European principles;

5.Calls on the Commission to submit a proposal before the end of 1994 on commercial guarantees and after-sales service, in order to create a general legal framework of basic principles for these fields in the European Union based on:

-the voluntary nature of commercial guarantee conditions and after-sales service;

-the introduction of minimum rules on the status of guarantees, and on specific information to be included in the text of the guarantee (e.g. name and address of guarantor, substance of guarantee, person to whom the consumer can apply in case of complaint, and procedure to be followed);

-the principle that the legal guarantee shall continue to apply unimpaired alongside the commercial guarantee, that the offer of a commercial guarantee shall in no way affect statutory rights, and that the guarantee should state this;

-encouragement of self-regulatory measures by organizations representing businesses and consumers with a view to drawing up codes of conduct;

-the creation of a trademark or registered trade name indicating the 'European' nature of this guarantee and after-sales service and, if necessary, creation of a logo to simplify identification;

-the right to invoke a guarantee and after-sales service in any Member State - even if the goods were purchased in another EU State - either from the manufacturer who provided the guarantee or from the importer or any branch of a particular brand retail chain;

-prohibition of any name or claim which could be confused with the 'Euro-guarantee';

6.Further considers that the solution suggested in the Green Paper (Section VI.B.3.2) of a European guarantee, with the creation of a European guarantee label, could be instituted in cooperation with the industry concerned;

7.Stresses that this would require only a small regulatory and administrative effort;

8.Recommends, however, that such a 'Euroguarantee' which any manufacturer or importer would be permitted to adopt on a voluntary basis together with the right to use the registered guarantee label, should also be linked to conditions regarding after-sales service independent of the guarantee;

9.Stresses, however, the need to ensure that a voluntary 'Euroguarantee' of this nature in no way restricts or replaces the existing statutory rights of consumers in the individual Member States;

10.Acknowledges that the establishment of such a system, with prior inspection examination and ongoing monitoring, will require certain bureaucratic structures to be set up, in so far as these tasks cannot - at least in some Member States - be carried out by specific administrative departments or self-governing bodies;

11.Considers, however, that such a structure is justifiable in the interests of the consumer, since simply protecting legislation of the term 'Euroguarantee' under trademark law could lead to fraud or other abuses;

12.Notes that there is too little mention in the Green Paper of after-sales service, although this plays a significant part in a consumer's purchase, and therefore calls on the Commission to examine this aspect further and encourage measures to promote clear information on this subject for the consumer;

13.Takes this opportunity to point out once more the need for more information and advice centres for consumers in the European Union, and for leaflets to be available, particularly at border crossings, informing consumers thoroughly but clearly and comprehensibly - and in at least the languages of the immediately neighbouring Member States - of their statutory rights in the country they are visiting;

14.Calls for more accessible procedures for the consumer and an effective system for dealing with cross-border complaints;

15.Stresses the importance of clear and complete information for the consumer on guarantees and after-sales service, and calls on the Commission, the Member States and organizations representing trades, businesses and consumers to take concrete steps in this direction;

16.Instructs its President to forward this resolution to the Council, the Commission, the governments of the Member States and the European Office of Consumers' Associations.