SEMINARMARKET SURVEILLANCE IN THE

AREA OF CONSUMER PROTECTION Belgrade, 1 February 2013

Building up a system for an effective surveillance of

consumer markets

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Our objective

To design an adequate set of measures aimed at ensuring that producers and traders comply with the obligations and requirements set out in consumer legislation.

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Basic principles

proactive v. passive preventive v. corrective comprehensive v. piecemeal planned v. occasional

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A strategic planning

Defining short-, mid- and long-term goalsDefining risk detection, assessment and management

processes and methodologies Planning checks and controlsSetting priorities: e.g., implementation of sectoral

surveillance programmes by categories of products, practices or risks

Defining performance indicators

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Basic principles

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Basic principles

Proportionality: - of powers and - of sanctions (Enforcement Pyramid approach = priority to administrative remedial action).

Transparency: motivating decisions, reporting requirements.

Participatory governance: ensuring effective participation of stakeholders, including consumer representatives.

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Basic principles

Participation: National Council for Consumer Protectionsub-group Consumer CommitteeManagement of ADRs schemesManagement of Codes of conductLegal standing of consumer organizations before

courts

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Surveillance-related obligations

Setting-up an adequate institutional framework for MS Enhancing a knowledge-based policy Providing MS authorities with adequate investigation powers

and sanctions, namely to cope with emergency situations Promoting private enforcement tools and procedures Developing inter-state /regional administrative

cooperation

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Adequate institutional framework for MS

One clearly designated and well-identified State institution main responsible for MS in the area of consumer protection and also

for supervising MS by other competent authorities

Sufficient financial, technical and human resources

The need for a coordinated MS system (among state bodies, national v. regional, state v. non-state)

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A knowledge-based surveillance policy

Setting-up a national, uniform and computerized system for the collection and registration of consumer complaints.

= Consumer Complaints Register: design/users and

administrator/use of templates/technical requirements/benefits: more effective access to

legal advice, facilitating and uniformizing the handling of consumer complaints, statistical reports and policy analysis.

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A knowledge-based surveillance policy

Collection and publication of consumer cases dealt with by Courts and by out-of-court schemes.

Use of national data basis: On dangerous goods: NEPRO or Rapid System of Exchange of

Information on Dangerous Productshttp://www.nepro.gov.rs

Use of EU data bases: on unfair terms in consumer contracts:

CLAB Europa was in operation in the 90s; also see EC Consumer Law Compendium or EU Consumer law Acquis database (until end of 2008):http://www.eu-consumer-law.org/index.html

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A knowledge-based surveillance policy

on unfair commercial practices https://webgate.ec.europa.eu/ucp/

on consumer complaints (ECCRS - European Consumer Complaints Registration System)http://www.ec.europa.eu/consumers/complaints/docs/eccrs_user_guide.pdf

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A knowledge-based surveillance policy

Access to EU/international exchange of information networks: on unfair commercial practices: International Consumer

Protection and Enforcement Network (ICPEN), formerly known as the Marketing Supervision Network (IMSN):https://icpen.org

on unsafe products: RAPEX or Rapid Alert System for Non-food Products: http://www.ec.europa.eu/consumers/dyna/rapex

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Adequate investigation powers and sanctions,

Granting inspectors with broad investigation powers: authorization to enter business premises, taking samples, etc.

Providing for directly applicable administrative sanctions: oral and written warnings cease-and desist orders: orders to stop using unfair terms

in consumer contracts, using unfair commercial practice, not complying with the law within a fixed time limit.

administrative fines CONSUMER FUND

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Adequate investigation powers and sanctions

• Transposing the EU Directive 2009/22/EC of the European Parliament and of the Council of 23 April 2009 on injunctions for the protection of consumers' interests (Codified version). Actions for a judicial and/or administrative injunction Expedient or summary procedure Possibility to impose a fixed amount for each day’s delay in the event of failure

to comply Designation by each member state of the entities qualified to bring an action:

state body(ies) in charge of consumer protection, consumer organizations. Arrangements for intra-Community infringements: mutual recognition of legal

standing of national entities qualified to bring an action.

(+ Report from the Commission concerning the application of Directive 2009/22/EC, COM(2012)635 final, 6 November 2012).

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Adequate investigation powers and sanctions

More dissuasive criminal penaltiesHigher amounts of penaltiesOther criminal sanctions: confiscation of profits, etc.

Ensuring that inspectors are appropriately trained, employ best practices and are supported by continuing professional development.

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Enhancing private enforcement

Adequate consumer remedies: e.g., choice among refund, replacement or repair

Individual consumer disputes: Judicial small claims courts/procedures: reduced costs,

representation of individual consumers, time limits and less formalism. Out-of-court disputes resolution schemes based on mediation or

arbitration – Consumer-friendly/Quality criteria: e.g., independence, efficiency, transparency = proposals of EU Directives on ADRs and ODRs.

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Enhancing private enforcement

Collective consumer disputes: clarifying the legal status of collective redress procedures seeking for compensation of the damage caused:

to a group of consumers (opt-in/opt-out) or to the collective interest of consumers.

Solving the funding issue: Widening the scope of existing legal aid programmes

(especially in favor of consumer groups). Setting-up a CONSUMER FUND

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Inter State/Regional administrative cooperation

• EC Regulation 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws (2004) OJ L 364, p.1 to 11. This Regulation provides the legal framework for a cooperation network, which was set up in November 2007 (2007 OJ C 286, p.1). Exchanging information about complaints Handling cross-border consumer complaints Exchanging information about unfair practices Exchanging information about MS measures taken such as injunctions Joint market surveillance activities Cross-border injunctions

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Inter State/Regional administrative cooperation

Participation to EU/international exchange of information systems; notification of measures taken against practices contrary to the consumer interest, distribution of information received from other Member States.

Product safety area: EU RAPEX Economic interests of consumers: International |Consumer Protection

Enforcement Network

(see above)