Consumer Law: the European Agenda
Consumer Law: Protection and Compliance
UCC
11 December 2014
Ireland and Europe
Shift to Europe 1980s- 1990s
Return to endogenous – 2000s -
European agenda
 Treaty 1957 – 5 references
 1970s- 1990s – Legislation in context of Harmonisation/Market
Integration
 Maastricht Treaty 1992: Specific Legislative Competence: Art. 153
(now Art. 169 TFEU)
In order to promote the interests of consumers and to ensure a high level of
consumer protection, the Union 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
interest.
Commission moves toward Maximum
Harmonisation
Member States fight-back?
Current Agenda
ADR as Alternative to Court Procedure
European Regulation of ADR: current
position
 Recommendation 98/257/EC and 2001/310/EC (not binding)
 Outline of principles:
Independence
Transparency
Adversarial
Effectiveness
Legality
Liberty to ensure that the decision taken may be binding on the consumer only
if they are informed of its binding nature in advance
 Representation to ensure that the consumer has the possibility to be represented
in the procedure by a third party if they wish.
 Fairness
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ADR Directive
 Directive 2013/11/EU on alternative dispute resolution for
consumer disputes
 To be transposed by 9 July 2015
 Application to Binding/non-binding ADR
 Application to Domestic/Cross-border ADR
 Two pronged approach
 Availability/Accessibility of ADR
 Procedural Requirements for ADR providers
Availability
Member States required to ensure
that disputes covered by ADR
Directive can be submitted to an
ADR entity which complies with
the requirements of the Directive.
Accessibility
Domestic and cross-border disputes
But no mandatory participation by traders
Some scope for refusal by ADR entities
Procedural Requirements
 Impartiality:
 no conflict of interest
 Transparency:
 annual reports
 Terms of reference
 Effectiveness:
 Ease of access regardless of location
 No requirement for legal representation
 Free of charge or at moderate cost for consumers;
 Time limit of 90 days
 Fairness
Enforcement
Designation of competent
authority
Penalties for traders for noncompliance with information
requirement
ODR as a form of ADR
 Dispute Resolution which uses technology to resolve/help to
resolve disputes between parties
 Technology: the ‘fourth party’
 Consensus building
 Decision-making
 Interaction
 Can apply to disputes arising online/offline
 Particularly appropriate in B2C eCommerce
ODR Regulation in Europe
 Provides for Establishment of European ODR platform to
 Complements ADR Directive
ODR Regulation in Outline
 Public/Private mix
 Single Platform Web-interface to act as hub
 Linked to European Consumer Centres in Member States
 No submission fees for consumers
 Own language facility
 But ODR providers may charge ‘reasonable’ fee and may use
other language
 Traders not required to participate but will have to provide
information to consumers about platform
Timeline for Implementation
 9 Jan 2015: Testing of technical functionality/user
friendliness (inc privacy requirements)
 ODR Regulation in force from 9 Jan 2016 except
 Provisions re relevant network points: from 9 July 2015
 Provisions re establishment of databases etc from 8 July 2013
ODR Regulation in Operation: art. 9
 Initial Stages in the Process
 Completion of electronic complaint form
 Transmit to respondent “without delay” + names of competent ADR
entities
 Invite respondent to name ADR entity
 Obliged or prepared to use
 10 day time limit
 ODR entity transmits complaint to named ADR entity
 Without delay
 ADR entity accepts/declines
 Without delay
 If ADR entity accepts
 90 days to resolve
Mortgages Directive
Application
(a) Credit agreements which are secured either by a mortgage
or by another comparable security commonly used in a
Member State on residential immovable property or secured by
a right related to residential immovable property; and,
(b) Credit agreements the purpose of which is to acquire or
retain property rights in land or in an existing or projected
building.
Possible exemptions
 Buy-to-let mortgages;
 Credit agreements relating to credit granted to a restricted
public under a statutory provision with a general interest
purpose, free of interest or at lower borrowing rates than
those available on the market
 Bridging loans;
 Credit agreements with non-profit mutual societies
Basic Requirements
 Information
 Withdrawal/reflection
 Tying
 Credit-worthiness/suitability
 Advisory Services
 Early Repayment
 Arrears and Foreclosure
Payment accounts Directive
Aims:
to facilitate comparability of
bank account fees
to facilitate switching
between payment accounts;
to provide access to basic
payment accounts.
Comparability of fees
Standard terminology across Member States
List of Main Services
Switching Accounts
A switching service must be
provided by payment services
providers.
Access to Basic Payment Account
At least one payment service provider per member state must
offer a payment account with basic features to consumers at
no or minimal cost and not solely online banking facilities