European law report - Doorstep selling
The EU Commission has initiated a consultation process with respect to the 1985 Directive on Doorstep Selling, a directive which protects consumers when purchasing goods away from business premises. The 1985 directive is one of the oldest legislative...
The EU Commission has initiated a consultation process with respect to the 1985 Directive on Doorstep Selling, a directive which protects consumers when purchasing goods away from business premises. The 1985 directive is one of the oldest legislative acts adopted in the field consumer protection on a European level. Hence the need has been felt for its review in order to simplify its contents and improve its quality, thereby enhancing the protection currently offered by the directive to consumers.
This directive covers sales concluded in the consumer's home, at his place of work, or during an excursion organised by a trader for consumers. However, it does not apply to sales of immovable property, food or drink or other consumables, certain contracts concluded on the basis of a trader's catalogue, insurance contracts and contracts for securities.
The current 1985 directive mainly provides for a minimum "cooling-off" period of seven days, which enables consumers to withdraw or cancel a contract of sale concluded during an unsolicited visit by a trader, even though under normal circumstances that contract would be deemed to be definitely concluded. This so-called "cooling-off" period is necessary in order to allow consumers, pressured by rogue traders who turn up on their doorstep to sell their wares, to think about their purchase and to withdraw after they have thought about their purchase more "coolly" afterwards. The main obligation imposed on the trader under the directive is the provision of a written notice of the existence of a right of withdrawal to consumers.
The directive, being a minimum harmonisation directive, does not prevent member states from adopting, or maintaining, more favourable provisions to protect consumers. Some member states, however, have relied extensively on this minimum harmonisation clause while others have gone beyond the provisions of the directive offering more protection to consumers.
This has led to a situation where one European consumer has more protection than his counterpart in another member state. A need for creating a comparable protection to all European consumers is called for. Direct selling to consumers may warrant protection even when purchases are not concluded at the consumers' house or their place of business. Direct selling may indeed occur in the street, at a fair, or in other public places where a consumer may be accosted by a trader and led on to purchase a product. The Commission is seeking to establish whether consumers concluding purchases in these places not currently covered by the directive need protection.
The European Commission is also requesting feedback from interested parties on the possibility of introducing time restrictions on doorstep selling and bans on payments during the "cooling-off" period. Stakeholders are urged to give their opinion on whether it is necessary to introduce at European level the time of day during which a doorstep seller is allowed to knock on someone's door to sell his wares. Another introduction, which is currently being considered, is the prohibition of advance payments made by the consumers during the "cooling-off" period.
The consultation on the Doorstep Selling Directive will be open until December 4, 2007. Consumers as well as traders are encouraged to give their response to the Health and Consumer Protection Directorate-General on the implications of the current directive and how it has affected them in its practical application. On the basis of the outcome of the consultation, the Commission will decide whether there is a need for review of the current directive.
• Dr Grech is an associate with Guido de Marco & Associates and heads its European Law Division.
This directive covers sales concluded in the consumer's home, at his place of work, or during an excursion organised by a trader for consumers. However, it does not apply to sales of immovable property, food or drink or other consumables, certain contracts concluded on the basis of a trader's catalogue, insurance contracts and contracts for securities.
The current 1985 directive mainly provides for a minimum "cooling-off" period of seven days, which enables consumers to withdraw or cancel a contract of sale concluded during an unsolicited visit by a trader, even though under normal circumstances that contract would be deemed to be definitely concluded. This so-called "cooling-off" period is necessary in order to allow consumers, pressured by rogue traders who turn up on their doorstep to sell their wares, to think about their purchase and to withdraw after they have thought about their purchase more "coolly" afterwards. The main obligation imposed on the trader under the directive is the provision of a written notice of the existence of a right of withdrawal to consumers.
The directive, being a minimum harmonisation directive, does not prevent member states from adopting, or maintaining, more favourable provisions to protect consumers. Some member states, however, have relied extensively on this minimum harmonisation clause while others have gone beyond the provisions of the directive offering more protection to consumers.
This has led to a situation where one European consumer has more protection than his counterpart in another member state. A need for creating a comparable protection to all European consumers is called for. Direct selling to consumers may warrant protection even when purchases are not concluded at the consumers' house or their place of business. Direct selling may indeed occur in the street, at a fair, or in other public places where a consumer may be accosted by a trader and led on to purchase a product. The Commission is seeking to establish whether consumers concluding purchases in these places not currently covered by the directive need protection.
The European Commission is also requesting feedback from interested parties on the possibility of introducing time restrictions on doorstep selling and bans on payments during the "cooling-off" period. Stakeholders are urged to give their opinion on whether it is necessary to introduce at European level the time of day during which a doorstep seller is allowed to knock on someone's door to sell his wares. Another introduction, which is currently being considered, is the prohibition of advance payments made by the consumers during the "cooling-off" period.
The consultation on the Doorstep Selling Directive will be open until December 4, 2007. Consumers as well as traders are encouraged to give their response to the Health and Consumer Protection Directorate-General on the implications of the current directive and how it has affected them in its practical application. On the basis of the outcome of the consultation, the Commission will decide whether there is a need for review of the current directive.
• Dr Grech is an associate with Guido de Marco & Associates and heads its European Law Division.