Naming and shaming is a powerful deterrent

Further to the letter from the Għaqda tal-Konsumaturi dated October 16, Price Monitoring Is Good For Competition, we now have further interesting details which originate from the European Commission.

Commissioner for Consumer Protection Meglena Kuneva gives a reply to a Parliamentary question which supports the position adopted by the Għaqda tal-Konsumaturi and makes any attempt to block naming and shaming as unacceptable.

Jacek Olgierd Kurski (ECR), submitted a written question to the Commission on the subject of consumers' rights in e-commerce (October 1), as follows:

"This month the Commission announced the results of the EU Sweep investigation into misleading advertising and unfair practices on websites selling consumer electronic goods in EU Member States.

"The investigation revealed that there were irregularities with 55 per cent of the websites checked, particularly concerning information about consumers' rights and the total cost of a purchase.

"As a result the vendors were misleading consumers.

"I believe that publishing a list of dishonest vendors would make it possible to eliminate undesirable practices more quickly, whereas merely publishing the statistics can only discourage consumers from buying online.

"When will a full list of dealers be published detailing both those that operate correctly as well as those where irregularities have been uncovered?

"Does the Commission intend to implement regular and systematic monitoring of online shops in Member States with a view to ensuring compliance with EU consumer protection rules?

"Can consumers expect similar measures to be taken for other items sold online?"

Ms Kuneva, answering on behalf of the Commission, replied:

"The 2009 sweep on electronic goods, like the two previous sweeps, was carried out by the Consumer Protection Cooperation (CPC) national enforcement authorities with the coordination of the Commission.

Participating States checked 369 websites offering electronic equipment and, as the Honourable Member points out in his written question, they found irregularities in 55 per cent of them.

"In joint market surveillance activities (sweeps) each national competent authority investigates and prosecutes infringements of EC consumer law in accordance with its own national law and procedures.

"Each member state has its own rules on identifying by name traders which they consider to be in breach of the law.

"While the naming of traders at the investigation stage occurs in some member states, in most of them it is not legally possible to publish the names of traders suspected to be in breach of the law before the final judgement on the matter is delivered.

"For this reason, the Commission only publishes the names of traders which have already been made public by the national enforcement authorities in accordance with their own legal system.

"The Commission recognises that naming is a powerful law deterrent to rogue traders and can help consumers to avoid unscrupulous business. The Commission is, therefore, analysing the situation on how this tool could be used to its best effect.

"Since 2007, the Commission, together with the CPC Network Member States, organises internet sweeps in which national enforcement authorities check whether on-line traders from a selected sector comply with the EC consumer law.

"So far two internet sweeps have been concluded: on websites selling airline tickets (2007) and on websites offering mobile phone services (2008).

"While the 2009 sweep on electronic goods is still ongoing, by the end of 2009 the CPC Committee will endorse the form and the topic of the internet investigation to be carried out by the national enforcement authorities in 2010."