Within the EU internal market, consumers should not be refused access to a service on grounds of nationality or place of residence.

The ECC-Net (European Consumer Centres Network) has issued a report entitled ‘Enhanced consumer protection – the Services Directive 2006/123/EC’, which highlights some of the difficulties faced by consumers when attempting to access cross-border services in the single market. The report is based on a number of complaints reported to the ECC Net over a three-year period.

Discrimination on grounds of residency or nationality of a consumer is prohibited by means of the Services Directive. The study focuses precisely on this aspect of discrimination and found that consumers still faced problems when trying to access services from another country other than their own. Refusal to supply a service and discriminatory or unequal conditions, such as higher prices, are the most common forms of restrictions consumers have reported.

The report reveals that 75 per cent of complaints reported to the ECC-Net related to discrimination based on consumers’ place of residence rather than their nationality.

Refusal to offer a service was the most frequent consumer complaint, follow­-ed by price differentiation and difference in other con­ditions of access.

E-commerce was the main channel through which consumers faced discrimination when attempting to access services.

The report also found out that consumers are most frequently confronted with price or service differentiation when trying to purchase goods, such as electronic items, clothes and digital downloads (74 per cent).

Other problematic sectors for consumers were the provision of tourism and leisure services (21 per cent) and car rental and leasing services (five per cent).

The report illustrates a number of case studies, whereby the ECC-Net has intervened directly. Two families residing in Italy booked a stay in an Italian hotel via an Austrian tour operator. Upon arrival at the hotel, the families were asked to pay an additional €400 fee. The hotel and tour operator informed the customers that Italians are obliged to pay an additional fee for a club card, enabling them to use the hotel’s amenities. After intervention by ECC Austria, the tour operator refunded the Italians the fee.

In another case, an Irish resident booked a rental car online for a trip to the UK. Upon arrival at the rental location, the consumer was informed he would have to pay an additional £500 deposit on the grounds that he was a holder of a non-UK driving licence. ECC Ireland informed the consumer of his rights and invited him to contact them again if he needed further help.

A UK resident wished to purchase a pair of boots online and discovered that the UK branch of the company was charging £40 more than the German franchise. The consumer attempted to purchase the boots from the German website in euros but the trader refused the transaction, saying this would cause an unfair advantage for the consumer. ECC Germany raised this issue with the store concerned, which refused to alter its pricing policy.

Another case which was closed satisfactorily concerns a Maltese consumer. In this case, the consumer tried to purchase sport shoes from a German manufacturer. The website of the trader said that shipping was free to all EU countries except Malta, where shipping costs would amount to €50. Following correspondence from ECC Germany, the manufacturer changed its policy and now also ships to Malta for free, if the consumers pay the purchase price in advance.

The report reveals that 75 per cent of complaints related to discrimination based on consumers’ place of residence rather than nationality

Further information on this report is available at www.eccnetmalta.gov.mt/eccnetjointreportontheservicesdirective.

This information has been provided by the European Consumer Centre Malta. The ECC-Net is a European network of 30 European Consumer Centres representing EU member states, including Iceland and Norway. The network is co-funded by the European Commission and EU member states. In addition to helping consumers in case of a complaint or dispute, members of the ECC-Net engage in joint projects to investigate specific business sectors.

odette.vella@mccaa.org.mt

Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.

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