The European Commission has recently signalled its intention to push forward with its proposed Consumer Rights Directive, which is currently stalled in the European Parliament.

This directive, which was proposed way back in October 2008, plans to introduce a single common set of consumer rights across the EU in order to achieve a single market for businesses and consumers alike. This will mean that, instead of specifying only a minimum level of protection, the directive will prescribe the standard of protection to be set in all the member states, without permitting them the possibility of derogations. The directive would continue the approach of harmonising aspects of national law, albeit on a much broader scale than the existing acquis and thus eliminating the risk of variation posed by minimum harmonisation clauses.

There are currently four different directives which cover consumer contractual rights in the EU namely, Unfair Contract Terms, Sales and Guarantees, Distance Selling, and Doorstep Selling. These directives set out the basic consumer rights which apply to consumer contracts across the EU.

These include the information consumers receive on an offer, rules on unfair contract terms which are biased against the consumer, cooling off periods where the consumer can change his mind on distance and doorstep selling contracts, as well as rights on repairs and guarantees for faulty goods.

Besides the harmonisation element, the proposed directive will give consumers greater protection across the board. The Consumer Rights Directive will deal with contracts for sales of goods and services from business to consumer. Generally all contracts will be covered, whether they are purchases made in a shop, at a distance or away from business premises. On top of that, the proposed Consumer Rights Directive aims to put in place clear EU-wide rules covering pre-contractual information, cooling-off periods, rules on delivery, and unfair contract terms.

In relation to delivery, the draft directive stipulates that the trader will have to deliver the goods to consumers within a maximum of 30 calendar days from signing the contract, irrespective of the location of the consumer within the EU. Under the proposed rules, the trader will bear the risk and the cost of any deterioration or destruction or loss of the goods until the moment the consumer receives the product. When a trader fails to fulfil his obligation to deliver, the consumer will be entitled to a refund by no later than seven days from the date of delivery.

In relation to cooling off periods which apply in the cases of distance and pressure sales, the draft directive envisages the setting down of a single EU-wide cooling-off period of 14 calendar days. Such withdrawal period will be extended to three months in all cases where the trader fails to provide information. An easy to use, standard withdrawal form, will also be introduced.

As with every proposal, different reactions have emerged from different quarters. Consumer groups have been critical of the fact that the draft directive will impose maximum standards on member states without allowing them to afford greater safeguards to consumers. On the other hand, businesses have welcomed the regime to be implemented by the proposal insofar as they will be given certainty of one set of rules for the sale of their products anywhere in the EU.

The Commission, however, has not shown any signs of giving way to these critical comments but is expected to work with EU parliamentarians to get the new rules in place. Members of the European Parliament are expected to make their views on the proposed directive known by the end of this year.

Dr Grech is an associate with Guido de Marco & Associates and heads its European law division.