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BackAccording to the Commission, the proposal for a new facultative European Sales Law has been a great success: trade obstacles could be eliminated and consumers would have more choice and a higher level of protection. What the Commission does not mention: both consumer organisations and associations for small and medium enterprises are opposed to the Commission proposal. The organisations fear among others legal uncertainty for their members.
The intention of the new Commission proposal is to create a new EU Sales Law. The new set of regulations shall apply in addition to the 27 already existing national contract law provisions. With regard to their transactions, the contracting parties can choose whether to apply EU law or national law. The EU Sales Law should apply to cross-border contracts; however, the Member States also would have the option of introducing it for national contracts. It should apply both to transactions between businesses and consumers and to transactions between businesses.
Reading the press release of the Commission, one thinks immediately of a win-win situation for all participants: the facultative European Sales Law means a high level of consumer protection for consumers, legal certainty in case of cross-border transactions and more transparency and trust by consumers. The trade in turn would benefit from lower transaction costs (for example for legal advisers); they would have fewer problems and could enjoy advantages when developing new markets.
However, what is not mentioned by the Commission: consumer organisations, among them the European Consumers' Organisation BEUC, the Chamber of Labour as well as SME organisations are strongly criticising the proposal of the Commission. Organisations already warned in the run up to the proposal that a voluntary additional sales law would only cause confusion and would hardly provide any help to economic operators.
Consumers would not be legal experts, who would know without a great deal of research which law would benefit them most. Apart from that, say consumer organisations, in practice it will most probably be the traders who decide, which law applies. One could assume that it would be the Sales Law, which is beneficial to the trader and not to the consumer.
On the other hand, the argument on the business side is that the proposal will lead to great legal uncertainty, as due to 28 different legal systems a uniform interpretation cannot be guaranteed. Hence, one had to expect high costs for legal advice. Apart from that there would be obstacles in the single market, the removal of which was far more urgent, for example problems with contract processing.
Why the Commission, in spite of the massive concerns of the contracting parties, insists on this proposal, remains a mystery, at least initially. In any case, the responsible Conservative EU Commissioner Reding already announced a broad-based campaign for this legislative proposal in the Member States.
Further information:
Commission proposal on EU Sales law
AK Position on the Green Paper on “policy options for progress towards a European Contract Law for consumers and businesses
Reading the press release of the Commission, one thinks immediately of a win-win situation for all participants: the facultative European Sales Law means a high level of consumer protection for consumers, legal certainty in case of cross-border transactions and more transparency and trust by consumers. The trade in turn would benefit from lower transaction costs (for example for legal advisers); they would have fewer problems and could enjoy advantages when developing new markets.
However, what is not mentioned by the Commission: consumer organisations, among them the European Consumers' Organisation BEUC, the Chamber of Labour as well as SME organisations are strongly criticising the proposal of the Commission. Organisations already warned in the run up to the proposal that a voluntary additional sales law would only cause confusion and would hardly provide any help to economic operators.
Consumers would not be legal experts, who would know without a great deal of research which law would benefit them most. Apart from that, say consumer organisations, in practice it will most probably be the traders who decide, which law applies. One could assume that it would be the Sales Law, which is beneficial to the trader and not to the consumer.
On the other hand, the argument on the business side is that the proposal will lead to great legal uncertainty, as due to 28 different legal systems a uniform interpretation cannot be guaranteed. Hence, one had to expect high costs for legal advice. Apart from that there would be obstacles in the single market, the removal of which was far more urgent, for example problems with contract processing.
Why the Commission, in spite of the massive concerns of the contracting parties, insists on this proposal, remains a mystery, at least initially. In any case, the responsible Conservative EU Commissioner Reding already announced a broad-based campaign for this legislative proposal in the Member States.
Further information:
Commission proposal on EU Sales law
AK Position on the Green Paper on “policy options for progress towards a European Contract Law for consumers and businesses