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The EU is proposing to introduce a new consumer directive to simplify and harmonise the rights and remedies available to consumers across the Member States of the EU. It is intended that the new directive will replace four existing consumer directives that deal with doorstep selling, unfair contract terms, distance selling and consumer sales.
The new directive places an obligation on traders to provide certain information on goods prior to sale and will provide consumers with a standard set of remedies if the goods they purchase are faulty. If the directive is approved and introduced, it will have a big impact on consumers and traders alike.
In November 2008, the Law Commission (the body responsible for reviewing the law in England and Wales and recommending reform where it is needed) launched a consultation on the proposed consumer directive. A summary of the responses received as a result of the consultation was recently published.
It is clear from the responses that one of the key concerns about the proposed directive is over the consumer's "right to reject".
At present consumers in the UK can reject faulty goods and request a refund. Under the proposed directive, traders will be able to choose whether to offer a repair or replacement and the right to reject will only be available to consumers in limited circumstances.
The Department for Business Enterprise and Regulatory Reform ("BERR") also launched a consultation on the directive. One of the concerns highlighted in BERR's consultation document is the type of goods covered by the proposed directive. The directive focuses on tangible goods rather than services or mixed contracts for the supply of services and goods. There is also a concern that the directive does not deal with digital downloads/software, which is a growing form of consumer purchase.
BERR's consultation closed earlier this year. The responses will be used by the government to help form a negotiating position on the proposed directive during discussions with the EU.
If you have any queries or concerns about a consumer-related issue and would like advice, please contact Catherine Mathews. Catherine specialises in consumer disputes, including those relating to holidays, timeshare, cars and financial services.
