2009 November | Campaign for Consumer Choice

The Consumer Choice Blog

Archive for November, 2009

How a bottle of perfume could cost EU citizens their consumer rights

Posted by simon, 30.11.09

Lock and secure
[Disclosure: the Campaign for Consumer Choice is supported by eBay]

You may have seen the news today that an injunction issued by the French Commercial Court of Paris has fined eBay €1.7 million saying eBay had failed to comply with an injunction issued last year, which prevented eBay’s French users from buying and selling authentic Christian Dior, Kenzo, Givenchy and Guerlain perfume products on any eBay site in the world.

eBay’s official statement said that it had complied with the injunction and filtered out listings of authentic LVMH products. They went on to state that today’s ruling strikes a blow against consumer rights for citizens across the EU and represents the thin edge of the wedge for consumer choice across all of online.

The results of the case worryingly reveals that, in France at least, if you buy perfume brands from Louis Vuitton then you don’t actually buy the right to re-sell those perfumes. Even worse is that the case highlights a flaw in the founding idea of the Internal Market: free trade and the ability of people to buy and sell goods across European borders.

Tamebay’s Chris Dawson puts it succinctly when he writes

“…what’s important is that French eBay users who own a bottle of perfume don’t have the right to sell it. French users are blocked from buying perfume from any eBay site world wide, not just from eBay France. French consumers are being discriminated against and have lost the freedom to purchase perfumes from other EU countries. For the French the EU Single Market no longer exists”.

A statement from eBay’s General Manager in France, Alex von Schirmeister suggests that the ruling will impact directly on consumers and is likely to be over-turned in the “higher courts”. A full transcript can be found below and the full statement from eBay can be found online here:

“Today’s outcome hurts consumers by preventing them from buying and selling authentic items online. The injunction is an abuse of ‘selective distribution’. It effectively enforces restrictive distribution contracts, which is anti-competitive.
“We believe that the higher courts will overturn this ruling and ensure that eCommerce companies such as eBay will continue to provide a platform for buyers and sellers to trade authentic goods.”

Mr von Schirmeister added, “The fine itself is disproportionate given that eBay complied with the Injunction. It is out of step with our legal victories in France, UK, Germany, Belgium and the US.” The fine itself is disproportionate given that eBay complied with the Injunction. It is out of step with our legal victories in France, UK, Germany, Belgium and the US.”

eBay plans to appeal against LVMH’s original injunction and hearings are scheduled for Spring 2010. The Campaign for Consumer Choice will provide more information on these cases as we get it and update you as to what the implications will be for consumers who buy and sell goods online.

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Thank you for signing our petition!

Posted by simon, 20.11.09

Back in July a petition was launched by eBay calling on EU citizens to make their voice heard and support the right to trade freely online within the EU. At present, EU laws give brands and companies the right to stop people from buying and selling legitimate products online. As a result, consumer choice is being limited and consumers are being prevented from accessing better value goods legitimately online.

The EU Commission is in the process of reviewing and modifying these vertical restraints laws, and on 16th September we presented the results of our petition, calling on the EU to ensure that it took into account the views of ordinary EU citizens who were online retailers and consumers. An outstanding 750,000 of you signed eBay’s petition and sent a clear message to EU policymakers.

While we hope the EU Commission listens to this powerful call for free and fair online retail, there will continue to be issues that arise which will impact on consumer choice online.

Meglena Kuneva, European Commissioner for Consumer Affairs came to the same conclusions in a number of recent studies and reports published by the Commission.

The Consumer Choice campaign will continue to track these issues, campaign for consumer choice across the EU and we want you to get involved and help.

You can find out more about the Campaign for Consumer Choice by taking a look at our short film, which explains what the campaign is all about in 60 seconds. You can also add us on Flickr, Twitter, Facebook, YouTube and subscribe to our RSS feed to discover the final decision taken by the Commission and keep up to date with the campaign in general.

From the Consumer Choice campaign, thanks again for all your support!

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A European blueprint for consumer choice

Posted by simon, 18.11.09

Meglena Kuneva, European Commissioner for consumer affairs who recently revealed the results of mystery shopping exercise carried out across Europe has just published her blueprint for Consumer Policy in Europe.

The blueprint is Kuneva’s vision for how trade should look across the EU in the future and focuses specifically on using technology and increasing consumer trust to achieve its aims.

Echoing our Consumer Choice campaign’s call for fairer online trade practices that offers consumers the greatest choice and value, Kuneva’s calls for an integrated European market that maximizes the opportunities presented by the internet, such as innovative payment systems.

She also wants to see a clamp down on artificial barriers that prevent cross-border competition and encourage anti-consumer trading practices, for example, confusing pricing and hidden fees.

Kuneva also believes that consumer policy must “fight protectionist instincts” which can include both national protectionism as well as commercial protectionism we have witnessed by some brands who want to keep their prices high artificially for online retailers.

As a result, Kuneva hopes that this will improve customer’s experience but believes the EU Commission must support this approach:

“The European Commission must strive to develop a vibrant and innovative market in which citizens are keen to participate. This market must be grounded on a regulatory system that promotes trust and it must build on new technologies.”

Here at the Campaign for Consumer Choice, we know consumers are keen to participate in this “vibrant and innovative market’. Not only that, they are participating and want greater support to do so.

It’s now time for the Commission to listen to its Commissioner and the 750,000 European Citizens who signed our petition to request the EU’s vertical restraint laws be modified to support the kind of consumer society Kuneva wants to see become a reality.

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What’s Consumer Choice all about?

Posted by simon, 13.11.09

Alia Papageorgiou, European Affairs Editor for the weekly newspaper www.neurope.eu as well as editor of a column at runninginheels.co.uk tells us why the campaign for Consumer Choice is important, and provides insight into the inner-workings of European policies.

It’s hard not to notice when you get off the Metro at Schuman, Brussels’ main underground stop. And it’s equally impossible to pass by the foot of the European Commission’s building, the Berlaymont, without pausing.

No matter which Metro exit you take, all you see in front of you are huge posters showing a pile of petitions, the eBay logo, an EU flag, and the number ‘750,000’.

So what’s this all about? What’s the background to eBay’s Consumer Choice campaign?

At the moment, outdated European law gives companies permission to stop people selling legitimate products online, regardless of whether the goods are new or second-hand. What the campaign is trying to do is help EU institutions bring this law up-to-date and assist in one of its ultimate goals: “no barriers to trade.”

The European Commission has a number of regulatory instruments at its disposal, but one used most often is a ‘Regulation’. Regulations usually have a re-appraisal or review date attached to them so that every few years EU officials must go back and review what was set out originally and ensure it is still relevant and up to date with current market and legal issues.

It’s a chance to iron out the kinks, make sure that the regulations imposed are still applicable today and will still be applicable in the future.

The current rules that apply to online retailing (called ‘vertical agreements’) were set out by a European Commission Regulation 10 years ago. This means the regulation pre-exists the rise of the web and of buying and selling goods on the internet.

As a result, they let brands and manufacturers block the sale of products online; limiting the range of choice and value available to consumers.

This is something the Commission has already recognized and commented on:

“Two major developments have marked the 10 year period following the adoption of the current rules: an increase in large distributors’ market power and the evolution of sales on the Internet”.

Not only that, but bringing the current regulation in line with the internet-age is a clear objective for the Commission.

As Viviane Reding, EU Commissioner for Information Society and Media, recently commented: “Achieving a Digital Single Market is a top priority for Europe.” She added:

“We won’t have a real Digital Economy until we remove all barriers to online transactions, also for end-consumers. This must be on top of the list of all policy initiatives to re-launch the single market project.”

It’s great news that the Commission recognises the importance of the internet as a tool for cross-border trade that can improve consumers’ access to goods. However, what the Commission really needs to hear now is more voices; more online buyers and sellers like you and I. When we decide to buy a book or a pair of popular brand boots for winter, ‘at the click of a button’, we want to do so without restrictions limiting our choice.

It’s not too late to make your voice heard. Share your experiences of buying and selling online – both good and bad – with us and remind the EU Commission why the internet is a powerful tool offering consumers the best deal wherever they live in Europe.

Photo courtesy of A. Papageorgiou

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6 out of 10 European shoppers are blocked from purchasing their favourite products abroad

Posted by simon, 9.11.09

Kuneva_EU
A new report by the EU Commissioner for Consumer Affairs, Meglena Kuneva, sheds light on the difficulties of cross-border shopping.

A vast mystery shopping exercise was carried out across Europe: shoppers tried to purchase a range of 100 popular products and the results were revealing. The research found that:

• 60% of cross border transactions could not be completed by consumers because the trader did not ship the product to their country or did not offer adequate means for cross border payment.
• In 13 countries out of 27 and for at least half of all product searches, consumers were able to find an offer in another EU country which was at least 10% cheaper than the best domestic offer.
• Shoppers in 13 EU countries could not find domestic online offers for at least 50% of the products which they searched for, but found them in another EU country.

Meglena Kuneva, Commission for Consumer Affairs notes in a recent speech that:

“As we stand today, we cannot shop cross-border online within the EU. There is no European retail market online, but instead 27 inefficient mini-markets. We have the technology for a big market but not the trade. And this is generating a lot of frustration among European citizens who expect and deserve better”

In short, the report shows that cross border internet trade is often the only way consumers can buy the products they want at the prices they want. But too often cross border trade is hampered by the patchwork of different laws that exist across the EU and other online trade barriers.

It’s now time for the EU to tackle some of the problems highlighted by Kuneva’s report and encourage both online businesses and consumers to call for fairer online retailing by adopting a set of EU-wide consumer protection rules and taking action against online trade barriers.

This is exactly what we’re calling for, and 750,000 Europeans have already supported our call for free trade on the Internet. If you want a better, fairer deal for consumers, why don’t you sign up to join our Consumer Choice campaign?

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