Vera Jourova – Photo EC
(BRUSSELS) – A majority of EU Member States have found breaches of EU rules on unfair commercial practices, the European Commission has found in preliminary investigations into the Volkswagen ‘dieselgate’ scandal.
Announcing its response to the scandal, the EU executive said it was asking Member States to look at breaches of two pieces of EU consumer legislation: the unfair commercial practices directive and the sales and guarantees directive, which set Europe-wide standards which all Member States have to enforce.
Vera Jourova, Commissioner for consumer affairs, said almost all EU states have confirmed a lack of transparency from VW in its provision of information to consumers.
A majority of Member States also report apparent breaches of the rules under the unfair commercial practices directive.
The Commission, she said, is continuing to collect information from stakeholders on a scandal which had affected consumers in all Member States.
Action would be taken, she promised, and it was not an option “to behave as if nothing happened.”
Ms Jourova confirmed she would be meeting members of national consumer organisations on 8 September, and representatives of national consumer authorities at the end of the month, as well as Volkswagen representatives.
With pressure for action building, the Commission has nevertheless been treading carefully.
Penalties could ruin the company and eliminate thousands of European jobs.
Damages, it says, are for the national courts through collective action.
EU Member States have also not been rushing to take action against VW, reflecting national concerns over investment, as well as the effect on employment.
The case has highlighted the differences between the US system and the EU system in that the rules for collective redress are not the same in all Member States – making the path to damages more complicated than in the United States.
