Consumer Policy Strategy 2002-2006: a fundamental change of approach - BEUC

EU consumer policy will in future have to meet several objectives: safeguarding and improving the present level of consumer protection in the fifteen member states, ensuring that consumers make effective use of the euro and the opportunities provided by the internal market and e-commerce, and living-up to the legitimate expectations of the accession countries.

To meet these objectives the Commission proposes the wider application of the country of origin and the mutual recognition principles. It also wants to promote the progressive adaptation of minimum harmonisation to full maximum) harmonisation measures. This amounts to a fundamental change in consumer policy, which has so far relied on minimum harmonisation (as enshrined in article 153), allowing member states to adopt stricter consumer
protection measures.

The general application of the principle of mutual recognition across insufficiently harmonised areas could in the longer-term lead to a "race to the bottom" of consumer protection standards. Business in member states with a high level of consumer protection would be at a disadvantage in relation to competitors from member states offering lower consumer protection standards. We fear that the lower standards would prevail in the end.

Moreover, as long as a high harmonised level of consumer protection is not in place, consumers will be better protected by the country of destination principle or their own national laws.

According to Jim Murray, BEUC director, "it is essential that no definite link is established between maximum harmonisation, country of origin and mutual recognition without prior agreement on what makes up a sufficiently
high level of consumer protection".

BEUC, the European Consumers' Organisation, is the Brussels based federation of independent national consumer organisations from all the Member States of the EU and from other European countries. Our job is to try to influence, in the consumer interest, the development of EU policy and to promote and defend the interests of all European consumers.