EC Seeking To Empower Consumers

by Ulrika Lomas, for LawAndTax-News.com, Brussels

19 March 2007

Speaking last Friday on the occasion of European Consumer Day in Berlin, European Commissioner for Consumer Protection, Meglena Kuneva spoke of the need to empower European consumers, raising for many businesses the spectre of US-style class actions, a view which the EC sought quickly to dispel.

Speaking with regard to the EU's Consumer Strategy 2007-2013, Commissioner Kuneva explained that:

"I have three main objectives for the strategy."

"I want to empower Europe's consumers. This means creating the right market conditions for them to be able to make informed, considered and rational choices, and equipping them with the tools to do so."

"I want to enhance the economic and non-economic welfare of Europe's consumers, in terms of price, choice, quality and affordability".

"Finally, I want to protect consumers effectively. Market failures for consumers fall into two categories – those that individuals cannot address and those that they should address themselves. I want to ensure that consumers are effectively protected from the former so that they can devote their time and attention to the latter."

Launching the Consumer Strategy earlier in the week, Ms Kuneva had stated that:

"Empowering consumers is a central pillar of the new Consumer Strategy. I want to put power back in consumer's hands. People should not feel that they are small and looking up at a gothic cathedral. When there are market abuses, people should be able to make their voice heard."

"The question we need to ask is this. Is it right that a consumer is ripped off for 10 or 50 or 100 Euros and feels she can do nothing about it? Because it is more expensive to go to court than it is worth."

"Is this good for the consumer? Is it good for a healthy competitive market? Is it fair? I want to look at the issue of group redress in detail – with a major study in the coming months. I want to see how we can strengthen a consumer's rights to take action."

However, she concluded:

"Let me be clear - collective redress is not US style class action. That is not the road we intend to travel."

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