UK Advertising Sector Calls For Reinstatement Of 'Country Of Origin' Principle In EU Directive

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

17 May 2004

The UK's advertising and marketing industry has hit back at plans put forward by the Irish EU presidency to remove the 'country of origin' principle from the draft Directive on Unfair Commercial Practices, which is intended to clarify consumer rights and simplify cross-border trade within the European Union.

Under the terms of the Directive as originally drafted, the 'country of origin' principle stipulated that businesses trading within the EU need only comply with the laws in their country of establishment, and can effectively ignore the laws of other member states.

However, following the expression of strong opposition to the provision by several EU members, the Irish government has proposed an alternative version of the legislation with it removed.

Speaking last Tuesday in support of the threatened measure, director general of the UK's Advertising Association, Andrew Brown argued that:

"The Directive must provide legal certainty for business through a strong 'country of origin control' mechanism. Anything less than this would be unacceptable to the UK advertising industry. The European Commission must wholeheartedly oppose any designs that would further hamper the development of a true Internal Market."

He went on to add that:

"The AA continues to support the UK Government in its commitment to champion the cause of the Internal Market to achieve the agreed Lisbon European Council goals of improving competitiveness by removing barriers to the free movement of services."

The issue is set to be discussed again at a meeting of the European Council on Tuesday, after which the draft directive will return to the European Parliament for a second reading.

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