Consumer Policy

Under the consumer protection section of the European Union Treaty, the EU aims to contribute to safeguarding the health, safety and economic interests of consumers. In addition to ensuring a high level of protection through legislation, information and education initiatives have also been undertaken. Consumer interests are also taken into account in a wide range of other EU policies.

The most important legislative measures are those adopted as part of the single market. Among the measures already in force are directives covering:

• price indications on foodstuffs and non-food products,
• misleading advertising, distance selling and consumer credit,
• unfair terms in consumer contracts,
• specific measures protecting purchasers of package tours and time shares.

Other EU initiatives supplement measures taken by national Governments. There are also several non-binding recommendations and resolutions made by the Council. These cover a wide range of consumer issues - from credit card systems to education.

Impact of other EU policies

Other EU policies also have an important impact on consumer policy. Perhaps the most significant example of this is the Common Agricultural Policy through price support but also quality control of the agricultural produce (i.e. BSE crisis).

The new EU Consumer Action Plan

The Commission adopted a strategy for taking consumer policy into the new millennium. This set three targets for the period 1999-2001:

• a more effective voice for the consumer in the EU will be particularly important as policy decisions become technically more complex. Consultation procedures are being honed to ensure that consumer interests are more consistently taken into account. Better coordination among local/national consumer groups will be promoted through networking and information activities and a hotline to the Commission for these groups is in place,
• a high level of health and safety is in the interests of business as well as consumers. Both benefit from a more systematic approach to risk analysis. Application of the precautionary principle in food and product safety is being developed and consumer concerns about the labelling, hygiene and inspection of food need to be tackled,
• safeguarding the economic interests of EU consumers means dealing with concerns about "miracle products", misleading health claims and pyramid selling. Further goals include boosting confidence in electronic payment means and encouraging low-cost cross-border retail payments and a consumer-friendly market in financial services.

BSE crisis

Public concern about food safety issues has grown rapidly in recent years, particularly in the wake of the BSE crisis. The EU approach to food safety issues based on 3 principles:

• decision-making needs to be based on quality scientific advice which is broadly accepted as being independent,
• responsibility for legislation should be separate from that for inspection,
• there should be greater transparency and better access to information, both in the decision-making process and for inspection measures.

Responsibility within the Commission for coordinating all the relevant scientific committees of national experts has been concentrated in the Health and Consumer Protection DG and an EU Food and Veterinary Office (FVO) was set up in Blackrock near Dublin in 1998.