DSE submits second position paper on proposed Consumer Rights Directive

12 January 2010

Direct Selling Europe (DSE) continues to support any initiative that stimulates confidence in the European Internal Market by increasing consumer protection without overburdening businesses, by solving the legal fragmentation problem and by removing regulatory gaps and inconsistencies in Community consumer law.

In its second position paper, the European Association for Sustainable Direct Selling (DSE) lays down clear and constructive proposals for a strong way forward for the important piece of European Legislation. As before, the Organisation focuses on striking the right balance between protecting consumer rights and ensuring that industry can develop and flourish in the Internal Market.

A strong and vibrant Internal Market will only exist if barriers to trade are lifted to facilitate cross-border trade allowing consumers to have full confidence in the EU marketplace through a high common level of consumer protection whilst allowing businesses to develop their activities by not overburdening them with regulations.

The Internal market is benefiting both business, in particular SMEs, and consumers. It is about providing all EU citizens with more choice and better prices from cross-border offers as well as opening new markets to large and small traders.

DSE is convinced that full harmonisation of Consumer Rights in the Internal Market is the most appropriate way to achieve the objectives. Full harmonisation will considerably increase legal certainty for both consumers and business. Both consumers and business will be able to rely on a single regulatory framework ensuring a high common level of consumer protection across the Community and allowing traders to sell cross-border as they would do at home.

The comments in the position paper focus on supporting the overall objectives of the proposed Directive and ensuring the practical feasibility of the proposed measures for companies. Since the proposed Directive concerns every consumer, it also concerns every company that deals with consumers. This proposed Directive needs to provide a balanced approach which improves the situation for all stakeholders.

DSE expresses its support for the following aspects put forward in the proposed Directive:

• Directive Article 4 on Full Harmonisation of the proposed Directive. We believe that full harmonisation is necessary in order to create a genuine internal market and to ensure a reasonable and equivalent level of consumer protection in the EU internal market.
• Increased protection of Consumers. We are convinced that confident consumers will benefit more from the internal market which in turn is good for business.
• Directive Article 12 (in particular §2) outlining the proposal for the start of the withdrawal period in off-premises contracts underlining the inherent nature of the withdrawal period in direct selling which is to give the consumer time to reflect on his / her decision to buy. DSE underlines the importance for the direct selling sector that the start of the withdrawal period be dealt with as a vertical measure and that it starts, as proposed, with the signing of the contract or order form.

DSE would urge all European Policy Makers and Legislators to consider, among others, the following points.

• Psychological pressure remains a term that companies cannot identify and live with. DSE underlines that argumentation must at all times avoid negatively generalising the entire sector and opposes any proposed legislation that would give such a strong negative connotation about the entire industry. DSE insists on removing the word “psychological” from the text replacing it with a wording that does not negatively stigmatise an entire sector.
• DSE underlines (with Recital 31a and Articles 9 and 17 of the Directive) that consumers should reimburse companies for those services they have specifically requested to start immediately.
• We urge for the inclusion of a bagatelle clause for transactions of small amounts in article 20 of the Directive.
• We suggest to include hygiene goods, sealed goods and goods made to specifications of the consumer (personalized) in the list of exceptions from the right of withdrawal in direct selling.

More details concerning the various points raised by DSE can be found on the following web address:

http://www.directsellingeurope.eu/content/position-papers

Please contact DSE Headquarters for further clarifications or information.

Marc Pouw
Managing Director
Direct Selling Europe

Note to editors:

DSE brings together the best names in direct selling in Europe and from all over the world.

DSE is the federation of national trade associations and companies representing the interests of the sustainable direct selling industry in the EU. The federation was founded in January 2007 by national direct selling associations from Germany, Switzerland and Belgium and by a number of the following Europe-wide operating, well reputed direct selling companies: AMC International AG, Dr Phil. Egon Mueller Service Gmbh*, inmediaONE] GmbH Bertelsmann Direktvertriebe, Déesse AG, Just International AG, Lux International AG, Nutrimetics*, Pierre Lang Europe Handels GmbH, Tupperware Brands Corporation, Vorwerk & Co. KG, Victoria-Benelux*, WIV Wein International AG.

DSE member companies represent the “nucleus” of the sustainable direct selling industry in Europe. Most of these well known, long-established enterprises have been active on the European market for 50 years or more. They distribute products of high-quality and of high-visibility brands which are in strong demand with consumers. They have pioneered the European direct-selling market and helped to establish the legal basis for fair practices in selling methods.

DSE’s members have their headquarters located in Europe. Production, control and distribution of their products is largely European.

* Companies joined in 2009