Consumer Rights

Consumer law has become a large sector in the field of contract law. The specific regulations influence more and more business law. Legislator and courts tend to extend their respective influence partly in alarming ways.

Consumer contract rights

At the end of 2008 the Commission, DG SANCO, published a proposal for the Directive on Consumer rights. An important demand for the BDI is the retention of clear hierarchy of remedies, the two years time limit for absence from defects and the burden of proof between seller and consumer of six month. The changes introduced by the Council Working Group that affect the sale of consumer goods would place a significantly heavier burden on the supply side. These changes would give consumers the option of an additional right of termination within the first 15 days after conclusion of contract. They would also extend the burden of proof for absence of defects from six to twelve months. The period of limitation for some defects would even be lengthened from the current two years to ten years. All these changes would lead to significant and unacceptable additional effort and expenses for businesses.

Statement regarding the EC proposal for the Directive on Consumer rights, October 2009


Collective redress in consumer law

At the end of 2008 the Commission, DG SANCO, published a Green paper on consumer collective redress, in which is discussed the introduction of representative action, group action or a test case mechanism for effective collective redress in courts. BDI continues to speak out clearly against the introduction of collective redress elements in European consumer law. The risks associated with the proposal are too high. It is to be feared that the introduction of collective redress - especially the proposed “opt-out”- class action in EC green paper - will become an open door for abusive practices. The US legal system offers an illustration here. Collective actions can be misused to force companies to agree to a settlement without proof that they have been justly accused. A large portion of the money goes to pay lawyers’ fees and the administration of payment procedures, while victims go away empty-handed.

Statement regarding the EU Consumer Affairs Directorate-General’s benchmarks for collective redress, March 2008