Industry News
March 2010
DSE Update
WITH the interests of DSE members and consumers in mind, a second position paper regarding the proposal for a Directive on Consumer Rights was submitted to policy makers and stakeholders in Brussels on 12th January 2010.
In it, DSE expresses continued support for a strong internal market, increased legal certainty for consumers and businesses and improved choice and price offers as a result of reduced barriers to trade.
According to DSE, these objectives are best achieved through full harmonisation of Consumer Rights in the Internal Market. Increasing consumer protection is crucial in stimulating consumer confi dence in the direct selling industry. At the same time, overburdening of business must be avoided by solving the legal fragmentation problem and removing regulatory gaps and inconsistencies in Community, consumer law.
In this position paper, DSE supports and approves the following aspects of the proposal:
Full harmonisation as discussed in Article 4 of the proposed Directive on Consumer Rights which would lead to the introduction of one single set of rules applicable in the entire European Union to all Consumers and Business for all Consumer contracts.
Simplifying and ensuring legal certainty of the withdrawal period in direct selling contracts, by not distinguishing between solicited and unsolicited visits.
Increasing consumer protection since, as mentioned earlier, this will lead to higher consumer confi dence, which is ultimately good for business.
Beginning withdrawal period with the signature of the contact in order to:
Ensure that consumers make a free, well-informed decision. (To be discussed: Does signing an order form necessarily require a withdrawal period to start at the signature?)
Protect traders from higher costs caused by commissions paid to agents for contracts that result in withdrawal, and increased spending on logistics that result from such contracts.
DSE urges the European Institutions to consider the following amendments to the proposal:
- Exclusively refer to all “off-premises transactions” as “direct selling”, as this term is short, widespread and to the point.
- Avoid negative generalisations applied to the direct selling industry, such as “psychological pressure”, as DSE strictly rejects these negative connotations.
- Clarify that consumers must reimburse companies for services they request immediately or before the withdrawal period, provided that they have:
- Been made aware of their obligations.
- Have given their express consent for the execution of the contract.
- Have been informed by the trader about the withdrawal period.
- Include standard withdrawal instructions in the Annex of the Directive. This would give legal certainty and ensure that withdrawal instructions comply with the statutory requirements of Member States.
- Include hygiene, sealed, and personalised goods in the list of exceptions to the right to withdrawal in direct selling, rather than requesting compensation from the consumer for the diminished value of such goods.
- Include a clause concerning the exclusion of transactions of small amounts from the right to withdrawal due to the relatively small financial burden on the consumer and the importance of restoring legal peace quickly in direct selling.
Andreas Schwab, member of the Committee on the Internal Market and Consumer Protection (IMCO), is considering these suggestions for inclusion in his draft report that is to be submitted on 10th May 2010 to his colleagues in IMCO for consideration, according to the timetable circulated by the Spanish EU Presidency. Mr Schwab’s report is to be put to vote in Plenary on 30th September 2010.
DSE also announces the expansion of its group of members. JAFRA Cosmetics joined DSE in January 2010, further reinforcing the growth of the Brussels based trade association for the European sustainable direct selling industry. JAFRA Cosmetics was founded in 1956 and is based on a dual concept; an excellent skincare programme and an appealing career opportunity. Its founders, Jan and Frank structured JAFRA Cosmetics as a party plan company with a multilevel compensation plan. JAFRA Cosmetics joined the Vorwerk group (already a founding member of DSE) in 2004. It is intensively active in Europe in such countries as Austria, Czech Republic, Germany, Hungary, Italy, The Netherlands, Russia, Slovenia and Switzerland.
A number of other requests from both National Direct Selling Associations and direct selling companies are being considered by DSE members and will be confirmed during the May 2010 General Assembly.
