- “So soon the CBC network will then, once we receive the reply, assess whether Sheen and its possible proposals for commitments are sufficient to address the issues which have been identified. So the breaches. Um. After this, of course, you know only and only when adequate commitments are presented and are deemed sufficient, and the practices of the company are brought in compliance with union law, the action can be concluded, and then the monitoring stage will start to ensure that those commitments are respected over time. Obviously, if the company who is not here today fails to address the concerns raised by the network, there's always the option to refer to enforcement measures to ensure compliance. These measures include fines, you know, and cease and desist and other type of action. Now regarding Tamu, this is an investigation which was announced on the 8th of November of last year for similar breaches. And on that investigation, we are happy to to to say here that there has also been there's also been significant progress now in the investigation of Tamo. Uh, we are more advanced, obviously, because it started earlier and we are in the middle of the discussion of commitments of the company. I will conclude here, as I don't have much time left by saying that both the commission and the network consider these cases as an urgent priority and are determined to work together with the companies concerned to ensure progress. Thank you.”
EU rules on digital competition · EU restrictions on unfair commercial practices · EU Competition policy
- “Thank you very much. And, Madam Chair, honorable Vice chairs and members here, president. Thank you very much for the invitation and also the opportunity for us to to update these commitments on the developments in the field of consumer law enforcement, which indeed is one of the key tools foreseen in the Commission's, uh, foreseen by the Commission to implement the e-commerce strategy announced earlier this year. And the objective here is to both protect consumers when they shop online online marketplaces, but also preserve the competitiveness of compliant businesses. So this is an area where the close coordination between commission services on the current and parallel investigations will say more maybe about that later. Um, this demonstrates the Commission determination to address the e-commerce issues and the fact that it intends to do this following a multidisciplinary and complementary approach between the different enforcement areas. Now, before I turn to the CBC network case against Shin, let me briefly recall the functioning of consumer law enforcement and the CPC system and the role of the Commission. Very briefly, as you know, the enforcement of consumer law falls within the competences of member states. This is unlike for the DSA, where the Commission has some direct enforcement powers. However, although in the consumer area the Commission does not have those powers, we play an important role in coordinating the enforcement network of national authorities. We call it the CPC network. And when it comes to large scale breaches of consumer law affecting millions of consumers in the union, at the same time, the commission has coordinated over 20 actions.”
EU rules on digital competition · Liability for online marketplaces · EU competences on consumer protection and product standards
- “So that's what switches demand from, you know, legitimate and sites of companies which respect abide by the rule to these other websites, you know, which in fact do not comply by the rule or not entirely. We had our consumer summit not so long ago where industry associations came. And to give you one example. They said that the cost of noncompliance, you know, when we are talking about prices reflects to 40% price differential. Okay. So the fact that certain companies from non EU do not, you know, do not incur or invest in the cost of compliance allows them to decrease the price by 40%. Of course this is one major factor. So indeed the price is a central element. We are looking about a presentation of the price of the price. But we are also looking more broadly at what we can do to avoid that consumers switch to non legitimate, you know, marketplaces. Now um the timeline okay. The timeline is is something that I'm afraid, you know, and we are not in a position to, to to to report on a precise timeline. Why? I think we hinted at that also last time we were here in February. Uh, at the moment, the average, uh, duration of a of a coordinated action is in between 1 and 2 years. As I said, we don't have as commission direct enforcement powers.”
Liability for online marketplaces · EU restrictions on unfair commercial practices · EU competences on consumer protection and product standards
- “Absolutely. So on our side, what are what are the concerns that we are addressing to in the in the Sheen action? And let me maybe say something a bit more general here. What we are trying to address here is mainly the issue of misleading consumers into believing that certain products have certain characteristics, have certain quality, which then if then this is not the case, or are misled into thinking that they are getting a great, great bargain, you know, on the process or on the on the product. So for example, by indicating misleading discounts, misleading indication of discounts or so this is what we are looking exactly. You know, in this investigation is also the fact that this sort of general misleading features, you know, of the practices of the company are associated then with pressure settings. So linking, you know, the offer of a product to a very urgent timeline and after which the product will be out of stock, making deceptive product labels, making deceptive sustainability or environmental claims related to the product, and also by hiding the contact details, you know, and giving, you know, leaving the consumer with less possibility for a course if something goes wrong. Obviously, this is what is the importance of this in relation to. And you know, I relate to some of the of the questions which have been asked by the honourable member. The issue of unfair competition and competitiveness.”
Green claims · EU restrictions on unfair commercial practices · EU competences on consumer protection and product standards
- “Since the current regulation, CPC regulation entered into application 2020. The CPC investigation against Sheen was announced in the e-commerce communication itself on 5th of February, and I'm happy to announce that since then, and after we reported to this committee on the 18th of February, there has been significant progress. The CPC network, under the Coordination of Commission, has assessed the practices of the company and identified a number of infringements to four bodies of union law the Unfair Commercial Practices Directive, the Consumer Rights Directive, the Price Indication Directive and the E-commerce directive. Those infringements relate to a broad range of practices from fake discounts, precious selling, sharing, incorrect misleading information, deceptive product labels, misleading sustainability claims and hidden contact details. So those findings, and together with a detailed legal assessment, what we call a common position of the CPC Network of Authorities, were notified to the company on 26th of May early this year. In that same notification, the CBC network asked the company to propose commitments to address the identified issues together with the common position. The network also sent a request to the company to provide additional information to further assess its compliance with other obligations under consumer law. Specifically, Transparent Banking reviews ratings clear information on consumer rights when buying from third party sellers. Sheen's reply is expected by 11th of July.”
Green claims · EU restrictions on unfair commercial practices · EU competences on consumer protection and product standards
- “So we rely and we have to work with the authorities to coordinate 29 authorities. So EU plus Norway and Ireland, so Iceland. So you will imagine that this is a complex process for how much we have learned over time to do it faster, you know, and there's a big trust within the network still. You know, these you know uh can can develop in, in, in not in an optimal, you know, um, with an optimal timeline, then what, what you have vis a vis these sort of, um, slow process, let's call it. We had the companies who adopt delaying techniques. So we are we are confronted with a system where the companies the every minute, every day, they keep on a misleading advertising. They earn money. So they have no interest in taking it down until the very end, when they are really forced and when they have already devised the next one and they move to the next to the next unfair practice. So why the system is not deterrent enough to force them to comply quicker, to comply faster. And so we we hardly, you know, um, what is the natural follow up that we have in the law at the moment is that, you know, if the company doesn't comply, we can we can impose sanctions. Sanctions can be under the omnibus directive, up to 4% of the annual turnover of the company.”
EU restrictions on unfair commercial practices · EU competences on consumer protection and product standards
- “But this has virtually never happened because of a number of procedural reasons. Complications, because of the problem of Needham. Because, you know, when we fall back on national enforcement, national enforcement is fragmented. You know, we have a wide range of reasons. And this is why also, the commission at the moment, as you know, is reflecting on the possibility to reinforce, to strengthen the system, including is part of this reflection, giving direct enforcement power to the Commission so that the Commission can intervene immediately in cases which matter high profile cases. So this has been discussed and to to to answer to the honourable member who asked what is the timeline for that? We we we don't know that yet. What we know that and we hope we we will be there's a political decision behind this. We can be in the 2026 work programme of the Commission, but we will know that soon. Um. Yeah. So, uh, I think I have, uh, probably. On, on as part of this, this reform that we are reflecting on. Obviously, one important part will be strengthening the system vis a vis non-EU traders. So besides the commission, the commission, direct enforcement powers, you know, we will also we are also planning to to do that. Similarly to what is the situation under the DSA, the DMA and other instruments. And and I'll close here. Thank you.”
EU Single Market harmonisation · EU restrictions on unfair commercial practices · EU competences on consumer protection and product standards