Analysis of National Fairness Laws Aimed at Protecting Consumers

413 Pages·2003·2.27 MB·English

Analysis of National Fairness Laws Aimed at Protecting Consumers
in Relation to Commercial Practices

coordinated by
Prof. Dr. Reiner Schulze and Prof. Dr. Hans Schulte-Nölke

June 2003
Explanatory Note

The present study has been compiled during November 2002 and May 2003 by a group of
academics from several Member States and commissioned by the Directorate-General Health
and Consumer Protection of the European Commission (DG SANCO). The task was to carry
out comparative research in order to aid the Commission in the preparation of a possible
European legal framework on fair commercial practices.1 This study is not the very first
analysis of the laws on fair commercial practices in the European Union; profound research
has been carried out in the past.2 The present study provides an updated supplement to the
existing research, yet it is to some extent different with regard to its focus. The work is not
primarily meant as a contribution to the academic discussion but rather as an assistance and
advice for the European Commission, guided by the approach set out in the Follow-Up
Communication to the Green Paper on Consumer Protection in the EU.

Hence, the scope of research and the depth of analysis in the different parts of the study has
been chosen in accordance with the relevance of the specific issues for the project of
harmonisation as presented in the Commission’s Green Paper on Consumer Protection in the
EU3 as well as the current status of the legislative process. Concerning its geographical scope
the comparative study tries to cover all Member States. As far as the research has been carried
out with national teams, the reports of these teams have been included to provide some more
detailed information. Some additional findings on other systems referred to in the comparative
analysis were based on already existing literature and further consultations from academics
and practicioners.

Having regard to the general objective set out above and considering that any comprehensive
framework on fair commercial practices will have to be based on an analysis of the national
laws, the research was focused on three main aspects:

(cid:1) examining notions of fairness which are common to the legal systems of the Member
States;

(cid:1) identifying barriers to the internal market caused by the different national laws of
advertising and selling methods;

(cid:1) assessing the feasibility of developing a common legal framework on fair commercial
practices from the perspective of the laws of the Member States.

The present study summarises the main findings on these issues. In addition, during the
preparation of the study, the academic group has continuously assisted DG SANCO and
offered advice on specific issues regarding the project of harmonising commercial fairness
laws in the European Union.

1 Follow-Up Communication to the Green Paper on Consumer Protection in the EU, COM (2002) 289, para. 41.
2 See for example Ulmer (Hrsg.), Das Recht des unlauteren Wettbewerbs in den Mitgliedstaaten der EWG,
München 1965 et seq.; Schricker (Hrsg.), Recht der Werbung in Europa, Baden-Baden 1995 et seq.;
Micklitz/Monazzahian/Rößler, Door-to-Door Selling – Multi-Level Marketing, Study on behalf of the European
Commission, November 1999; Schricker/Henning-Bodewig, Elemente einer Harmonisierung des Rechts des
unlauteren Wettbewerbs in der EU, WRP 2001, 1367; Micklitz/Keßler, Marketing Practices Regulation and
Consumer Protection in the EC Member States and the US, Baden-Baden 2002.
3 COM (2001) 531.
2
The study consists of three parts:

A Comparative Analysis of National Fairness Laws brings together the relevant
information from the different Member States presenting the different legislative approaches
to fair commercial practices and identifying notions of fairness that are common to several or
even all Member States. The existing similarities and discrepancies are furthermore illustrated
by some non-exhaustive examples from national laws. In addition, the comparative part of the
study gives an overview of the existing differences with regard to sanctions and enforcement
and highlights the nexuses between commercial fairness law and several other fields of law.

The second part of the study provides some Conclusions and Recommendations briefly
summarising the findings of the comparative research and shifting the focus from descriptive
analysis towards assessing the prospects of implementing a common legal framework on fair
commercial practices.

The National Reports compiled in the third part of the study provide some more detailed
factual information as to the national laws on commercial fairness in several Member States.
The reports were guided by a questionnaire on the national legal systems which can be found
in an annex to the third part.
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Plan of the Study

PART 1: ANALYSIS OF NATIONAL FAIRNESS LAWS

A. General Provisions on Fair Commercial Practices...........................................................11

I. Types of Regulation......................................................................................................11
Comparative Overview...............................................................................................11
Examples From National Laws..................................................................................12
1. Legal Framework on Unfair Marketing Practices
Including a General Clause...............................................................................12
2. Provisions on Commercial Fairness Incorporated in
Main Codification of Private Law....................................................................15
3. No Specific Legal Framework on Unfair Marketing Practices........................16

II. General Clauses.............................................................................................................17
Examples From National Laws ................................................................................17

III. Codes of Conduct, Self-Regulation............................................................................21
Comparative Overview...............................................................................................21
Examples From National Laws ................................................................................21

B. Specific Rules on Fair Commercial Practices...................................................................24

I. Rules Concerning Supplementary Unfairness Categories........................................24

1. Misleading Practices..................................................................................................24
Comparative Overview..........................................................................................24
Examples From National Laws.............................................................................24
a) Provisions on Misleading Advertising.........................................................24
b) Rules Requiring that Marketing Measures Have to be
Recognisable as Such...................................................................................28
c) Special Rules on Price Indication................................................................29
d) Comparative Advertising.............................................................................29

2. Duty to Disclose.........................................................................................................32
Comparative Overview..........................................................................................32
Examples From National Laws.............................................................................33
a) General Clause Stipulating a Duty to Disclose Material Information.........33
b) No Duty to Disclose Material Information in the
Commercial Fairness Laws..........................................................................35
c) Links Between Other Information Requirements and Unfairness...............35

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3. Aggressive Selling Techniques..................................................................................36
Comparative Overview..........................................................................................36
Examples From National Laws.............................................................................38
4. Failure to Provide After-Sale Customer Assistance...................................................40
Comparative Overview..........................................................................................40
5. Non-Compliance with Codes of Conduct..................................................................41
Comparative Overview..........................................................................................41
Examples From National Laws.............................................................................42
a) Self-Regulatory System Linked to Statutory System..................................42
b) No Link to Statutory System........................................................................43

II. Special Marketing Techniques....................................................................................44

1. Distance Marketing....................................................................................................44

a) Advertising by Phone, Fax or E-mail....................................................................44
Comparative Overview.....................................................................................44
Examples From National Laws........................................................................45
b) Direct Mail Advertising.........................................................................................47
Comparative Overview.....................................................................................47
Examples From National Laws........................................................................48
c) Unsolicited Goods.................................................................................................50
Comparative Overview.....................................................................................50

2. Face to Face Marketing..............................................................................................50

a) Multi-Level Marketing/Snowball Systems ...........................................................50
Comparative Overview.....................................................................................50
Examples From National Laws........................................................................51
aa) Multi-Level Marketing Subject to Specific Rules..............................51
bb) Snowball/Pyramid Systems Prohibited..............................................51

b) Touting for Consumers in Public Places...............................................................52
Comparative Overview.....................................................................................52
Examples From National Laws........................................................................53

c) Door-to-Door Selling............................................................................................53
Comparative Overview.....................................................................................53
Examples From National Laws........................................................................54
aa) Only Subject to Contract Law............................................................54
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bb) Subject to Contract Law and Administrative Law.............................54
cc) Subject to Contract Law and Various Other Provisions.....................55

3. Price Reduction Techniques.......................................................................................55

a) Special Sales Events/Special Offers/Liquidation Sales.........................................55
Comparative Overview.....................................................................................55
Examples From National Laws........................................................................56
b) Rebates and Free Gifts ..........................................................................................61
Comparative Overview.....................................................................................61
Examples From National Laws........................................................................62
c) Sale at a Loss.........................................................................................................65
Comparative Overview.....................................................................................65

III. Rules Concerning Specific Sectors and the Protection of
Vulnerable Consumers...............................................................................................66

1. Protection of Vulnerable Consumers and Rules Concerning
Tobacco and Alcohol Advertising.............................................................................66
Comparative Overview..........................................................................................66
Examples From National Laws.............................................................................67
2. Advertising by Members of Liberal Professions – Particularly Lawyers..................77
Comparative Overview..........................................................................................77
Examples From National Laws.............................................................................78

C. Enforcement and Sanctions...............................................................................................82
Comparative Overview...............................................................................................82
Examples From National Laws ................................................................................84
I. Enforcement Mechanisms............................................................................................84
1. Consumer Ombudsman..............................................................................................84
2. Special Court..............................................................................................................84
3. Actions of Competitors, Consumer Associations in State Courts.............................85
4. Actions of Competitors, Consumer Associations in Non-State Courts
and Conciliation Procedures......................................................................................86
5. Complaint Boards/Public Authorities........................................................................86
II. Sanctions........................................................................................................................86
1. Soft Law Sanctions....................................................................................................86
2. Warnings....................................................................................................................87
3. Injunctions/Cease and Desist Orders.........................................................................87
4. Damages.....................................................................................................................88
5. Penal sanctions...........................................................................................................89
6. Other Sanctions..........................................................................................................90

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D. Delimitation to and Interference with Other Fields of Law.............................................91

I. Contract Law and Tort Law...................................................................................91
II. Competition Law......................................................................................................92
III. Intellectual Property Law........................................................................................92
IV. Protection of Enterprises (esp. SME).....................................................................93
V. Product Safety and Product Liability....................................................................93
VI. Public Morality.........................................................................................................93
VII. Criminal Law............................................................................................................93

E. Barriers to Trade Caused by National Law on Commercial Practices............................94

I. Legal Uncertainty and the Lack of Transparency of the
National Legal Systems as a Barrier to Trade.......................................................94
II. Examples of Potential Barriers to Trade Resulting from Divergences
in the Member States’ Commercial Fairness Laws..............................................95
1. Misleading Omissions...........................................................................................95
2. Use of Comparative Tests in Advertising.............................................................96
3. Emotional Advertising..........................................................................................96
4. Protection of Children...........................................................................................98
5. Price Reduction Techniques..................................................................................99

PART 2: CONCLUSIONS AND RECOMMENDATIONS

English Summary.............................................................................................................102

PART 3: ANNEXES

ANNEX 1: National Reports

Austria
Belgium
Denmark
Finland
France
Germany
Italy
Portugal
Spain
Sweden
United Kingdom

ANNEX 2: Questionnaire
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List of Contributors

I. Co-ordinators:

Reiner Schulze, Professor at the University of Münster
Hans Schulte-Nölke, Professor at the University of Bielefeld

II. General Advice
Ulf Bernitz, Professor at the University of Stockholm
Peter Møgelvang-Hansen, Professor at Copenhagen Business School
Thomas Wilhelmsson, Professor at the University of Helsinki

III. Münster/Bielefeld-Team:

Paul Barthélemy, Avocat de la Cour, Paris; Dr. Martin Ebers; Steffen Haller; Researchers at
the University of Münster

Christoph W. Busch, Maître en Droit; Suzana Cerina Ass. jur.; Katrin Anne Hawxwell Ass.
jur.; Christian Vogel, LL.M.; Researchers at the University of Bielefeld

III. National Reports were drafted by (partially revised by Advisers)

Austria: Dr. Arno Johannes Engel, Judge at Braunau

Belgium: Jules Stuyck, Professor at the K. U. Leuven (Centre for Consumer
Law); Evelyne Terryn and Tom van Dyck, Assistants at the K. U.
Leuven (Centre for Consumer Law)

Denmark: Peter Møgelvang-Hansen, Professor at Copenhagen Business School;
Kim Østergaard, Researcher at Copenhagen Business School

Finland: Tuomas Majuri, Researcher at the Institute of International Economic
Law, University of Helsinki

France: Cédric Montfort, Researcher at the University of Lyon III

Germany: Hans Schulte-Nölke, Professor at the University of Bielefeld;
Christoph W. Busch and Katrin Anne Hawxwell, Researchers at the
University of Bielefeld

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Italy: Luisa Antoniolli, Professor at the University of Trento; Elena Ioriatti,
Researcher at the University of Trento

Portugal: Paulo Mota Pinto, Professor at the University of Coimbra; Victor
Calvete, Researcher at the University of Coimbra

Spain: Susana Navas Navarro, Professor at the Universitat Autònoma de
Barcelona; Esther Arroyo y Amayuelas, Professor at the Universitat de
Barcelona

Sweden: Ulf Bernitz, Professor at the University of Stockholm

United Kingdom: Stephen Weatherill, Professor at the University of Oxford

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PART I

ANALYSIS OF NATIONAL FAIRNESS LAWS