Public Policy Update - February 2008

 

3. Directive on Unfair Commercial Practices

This aims to harmonise national laws protecting consumers against unfair commercial practices, misleading marketing and advertising communications and aggressive sales techniques including high pressure selling. The two defining criteria for unfair commercial practice are:

  • If it is contrary to the special skill and care which a trader may reasonably be expected to exercise in line with honest market practice, and
  • If it can appreciably impair the consumer’s ability to make an informed decision causing them to take a transactional decision they would have otherwise not have taken.

Next steps: The Directive should have been implemented in the EU by December 2007 but as 13 states have still to adapt their legislation, the Commission is tracking national transposition. It covers business-to-consumer commercial practices and ESOMAR will check if it is sufficiently explicit to prohibit traders posing as market researchers.

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