REPORT on the proposal for a European Parliament and Council regulation on cooperation between national authorities responsible for the enforcement of consumer protection laws ('the regulation on consumer protection cooperation')
(COM(2003) 443 – C5‑0335/2003 – 2003/0162(COD))

23 March 2004 - ***I

Committee on Legal Affairs and the Internal Market
Rapporteur: Evelyne Gebhardt
Draftsman(*): Béatrice Patrie
Committee on the Environment, Public Health and Consumer Policy
(*) Enhanced cooperation between the committees - Rule 162a

PROCEDURAL PAGE

By letter of 18 July 2003 the Commission submitted to Parliament, pursuant to Articles 251(2) and 95 of the EC Treaty, the proposal for a European Parliament and Council regulation on cooperation between national authorities responsible for the enforcement of consumer protection laws ('the regulation on consumer protection cooperation') (COM(2003) 443 – 2003/0162(COD)).

At the sitting of 1 September 2003 the President of Parliament announced that he had referred the proposal to the Committee on Legal Affairs and the Internal Market as the committee responsible and the Committee on the Environment, Public Health and Consumer Policy for its opinion (C5‑0335/2003).

At the sitting of 22 October 2003 the President of Parliament announced that the Committee on the Environment, Public Health and Consumer Policy, which had been asked for its opinion, would also be involved in drawing up the report, pursuant to Rule 162a.

The Committee on Legal Affairs and the Internal Market appointed Evelyne Gebhardt rapporteur at its meeting of 11 September 2003.

The committee considered the Commission proposal and draft report at its meetings of 2 December 2003, 21 January 2004, 19 February 2004, 8 March 2004 and 17 March 2004.

At the last meeting it adopted the draft legislative resolution by 21 votes to 4, with 6 abstentions.

The following were present for the vote: Giuseppe Gargani, chairman; Willi Rothley, vice-chairman; Ioannis Koukiadis, Maria Berger (for Evelyne Gebhardt, rapporteur), Paolo Bartolozzi, Ward Beysen, Bert Doorn, Raina A. Mercedes Echerer, Giovanni Claudio Fava (for Fiorella Ghilardotti pursuant to Rule 153(2)), Francesco Fiori (for José María Gil-Robles Gil-Delgado pursuant to Rule 153(2)), Marie-Françoise Garaud, Malcolm Harbour, Piia-Noora Kauppi (for Bill Miller), Kurt Lechner, Sir Neil MacCormick, Toine Manders, Lucio Manisco (for Janelly Fourtou pursuant to Rule 153(2)), Arlene McCarthy, Manuel Medina Ortega, Pasqualina Napoletano (for Michel J.M. Dary pursuant to Rule 153(2)), Barbara O'Toole (for François Zimeray), Elena Ornella Paciotti (for Carlos Candal), Anne-Marie Schaffner, Francesco Enrico Speroni (for Brian Crowley pursuant to Rule 153(2)), Marianne L.P. Thyssen, Ian Twinn (for Lord Inglewood), Diana Wallis, Phillip Whitehead (for Alain Krivine pursuant to Rule 153(2)), Rainer Wieland, Joachim Wuermeling and Stefano Zappalà.

The opinion of the Committee on the Environment, Public Health and Consumer Policy is attached.

The report was tabled on 23 March 2004.

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a European Parliament and Council regulation on cooperation between national authorities responsible for the enforcement of consumer protection laws ('the regulation on consumer protection cooperation')

(COM(2003) 443 – C5‑0335/2003 – 2003/0162(COD))

(Codecision procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2003) 443)[1],

–   having regard to Articles 251(2) and Article 95 of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C5‑0335/2003),

–   having regard to Rule 67 of its Rules of Procedure,

–   having regard to the report of the Committee on Legal Affairs and the Internal Market and the opinions of the Committee on the Environment, Public Health and Consumer Policy (A5-0191/2004),

1.   Approves the Commission proposal as amended;

2.   Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

3.   Instructs its President to forward its position to the Council and Commission.

Text proposed by the Commission	Amendments by Parliament
Amendment 1 Recital 2
(2) Existing national enforcement arrangements for the laws that protect consumers’ interests are not adapted to the challenges of enforcement in the internal market and effective and efficient enforcement cooperation in these cases is not currently possible. These difficulties give rise to barriers to cooperation between public authorities to detect, investigate and bring about the cessation of infringements of the laws that protect consumers’ interests in cross-border cases. The resulting lack of effective enforcement in cross-border cases enables sellers and suppliers to evade enforcement attempts by relocating within the Community. This gives rise to a distortion of competition for law-abiding sellers and suppliers operating either domestically or cross-border. The difficulties of enforcement in cross-border cases also undermines the confidence of consumers in taking up cross-border offers and hence their confidence in the internal market.	(2)   Existing national enforcement arrangements for the laws that protect consumers’ interests are not adapted to the challenges of enforcement in the internal market and effective and efficient enforcement cooperation in these cases is not currently possible. These difficulties give rise to barriers to cooperation between authorities to detect, investigate and bring about the cessation of infringements of the laws that protect consumers’ interests in cross-border cases. The resulting lack of effective enforcement in cross-border cases enables sellers and suppliers to evade enforcement attempts by relocating within the Community. This gives rise to a distortion of competition for law-abiding sellers and suppliers operating either domestically or cross-border. The difficulties of enforcement in cross-border cases also undermines the confidence of consumers in taking up cross-border offers and hence their confidence in the internal market.
Justification There are at present authorities other than public authorities active in this area.
Amendment 2 Recital 3 a (new)
	(3a)   Consumers have specific rights, recognised by Community legislation, to protect them above and beyond their economic interests (not least where health is concerned). To make for simplification and for better understanding on the part of consumers, existing laws should accordingly be consolidated in order to unify the consumer protection cooperation arrangements applying between Member States.
Amendment 3 Recital 4
(4) Since the objectives of the proposed action cannot be sufficiently achieved by the Member States because they cannot ensure cooperation and co-ordination by acting alone and can therefore be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this regulation does not go beyond what is necessary in order to achieve those objectives.	(4) The Member States have already created various cooperation mechanisms to improve the enforcement of legislation. To further improve cooperation and co-ordination, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this regulation does not go beyond what is necessary in order to achieve those objectives.
Justification It is incorrect to state that the Member States are currently unable to ensure cooperation and coordination by acting alone since a number of law enforcement mechanisms already exist which can guarantee the effective enforcement of legislation particularly in the case of cross-border infringements.
Amendment 4 Recital 5
(5)   The scope of the provisions on mutual assistance in this regulation should be limited to intra-Community infringements of Community directives on consumer protection. The effectiveness with which infringements at national level are pursued should ensure that there is no discrimination between national and intra-Community transactions. This regulation does not affect the responsibilities of the Commission with regard to infringements of Community law by the Member States.	(5)   The scope of the provisions on mutual assistance in this Regulation should be limited to intra-Community infringements of Community legislation on consumer protection. The effectiveness with which infringements at national level are pursued should ensure that there is no discrimination between national and intra-Community transactions. This Regulation does not affect the responsibilities of the Commission with regard to infringements of Community law by the Member States. Nor does this Regulation confer on the Commission any direct enforcement rights.
Amendment 5 Recital 8
(8)   Competent authorities should also make use of powers granted to them at national level to initiate or refer matters for criminal prosecution to also bring about the cessation or prohibition of intra-Community infringements without delay as a result of a request for mutual assistance, where this is appropriate.	Deleted
Justification This recital is redundant, in view of the clear provision in Article 2, paragraph 3, of the regulation and in view of the fact that it refers only to possibilities existing under national law.
Amendment 6 Recital 10
(10)   In the event of a refusal to provide mutual assistance on the grounds set out in this regulation, the Member State of the applicant authority may, in order to ensure the protection of consumers, take measures to restrict the freedom of the seller or supplier responsible for the intra-Community infringement to supply goods or services to the Member State of the applicant authority, provided that such measures are in conformity with Community law.	Deleted
Justification The objective of the regulation is clearly expressed in Article 1. The regulation is not intended to extend the existing responsibilities and competences of Member States in combating infringements of consumer protection laws.
Amendment 7 Recital 14 a (new)
	(14a)   Given that consumer associations play an essential role in informing and educating consumers and protecting their interests (extending in some Member States to dispute settlement), they should be involved in coordinating the cooperation measures implemented.
Justification Consumer associations play an active role in informing and educating consumers and defending their interests. In some Member States they are responsible for settling disputes and involved in action against infringements of consumer law. In the interests of effectiveness, therefore, they should therefore be involved on a Europe-wide basis in coordinating the measures to be implemented under the regulation.
Amendment 8 Recital 15
(15)   The measures necessary for the implementation of this regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission,	deleted
Justification See justification to Article 19. There is no need to resort to comitology. The Member States’ authorities and organisations can carry out cross-border cooperation without a standing committee.
Amendment 9 Recital 16 a (new)
	(16a)   This Regulation should be applied in conformity with the fundamental rights and principles recognised in particular by the Charter of Fundamental Rights of the European Union and the European Convention on Human Rights. Accordingly, this Regulation should be interpreted in the light of those rights and principles.
Amendment 10 Article 2, paragraph 1
1.   The provisions on mutual assistance in this regulation shall cover intra-Community infringements.	1.   The provisions in this regulation shall cover intra-Community infringements.
Justification The proposal for a regulation is intended to improve cooperation in cases of cross-border infringements, not to burden functioning national systems with extra tasks. The original wording could be misunderstood as meaning that Chapter IV (Community activities) also applies to purely domestic situations and that the authorities should be burdened with extensive extra duties in this area. This, however, is not the object of the proposal for a regulation, since national consumer policy should continue to be primarily a matter for the Member States. Community activities are only appropriate where – as in the case of mutual assistance under Chapters II to IV – intra-Community infringements are involved.
Amendment 11 Article 3 (a)
a)   ‘laws that protect consumers’ interests’ means the Directives listed in Annex I as transposed into the internal legal order of the Member States.	a)   ‘laws that protect consumers’ interests’ means the Regulations and Directives listed in Annex I as transposed into the internal legal order of the Member States.
Justification Annex I of the proposal for a regulation lists a number of regulations in addition to directives. The proposed addition is therefore necessary to clarify the text.
Amendment 12 Article 3, point (b)
(b)   ‘intra-Community infringement’ means any act contrary to the laws that protect consumers’ interests that harms, or is likely to harm, the collective interests of consumers residing in a Member State or Member States other than the Member State where the act originated.	(b)   ‘intra-Community infringement’ means any act or omission contrary to the laws that protect consumers’ interests, as defined in paragraph (a), which harms, or is likely to harm, the collective interests of consumers residing in a Member State or Member States other than the Member State where the act or omission originated or took place or where the seller or supplier responsible therefor is established or where evidence or assets pertaining to the act or omission are to be found.
Amendment 13 Article 3, letter (d)
d.   ‘single liaison office’ means the public authority in each Member State designated as responsible for co-ordinating the application of this regulation within that Member State.	d.   ‘single liaison office’ means the authority in each Member State designated as responsible for co-ordinating the application of this regulation within that Member State.
Justification The Member States should retain the possibility of regulating supervision through non-public authorities.
Amendment 14 Article 3, letter (i)
i.   ‘surveillance activities’ means the actions of a competent authority designed to detect whether intra-Community infringements have taken place within its jurisdiction.	i.   ‘market surveillance activities’ means the actions of a competent authority designed to detect whether intra-Community infringements have taken place within its territory..
Justification Clarification replacing original Am. 7 in draft report.
Amendment 15 Article 3, letter j)
j)   ‘complaint’ means a statement that a seller or supplier has committed, or is likely to commit, an infringement of the laws that protect consumers’ interests.	j)   ‘consumer complaint’ means a statement, supported by reasonable evidence, that a seller or supplier has committed, or is likely to commit, an infringement of the laws that protect consumers’ interests.
Justification The reference in the text is to a consumer complaint rather than to a complaint so the definition needs to be aligned. The additional wording inserted into the definitions intended to ensure that in order to qualify as a complaint a statement must be justified by being supported by a level of reasonable evidence. Without such backing any statement even without any backing could be deemed to be a complaint.
Amendment 16 Article 3, point (l)
(l)   ‘collective interests of consumers’ means the general interests of consumers that do not include the cumulation of the interests of individuals who have been harmed by an infringement.	(l)   ‘collective interests of consumers’ within the meaning of this Regulation means the interests of a number of consumers that have been harmed or are likely to be harmed by an infringement.
Justification Contains a clearer definition of collective interests of consumers.
Amendment 17 Article 4, paragraphs 1, 2, and 3
1.   Each Member State shall designate the competent authorities and single liaison office responsible for the application of this regulation.	1.   Each Member State shall designate the competent authorities and single liaison office responsible for coordination and co-operation between the competent authorities.
	Each Member State shall also designate the courts competent to rule on proceedings under Article 4(2a)(b) and the bodies having a legitimate interest in the cessation of intra-Community infringements in so far as they are involved in the application of this Regulation under Article 4(2a)(b) and Article 8(3)a.
2.   Competent authorities shall have the investigation and enforcement powers necessary for the application of this regulation and shall exercise them in conformity with national law.	2.   Competent authorities shall have, in accordance with national law, the investigation and enforcement powers necessary for the application of this Regulation and shall, without prejudice to paragraph 2a, exercise them in conformity with national law.
	2a.   In accordance with national law, the competent authorities shall exercise the powers referred to in paragraph 2 either:
	(a)   directly under their own authority or under the supervision of the judicial authorities, or
	(b)   by application to courts designated competent to make the requisite decision, including, where appropriate, by way of appeal in the event that the application for such decision is unsuccessful or,
	(c)   in cases covered by paragraph 3(c), (g) and (h), in collaboration with other public authorities.
3.   These powers shall include, at least, the right:	3.   The powers referred to in paragraph 2 shall be exercised only where there is a reasonable suspicion that an infringement has taken place and shall include, at least, the right:
(a)   to have access to any document in any form whatsoever;	(a)   to have access to any document, in any form whatsoever, which is relevant and directly related to the procedure;
(b)   to request information from any person, and if needed, to obtain judicial orders requiring the supply of information by any person;	(b)   to require the supply of relevant information by any person;
(c)   to carry out on-site inspections;	(c)   to carry out on-site inspections;
(d)   to request in writing that the seller or supplier cease the intra-Community infringement;	(d)   to require in writing that the seller or supplier concerned cease the intra-Community; infringement;
(e)   to obtain from seller(s) or supplier(s) responsible for intra-Community infringements a binding commitment to cease the intra-Community infringement; and to publish the resulting commitment;	(e)   to obtain from the seller(s) or supplier(s) responsible for the intra-Community infringements an undertaking to cease the intra-Community infringement; and to publish that undertaking;
(f)   to require the cessation or prohibition of any intra-Community infringement or to obtain judicial orders requiring the cessation or prohibition of any intra-Community infringement; and to publish resulting decisions;	(f)   to seek the cessation or prohibition of any intra-Community infringement, and to publish resulting decisions;
(g)   to obtain judicial orders against the losing defendant for payments into the public purse or to any beneficiary designated in or under national legislation, in the event of failure to comply with a decision;	(g)   to seek judicial orders against an unsuccessful defendant requiring the latter to make payments into the public purse or to any beneficiary designated in or under national legislation, in the event of failure to comply with a decision;
(h)   to obtain judicial orders requesting the freezing and/or sequestration of assets.	h)   to seek the freezing and/or sequestration of assets.
Amendment 18 Article 5, paragraph 1
1.   Each Member State shall communicate to the Commission and other Member States the identities of the competent authorities and single liaison office designated under Article 4(1).	1.   Each Member State shall communicate to the Commission and other Member States the identity of the single liaison office designated under Article 4(1).
Justification Follows on from amendment to Article 4(1).
Amendment 19 Article 5, paragraph 2
2.   Each single liaison office shall keep an up-to-date list of competent officials designated under Article 4 (6) and communicate it to the other single liaison offices.	deleted
Justification Follows on from amendment to Article 4(6).
Amendment 20 Article 5, paragraph 3
3.   The Commission shall publish and update the list of single liaison offices and competent authorities in the Official Journal of the European Union.	3.   The Commission shall publish and update the list of single liaison offices in the Official Journal of the European Union.
Justification Follows on from amendments to Article 4(6) and Article 5(2) (deletion)
Amendment 21 Article 6, paragraph 1
A requested authority shall, on request from an applicant authority, supply any information required to establish whether an intra-Community infringement has occurred or is likely to occur. The requested authority shall supply the information requested without delay.	A requested authority shall, on request from an applicant authority, and subject to paragraph 6.1a below, supply any information required to establish whether an intra-Community infringement has occurred or is likely to occur. The requested authority shall supply the information requested without delay.
	A competent authority must have regard to the following considerations before disclosing any information:
	(a)   The need to exclude from disclosure (so far as practicable) any information whose disclosure the authority thinks is contrary to the public interest;
	(b)   The need to exclude from disclosure
	(i)   commercial information whose disclosure would significantly harm the legitimate business interests of the undertaking to which it relates, or
	(ii)   information relating to the private affairs of an individual whose disclosure the authority thinks might significantly harm the individual’s interests;
	(c)   The extent to which the disclosure of the information is necessary for the purpose for which the authority is permitted to make the disclosure.
	(d)   A competent authority must notify an undertaking that it intends to disclose information under this Article and provide an opportunity for the undertaking to comment on whether disclosure would significantly harm the legitimate business interests of the undertaking and whether disclosure is necessary for the purpose for which the authority is permitted to make the disclosure.
Justification It is vital that there are safeguards to protect businesses for the disclosure of commercially sensitive information by competent authorities. Businesses must have an opportunity to comment on whether disclosure is necessary for purposes for which it is permitted within the Regulation.
Amendment 22 Article 6, paragraph 2
2.   The requested authority shall undertake the appropriate investigations or any other necessary measures, in order to gather the required information.	2.   The requested authority shall, in accordance with Article 4, undertake the appropriate investigations or any other necessary and appropriate measures, in order to gather the required information.
Justification Clarification.
Amendment 23 Article 6, paragraph 3
3.   On request from the applicant authority, a competent official of the applicant authority may accompany the officials of the requested authority in the course of their investigations.	deleted
Justification No useful reason for this unnecessary effort.
Amendment 24 Article 6, paragraph 4
4.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19 (2).	deleted
Justification Follows on from deletion of Article 19.
Amendment 25 Article 7, paragraph 1
When a competent authority becomes aware of an intra-Community infringement, or considers that a serious risk of such an infringement exists, it shall notify the competent authorities of other relevant Member States and the Commission, supplying all necessary information without delay.	When a competent authority becomes aware of an intra-Community infringement, or considers that a serious risk of such an infringement exists, it shall notify the competent authorities of other Member States and the Commission, supplying all necessary information without delay.
Justification If a competent authority becomes aware of a cross border infringement, or potential infringement, they would wish to notify other Member States they believe may be affected. However, there may be others that are affected. This amendment would allow the competent authority to alert others, without having to make this judgement call. It was also be an administratively easier task, as it would in practice involve putting the warning onto the electronic database.
Amendment 26 Article 7, paragraph 2
2.   When a competent authority takes further enforcement measures or receives requests for mutual assistance in relation to the intra-Community infringement, it shall notify the competent authorities of other Member States and the Commission.	2.   When a competent authority takes further enforcement measures or receives requests for mutual assistance in relation to the intra-Community infringement, it shall notify, via the liaison office, the competent authorities of other Member States and the Commission.
Justification Follows on from amendment to Article 4(1).
Amendment 27 Article 7, paragraph 2 a (new)
	2a.   The natural or legal persons to whom an exchange of information relates shall have access to the register containing the information.
Amendment 28 Article 7, paragraph 3
3.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19 (2).	deleted
Justification Follows on from amendment to Article 19 (deletion).
Amendment 29 Article 8, paragraphs 1, 2, and 3
1.   A requested authority shall, on request from an applicant authority, take all necessary measures to bring about the cessation or prohibition of the intra-Community infringement without delay. These measures shall include, where appropriate, an appeal to a higher court, in the event that any action before a court is not successful.	1.   A requested authority shall, on request from an applicant authority, take all necessary measures to bring about the cessation or prohibition of the intra-Community infringement without delay.
2.   In order to fulfil its obligations under paragraph 1, the requested authority shall exercise the powers set out under Article 4(3) and any additional powers granted to the requested authority under national law. The requested authority shall determine the measures to be taken to bring about the cessation or prohibition of the intra-Community infringement in the most efficient and effective way.	2.   In order to fulfil its obligations under paragraph 1, the requested authority shall exercise the powers set out under Article 4(3) and any additional powers granted to the requested authority under national law. The requested authority shall determine the measures to be taken to bring about the cessation or prohibition of the intra-Community infringement in a proportionate, efficient and effective way.
	2a.   (a) The requested authority may also fulfil its obligations under paragraphs 1 and 2 by instructing a body designated under national law as having a legitimate interest in the cessation of intra-Community infringements to take all necessary measures available to it under national law to bring about the cessation or prohibition thereof on behalf of the requested authority. In the event of a refusal by the body to take the necessary measures or an inability to bring about the cessation or prohibition of the intra-Community infringement, the obligations of the requested authority under paragraphs 1 and 2 shall subsist.
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3.   The requested authority shall consult the applicant authority in the course of taking the enforcement measures. The requested authority shall notify the applicant authority, the competent authorities of other Member States and the Commission of its measures without delay.	3.   The requested authority may consult the applicant authority in the course of taking the enforcement measures referred to in paragraphs 1 and 2. The requested authority shall without delay notify the applicant authority, the competent authorities of other Member States and the Commission of the measures taken and the effect of those measures on the intra-Community infringement, including whether it has ceased.
Amendment 30 Article 8, paragraph 4
4.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19 (2).	deleted
Justification Follows on from amendment to Article 19 (deletion)
Amendment 31 Article 9, heading
Co-ordination of surveillance and enforcement	Co-ordination of market surveillance and enforcement
Justification For clarification. This amendment replaces Amendment 11 in the draft report.
Amendment 32 Article 9, paragraph 1
Co-ordination of surveillance and enforcement	Co-ordination of market surveillance and enforcement
1.   Competent authorities shall co-ordinate their surveillance and enforcement activities. They shall exchange all information necessary to achieve this.	1.   Competent authorities shall co-ordinate their market surveillance and enforcement activities. They shall exchange all information necessary to achieve this.
Justification For clarification. This amendment replaces Amendment 12 in the draft report.
Amendment 33 Article 9, paragraph 2
2.   When competent authorities become aware that an intra-Community infringement harms consumers in more than two Member States, the competent authorities concerned shall coordinate their enforcement actions and requests for mutual assistance. In particular they shall seek to conduct simultaneous investigations and enforcement measures.	2.   When competent authorities become aware that an intra-Community infringement harms consumers in more than two Member States, the competent authorities concerned shall coordinate their enforcement actions and requests for mutual assistance via the single liaison offices. In particular they shall seek to conduct simultaneous investigations and enforcement measures.
Justification Change resulting from Article 4(1).
Amendment 34 Article 9, paragraph 3
3.   The competent authorities shall inform the Commission in advance of this co-ordination and may invite the Commission to participate.	deleted
Justification There is no sensible reason why the Commission should be involved in the coordination organised by competent authorities.
Amendment 35 Article 9, paragraph 4
4.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19(2).	deleted
Justification Change resulting from the amendment deleting Article 19.
Amendment 36 Article 9 a (new)
	Article 9a Complaints and database
	1.   The Commission shall maintain an electronic database in which it shall store and process the information received by it under Articles 7, 8 and 9. The database shall be available for consultation only by the competent authorities.
	In relation to their responsibilities to notify information for storage in the database and the processing of personal data involved therein, the competent authorities shall be regarded as controllers in accordance with Article 2(d) of Directive 95/46/EC. In relation to its responsibilities under this Article and the processing of personal data involved therein, the Commission shall be regarded as a controller in accordance with Article 2(d) of Regulation (EC) No 45/2001.
	2.   When a competent authority establishes that an intra-Community infringement notified by it under Article 7 has subsequently proved to be unfounded, it shall withdraw the notification and the Commission shall without delay remove the information from the database. When a requested authority notifies the Commission under Article 9 that an intra-Community infringement has ceased, the data stored in relation to the intra-Community infringement shall be deleted after five years.
Amendment 37 Article 10, paragraph 2 a (new)
	2a.   The single liaison office or the competent authorities may suspend the procedure if a criminal investigation or criminal proceedings have been or are to be instituted on account of the intra-Community infringement. The single liaison office shall inform the applicant authority via the competent judicial authority.
Justification This addition to the Commission text covers infringements that might be relevant from a criminal law point of view and is needed in order to avoid parallel proceedings.
Amendment 38 Article 10, paragraph 2 b (new)
	2b.   Member States shall foster cooperation between competent authorities and other organisations whose legitimate interest under the Member States’ law implies that intra-Community infringements should cease, in order to ensure that such infringements are reported to the competent authorities without delay.
Amendment 39 Article 11, paragraphs 2-5
2.   Requests shall be sent either to single liaison offices, to competent authorities or competent officials.	2.   Requests shall be sent by the applicant authority to the single liaison office of the requested authority, after being approved by the single liaison office of the applicant authority. Requests shall be forwarded by the single liaison office of the requested authority to the appropriate competent authority without delay.
3.   Requests for assistance and the communication of information (including notifications to the Commission) shall be made in writing, using a standard form and communicated electronically. Requests for assistance or the communication of information between competent officials may be made in another way, if both agree.	3.   Requests for assistance and for the communication of information shall be made in writing, using a standard form and communicated electronically. Requests for assistance or the communication of information between competent officials may be made in another way, if both agree.
4.   The languages used for requests and the communication of information shall be agreed by the competent authorities or competent officials in question before requests have been made.	4.   The languages used for requests and for the communication of information shall be agreed by the competent authorities in question before any requests have been made. If no agreement can be reached, requests shall be communicated in the official languages of the Member State of the applicant authority and responses in the official languages of the Member State of the requested authority.
5.   Information communicated as a result of a request shall be communicated directly to the applicant authority or competent officials who made the request. Competent authorities or competent officials shall ensure that single liaison offices are informed of all requests sent or received and information communicated following a request.	5.   Information communicated as a result of a request shall be communicated directly to the applicant authority and to the single liaison office simultaneously.
Amendment 40 Article 11 a (new)
	Member States shall ensure that procedures are conducted in accordance with law and justice, especially as regards hearing of the traders concerned, in so far as this does not jeopardise the success of investigations.
Amendment 41 Article 12, heading and paragraph 3
Use of information exchanged	Use of information exchanged and protection of personal data and professional and commercial secrecy
3.   Information communicated in any form pursuant to the mutual assistance provisions of this regulation, including when notified to the Commission and stored on the database referred to in Article 15, shall be confidential and be covered by the obligation of professional secrecy, unless:	3.   Information communicated in any form pursuant to Chapters II and III, including information notified to the Commission and stored on the database referred to in Article 9a, the disclosure of which would undermine:
	-   the protection of the privacy and the integrity of an individual, particularly pursuant to Community legislation regarding the protection of personal data,
	-   the commercial interests of a natural or legal person, including intellectual property,
	-   court proceedings and legal advice or
	-   the purpose of inspections or investigations,
	shall be confidential and be covered by the obligation of professional secrecy, unless:
a.   the authority communicating the information consents to its disclosure;	a.   the authority communicating the information consents to its disclosure and in so far as its disclosure is necessary in order to bring about the cessation or prohibition of an intra-Community infringement;
b.   it is invoked as evidence;	b.   it is invoked as evidence;
c.   it is disclosed as part of the publication of the commitment or decision referred to in Article 4(3)(e) or (f).	c.   it is disclosed as part of the publication of the undertaking or decision referred to in Article 4(3)(e) or (f);
	ca.   it is disclosed to the seller or supplier to whom it relates to in application of Article 4(3)(d.)
Amendment 42 Article 12, paragraph 4
4.   Member States shall for the purpose of applying this regulation adopt the legislative measures necessary to safeguard the interests referred to in Article 13(1)(d) and (f) of Directive 95/46/EC.	deleted
Justification Change resulting from the new Article 12(1a) and (1b).
Amendment 43 Article 13, paragraphs 1 and 2
1.   When a competent authority receives information from an authority of a third country, it shall supply the information to the relevant competent authorities of other Member States, in so far as it is permitted by bilateral assistance agreements with the third country.	1.   When a competent authority receives information from an authority of a third country, it shall supply the information to the relevant competent authorities of other Member States, in so far as it is permitted so to do by bilateral assistance agreements with the third country and in so far as this is in accordance with Community legislation on the protection of individuals with regard to the processing of personal data.
2.   Information communicated under this Regulation may also be supplied to an authority of a third country by a competent authority under an assistance agreement with the third country, provided the consent of the competent authority that originally supplied the information has been obtained.	2.   Information communicated under this Regulation may also be supplied to an authority of a third country by a competent authority under an assistance agreement with the third country, provided the consent of the competent authority that originally supplied the information has been obtained and in so far as this is in accordance with Community legislation on the protection of individuals with regard to the processing of personal data.
Amendment 44 Article 14, paragraph 1
1.   Member States shall waive all claims for the reimbursement of expenses incurred in applying this regulation. However, the Member State of the applicant authority shall remain liable to the Member State of the requested authority for any costs and any losses incurred as a result of measures held to be unfounded by a court as far as the substance of the intra-Community infringement is concerned.	deleted
Amendment 45 Article 14, paragraph 2 (a)
a.   the request would impose a disproportionate administrative burden on the requested authority in relation to the scale of the intra-Community infringement, in terms of the potential consumer detriment.	a.   the request relates to an infringement of a less serious nature for the individual consumer.
Justification The wording of the article must be tightened so as to ensure that the authorities are not given too wide a discretion to refrain from taking action. Reference to a heavy administrative burden is not an adequate reason for an authority to refrain from action which might protect the consumer’s interests.
Amendment 46 Article 14, paragraphs 2 and 3
2.   A requested authority may refuse to comply with a request for mutual assistance if:	2.   A requested authority may refuse to comply with a request for enforcement measures under Article 8, following consultation with the applicant authority, if, in its opinion:
a.   the request would impose a disproportionate administrative burden on the requested authority in relation to the scale of the intra-Community infringement, in terms of the potential consumer detriment.	deleted
b.   judicial proceedings have already been initiated or final judgement has already been passed in respect of the same intra-Community infringements and against the same sellers or suppliers before the judicial authorities in the Member State of the requested authority.	b.   judicial proceedings have already been initiated or final judgment has already been given in respect of the same intra-Community infringements and against the same sellers or suppliers before the judicial authorities in the Member State of the requested or applicant authority;
c.   the request is not well founded.	c.   following investigation by the requested authority, no intra-Community infringement is found to have taken place;
	ca.   the applicant authority has not provided sufficient information in accordance with Article 11(1).
	2a.   A requested authority may refuse to comply with a request for information under Article 6 if:
	a.   in its opinion, following consultation with the applicant authority, the information requested is not required by the applicant authority to establish whether an intra-Community infringement has occurred or is likely to occur, or if the applicant authority does not agree that the information is subject to the provisions on confidentiality and professional secrecy set out in Article 12(3);
	b.   judicial proceedings have already been initiated or final judgement has already been given in respect of the same intra-Community infringement and against the same seller or supplier before the judicial authorities in the Member States of the requested or applicant authority.
3.   The requested authority shall inform the applicant authority and the Commission of the grounds for refusing a request for assistance.	3.   The requested authority shall inform the applicant authority and the Commission of the grounds for refusing a request for assistance. The applicant authority may refer the matter to the Commission, which shall issue an opinion in accordance with the procedure referred to in Article 19(2).
Amendment 47 Article 14, paragraph 4
4.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19(2).	deleted
Justification Change resulting from the amendment deleting Article 19.
Amendment 48 Article 15
Article 15 Complaints and Database	deleted
1.   The Member States shall regularly notify to the Commission statistics on consumer complaints received by competent authorities.
2.   The Commission shall maintain an electronic database in which it shall store and process the information it receives under Articles 7, 8, 9 and this Article. The database shall be made available for consultation by the competent authorities.
3.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19(2).
Amendment 49 Article 15, paragraph 3
3.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19(2).	deleted
Justification Change resulting from the amendment deleting Article 19.
Amendment 50 Article 16
1.   Member States shall, with the Commission, co-ordinate the following activities:	1.   Member States shall regularly inform each other and the Commission of their activities of Community interest in the following areas:
a.   the training of their officials, including language training and the organisation of training seminars;	a.   the training of their consumer protection enforcement officials, including language training and the organisation of training seminars;
b.   the collection and classification of consumer complaints;	b.   the collection and classification of consumer complaints;
c.   the development of sector-specific networks of competent officials;	c.   the development of sector-specific networks of competent officials;
d.   their strategy, planning and risk analysis activities related to surveillance and enforcement;	d.   their strategy, planning and risk analysis activities related to market surveillance and enforcement;
e.   the development of information and communication tools;	e.   the development of information and communication tools;
f.   the development of standards, methodologies and guidelines for enforcement officials.	f.   the development of standards, methodologies and guidelines for enforcement officials.
g.   the exchange of their officials.	g.   the exchange of their officials.
	Some or all Member States may, in cooperation with the Commission, carry out common activities in the areas referred to in the first subparagraph. The Member States shall also, in cooperation with the Commission, develop a common framework for the classification of consumer complaints.
2.   Where appropriate, the competent authorities shall exchange competent officials in order to improve cooperation. The competent authorities shall take the necessary measures to enable exchanged competent officials to play an effective part in activities of the competent authority. To this end such competent officials shall be authorised to carry out the duties entrusted to them by the host competent authority in accordance with the laws of that Member State.	2.   The competent authorities may exchange competent officials in order to improve cooperation. The competent authorities shall take the necessary measures to enable exchanged competent officials to play an effective part in activities of the competent authority. To this end, such competent officials shall be authorised to carry out the duties entrusted to them by the host competent authority in accordance with the laws of that Member State.
3.   During the exchange the civil liability of the competent official shall be treated in the same way as that of the officials of the host competent authority. Exchanged competent officials shall observe professional standards and be subject to the appropriate internal rules of conduct of the host competent authority that ensure, in particular, the protection of personal data, procedural fairness and the proper observance of the confidentiality and professional secrecy provisions established in Article 12.	3.   During the exchange the civil and criminal liability of the competent official shall be treated in the same way as that of the officials of the host competent authority. Exchanged competent officials shall observe professional standards and be subject to the appropriate internal rules of conduct of the host competent authority that ensure, in particular, the protection of individuals with regard to the processing of personal data, procedural fairness and the proper observance of the confidentiality and professional secrecy provisions established in Article 12.
4.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19(2).	deleted
Amendment 51 Article 17
1.   Member States shall, with the Commission, co-ordinate their activities designed to:	1.   Member States shall regularly inform each other and the Commission of their activities of Community interest in the following areas which are designed to:
a.   inform, advise and educate consumers;	a.   inform and advise consumers;
b.   support the activities of consumer representatives;	b.   support the activities of consumer representatives;
c.   support the activities of bodies responsible for the extra-judicial settlement of consumer disputes;	c.   support the activities of bodies responsible for the extra-judicial settlement of consumer disputes;
d.   support consumers’ access to justice;	d.   support consumers’ access to justice;
e.   gather statistics, research or other information relating to consumer behaviour, attitudes and outcomes.	e.   gather statistics, the results of research or other information relating to consumer behaviour, attitudes and outcomes.
	Some or all Member States may, in cooperation with the Commission, carry out common activities in the areas referred to in the first subparagraph. The Member States shall also, in cooperation with the Commission, develop a common framework for the activities referred to in (e) above.
2.   The measures necessary for the implementation of this Article shall be adopted in accordance with the procedure referred to in Article 19(2).	deleted
Amendment 52 Article 18
The Community shall cooperate with third countries and with the competent international organisations in order to enhance the protection of consumers’ economic interests. The arrangements for cooperation, including the establishment of mutual assistance arrangements, may be the subject of agreements between the Community and the third parties concerned.	deleted
Amendment 53 Article 19
1.   The Commission shall be assisted by a Standing Committee on Consumer Protection Cooperation, hereinafter referred to as ‘the Committee’, composed of representatives of the Member States and chaired by the representative of the Commission. However, matters regulated by the provisions of Directive 89/552/EEC, as amended, shall continue to be examined only by the Contact Committee set up by that Directive.	deleted
2.   Where reference is made to this paragraph, Article 3 and 7 of Decision 1999/468/EC shall apply having regard to the provisions of Article 8 thereof.
3.   The Committee shall adopt its Rules of Procedure.
Justification There is no reason to fall back on comitology. The authorities and organisations in the Member States can work together across borders without a standing committee.
Amendment 54 Article 19
1.   The Commission shall be assisted by a Standing Committee on Consumer Protection Cooperation, hereinafter referred to as ‘the Committee’, composed of representatives of the Member States and chaired by the representative of the Commission. However, matters regulated by the provisions of Directive 89/552/EEC, as amended, shall continue to be examined only by the Contact Committee set up by that Directive.	deleted
2.   Where reference is made to this paragraph, Article 3 and 7 of Decision 1999/468/EC shall apply having regard to the provisions of Article 8 thereof.
3.   The Committee shall adopt its Rules of Procedure.
Amendment 55 Article 20
1.   The Committee may examine all matters relating to the application of this Regulation raised by its chairman, either on his own initiative or at the request of the representative of a Member State.	deleted
2.   In particular, it shall examine and evaluate how the arrangements for cooperation provided for in this regulation are working.
3.   Where appropriate, the Committee may also invite qualified entities notified under Article 3 of the Injunctions Directive to participate in its meetings.
Justification Change resulting from the amendment deleting Article 19. There is no reason to fall back on comitology. The authorities and organisations in the Member States can work together across borders without a standing committee.
Amendment 56 Article 21, paragraph 3
3.   National reports shall address:	deleted
a.   any new information about the organisation, powers, resources or responsibilities of the competent authorities.
b.   any information concerning trends, means or methods of committing intra-Community infringements, particularly those that has revealed shortcomings or lacunae in this regulation or in the laws that protect consumers’ interests.
c.   any information on enforcement techniques that have proved their effectiveness.
d.   statistics relating to the activities of competent authorities such as actions under this regulation, complaints received, enforcement actions and judgements.
e.   summaries of significant national interpretative judgements in the laws that protect consumers’ interests.
f.   any other information relevant to the application of this regulation.
Justification The content of the reports arises from the factual context and does not need to be prescribed by law.
Amendment 57 Article 23, indent 3 a (new)
	The provisions on mutual assistance shall enter into effect after a transitional period of two years following the entry into force of the Regulation.
Justification Since some Member States still have no authorities for enforcing consumer protection provisions, they must first set up such authorities or entrust existing authorities with the new tasks. This is the justification for inserting a transitional period in order to create the preconditions for applying the Regulation equally in all Member States.
Amendment 58 Annex I, Title
LIST OF DIRECTIVES COVERED BY ARTICLE 2 (*)	LIST OF DIRECTIVES COVERED BY ARTICLE 3a (*)
Justification Correction of an editorial error.

• [1] Not yet published in OJ.

EXPLANATORY STATEMENT

The Commission's proposal

This proposal forms part of the follow-up to the Commission Green Paper on European Union consumer protection (COM(2001)531)[1]. Its purpose is to establish a system for cross-border cooperation between the national authorities, so as to allow the more effective surveillance, investigation and prosecution of cross-border infringements thereby closing gaps exploited by rogue traders.

As one of two instruments to achieve this objective, the regulation provides for cooperation between national public enforcement authorities through mutual assistance. To this end Member States are obliged to designate public agencies to monitor compliance with consumer protection laws and a single coordination office for cross-border cooperation with the agencies of other Member States and to endow them with minimum powers as regards access to documents, obtaining information, and on-site inspectors and as regards enforcement measures taken by the authorities on their own authority or on the basis of a judicial order. These powers must be exercised in conformity with national laws.

This mutual assistance to be provided includes exchanges of information, requests for enforcement measures and the coordination of enforcement. At the request of the applicant authority, the requested authority must take all necessary measures in order to put an end to or prohibit an intra-Community infringement.

The proposal also contains measures to coordinate administrative cooperation involving the Commission. These include the establishment of an electronic database by the Commission for storing and processing all data on consumer complaints, the coordination of enforcement through exchanges of information and officials, the collection and classification of consumer complaints, informing, advising and educating consumers, supporting the activities of consumer representatives, supporting consumers' access to justice and gathering statistics, research and other information relating to consumer behaviour, etc.

The proposal also provides for the establishment of a Standing Committee on Consumer Protection Cooperation to support the Commission. This Committee is to examine all matters relating to the application of this regulation, and in particular how the arrangements for cooperation provided for in this regulation are working.

Position of the rapporteur

The rapporteur shares the Commission's view that there has been a substantial increase in cross-border infringements of consumer protection provisions owing to the increase in cross-border trade, particularly in the field of e-commerce. The rapporteur agrees that national provisions to enforce consumer protection rules are not sufficient to deal properly with cross-border infringements.

If enforcement is to be effective, existing civil law enforcement systems must be supplemented by a network of public agencies. Even if a series of enforcement mechanisms already exist, these are not enough in themselves to provide effective enforcement, above all in the case of cross-border infringements:

1.   The Injunctions Directive 98/27/EC of 19 May 1998 gives certain bodies, notably consumer associations the right to seek injunctions in courts in other Member States in cases of infringements of consumer protection laws.

2.   Council Decision 2001/470/EC of 28 May 2001 has established a European Judicial Network in civil and commercial matters which promotes cooperation between national judicial authorities.

3.   The European Extra-judicial Network (EEJ-Net) facilitates the settlement of consumer disputes throughout Europe, with national clearing house sites providing cross-border contacts.

4.   In addition, some specialised networks already exist, such as the cross-border network for the out-of-court resolution of consumer disputes in the financial services sector (FIN-Net) and the network of national contact points on e-commerce (Article 19, paragraph 4 of Directive 2000/31/EC of 8 June 2000). Consumer protection associations work together in the network of European Consumer Centres (Euroguichets).

However, there are still substantial gaps in enforcement. Particularly in the case of cross-border infringements, civil law proceedings are not fast enough to ensure effective enforcement. Rogue traders in particular can be tackled more rapidly and more effectively by measures taken by national authorities.

Your rapporteur welcomes the proposal as a necessary step in improving enforcement of the provisions protecting consumer interests. The proposal for a regulation provides instruments to close the gaps in the enforcement of consumer protection laws in cross-border trade which are exploited by rogue traders and therefore contributes to the smooth operation of the internal market.

However, she also sees a series of problems which may occur through the coexistence of different enforcement systems, particularly in those Member States in which there is no authority for enforcing consumer protection rules. She wishes to avoid a situation in which, despite the fact that the scope of the proposal is restricted to cross-border infringements, it has a substantial impact on the respective national enforcement systems and clashes occur with the enforcement systems regulated exclusively by private law in some Member States.

Given the possible coexistence of national private enforcement systems and a cross-border enforcement system involving the authorities, efforts must also be made to prevent purely national infringements being prosecuted at a different level of intensity from cross-border infringements.

Your rapporteur also considers that various points need to be clarified and made more precise and that measures must be taken to ensure that the different systems for enforcing collective consumer interests are mutually consistent. They need to be consistent above all with the provisions of the Injunctions Directive. Your rapporteur sets particular store by the involvement of consumer associations in the proposed coordination between authorities. Data protection must naturally be ensured as part of this process.

Your rapporteur has therefore sought with her amendments to submit a proposal permitting the involvement of private consumer organisations in cross-border cooperation between authorities, while at the same time taking into account the concerns of Member States with a purely public-authority enforcement system. To this end the relevant amendments to Articles 4 and 8, in particular, proposed a detailed system of rules governing the criteria for and limits to the involvement of private-law consumer organisations.

As a result of the vote in committee, a substantial amendment to Article 8, namely the amendment to Article 8, paragraph 2.a (b) (new), has been rejected. This removes precisely the section of the amendments seeking to regulate the criteria for the involvement of consumers’ organisations.

The amendments tabled by your rapporteur also sought to bring the positions of Parliament and the Council closer together, so as to keep open the possibility of adoption at first reading.

• [1] The following are directly relevant: the proposal for a Directive of the European Parliament and of the Council concerning unfair business-to-consumer commercial practices in the Internal Market and amending directives 84/450/EEC, 97/7/EC and 98/27/EC (the Unfair Commercial Practices Directive) and the amended proposal for a European Parliament and Council Regulation concerning sales promotions in the Internal Market of 25 October 2002 (COM(2002)0585).

OPINION OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND CONSUMER POLICY

27 January 2004

for the Committee on Legal Affairs and the Internal Market

on the proposal for a European Parliament and Council regulation on cooperation between national authorities responsible for the enforcement of consumer protection laws (COM(2003) 443 – C5‑0335/2003 – 2003/0162(COD))

Draftswoman : (*) Béatrice Patrie

(*) Enhanced cooperation between committees - Rule 162a

PROCEDURE

The Committee on the Environment, Public Health and Consumer Policy appointed Béatrice Patrie draftswoman at its meeting of 10 September 2003.

It considered the draft opinion at its meeting(s) of 27 January 2004

At the latter meeting it adopted the following amendments by 44 votes to 1, with 1 abstention.

The following were present for the vote: Caroline F. Jackson (chairman), .Mauro Nobilia (vice-chairman), Alexander de Roo (vice-chairman), Guido Sacconi (vice-chairman), Béatrice Patrie (draftswoman), María del Pilar Ayuso González, María Luisa Bergaz Conesa, John Bowis, Philip Bushill-Matthews (for Martin Callanan), Chris Davies, Avril Doyle, Säid El Khadraoui, Karl-Heinz Florenz, Cristina García-Orcoyen Tormo, Françoise Grossetête, Cristina Gutiérrez Cortines, Jutta D. Haug (for David Robert Bowe), Martin Kastler, Christa Klaß, Eija-Riitta Anneli Korhola, Bernd Lange, Peter Liese, Giorgio Lisi (for Raquel Cardoso), Torben Lund, Minerva Melpomeni Malliori, Rosemarie Müller, Riitta Myller, Giuseppe Nisticò, Ria G.H.C. Oomen-Ruijten, Marit Paulsen, Frédérique Ries, Dagmar Roth-Behrendt, Yvonne Sandberg-Fries, Giacomo Santini (for Raffaele Costa), Karin Scheele, Horst Schnellhardt, Inger Schörling, Jonas Sjöstedt, María Sornosa Martínez, Catherine Stihler, Nicole Thomas-Mauro, Astrid Thors, Marianne L.P. Thyssen (for Marialiese Flemming), Antonios Trakatellis, Peder Wachtmeister and Phillip Whitehead.

SHORT JUSTIFICATION

Aside from their characteristic diversity, the systems for enforcing consumer protection legislation in the Member States appear generally to work with regard to national markets, but are ill-adapted to internal market affairs. National authorities, where they exist, have no power to carry out investigations and punish violations at Community level, no more than consumer groups are able to act effectively in crossborder cases. Furthermore, the emergence of new trading practices, with the explosion of the Internet, has exposed gaps in the Community's system of protection, from which rogue traders are benefiting, to the detriment of consumers, but also honest traders.

The Commission's initiative to set up a Community network of national authorities, the designation of which will be left to the Member States, and a single liaison office to ensure proper coordination between the competent authorities in the Member States is therefore welcomed. The choice of a 'public' system might well seem questionable in those countries unfamiliar with it. In reality, however, the proposal for a Regulation in no way modifies or lessens the role played by consumer groups in enforcing legislation, nor does it challenge any of the methods of settling disputes, particularly the alternative methods.

The Commission's proposal calls for a series of observations, however, and should be amended in the following respects.

1 -   Choice of legal basis

The draftswoman suggested including Article 153 TEC as an additional legal basis (as mentioned in the legislative financial statement).

Her view is that consumers have rights unconnected with the economic issues of the internal market and intended principally to protect interests other than financial ones, such as health, for example. Yet, the Committee on the Environment, Public Health and Consumer Policy did not follow this suggestion.

2 -   Scope of the Regulation

The scope of the proposal for a Regulation covers the consumer interests protected by the Community directives listed in the annex to the proposal.

According to the draftswoman it should be borne in mind that the Regulation should cover as wide an area as possible, going beyond the purely financial interests of consumers. The Commission text should therefore be amended accordingly. The Committee did not accept the amendments going in this direction.

3 -   Mutual assistance

The effectiveness of the network of public authorities is heavily reliant on the effective enforcement of their rights and obligations in terms of mutual assistance. As is fitting, the Regulation imposes extensive obligations on the competent authorities regarding the exchange of information and grants substantial powers as regards investigation, prosecution and the cessation of infringements.

There is no doubt that this system will enable active, loyal and effective cooperation in the interests of consumers and the internal market. Nevertheless, the Regulation also allows for difficulties arising in cooperation, which is always a possibility. The refusal to comply with a request for mutual assistance represents the most serious problem.

If it is possible to justify allowing the competent authority of a Member State the freedom to refuse to lend assistance, particularly in the event of ongoing judicial proceedings or a final judgment, it is not acceptable for a competent authority to argue that there would be 'a disproportionate administrative burden on the requested authority in relation to the scale of the intra-Community infringement, in terms of the potential consumer detriment' or that a 'request is not well founded' and refuse the request for mutual assistance. It is certainly unacceptable that the assessment of the validity of the arguments put forward is the responsibility of the very authority citing them to justify its failure to cooperate. Furthermore, the harmonisation of the working of the internal market requires infringements of Community law to be tackled rigorously and uniformly.

In the event of a refusal of mutual assistance, there must be a procedure in place, with the Commission, as guardian of the Treaties and the Community legal order, directly involved in its application. Where the Member States are represented, it could be useful for the Commission to be assisted in this task by the Standing Committee set up under the Regulation.

4-   Transparency and consumer information

The measures set out by the Regulation in order to ensure transparency and consumer information deserve to be strengthened. The Commission text has therefore been amended in this respect.

5 -   Administrative cooperation

In the draftswoman's opinion Member States and the Commission should be encouraged to involve consumer groups more closely in their administrative cooperation activities. However, the Committee did not follow this opinion.

AMENDMENTS

The Committee on the Environment, Public Health and Consumer Policy calls on the Committee on Legal Affairs and the Internal Market, as the committee responsible, to incorporate the following amendments in its report:

Text proposed by the Commission[1]	Amendments by Parliament
Amendment 1 Recital 2
(2)   Existing national enforcement arrangements for the laws that protect consumers' interests are not adapted to the challenges of enforcement in the internal market and effective and efficient enforcement cooperation in these cases is not currently possible. These difficulties give rise to barriers to cooperation between public authorities to detect, investigate and bring about the cessation of infringements of the laws that protect consumers' interests in cross-border cases. The resulting lack of effective enforcement in cross-border cases enables sellers and suppliers to evade enforcement attempts by relocating within the Community. This gives rise to a distortion of competition for law-abiding sellers and suppliers operating either domestically or cross-border. The difficulties of enforcement in cross-border cases also undermines the confidence of consumers in taking up cross-border offers and hence their confidence in the internal market.	(2)   Existing national enforcement arrangements for the laws that protect consumers' interests are not adapted to the challenges of enforcement in the internal market and effective and efficient enforcement cooperation in these cases is not currently possible. These difficulties give rise to barriers to cooperation between bodies to detect, investigate and bring about the cessation of infringements of the laws that protect consumers' interests in cross-border cases. The resulting lack of effective enforcement in cross-border cases enables sellers and suppliers to evade enforcement attempts by relocating within the Community. This gives rise to a distortion of competition for law-abiding sellers and suppliers operating either domestically or cross-border. The difficulties of enforcement in cross-border cases also undermines the confidence of consumers in taking up cross-border offers and hence their confidence in the internal market.
Justification At present, it is not only public authorities that are actively involved in this sphere.
Amendment 2 Recital 9a (new)
	9a)   The refusal of mutual assistance should be an exception and based on serious grounds, the assessment of which should not be the sole responsibility of the authority invoking them to justify its refusal to cooperate. Member States should, in all cases, actively and loyally seek solutions to put an end to crossborder infringements of Community consumer legislation. The Commission, as guardian of the Treaties and the Community’s legal order, should help in finding the most suitable solutions.
Amendment 3 Article 3, point (c)
(c)   'competent authority' means any public authority established either at national, regional or local level with specific responsibilities to ensure compliance with the laws that protect consumers' interests.	(c)   'competent authority' means any body established either at national, regional or local level with specific responsibilities to ensure compliance with the laws that protect consumers' interests.
Justification Member States should retain the power also to regulate through bodies that are not public authorities.
Amendment 4 Article 3, point (d)
(d)   'single liaison office' means the public authority in each Member State designated as responsible for co-ordinating the application of this regulation within that Member State.	(d)   'single liaison office' means the body in each Member State designated as responsible for co-ordinating the application of this regulation within that Member State.
Justification Member States should have the power also to regulate through bodies that are not public authorities.
Amendment 5 Article 10, paragraph 1
1.   Competent authorities shall fulfil their obligations under this regulation as though acting on behalf of consumers in their own country and on their own account or at the request of another competent authority in their own country.	1.   Competent authorities shall fulfil their obligations under this regulation as though acting within the framework of commercial law enforcement in their own country and on their own account or at the request of another competent authority in their own country.
Amendment 6 Article 15, paragraph 1
1.   The Member States shall regularly notify to the Commission statistics on consumer complaints received by competent authorities.	1.   The Member States shall regularly notify to the Commission statistics on consumer complaints received by competent authorities. This information shall be accessible to the public.
Justification In order to strengthen consumers' confidence in the internal market, there must be greater transparency in the measures taken to enforce this Regulation and the public should be allowed access to the statistics forwarded to the Commission by the Member States.
Amendment 7 Article 15, paragraph 2
2.   The Commission shall maintain an electronic database in which it shall store and process the information it receives under Articles 7, 8, 9 and this Article. The database shall be made available for consultation by the competent authorities.	2.   The Commission shall maintain an electronic database in which it shall store and process the information it receives under Articles 7, 8, 9 and this Article. The database shall be made available for consultation by the competent authorities. Without prejudice to the enforcement of the rules on professional secrecy or confidentiality, consumer groups duly authorised to take legal action shall have access to this database.
Justification The effectiveness of action taken by consumer groups (especially crossborder injunctions) is dependent on the relevance of the information available to them. It is right therefore that consumer groups authorised to bring actions should have access to the electronic database established by this article.
Amendment 8 Article 20, paragraph 2a (new)
	2a.   In the event of a refusal to comply with a request for mutual assistance on one of the two grounds set out in points a and c of Article 14(2), the applicant authority may appeal to the Committee, which, after having considered the arguments put forward by the requested authority, shall issue a reasoned opinion as quickly as possible. A further refusal by the requested authority, in spite of the Committee's opinion to the contrary, shall result in its being published in the report provided for under Article 21 of the Regulation.
Justification The assessment of the validity of arguments put forward to support a refusal to offer assistance on the basis of points a and c of Article 14(2) cannot be solely the responsibility of the authority citing them to justify its own failure to cooperate. There should be provision for an appeal to the Committee of representatives of the Member States, set up to assist the Commission.
Amendment 9 Article 21a (new)
	Article 21a Commission report Every two years, the Commission shall present a public report on the application of this Regulation at Community level, principally on the basis of the data provided by the Member States.
Justification In order to strengthen consumers' confidence in the internal market and to encourage the Member States to cooperate, there should be greater transparency in the measures taken in applying this Regulation.

• [1] Not yet published in OJ.