Answer given by Mr Reynders on behalf of the European Commission
8.3.2021
Directive 93/13/EEC on unfair contract terms in consumer contracts[1] guarantees that consumers are not bound by unfair terms and that they have effective remedies against such terms.
To this end, Member States must comply with t he procedural requirements developed by the Court of Justice of the EU based on Directive 93/13/EEC . In particular, national courts must assess the unfairness of contract terms of their own motion if needed, and consumers must have available interim measures for stopping or suspending enforcement procedures while national courts assess the possible unfairness of relevant contract terms.
In a pending infringement procedure against Cyprus for ineffective enforcement of Directive 93/13/EEC and Directive 2005/29/EC[2], the Commission delivered, on 18 February 2021, a reasoned opinion to Cyprus in accordance with Article 258 of the Treaty on the Functioning of the EU[3]. The main concern is that the decisions of the Cypriot Consumer Protection Service regarding unfair terms are not binding and are not enforced in practice by the Law Office of the Republic either. Therefore, Cyprus fails to provide adequate and effective means to prevent the continued use of unfair terms in consumer contracts.
The Commission also investigates new complaints in respect of the application in Cyprus of Directive 93/13/EEC. As mentioned in its reply to written questions E-004376/2020 and E-004377/2020[4], s hould the Commission obtain sufficient evidence that Cyprus violates additional obligations stemming from Articles 6 and 7 of Directive 93/13/EEC to provide consumers with appropriate remedies and procedural guarantees, it will consider appropriate steps, which may include opening of separate infringement proceedings.
- [1] OJ L 95, 21.4.1993, p. 29-34.
- [2] Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’), OJ L 149, 11.6.2005, p. 22‐39.
- [3] https://ec.europa.eu/commission/presscorner/detail/en/inf_21_441
- [4] https://www.europarl.europa.eu/doceo/document/E-9-2020-004376-ASW_EN.html