Buying Services everywhere in the EU Conference Buying Services everywhere in the EU How is the non-discrimination principle working in practice for consumers? Reinhold Schranz European Consumer Centre Austria www.europakonsument.at Brussels, 9th February 2015

Consumers indication of the non-discrimination principle to traders Conference Buying Services everywhere in the EU Consumers indication of the non-discrimination principle to traders Trellis Case A consumer resident in Austria wanted to buy a trellis for his rose garden online from a German market garden. The German market garden refused the delivery without giving reasons. After the consumer informed the trader about the non- discrimination principle the trader delivered the trellis to the consumer. Brussels, 9th February 2015

Intervention of the European Consumer Centres Conference Buying Services everywhere in the EU Intervention of the European Consumer Centres Amicable Solution of individual cases Amusement Park Case The booking of a hotel stay by an Austrian family on the website of an amusement park near Paris was refused because the Austrian family had no place of residence in Belgium or France. The family was re-directed to the Austrian website where the price for the totally identical hotel room was almost € 400,- higher. After an intervention by the ECC-Net the amusement park accepted the booking for the cheaper price. Brussels, 9th February 2015

Intervention of the European Consumer Centres Conference Buying Services everywhere in the EU Intervention of the European Consumer Centres Amicable Solution of individual cases Price for a 5-day stay in a hotel located in the amusement park Consumers resident in Austria and Germany € 1038,- Consumers resident in Italy € 858,- Consumers resident in Belgium and France € 645,- Brussels, 9th February 2015

Intervention of the European Consumer Centres Conference Buying Services everywhere in the EU Intervention of the European Consumer Centres Changed Business Practice A multinational e-commerce company and retailers selling their items on the marketplace of the multinational e-commerce company agreed to cancel delivery restrictions to Austria. A German manufacturer of home appliances agreed to lower prices for spare parts for whirlpools to consumers resident in Austria. Before the agreement Austrian consumers paid 60 % more for identical spare parts than German consumers. Brussels, 9th February 2015

Intervention of the European Consumer Centres Conference Buying Services everywhere in the EU Intervention of the European Consumer Centres Changed Business Practice A multinational computer games company agreed to extend its customer loyalty programme also to Austrian consumers following a complaint of an Austrian 12 year-old who could not register in the loyalty programme due to his place of residence in Austria. Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Objective Reasons Lack of Requisite Intellectual Property Rights E-Book Case Consumers resident in the Netherlands and Finland wanted to buy e-Books from a UK-based trader’s website. The trader rejected their attempted purchases and informed the consumers that he was bound by the legal demands and restrictions of publishers due to intellectual property rights and as such could not offer the possibility of purchasing such items to consumers outside the UK. Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Objective Reasons National Gambling Tax Motor-Car Magazine Case A consumer resident in Austria wanted to take part in a sweepstake organized by a German Motor-Car Magazine to win a car for € 47.800,-. The trader rejected his participation and explained to the ECC-Net that Austrian consumers cannot take part in the sweepstake due to the request of the Austrian fiscal authorities demanding a gambling tax of 5 % of the expected profit. Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Objective Reasons Contractual Obligations/Distribution Agreements Prefabricated House Case An Austrian consumer made a price comparison between the websites of an Austrian manufacturer and a Slovenian retailer of prefabricated houses. The consumer discovered that the price for the totally identical house was € 32.000,- cheaper when buying it from the Slovenian retailer. When he wanted to conclude the purchase, the Slovenian company informed that due to an agreement with the Austrian manufacturer they are not allowed to sell prefabricated houses to consumers resident in Austria. Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Objective Reasons Prefabricated House Case Identical type of house Specific type of house for the sales territory of Austria-Germany-Switzerland Slovenia 98 million inhabitants 2 million inhabitants GDP per capita between GDP per capita of $43,900 -$38,400/year $29,000/per year ??? Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Awareness-Raising Leaflets European Commission, ECC-Net, ECCs at national level ec.europa.eu/internal_market/publications/docs/article20_en.pdf ec.europa.eu/consumers/ecc/consumer_reports_en.htm Media campaigns of ECC-Net and ECCs at national level (TV, radio, newspapers, e.g. article in the Austrian consumer magazine Konsument 01/2014) Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Recommendations: Intensify Awareness Raising Campaigns Intensify Enforcement of Art. 20 (2) of the Services Directive Clarify unsettled legal question with regards to the application of the Services Directive and objective reasons (National Courts, CJEU, GD Justice) Standardised Consumer Complaint Forms (cf. Complaint Forms Reg. 261/2004) Include Art. 20 (2) of the Services Directive to the CPC-Regulation Include an obligation by service providers to inform at the beginning of the order transaction about possible objective reasons to Art. 20 (2) of the Services Directive Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Conclusion: “I consider myself a European citizen and can move around freely within the European Union, but when it comes to buying services and goods cross border I am disappointed. I get frustrated if I want to buy a service from a web trader from another EU country and the web trader tells me No, No, No – you have to have a place of residence here. It feels like having an artificial border in front of you. Is this what the internal market is supposed to be?” Brussels, 9th February 2015

Buying Services everywhere in the EU Conference Buying Services everywhere in the EU Thank you for your attention Contact: rschranz@europakonsument.at European Consumer Centre Austria www.europakonsument.at Brussels, 9th February 2015