1. PEER Regulatory Round Table on Bundled Products 2nd October Insights from the PEER event, Cases & Next Steps

2. Content What is PEER about?
PEER Concept
PEER Mission and Objectives
Important insights from Bundled Products event
Examples of Cases (and regulatory solutions)
PORTUGAL - Regulatory Guidelines on Bundled Products developed by the ERSE (energy regulator) following electricity being cut due to non-payment of equipment maintenance services
THE NETHERLANDS - Regulatory Guidelines on information provision in the energy market developed by ACM (multi-sectoral regulator)
PEER’s draft Guiding Principles for Bundled Products
Gaps and next steps

3. What is PEER about?
Partnership for the Enforcement of European Rights (PEER)
PEER is an initiative of Europe’ s energy regulators (CEER)
to enhance inter-agency (cross-sectoral and cross-authority) cooperation at EU level to benefit consumers
Started on a pilot basis in 2017
PEER aims to brings together different regulators (telecoms, energy, financial etc.) and other authorities (e.g. Ombudsmen, Consumer Protection Authorities, Consumer Associations, Data Protection Authorities) to strengthen the enforcement of European consumer rights
08/11/2018

4. Who is PEER collaboration on consumer rights for?

5. PEER’s Mission and Objectives
“To help protect, empower and engage European consumers through the collaboration of relevant authorities with differing consumer-related responsibilities.”
Raise awareness of the need for cross-sectoral and cross-authority cooperation
Help deliver EU Digital Single Market, Energy and Consumer objectives to benefit consumers
PEER Objectives
Facilitate the consistent enforcement of consumer rights
Share experiences, best practices and develop common approaches

6. PEER round table on Bundled Products
First PEER roundtable (02 October 2017)
Bundled products
Business model
Comparing offers
Complaints
The round table
More than 30 attendees
Telecoms, energy and multi sectoral regulators (CEER, BEREC)
Consumer bodies (BEUC)
Ombudsmen (NEON)
European Commission (DG JUST and DG ENER)
Interactive with a focus on case studies and sharing experiences
08/11/2018

7. Important insights on Bundled Products
Bundled products are here to stay
Product complexity is exponentially increasing.
Bundles can create a customer lock-in situation.
Bundling is not something the consumer necessarily wants
Bundled products are supply driven (pushed by suppliers).
Bundled products can cause an accumulation of problems
Contractual issues
Harder for consumers to compare offers
Complaint jurisdictional issues
Data management and privacy
Competition issues
08/11/2018

9. The problem Case 1 - Portugal
A Portuguese consumer contracted a service with his energy retailer for maintenance services of appliances. After a 6 month trial period, the consumer terminated the maintenance agreement.
The Supplier found an error in the bill of the service provided during the 6 months and issued a new bill which the consumer did not pay and was subsequently disconnected.
This was counter to Portuguese law which allows an interruption only in the case of non-payment of energy bills, whenever these bills are related to energy supply.
The supplier cannot interrupt energy supply due to non-payment of the equipment maintenance service.
Steps taken by the energy regulator (ERSE)
Supply company was fined €20,000
ERSE developed Regulatory Recommendations for all energy suppliers concerning Bundled or Additional Service Contracts.
Since 2016, ERSE requests a copy of all contractual conditions concerning Bundled or Additional Service Contracts.
A standard form of pre-contractual information obliges suppliers to identify Bundled or Additional Service Contracts.
A revision to the Commercial Relations Code will include a requirement for regular reporting to ERSE on Bundled or Associated Service Contracts.

10. Case 2 – The Netherlands The problem Lessons Learned
ACM (the Dutch multi-sectoral regulator) found, through random checks, that the level of compliance with the requirements on the provision of information was insufficient. Companies understood energy law but not general consumer law.
Steps taken by the regulator (ACM)
ACM developed guidelines that translate the general consumer protection rules to the practices in the energy sector – these guidelines explained the rules clearly and simply.
Lessons Learned
General consumer legislation should act as a firm basis as it applies across all sectors. Sector-specific rules can complement but must be consistent with consumer rules.
ACM consulted the energy sector on its guidance document.
ACM provided a grace period for companies to comply with the rules.
ACM learnt that the guidance is very important. Guidelines or rules provide a firm basis for enforcement (which became much more effective).

11. Lessons learnt Case studies were informative to explore:
Challenges and solutions
Guidelines used to solve some of the issues
Examples of effective cooperation
Case studies showed that:
Regulators in different sectors face similar challenges
More and more overlap between sectors will develop over time
Cooperation between consumer authorities and sectoral regulators is key
08/11/2018

12. PEER Guiding Principles for Bundled Products (draft*)
*initial thoughts not agreed
by event participants but
randomly voiced during the
PEER roundtable
Consumers need rules that are easy to understand and compare.
There should be consistency in terms of definitions in the contract, offer and bill.
Simplicity
The consumer should not have to face a multitude of different actors for the different elements of the product. Clear information about the service provider and complaint handler should be mandatory.
This should be the case even where the provider is acting as a broker/intermediary.
Single point of contact
There must be price transparency on different elements of the bundled products, which is reflected in the bill, in identifying the other contacting parties and the terms and conditions of the different elements of the bundled product.
Bundled services should offer the consumer the option of separate payments.
Transparency is key
In the case of multiple contracts of the bundled products.
Clear liability principles

13. PEER Guiding Principles for Bundled Products (draft*)
*initial thoughts not agreed
by event participants but
randomly voiced during the
PEER roundtable
In terms of unfair commercial practices
Companies must adhere to due diligence
should equally apply in the case of bundled products
Good guidance principles for price comparison tools
This should include the conditions to end the contract or individual elements of the contract
Conditions about the right to switch out of any individual element of the bundled product.
Suppliers should provide this information upfront and also during the contract when the customer asks for it.
Consumer should be well informed of contract conditions
in the event of non-payment of another element of the bill of a bundled product.
No disconnection of essential service (e.g. energy)
In the case of a dispute on a bundled product, there should be low or no fees for the customer to engage in Alternative Dispute Resolution (ADR).
No dispute resolution fee

14. Gaps identified
Raising awareness of the need for cross sectoral collaboration, including reaching out to Consumer Protection Authorities, Data Protection Authorities etc.
The need for Explanatory notes/Guidelines on the treatment of Bundled Products under the Unfair Commercial Practices Directive.
The need for training for sectoral regulators on general consumer law and the treatment of bundled products.
The need to map, across EU Member States, the different sectoral regulatory authorities and other authorities. This will identify gaps and overlaps.

15. PEER to PEER collaboration
Next Steps
Bundled Products
- Inform European Commission of the gaps identified and seek to work with the Commission on follow up (e.g. Explanatory Notes/principles for bundled products, training and mapping)
- sharing of case studies
- sharing of guidelines
PEER to PEER collaboration
- Raise awareness of the need for PEER collaboration to benefit consumer rights enforcement
- PEER online platform for Event Proceedings, Case Studies and Guidelines
- Future PEER events

16. Further information on PEER