Commission set to adopt diluted guarantees plan

Date: 16/05/1996

THE European Commission is expected to adopt draft new rules next week aimed at helping consumers to return faulty goods bought in shops in other member states.

But the plan, which originally included provisions covering the voluntary guarantees offered by shops as well as statutory guarantees, has been watered down in the face of stiff opposition from some member states. After fierce protests from Germany, the UK and the Netherlands, commercial guarantees have been excluded from the scope of the proposed directive.

A question mark also hangs over whether consumers will be given the option of seeking compensation from manufacturers - as well as vendors - in their home country for faulty products bought overseas. Consumer groups fear that this provision might be deleted before the plan is discussed by the full Commission next Wednesday (22 May).

At the moment, statutory after-sales guarantees vary from country to country. The Commission fears the current patchwork of rules acts as a serious deterrent to cross-border shopping, as consumers opt to buy products at home rather than risk disappointment with those bought abroad.

It will propose harmonising legal rights or those rights automatically granted with products bought in EU countries. Consumers would be entitled to free repairs of damaged goods for up to two years after purchase, or a partial refund should they decide to keep the defective product.

They would also be allowed to demand their cash back for items which did not live up to their expectations (provided these are deemed reasonable), or insist on a replacement.

The proposal is, however, likely to run into opposition in member states where statutory guarantees are weaker than those proposed in the directive.