Firms attack idea of marketing ‘norms’

Date: 16/03/2000

By Peter Chapman

INDUSTRY groups are calling on the European Commission to abandon plans for a new EU-wide standard to govern doorstep sales practices, amid fears that these would be extended to other sectors from financial services and insurance to mail order.

The warning follows a decision by the Commission's consumer affairs department to give the issue star billing at a special hearing to help it prepare draft new legislation for the direct-selling industry expected before Christmas.

Commission sources say the idea is just one of a number of recommendations made by an external consultant, who suggested that the European Standardisation Committee (CEN) should develop a pan-EU marketing standard to increase consumer confidence in the activities of companies involved in multi-level marketing - one of direct-selling industry's most maligned sectors.

But Brian Sheridan, vice-chairman of the American Chamber of Commerce's EU consumer affairs committee, says officials working on the proposals have indicated that they support the idea.

Firms fear that this would lead to a concerted attack on successful industry self-regulation schemes across sectors ranging from insurance to direct marketing.

"The adoption of a standard is a horizontal issue which potentially affects lots of different sectors," said Sheridan. "The Commission is not going to draft a mandate to CEN for a standard just for direct selling. Direct selling is being used as a flag-waving exercise. It is implicit that the Commission is looking for a greater role in 'soft law'."

Industry groups are calling on the European Commission to abandon plans for a new EU-wide standard to govern doorstep sales practices, amid fears that these would be extended to other sectors from financial services and insurance to mail order.