Address consumer protection gaps: Toward more effective enforcement

For the 2024-2029 mandate of the EU Institutions, Seldia, the European Direct Selling Association, presents a set of recommendations to enhance the competitiveness of the Single Market.

One of our core priorities is the need for better enforcement and harmonisation of consumers protection across Member States.

Fragmented enforcement of consumer protection within the EU leads to inconsistencies, unfair competition, unpredictable business environment, and increased costs for SMEs. While, consistent and effective enforcement offers significant benefits:

Protect Consumers: Effective enforcement deters fraudulent practices and misconduct.
• Boost Consumer Confidence and Promote Economic Activity: Consumers are more likely to engage in transactions when they trust that their rights are protected, stimulating economic activity.
• Ensure a Level Playing Field: Uniform enforcement prevent non-compliant business from gaining unfair advantages.

Despite the importance of consumer protection, several challenges hinder its effective enforcement within the EU:

• Divergent Commitment Level: Member States have varying levels of commitment to consumer protection, leading to fragmented enforcement.
• Resources Constraints: Many regulatory bodies lack the resources to enforce consumer protection effectively.
Complexity of Rules: The complexity of consumer protection laws can make them difficult to enforce, resulting in confusion and inconsistent application.

To address these challenges, Seldia proposes the following recommendations;

  1. Harmonise Enforcement Standards: Establish clear and uniform enforcement standards for consumer protection across all Member States to create regulatory consistency and improve consumer confidence.
  2. Consumer Education and Awareness: Promote education programs to ensure consumers understand their rights and know how to report violations.
  3. Enhanced Enforcement Tools: Provide regulatory bodies with stronger tools to investigate and penalise violations of consumer protection laws.
  4. Increase Resources for Regulatory Bodies: Allocate more resources to National Regulatory Bodies and the European Commission to ensure their capacity for effective enforcement.
  5. Cross Border Collaboration: Encourage collaboration among Member States to share best practices and conduct joint enforcement actions where necessary.

For more detailed information on these recommendations, the full Seldia manifesto for the 2024-2029 mandate of the EU Institutions is available here.

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