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Even the trade association for businesses critisise the new EU sale Law

October 21, 2011 By: Admin Category: European Sales Law

The directive on consumer rights has been finally approved by the EP and has to be enacted by the end of 2013, and the Commission has formally adopted a proposal for an optional instrument on the basis of the expert group document. Even market logic cannot help explain the economic rationale for such a sales law… In fact, even the European Association of Craft, Small and Medium-Sized Enterprises have not welcomed the optional law. They have said that the “proposals will do very little in this respect and will actually leave small businesses worse off, if confirmed in their current form. SMEs face diverse issues such as language barriers and tax systems when trading cross-border, while the attitude of consumers in relation to buying from another member state does not depend on legal diversity. The need to adapt and comply with different consumer protection rules in the foreign contract laws was cited as having a ‘large impact’ on cross-border trade only by 7 per cent of the respondents to the Eurobarometer. Therefore, pretending that the common sales law is a priority and that it will change the status quo is preposterous”.

Below is a further quote from an article by Paul Abbiati “Is a common sales law for Europe possible?”

“Most businesses usually select their own national law or English law, which is commonly preferred. That means that if the common sales law was approved by member states and the European Parliament, it would have some impact on the strength and the use of English law globally. For example, UK lawyers and international lawyers argue that if EU legislation weakens English law – businesses that choose it may actually switch to a governing law that is not even European; such as New York, Switzerland and Singapore law. It would mean that Europe would lose business in that European laws would be ditched for external laws, which would be seen as more reliable and precise. So European and legal policy experts are asking the commission to slow down and consider through impact assessments what the ramifications will be on all member state economies, national laws and dispute resolution mechanisms of an optional common sales law for Europe – backed by the EU in a regulation.”

Some 2011 Eurobarometers:

Qualitative survey about Obstacles citizens face in the Internal Market

Consumer attitudes towards cross-border trade and consumer protection (see PDF of report) Fieldwork: September 2010, Publication: March 2011

Retailers’ attitudes towards cross-border trade and consumer protection (see PDF of report)

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