EU: Distance Selling plan faces opposition

EU member states look set to derail the European Commission’s proposals for rules to govern the sale of financial services via telephone, direct mail or the Internet. The proposed law, which would give consumers throughout the EU 14 days to withdraw from contracts without any penalty, limit unsolicited sales and establish redress procedures for disputes between consumers and suppliers, is expected to meet with tough opposition from France and Finland who argue that the level of existing consumer protection is insufficient. While there is general agreement that rules are needed, several MS claim the right to set stricter national laws.