EU: Country of origin in e-commerce

The Consumer Council meeting in Brussels last week adopted a resolution which recognises consumer concern over the development of the information society, and has called on the EC to ensure that consumers’ interests are fully taken into account in all current and future legislative proposals. Notably the Council drew attention to the need for measures to ensure transparency and the quality of information, fair marketing practices, offers and contract terms, the security of payment systems, including electronic signatures, the protection of children against inappropriate content and the protection of personal data.

Discussing e-commerce, the Council requested that the EC adopt measures to ensure that the legal system to resolve disputes involving consumer transactions over the internet be that of the consumer’s country of residence. In welcoming the Council’s resolution, the Commission however stated that it would reserve its position on the legal system applicable in disputes (the ‘country of origin’ issue) in its future proposals.

This issue has now loomed large in the European Commission’s continuing discussions of the e-commerce proposals. The latest textual revision excludes ‘consumer contracts’ from the e-commerce provisions relating to the country of origin. This has provoked sharp reactions from the industry, which point out that this principle was once seen as the ‘cornerstone’ of the proposal.