European Direct Marketing Proposals May Cause Row

The European Union’s Distance Selling proposals are to be debated and voted by the European Parliament during the week of 11th December.

The European Commission first published the Distance Selling proposals in 1991; since then various drafts have been published, with the EU Parliament’s aim being to increase the quality of consumer protection. One particularly contentious area is the draft’s attempt to restrict direct response marketing, whereby the prior consent of the consumer will be a condition of telemarketing. The European Parliament has also insisted on the inclusion of financial services in the draft; although it is obliged by the Council of Ministers to make a separate proposal for distance selling rules for financial services at a later stage.

The exclusion of financial services is a key objective of the UK Government. The Council of Ministers finally reached a common position on 29 June 1995, and this is the text which will be debated on in December. If the proposals are confirmed by the Parliament, it is expected there will be a stand-off between the Council of Ministers and the Parliament early in the New Year.