More unified rules on contracts for the sales of goods: Council agrees its position
The EU i is introducing better and clearer rules for both companies and consumers when it comes to sales of goods.
The Council i today adopted its position on the sales of goods directive, which is intended to provide a coherent legal framework across the EU, whilst also providing for a high level of consumer protection. The directive covers distance (including online) transactions, as well as face-to-face sales, to avoid fragmentation and provide more clarity for consumers.
Clear and effective rules are essential for the further development of cross border trade within the single market. A company or a consumer will not sell or buy goods in another member state if there is not enough legal certainty on their rights and obligations. With the agreement we have reached today, I hope we can make rapid progress with the European Parliament i to achieve an agreement on both the sales of goods and the digital content directive by the end of the parliamentary term.
Josef Moser, minister of justice of Austria
Main elements of the Council's position
The directive lays down common rules on certain requirements concerning sales contracts concluded between the seller and the consumer. These include rules on conformity of goods with the contract (including a definition of conformity based on objective and subjective criteria), remedies in case of lack of conformity, how these remedies can be exercised, and commercial guarantees.
The directive is based on the principle of maximum harmonisation, which means member states cannot deviate from the requirements in the text. However, on some aspects, the Council's position foresees some room for EU countries to go beyond the requirements in order in particular to maintain the level of consumer protection already applied at national level. This is the case, for example, of:
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-time limits for guarantee periods. While the directive provides for a minimum of two years for the guarantee period, member states may go beyond this, but not below, in their national legislation;
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-burden of proof in case of non conformity of the good: the directive foresees that within one year from the moment the good was delivered, it will be presumed that non conformity existed at the time of delivery without the consumer having to prove it. However, in order to remain coherent with existing legislation in some member states, the Council has introduced the flexibility for countries to apply this principle during two years instead of one.
The Council's position also sets out that goods with digital elements (e.g. so called smart fridges or connected watches) are to be regulated only under the sales of goods directive rather than also in the digital services directive. This is the option that should provide the best clarity and certainty of rules for consumers.
Regarding possible remedies for a consumer in case of lack of conformity of the good, the Council kept the list of possible remedies from the Commission's proposal (i.e. repair, replacement, price reduction or termination of the contract), and agreed not to impose a strict hierarchy of remedies. However, these remedies are linked to some conditions. Moreover, the obligation, under conditions, for the seller to propose repair is an important step in combatting planned obsolescence of some goods.
Next steps
The Council is now ready to start negotiations with the Parliament.
Today's agreement should also pave the way for a quick agreement on the closely linked directive on digital content on which the Council adopted its general approach in June 2017 and for which negotiations with the Parliament are ongoing.
Background
Both directives are part of the 'Digital Single Market Strategy for Europe' presented by the Commission in December 2015. The sales of goods directive was initially limited to online and other distance sales but was modified by the Commission in 2017 to also include face-to-face sales in order to ensure similar rules for consumers whether they buy online or in shops.