by Bob Gale - NfCG Chairman and Individual Member.
The Economic Secretary to the Treasury, Helen Liddell MP, was the guest speaker at last November’s meeting of the Consumers in Europe Group (CEG). Beforehand the Group was welcomed to the European Parliament Offices in London, where it was observed that the Group gained strength from its growing membership, attracted, no doubt, by its ability to comment on European matters from their point of view.
As CEG Chairman I welcomed members and guests and introduced Helen Liddell who had agreed to talk about issues associated with the European single currency. I gave a summary of the CEG view. The Group does not take a position for or against, but is very much aware that as the Single Currency comes into use in some European countries it will affect consumers, and also that introduction in the UK would need careful preparation, independent information and, if necessary, planned procedures and regulations.
Mrs Liddell recognised these views and said how appreciative she was of comments offered by CEG to the European Commission on this and on financial services matters. She made it clear that she believes there will be agreement between some countries who will be ready to adopt EMU in 1999, so the Treasury has set up a consultation process. She talked about the work of the new Advisory Panel and a programme to consult with small and large businesses, trade unions, consumer organisations and those representing disabled people.
During question time members reminded her of the problems of decimalisation which could have been avoided by better preparation, of the need for fair regulations - on dual pricing or conversion charts for instance, and provision required for equivalent enforcement of these regulations.
The meeting of the EU Consumer Affairs Council was discussed. At the Council, Consumer Affairs Ministers from the Members States had reached limited agreement on the draft Directive on Guarantees and welcomed the Commission’s proposals for food safety. Commissioner Emma Bonino presented the Commission communication on ‘enhancing consumer confidence’ in financial services. She also agreed to follow up the access to justice action plan that will facilitate out-of-court settlements of cross border disputes concerning goods and services.
The members had a long discussion on the preliminary text of the draft EU Directive on the Distance Selling of Financial Services. The key issue for consumers is whether responsibility for supervising companies will rest with the company’s home country or the (host) country of operations - with its serious implications for the consumers right of redress.
The Group supported my suggestions, on behalf of NfCG, that:
There was regret that the proposals did not seek to prohibit unsolicited telephone selling of financial services. The Group noted the current OFTEL consultation which, following an EU Directive on data protection, proposes that consumers should have the right to prevent their telephone number being used for marketing purposes. It was agreed that CEG should call for consumers to have the right to ‘opt in’ to receive unsolicited sale calls, rather than being required to opt out.
I informed the meeting that CEG has raised the lack of a proposed ban on telephone sales calls for financial services at a meeting with the Minister of Consumer Affairs in October, but he had not been sympathetic, saying that a ban would be an unreasonable restraint of commercial freedom. The Group was informed that attempts had been made in discussions on the original Directive on distance selling to ban unsolicited telephone sales calls, without success. It was suggested that it might be more productive to press for improved industry codes of practice to make it easier for consumers to opt out.
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