Unfair Commercial Practices

The European Commission has recently published a draft Directive banning misleading and aggressive commercial practices which are unfair to consumers. The Directive is expected to come into force in the UK in 2005.

• A practice is "misleading" if, as a result of that practice, the "average consumer" is or is likely to be deceived into entering into a transaction which he would not otherwise have entered into
  
  
• The "average consumer":
  • is one who is "reasonably well informed and reasonably observant and circumspect"
  • must be judged in relation to the relevant target market eg children
    
    
• Specific examples of misleading practices include:
  • advertising a product as a special offer when the product is not actually in stock
  • falsely claiming to be a signatory to a code of conduct
    
    
• A practice is "aggressive" if by harassment, coercion or undue influence, it significantly impairs or is likely significantly to impair the average consumer's freedom of choice, causing him to enter into a transaction which he would not otherwise have entered into
  
  
• Specific examples of aggressive practices include:
  
  • making persistent and unwanted solicitations by telephone, fax, e-mail or other remote media
    
  • advertising to children in a manner which suggests to them that acceptance by their peers is dependent on their parents buying a particular product
    
    
• Action
  
  • Read the DTI Consultation Paper at ww.dti.gov.uk/ccp/consultpdf/unfaircon.pdf
    

28 August 2003