Annexes to COM(2018)184 - Representative actions for the protection of the collective interests of consumers - EU monitor

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Annexes to COM(2018)184 - Representative actions for the protection of the collective interests of consumers

Please note

This page contains a limited version of this dossier in the EU Monitor.

Annex I of proposal

1.3.               Nature of the proposal/ini tiat ive

D The proposal/initiative relates to a new action

CI        The proposal/initiative relates to a        new action following a pilot

project/preparatory action35

X The proposal/initiative relates to the extension of an existing action

CI The proposal/initiative relates to an action redirected towards a new action

1.4.             Objective(s)

1.4.1.         The        Commission's       multiannual       strategic       objective(s)       targeted       by       the

proposal/initiative

Fairer and deeper internal market; digital single market

DG JUST - Rights, Equality and Citizenship (REC) programme, Specific objective No 9 related to consumer policy:

To enable individuals in their capacity as consumers in the internal market to enforce their rights deriving from Union law.

Specific objective of proposal:

With improved representative actions, the objective is to reduce the number of infringements of Union law affecting the collective interests of consumers and therefore improve compliance and eliminate consumer detriment.

Specific objective of proposed budgeted action:

To continue and expand the education and cooperation measures to a larger number of qualified entities across the EU in order to increase the use of representative actions for infringements with cross-border implications.

34 35

ABM: activity-based management; ABB: activity-based budgeting. As referred to in Article 54(2)(a) or (b) of the Financial Regulation.

1.4.2. Specific objective(s) and ABM/ABB activity(ies) concerned

ABM/ABB activity(ies) concerned

Analytical activities (collection of data and statistics)

Mutual learning and cooperation (events, electronic exchange platform, remote communication means)

1.4.3. Expected result(s)

and impact

Specify

the effects which

the proposal/initiative

should have on the

beneficiaries/groups

targeted.

On consumers: higher level of consumer protection and reduced consumer detriment as there will be strenghtened mechanisms for collective redress in mass harm situations and therefore stronger incentives for traders to comply with EU consumer law.

On qualified entities: New measures and clearer rules for qualified entities that are enabled to bring representative actions, particularly in cross-border cases.

On traders: Traders will benefit from a more level playing field and an increase in fair competition.

1.4.4.

Indicators of results and impact

Specify the indicators for monitoring implementation of the proposal/initiative.

Article 18 (Monitoring and evaluation) of this proposal requires the Member States to provide the statistical information regarding the following indicators:

the number and types of representative actions brought pursuant to this Directive before administrative and judicial authorities;

the type of qualified entity bringing the action;

the type of the infringement tackled within the representative actions, the parties to the representative actions and the economic sector concerned by the representative actions;

the length of the proceedings from initiating an action until the adoption of injunctions orders referred to in Article 5, redress orders or declaratory decisions referred to in Article 6 or final approval of the settlement referred to in Article 8 of this Directive

the final outcomes of the representative

actions (e.g. settlements, redress orders)

the number of qualified entities participating in cooperation and exchange of best practices mechanism referred to in Article 15(3) of this Directive

1.5.

1.5.1.

Grounds for the proposal/initiative

Requirement(s) to be met in the short or long term

The proposal seeks to improve the effectiveness of the injunction procedure and to introduce measures for the elimination of the consequences of violations of consumer rights. With improved representative actions, the objective is to reduce the number of

infringements of Union law affecting the collective interests of consumers and therefore improve compliance and eliminate consumer detriment.

1.5.2. Added value of EU involvement

Consumers do not yet have access to effective redress opportunities in all Member States. The significant disparities identified among Member States concerning the effectiveness the current Injunction Directive require EU intervention, particularly in light of its cross-border implications. Action by Member States alone is likely to result in further fragmentation, which in turn would maintain unequal treatment of consumers and traders in the internal market, diverging levels of consumer redress in the Union and ulitmatly weaken the Single Market for consumers.

1.5.3. Lessons

learned from similar experiences in the past

The 2008 Commission Report on the application of the Injunctions Directive concluded that the injunctions procedure was used with some success in national infringements but less so in cross-border infringements, mainly because of the lack of resources of qualified entities to deal with the different procedures in the various Member States. The 2012 Commission Report concluded that the injunctions procedure hadconsiderable potential if the shortcomings could be overcome, in particular the high costs linked to the proceedings, the length and complexity of the procedures, the relatively limited effects on consumers of the rulings on injunctions and the difficulty of enforcing them. The comprehensive evaluation of the Injunctions Directive within the 2017 Commission Fitness Check of Union consumer and marketing law identified many of the same obstacles, in particular the lack of sufficient redress for consumers.

1.5.4. Compatibility and possible

synergy with other appropriate instruments

The proposal is fully consistent and compatible with existing Union policies. It supplements the injunction and redress procedures available in sectoral instruments by introducing a specific representative action mechanism if the collective interests of consumers have been or may be harmed. The better enforcement of the Union law instruments covered by the scope will particularly support the strategies on the Digital Single Market, Capital Markets Union, Energy Union and Circular Economy.

1.6.              Duration and financial impact

D Proposal/initiative of limited duration

- D          Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY

-D          Financal impact from YYYY to YYYY

X Proposal/initiative of unlimited duration

- Implementation with a start-up period from YYYY to YYYY,

—     followed by full-scale operation.

1.7.              Management mode(s) planned36

X Direct management by the Commission

—     X by its departments, including by its staff in the Union delegations;

—     IZI          by the executive agencies

D Shared managem e nt with the Member States

IZI Indirect management by entrust ing budget implementation tasks to

—     IZI third countries or the bodies they have designated;


international organisations and

their agencies (to be specified);

Dthe EIB and the European I nvest m ent Fund;

D bodies referred to in Articles 208 and 209 of the Financial Regulation;

D public law bodies;

IZI bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;

IZI bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate f inancial guarantees;

IZI persons entrusted with the implementation of specific act ions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

If more than one management mode is indicated, ple ase provide details in the ‘Comments’ section.

Comments

Both the Member States and the European Commission must support and facilitate the cooperation and exchange of best practices between the qualified entities (Article 15(3) of the proposal).

36           Details of management modes and references to the Financial Regulation may be found on the

BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

2. 2.1.

MANAGEMENTMEASURES Monitoring and reporting rules

Specify frequency and conditions.

Article 18 (Monitoring and evaluation) requires the Commission to carry out an evaluation no sooner than 5 years after the date of application. The Commission will establish a detailed programme for monitoring the outputs, results and impacts of this Directive, the indicators, the collection frequency. The role of the Member States in this exercise will consist in particular in providing relevant statistical information as foreseen in Article 18.

The examples of indicators listed in section 1.4.4. of this financial statement will be used to support the evaluation.

As regards monitoring of any financial expenditure, the provisions of Regulation (EU) No 1381/2013 of the European Parliament and of the Council of 17 December 2013 establishing a Rights, Equality and Citizenship Programme for the period 2014 to 2020 apply.

2.2.

2.2.1.

Management and control system

Risk(s)

identified

No risks

identified

2.2.2. Information

concerning the internal control system set up

2.2.3.

2.3.

N/A

Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error

N/A

Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and protection measures.

In addition to the application of the Financial Regulation to prevent fraud and irregularities, quality control and verification of the submitted data will be carried out in order to address any gaps or irregularities.

3. ESTIMATED FINANCIAL IMPACTOF THE PROPOSAL/INITIATIVE

3.1.            Heading(s) of the multiannual financial framework and expenditure budget

line(s) affected

Existing budget lines

In order of multiannual financial framework headings and budget lines.

Heading of multiannual

financial framework
Budget lineType of expenditureContribution
Number 3. Security and citizenshipDiff./Non-diff.37from

EFTA

countries

38
from candidate

countries39
from third countrieswithin the

meaning of

Article 21(2)(b) of

the Financial

Regulation
33 02 01Diff.YESNONONO

New budget lines requested - N/A

In order of multiannual financial fra mework headings and budget lines.

Heading of multiannual

financial framework
Budget lineType of expenditureContribution
Number

[Heading……………………………………

…]
Diff./Non-

diff.
from

EFTA

countries
from candidate countriesfrom third countrieswithin the

meaning of

Article 21(2)(b) of

the Financial

Regulation

37 38 39

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.

EFTA: European Free Trade Association.

Candidate countries and, where applicable, potential candidate countries from the Western Balkans.

3.2.       Estimated impact on expenditure

3.2.1. Summary of estimated impact on expenditure

EUR million (to three decimal places)

Heading of multiannual financial framework3Security and citizenship
DG JUSTYear

2019
Year

2020
Year

2021
Year

2022
Year

2023
Year

2024
TOTAL
•Operational appropriations
Number of budget line 33 02 01Commitments(1)0.7000.700
Payments(2)0.5600.560
Number of budget lineCommitments(1a)
Payments(2a)
Appropriations of an administrative nature financed from the envelope of specific programmes40
Number of budget line 33.01 04 01(3)0.1250.1250.250
TOTAL appropriations

for DG JUST (under the Rights,

Equality and Citizenship Programme)
Commitments=1+1a +30.8250.1250.950
Payments=2 + 2a

+3
0.6850.1250.810

40

Technical and/or administrative assistance and direct research.

expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research,

EN

42

E

Commitments(4)0.7000.700
TOTAL operational appropriationsPayments(5)0.5600.560
TOTAL appropriations of an administrative nature financed from the envelope for specific programmes
(6)0.1250.1250.250
TOTAL appropriations

under HEADING Nr 3. Security and

citizenship

of the multiannual financial framework
Commitments=4+ 60.8250.1250.950
Payments=5+ 60.6850.1250.810

If more than

one heading is affected by the proposal

/ initiative:

Commitments(4)
TOTAL operational appropriationsPayments(5)
TOTAL appropriations of an administrative nature financed from the envelope for specific programmes
(6)
TOTAL appropriations under HEADINGS 1 to 4

of the multiannual financial framework (Reference amount)
Commitments=4+ 6
Payments=5+ 6

EN

43

E

Heading

of multiannua framework


‘Administrative expenditure’

EUR million (to three decimal places)

Year

2019
Year

2020
Year

2021
Year

2022
Year

2023
Year

2024
TOTAL
DG: JUST.
Human resources
0.1430.1430.286
Other administrative expenditure
TOTAL DG JUST0.1430.1430.286

TOTAL appropriations under HEADING 5

of the multiannual financial framework

commitments

(Total

Total payments)

0.143

0.143

0.286

EUR million (to three decimal places)

Year

2019
Year

2020
Year

2021
Year

2022
Year

2023
Year

2024
TOTAL
TOTAL appropriations under HEADINGS 1 to 5

of the multiannual financial framework
Commitments0.9680.2681.236
Payments0.8280.2681.096

EN

44

E

5

3.2.2.        Estimated impact on operational appropriations

—     EH The proposal/initiative does not require the use of operational appropriations

—     X The proposal/initiative requires the use of operational appropriations, as explained below:

Commitment appropriations in EUR million (to three decim al places)

Indicate

objectives and

outputs
Year

2019
Year

2020
Year

2021
Year

2022
Year

2023
Year

2024
TOTAL
OUTPUTS
.n.TypeAvera

ge

cost
CostCostCostCostCostCostTotal NoTotal cost
SPECIFIC OBJECTIVE No 1Continue and expand the education and cooperation measures to a larger number of qualified entities across the EU in order to increase the use of representative actions for infringements with cross-border implications
- Output -

Mutual learning,

ooperation

(Events,

electronic

exchange

platform, remote

communication

means)
20.82510.12530.950
Subtotal for specific objective No 120,82510,12530,950

SPECIFIC OBJECTIVE No 2

Reduce the number of infringements of Union law affecting the collective interests of consumers and therefore improve compliance and eliminate consumer detriment.

EN

45

EN

- Output

Analytical

activities -

collection of data

and statistics
00
Subtotal for specific objective No 20
TOTAL COST20.82510.12530.950

EN

46

EN

3.2.3.        Esti mated impact on appropriations of an administrative nature

3.2.3.1. Summary

EH The proposal/initiative does not require the use of appropriations of an administrative nature

– X The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

Year

2019

Year

2020

Year

2021

Year

2022

Year

2023

Year

2024

TOTAL

HEADING 5

of the multiannual

financial framework
Human resources0.143
Other administrative expenditure
Subtotal HEADING 5

of the multiannual

financial framework
0.143

0.143

0.286

0.143

0.286

Outside HEADING 541

of the multiannual

financial framework
Human resources
Other expenditure of an administrative nature (1 intra muros)0.125
Subtotal outside HEADING 5

of the multiannual financial framework
0.125

0.125

0.125

0.250

0.250

TOTAL

0.268

0.268

0.536

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG allocation procedure and in the light of budgetary constraints.

under the annual

administrative assistance

expenditure

support of the implementation

Technical and/or

EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

41

of

3.2.3.2. Estimated requirements of human resources

EH The proposal/initiative does not require the use of human resources.

– X The proposal/initiative requires the use of human resources, as explained

below:

Estimate

to be expressed in full time equivalent units

Year

2019
Year

2020
Year

2021
Year

2022
Year

2023
Year

2024
Establishment plan posts (offi cia ls a nd temporary staff)
33. 01 01 01 (Headquarters and Commission’s Representation Offices)
11
XX 01 01 02 (Delegations)
XX 01 05 01 (Indirect research)
10 01 05 01 (Direct research)
External staff (in Full Time Equivalent unit: FTE)42
33. 01 02 01 (AC, END, INT from the ‘global envelope’)
XX 01 02 02 (AC, AL, END, INT and JED in the delegations)
XX 01 04 yy 43- at Headquarters
- in Delegations
XX 01 05 02 (AC, END, INT - Indirect research)
10 01 05 02 (AC, END, INT - Direct research)
Other budget lines (specify)
TOTAL11

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

Officials and temporary staff

External staff

To

launch the call for interest and coordinate the initiative

43

AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency

JED= Junior Experts in Delegations.

Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

staff;

42

3.2.4.

Compatibility with the current multiannual financial framework

– X The proposal/initiative is compatible the current multiannual financial

framework.

IZI The proposal/initiative will entail reprogramm ing of the relevant heading in the

multiannual financial framework.

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts.

IZI The proposal/initiative requires application of the flexibility instrument or

revision of the multiannual financial framework.

Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts.

3.2.5. Third-party contributions

– X The proposal/initiative does not provide for co-financing by third parties. – The proposal/initiative provides for the co-financing estimated below:

Appropriations in EUR million (to three decimal places)

Year

N
Year

N+1
Year

N+2
Year

N+3
Enter as many years as necessary

to show the duration of the

impact (see point 1.6)
Total
Specify the co-financing body
TOTAL appropriations co-financed

3.3.

on revenue

Estimated impact

- X The proposal/initiative has no financial impact

- D The proposal/initiative has the following financal impact:

on revenue.


on own resources

on miscellaneous revenue

EUR million (to three decimal places)

Budget revenue line:Appropriation s available for

the current financial year
Impact of the proposal/initiative44
Year

N
Year

N+1
Year

N+2
Year

N+3
Enter as many years as necessary to show the duration of the impact (see point 1.6)
Article ………….

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected.

Specify the

method for calculating the impact on revenue.

44

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25 % for collection costs.