European Directive Definition

Introduction

European consumer policy strives to deliver high level of consumer protection. The European legislator has attempted to enable consumers to seek redress by providing them with a number of measures, the most recent of which is the European Directive on Alternative Dispute Resolution for Consumer Disputes . This thesis undertakes to analyse the capacity of the Directive to deliver better route to enforcement by looking at the specific provisions of the legal instrument. It is argued that the Directive might fail in its objective to encourage consumers to pursue their rights. To begin with, consumers are hardly aware about the availability of ADR. Whilst the Directive imposes information obligations on consumers, it is argued that

People acquired more disposable income and the development of new manufacturing methods allowed expedient mass production of goods. More products became available on the market and more people could afford buying them. Coupled with intensive advertising which could reach every household through radio and TV, purchasing and owing goods turned into a lifestyle . The wide-spread availability and capability to acquire more and diverse products triggered the psychological desire of people to improve their material lifestyle and emulate with their fellows . The rise in the number of transactions between consumers and traders and the growing economic power of traders prompted the provision of safeguards in favour of purchasers . The European Community undertook to address those needs by developing its consumer protection policy. It covers a number of substantive and procedural law measures aiming to confer rights on individuals and providing them with the means to enforce those rights. Examples of remarkable legislation include measures prohibiting unfair contract terms, tools ensuring product-safety, measures against misleading advertising . Despite those substantive privileges, the losses incurred by consumers due to problems with purchased goods or services were estimated at 0.4% of EU GDP . It transpired that the majority of the consumers did not resort to their rights when a problem arises. They refrained from enforcing their rights because they perceived court proceedings as expensive, time-consuming and burdensome . The enforcement reluctance is even more evident in cross-border disputes due to the difference in languages and legal procedures in another Member State. Even the sole act of shopping from another country was feared because of the uncertainty regarding routes to obtaining remedy for defective goods. Such reservations curbed