C ONSUMER LAW IN S ERBIA : FROM L AW ON PAPER TO L AW IN ACTION Prof. Dr. Thierry B OURGOIGNIE Team Leader, Key Legal Expert Belgrade, December 14, 2011.

CONSUMER LAW IN SERBIA: FROM LAW ON PAPER TO LAW IN

ACTIONProf. Dr. Thierry BOURGOIGNIE

Team Leader, Key Legal Expert

Belgrade, December 14, 2011

Objective

Building-up a ...

Fully legitimate Comprehensive Pro-active Plural Coordinated Accessible Border-free

...consumer law enforcement system

Fully legitimate

Enforcement cannot be based on moral persuasion or coercion: need for a clear legal basis.

Legal tools clearly defined Enforcement authorities clearly designated Investigation powers of enforcers made precise Remedies and sanctions available clearly

identified

Fully legitimate (2)

Good governance principles made explicit: e.g., consistency, proportionality, transparency, impartiality, consumer participation.

= Need to upgrade the current Law on Consumer Protection

= Need for uniform operational rules in out-of-court

schemes dealing with consumer disputes

= Need to include guiding principles in the 2012-2017 Strategy

for Consumer Protection.

Comprehensive

Scope must cover all consumer-related subject matters.

• Consumer protection policy is transversal or horizontal = broad range of issues for which consumer protection is needed in order to strengthen their position on the market place: product labelling, indication of prices, marketing and trade practices, advertising, contract terms, specific contracts (credit, repair services, services of general economic interest, travel, etc.), warranty obligations, product safety and product liability, etc.

Comprehensive (2)

Should include measures aimed at:

Reducing consumer vulnerability (e.g., education, information, raising awareness)

Preventing law infringements and damages caused by business misconduct (e.g., raising awareness by economic operators, injunctions or cessation orders, dissuasive fines and penalties)

Compensating consumers for damages caused by unlawful conduct (e.g., refund, replacement, repair, allocation of damages)

Comprehensive (3)

Should include measures aimed at:

Promoting/Protecting the interest of individual consumers: individual redress procedures (small claims procedures, ADRs) and individual compensation remedies.

Promoting/Protecting the collective interests of consumers: injunctions by market surveillance authority and by consumer organizations, group actions and/or class actions, collective compensation schemes (e.g. travel fund)

Pro-active

Prevention instead of sanction Pre-market controls instead of post-market controls Pro-active market surveillance practices (planning and

prioritising, developing risk assessment methodologies) Knowledge-based approach in decision-making (e.g.,

consumer complaints register, consumer products-related accidents database)

Communication and dialogue with economic operators and consumer organisations

Plural

Plurality of actors: State enforcement/market surveillance authorities, NGOs held as being representative of consumer interests, trade associations, Chambers of commerce and professional associations, judges, lawyers, mediators, academics, journalists.

Plurality of enforcement procedures: judicial v. out-of-court proceedings

Plurality of tools: e.g., awareness campaigns, training activities, civil, administrative or criminal sanctions, injunctions, small claims procedures, mediation schemes, group and class actions, etc.

Coordinated

Enhancing Intra-State administrative coordination (MATFWM, line Ministries, regulatory agencies)

Enhancing coordination among consumer organizations: better coordinated consumer voice means stronger consumer voice

Enhancing cooperation between State authorities and bodies representing stakeholders

= National Council for Consumer Protection/Consumer Committee

= Consumer representation in services of general economic interest

Accessible

Known: informing consumers about redress procedures and means

Cost-effective: financial barriers to consumer redress must be reduced to a minimum (judicial or mediation proceedings costs, lawyer’s fees); time, formalism and travel also have a cost (accelerated proceedings, use of templates, availability of advice and ADRs schemes throughout the whole country).

Border-free

Market regionalisation Impact of open-borders policy (Balkan region, EU) E-commerce, distance selling and e-marketing

Enhancing cross-border enforcement Inter-State administrative cooperation among market

surveillance authorities Cross-border cooperation among consumer organizations Access to EU databases

Border-free (2)

Facilitating the resolution of cross-border consumer disputes

Reviewing Serbian law provisions regarding competent jurisdiction and applicable law in cross-border cases.

Giving support to the development of ODRs or on-line dispute resolution schemes

Border-free (2)

Facilitating the resolution of cross-border consumer disputes

Reviewing Serbian law provisions regarding competent jurisdiction and applicable law in cross-border cases.

Giving support to the development of ODRs or on-line dispute resolution schemes

HVALA NA PAŽNJI!