EU Learns From Dieselgate Scandal, Unveils New Consumer Protections Norms

The EU has unveiled rules to bolster European consumer protections by ensuring "tougher fines" for cheating companies and stronger legal ways to compensate victims. The European Commission proposed a "new deal" for consumers following the Volkswagen "dieselgate" scandal where the bloc's consumers, unlike those in the United States, have not been compensated.
 
But the 28-nation European Union executive said the rules will not usher in US-style lawsuits across the bloc. "In a globalised world where the big companies have a huge advantage over individual consumers we need to level the odds," EU commissioner for consumers Vera Jourova said.
 
Also Read: Bollywood Actor Arshad Warsi Buys Himself Ducati Monster 797 Dark Edition!
 
"With stronger sanctions linked to the annual turnover of a company, consumer authorities will finally get teeth to punish the cheaters," Jourova said. "It cannot be cheap to cheat." Commission Vice President Frans Timmermans warned traders will face "tougher fines" if they abuse trust and said consumers will have a right to collective redress.
 
The move to provide stronger protections for consumers came as part of a broader effort to boost public support for the European project following a rise in anti-EU populist sentiment and Britain's vote to leave the bloc. Markus Beyrer, director of the BusinessEurope lobby, called the new proposals unnecessary, arguing Europeans enjoyed "the strongest consumer protection" in the world.
 
Monique Goyens, head of the European consumer organisation BEUC, welcomed them because consumers will be able to claim compensation collectively in some cases. But BEUC feared member states may have too much discretion to determine which cases are chosen.
 
Under rules still to be approved by the European Parliament and the member states, online consumers will be informed clearly if they are buying products or services from a company or a private person. Online consumers will also be informed when a search result is being paid for by a trader.
 
Also Read: Toyota Yaris Features Leaked Ahead of Launch in India!
 
The rules would also ensure free digital services when consumers offer personal data, such as for cloud storage services, social media or email accounts. Consumer or other qualified organisations will be able in all member states to seek compensation, replacement or repair on behalf of a group of consumers harmed. Such collective action currently exists only in some member states.
 
Unlike in the United States, the European Union struggled to punish Volkswagen for emissions cheating that erupted in 2015 and ensure customers were compensated. In a separate consumer-related development, the commission unveiled plans to boost people's trust in scientific studies to ensure the food they eat is safe.
 
Under the proposals, European citizens will have immediate access to scientific studies supporting applications for approval of products affecting food safety. The move was sparked by massive citizen and environmentalist opposition to the EU's renewal for five years of the weed killer glyphosate over fears it could cause cancer.
Shoot

Trending News

Walmart signs 5 year Cloud tech partnership with Microsoft

Flipkart adds recharge, travel tabs

Unhappy with WhatsApp reply, Indian govt may send second notice

Cars24 closes $50M funding to fuel its expansion plans

HCL Technologies may buy back shares worth Rs 5,000 Cr at Rs 1,150 apiece

Ola starts making money on each ride, inches closer to profitability

Zomato debuts loyalty rewards program PiggyBank

Chinese fintech major WeCash plans India foray with a consumer lending product

Former eBay CEO Simon Smith to drive Ola's operations in Australia

Lending products to form 20% of Flipkart’s growth: Ravi Garikipati

How Automation Anywhere joined the billion-dollar-plus club

Amazon to push hyperlocal app for Big Prime Day Sales

Are you a business or an entrepreneur thinking to collaborate ?

Here's how Amazon is winning the online retail game. Again.

DIY investment app Sqrrl raises $1 million

Flipkart all set for a fashionable makeover

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities