30/03/11

The European Commission requests Belgium to comply with rules on unfair commercial practices

According to the Commission, the new Belgian Commercial Practices and Consumer Protection Act of 6 April 2010 does not comply with Directive 2005/29/EC on unfair commercial practices. If Belgium does not amend the Commercial Practices Act, the Commission may take the country to the Court of Justice.

On 23 April 2009, the Court of Justice ruled that the Belgian Trade Practices Act of 14 July 1991 did not comply with the Unfair Commercial Practices Directive 2005/29/EC of 11 May 2005. In particular, the prohibition on making combined offers breached EU law. Therefore, the Belgian legislature abolished the Trade Practices Act of 14 July 1991 and replaced it with the Commercial Practices and Consumer Protection Act of 6 April 2010.

Several Belgian courts, however, expressed doubts about whether the Belgian act of 6 April 2010 fully complies with EU Directive 2005/29/EC and at least one case was sent to the Court of Justice in order to seek guidance via a preliminary ruling.

Now the European Commission confirms this view and it sent a formal notice to Belgium. According to the Commission: “Belgium has failed: (1) to adequately transpose the Directive by not applying it to liberal professions, such as dentistry and physiotherapistry, and (2) to remove measures that do not comply with the Directive - advertising price reductions, prohibiting the announcement of price reductions during pre-sales periods, banning doorstep selling for products above €250.”

If Belgium does not amend its Commercial Practices Act within two months, the European Commission may bring the case before the European Court of Justice. It could take about two years for the Court of Justice to render a decision.

dotted_texture