A Common Sales Law for Europe

Whats the issue?

Despite the existence of the single European market, in reality only large multinational companies with armies of legal staff can exploit it to its full potential. Most small businesses (nearly 99% of EU companies) cannot afford to trade across EU borders because selling abroad means adapting sales contracts for up to 26 different legal systems. This costs an average of EUR10000 for each additional country with extra expenses for adapting websites when firms want to sell online (e-commerce) of nearly EUR3000. European consumers also miss out on better deals and a wider choice of products not just because a trader refuses to sell in their country (this happens to around 3 million consumers each year), but also because they are uncertain of their rights when buying from abroad. Some 44% of Europeans say they dont buy from abroad because of this uncertainty. In economic terms, at least EUR26 billion in trade is lost every year because companies are not selling as much as they could.

What is the European Commissions solution?

The Commission is proposing to introduce a common European sales law that is identical in all EU countries:
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a  llowing firms to use the same contract law whether they sell to one or several EU countries; granting a high level of consumer protection through clear consumer rights.  he Common European Sales Law will not replace national laws. Rather, it will allow T sellers that are considering entering a new market to offer an optional system of contract rules that is identical in all EU countries. Those who do not want to use it can simply continue using the existing national rules.

Any questions? http://ec.europa.eu/justice/contract/index_en.htm Contact Europe Direct: 00 800 67 89 10 11 - http://europa.eu/europedirect/

What would be the benefits?

For businesses:
 Very small businesses would be able to afford to trade in several other EU countries. It would be cheaper for all businesses to trade across borders. I t would be easier for businesses to sell across the EU, thereby stimulating economic activity. T  he cost of cross-border e-commerce transactions would fall once companies no longer have to adapt their websites to the law of each EU country in which they sell.

For consumers:
C  onsumers could buy across borders with greater confidence afforded by the certainty of a clear set of rights explained to them in laymans terms through an information sheet when they sign a contract under this law. For example, if they buy a defective product from abroad, they would have the choice of getting a full refund, replacement, repair or price reduction. W  ith businesses competing on a broader market, consumers would have a greater choice of goods at lower prices.

In conclusion, the Common European Sales Law:

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m  akes it easier, safer and cheaper to conclude sales contracts with partners in other EU countries; d  elivers sustainable economic and social benefits from the digital internal market tapping into e-commerce potential; e nsures low costs of compliance, increased legal certainty and higher levels of protection for all parties involved, boosting overall confidence in the internal market; s  hows how Justice helps citizens and businesses take full advantage of the internal market.

Any questions? http://ec.europa.eu/justice/contract/index_en.htm Contact Europe Direct: 00 800 67 89 10 11 - http://europa.eu/europedirect/