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European Commission > Your Europe  > Citizens > Services for Citizens: European General Guides > Buying goods and services

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We are working on a new version of the portal that will make it easier for you to find the information you need to exercise your rights in the EU. At present, therefore, the information available in these pages may not be up-to-date. To find out about your rights during this transitory period you can send your question to Europe Direct.

Buying goods and services (European Union)

European Union

European General Guides


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INTRODUCTION

As a citizen of the European Union you have rights and opportunities with which you may not always be familiar. For example, did you know that no matter where (1) you shop for goods and services in the EU, remedies are available against unfair terms in any contract you conclude as a consumer?

As a consumer, the existence of a single European market gives you access to a wider range of products and services at competitive prices. So it is up to you to choose between the goods and services offered to you.

However, to enable you to buy safe products and services under clear conditions and with no hidden surprises, both in your country of residence and in any other country of the European Union, Community law imposes certain obligations on professionals and grants you rights of which it is useful to be aware.

(1) In this guide, the terms ‘country’, ‘State’ and ‘Member State’ are used without distinction to mean the Member States of the European Union which are: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,  Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain,  Sweden and the United Kingdom. Other countries or States are referred to as ‘third countries’. However, you should be aware of the fact that, within the European Economic Area, practically all of the rights mentioned in this guide are valid in Iceland, Liechtenstein and Norway. Likewise, they apply to nationals of these countries when they purchase goods and services in the Single European Market.

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I. YOU WANT TO BUY SAFE PRODUCTS UNDER CLEAR CONDITIONS AND WITH NO HIDDEN SURPRISES

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SAFE PRODUCTS

A GENERAL SAFETY REQUIREMENT

In order to protect your health and safety, Community law lays down that producers and importers may place only safe products on the market. In other words, any product made available to consumers must not present any risk or, in any case, no more than the minimum risk consistent with using the product under normal or foreseeable conditions. For example, the risk of suffering a fall intrinsic to the normal use of a bicycle whose safety equipment — such as brakes etc. — is not in dispute as regards its robustness and reliability.

In order to ensure that products meet this high level of health and safety protection, producers and importers must take into account:

  • the characteristics of the product, such as its composition,  packaging and installation and maintenance requirements;
  • the effects of this safe product on other products, where it is reasonably foreseeable that it will be used with those other products;
  • the presentation of the product, the labelling, any instructions using and disposing of it;
  • the types of consumers at serious risk when using the product, particularly children and elderly people.

Moreover, distributors are required to act with due care in regard to product safety, in particular by not supplying products which they know, or should have presumed on the basis of the information in their possession, to not comply with the rules. (For further information, see the ‘Product safety’ fact sheet.)

SPECIFIC RULES

In addition to this general rule, sectoral provisions have been adopted to cater for the characteristics of certain products.

These include foodstuffs where there are specific rules that harmonise essential requirements relating notably to labelling, additives, hygiene inspection and monitoring, and products intended for particular nutritional uses.

So you are entitled to know the ingredients, the instructions for use, and the shelf life of pre-packaged food.

Pharmaceutical products are subject to a very strict authorisation procedure prior to being placed on the market. Moreover, a package leaflet must accompany medicinal products placed on the market. This leaflet must contain information on precautions for use, but also on contra-indications and possible side effects of the product.

Cosmetic products are also subject to very strict regulation, notably as regards the substances used, such as colouring agents, preservatives or ultraviolet (UV) filters. A list of approximately 400 substances which cosmetic products may not contain is regularly updated. Mandatory and detailed labelling should provide you with adequate information.

Particular attention is paid to toys intended for children aged under 14. For example, Community rules lay down that toys, their component parts and any detachable parts intended for use by children under 36 months must be of such dimensions as to prevent their being swallowed or inhaled. Moreover, labels on toys or their packaging and the instructions for use which accompany them must fully and effectively draw the attention of users or their supervisors to the risks involved in using them and to the ways of avoiding such risks. As a consumer you should know that the ‘CE’ marking must be affixed either to the toy or to its packaging to indicate that it has been manufactured in compliance with these Community rules.

The ‘CE’ marking must also feature on domestic electric appliances. These products also have to meet very strict safety requirements, particularly as regards their physical, mechanical and electrical properties.

DEFECTIVE PRODUCTS — PREVENTION, SANCTIONS AND LIABILITY

Where safety is concerned, apart from the controls carried out by the authorities of each EU Member State, your alertness as a consumer is the best way of averting everyday risks — for example, by checking the sell-by date of the food you consume or the age recommended by the manufacturer of the product you would like to buy for your child, etc.

At any rate, when a consumer product of a certain brand or type is deemed to be dangerous, the market surveillance authorities are entitled to take any measure dictated by the urgency or severity of the situation, such as banning the sale of the product or ordering a product recall. The Community rules also require that these authorities establish systems for the rapide exchange of information between themselves and the CommiEUROPA. Thus, action may be taken at the appropriate level. Moreover, abuse of the ‘CE’ marking, or its absence on toys or their packaging, or on domestic electric appliances, constitutes an infringement of Community law, and dissuasive penalties may be imposed in accordance with procedures laid down by the individual Member State.

There are also Community rules governing liability for defective products. In other words, if you have been harmed by a defective product, the producer, the importer and, in certain circumstances, the supplier will be liable for damage caused by the fact that the product did not offer the safety which may reasonably be expected. In evaluating a product’s defectiveness, the main criteria are its presentation and the use to which it could reasonably be expected to be put.

If you fall victim to a defective product, you are entitled to compensation for physical injury and material damage caused by it, even if the producer has not been at fault. To obtain damages, all you are required to do is prove that there was damage, that the defect existed, and that there is a causal relationship between the defect and the damage.

However, you should be aware that there is a ceiling for most material damage. Moreover, plaintiffs must bring proceedings within three years of the date on which they became aware, or should reasonably have become aware, of the damage, the defect and the identity of the producer. In addition, actions may only be brought within 10 years from the date on which the product was put into circulation.

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STANDARD CONTRACT TERMS AND CLEAR SELLING METHODS WITH NO HIDDEN SURPRISES

LABELLING AND DISPLAY

In addition to the labelling rules governing product safety, Community legislation on labelling is designed not only to inform consumers correctly as to the price, but also as to other essential properties or characteristics of the product.

Labelling of the selling price is mandatory for all consumer goods.

Unit price labelling (price per kilo, litre or metre, etc.) is mandatory for products prepackaged in variable quantities (such as prepackaged apples sold in supermarkets) or products sold in bulk, except for a number of pre-packaged products sold in pre-established quantities. The price display must not only tell you the purchase price of the product but also help you compare products. The same applies to the indication of the weight of the pre-packaged products.

Moreover, in order to rule out any possible confusion as to certain designations and indications, a list of ‘protected designations’ and ‘protected geographical indications’ to be mentioned on foodstuffs or in advertisements for them is gradually being established.

In the case of textiles, the European Union has adopted a standard system for labelling fibre composition. The labels must feature on all textile products sold (except for cloth sold by the metre where different rules apply), they must be clear, legible and must indicate the percentage composition of each fibre present in the finished product, provided this percentage is greater than 10 %.

Moreover, Community labelling concerning the ecological or energy-saving characteristics of certain products is gradually being developed, such as the Community ecological label or the labelling of the energy consumption of household appliances.

ADVERTISING

In order to protect you against misleading advertising and its consequences in terms of unfair competition, the European Union has defined common rules applicable throughout the Union.

Briefly, misleading advertising is any advertising by a professional which in any way deceives or is likely to deceive the persons to whom it is addressed, for example when your choice between the products (and services) you want to purchase is affected by it.

To determine whether advertising is misleading, all its features must be taken into account, more specifically, the nature of the product, its availability, composition, price or quantity, the results to be expected from its use, the results of tests or again the identity or qualifications of the advertiser, etc.

Note that advertising may be considered as misleading both in terms of its content and the way the message is presented. For example, this is the case if you receive an advertising brochure whose general presentation leads you to believe that you have won a sum of money or a gift, when this is not the case at all. 

If you have been harmed by misleading advertising, you should know that in addition to your entitlement to sue for damages under the law of each Member State, Community legislation obliges the Member States to provide adequate and effective means to control misleading advertising in the interests of consumers as well as competitors and the general public.

Depending on the Member State in question, persons or organisations regarded as having a legitimate interest in the matter may seek an injunction to ban the advertising in question. Such legal actions or proceedings brought before administrative authorities may lead to measures banning or ordering the cessation of the advertising in question.

Moreover, Community rules also exist in specific domains such as drugs advertising and television advertising.

For further information, see the ‘Misleading advertising’ fact sheet.

CANVASSING

What happens if a seller turns up at your door without having been expressly invited by you to your home? The European Union has enacted legislation designed to protect you against the possible risks associated with this commercial practice, since you may be taken by surprise and, under such circumstances, you will often be unable to compare the quality and price of the offer with other offers.

Basically this legislation covers contracts concluded between a trader providing goods (or services) and a consumer:

  • during an excursion organised by the trader away from his business premises or
  • during a visit organised by the trader on his own initiative to the consumer’s home or place of work.

In such a situation, traders are required to give you written notice of your right to cancel within a certain period. This notice must be dated and include the name and address of the person against whom you may exercise that right, as well as particulars enabling your contract to be identified.

To cancel the contract you must send your notice of withdrawal within a period of not less than seven days from the time of receipt of the written notice concerning this right, irrespective of the Member State.

But you should be aware that this protection does not apply when you purchase foodstuffs, drinks or other goods intended for current consumption in the household and supplied by regular roundsmen. The same goes for contracts for the construction, sale and rental of immovable property or contracts for securities, which are subject to other specific national or Community rules (see ‘Use of immovable properties on a timeshare basis’ and ‘Advertising, canvassing, unfair terms, distance contracts’ in the part on services).

Specific rules also apply to contracts concluded on the basis of catalogues which the consumer has had a proper opportunity of reading in the absence of the trader’s representative. These rules are designed to offer protection similar or identical to that provided with regard to canvassing.

For further information, see the ‘Canvassing’ fact sheet.

UNFAIR TERMS

You are protected against unfair terms whenever you as a consumer conclude a contract with a professional anywhere in the European Union.

As a rule, a contract term is regarded as unfair if it causes a significant imbalance in the party’s rights and obligations arising under the contract, to the consumer’s detriment.

For example, you might buy an domestic electric appliance where the standard terms applied by the seller disclaim liability in the event of late delivery of the product, or stipulate that the firm shall be in no way liable for consequential damage caused by one or more hidden defects.

If you come across such terms you have the right to challenge them or to ignore them — you are not bound by them.

The conditions under which these terms are invalid are fleshed out in the rules of each Member State. These conditions, along with some practical examples and further information, can be found in the ‘Unfair Terms’ fact sheet for each country.

When there is doubt as to the meaning of a written term (including standard terms) in your contract with a professional, the interpretation most favourable to the consumer will prevail. This rule derives from the general rule whereby in contracts where all or certain terms are in writing, these terms must always be drafted in plain, intelligible language.

DISTANCE CONTRACTS

You also have special protection when you purchase most goods or services at a distance within the European Union. This protection applies whatever the means of distance communication used (e.g. catalogue order, the internet or teleshopping or a combination of these) as long as the supplier has not contacted you face to face up to, and including the moment, you enter into the contract with him.

The protection afforded to you includes the obligation on suppliers to provide you with specific information (such as the price and the duration of the offer) before you enter into the contract.

Some of this information, as well as information concerning for instance the exercise of the right of withdrawal and after sales services and guarantees, must be provided to you in writing during the performance of the contract, except in limited circumstances. However, in all circumstances you must be given in writing a geographical address to which you can address complaints.

The protection also includes a right of withdrawal in respect of most types of contracts. Where this right applies, you have a minimum of seven working days after receiving the goods or after concluding the contract for services to change your mind without giving any reasons or incurring any charge, except the direct cost of returning the goods.   . This time limit is longerwhere the professional has not provided you with the written information he is required to.. If you decide towithdraw from the contract within the authorised time limit, the distance contract will be cancelled, as will  any credit contract relating to it which the supplier arranged for you. You should note that, in some cases, you must agree with the supplier beforehand that the right of withdrawal will apply to the contract. This is true for example in the case of custom made goods, goods with a short lifespan, cds and computer software you unsealed.

The protection also provides that the supplier must execute the order within 30 days of you sending the order to him, unless you agree differently beforehand. Where the goods or service are unavailable, the supplier must inform you of this and must refund you any monies paid within 30 days at the latest.

You should also be aware that if a supplier knowingly sends you goods or services that you have not previously ordered, you are not required to provide any payment for them.

If you wish to conclude a distance contract concerning financial services, the supplier has also to provide you with specific information before you enter into the contract (such as for example information concerning: the identity and address of the supplier; the main characteristics of the financial service; the existence of a right of withdrawal; the right of appeal…). The supplier has moreover to communicate to you all the contractual conditions before you enter into the contract. All this information has to be provided in a clear and comprehensible way, on paper or another sustainable support.

Under these contracts, you have a calendar 14-day right of withdrawal as from the day when you enter into the distance contract or as from the day when you receive the contractual conditions and the above-mentioned information.

Lastly, the supplier cannot use the technique of an automate call system without human intervention or the fax without your preliminary assent

GUARANTEES ON CONSUMER GOODS

When you purchase something, the seller must deliver goods which are in conformity with the contract of sale. In case of lack of conformity,  your first option is to ask for the good to be repaired or replaced free of charge. If repair and replacement are impossible or disproportionate, or the seller does not perform his obligation within a reasonable time and avoiding significant inconvenience, you may ask for a suitable reduction in price or for the rescission of the contract.

The seller is held responsible for the lack of conformity when this becomes apparent within two years as from delivery of the goods.

Professionals offering additional guarantees (e.g.  manufacturers) are bound under the conditions laid down in the guarantee statement and the associated advertising. They must make clear that additional guarantees do not affect other legal rights conferred upon consumers by national legislation. 

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II. YOU WANT TO USE SERVICES UNDER CLEAR CONDITIONS AND WITH NO HIDDEN SURPRISES

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SPECIFIC RULES IN INDIVIDUAL SECTORS

BANKS

In principle you can spend, save or invest your money wherever you like in the European Union, or borrow money wherever you think you can get the best terms.

Note that despite the abolition of restrictions on money transfers, Member States are entitled to require you to declare these transfers for reasons associated with tax controls or on grounds of public policy, such as combating money-laundering.

OPENING A BANK ACCOUNT IN ANOTHER MEMBER STATE

You are free to open a bank account wherever you like in the European Union, and to transfer sums to or from this account. However, this general entitlement is subject to specific procedures in the individual Member States. Thus, in some EU countries if you are a nonresident and do not have a tax ID number you are required to prove that you are resident in another Member State.

It is also important to remember that when you receive interest income from another Member State, you will normally have to declare such income to the tax administration in your home state.

As a depositor, if your deposit is denominated in a Community currency, you have a minimum level of protection which guarantees you, in the event of insolvency of your credit institution and in accordance with certain procedures, reimbursement of a sum of not less than EUR 20 000.

In addition, the European Union has adopted Community rules to make cross-border transfers quick and reliable.

For further information, see the ‘Opening a bank account in another Member State’ fact sheet and the ‘Cross-border credit transfers in Euros’ brochure.

CONSUMER CREDIT

You are free to borrow money in any Member State of the European Union. All advertisements for consumer credit must indicate the total cost of the credit (taking into account not only the interest but also certain other charges linked to the credit), calculated according to a comparable formula in all the Member States (the so-called annual percentage rate — APR). This will make it easier for you to compare offers in the different Member States.

If your consumer credit involves amounts of between EUR 200 and EUR 20 000, you have the following minimum rights:

  • the right to a written agreement stating the APR, the total amount to be repaid and the number and amount of instalments;
  • the right to be informed of the credit limit and the lending rate;
  • the right to pay back the credit before the time fixed by the agreement;
  • a guarantee of certain rights when credit agreements are assigned to a third person;
  • in the case of contracts under the terms of which credit is exclusively granted by a lender to the clients of a supplier (tied credit), you have rights with regard to the supplier of the goods and, under certain conditions, the credit institution;
  • if the credit is used for the purchase of goods, you are protected in the event of the lender repossessing the good.

Note however that these measures do not apply to credit granted to businesses.

You also have the right to take out a mortgage in a Member State other than your Member State of residence. However, financing arrangements, as well as the standard terms and the registration of mortgages and other real estate security, vary from one Member State to another.

Lenders who comply with the voluntary code of conduct (check with them to be sure) will provide specific information on the various kinds of mortgages available (fixed or variable rate, etc.). Once you have chosen the kind that suits your needs, they will also provide you with the ‘European Standardised Information Sheet’, which contains the essential information presented in the same way throughout Europe. This allows you to easily compare offers from various lenders, both in your own Member State and outside it.

At any rate you are entitled to housing allowances (such as interest rate subsidies), whenever such allowances exist in the Member State you reside in, even if you have taken out a mortgage with a credit institution established elsewhere.

INVESTMENTS IN SECURITIES

You are free to invest your money by purchasing securities, such as shares or bonds, and numerous other financial products in the single market. You can do so either via an intermediary established in your country (still the most common practice), or via a bank or investment firm established in another EU country. Under Community rules, investment firms that wish to provide services directly throughout the European Union must obtain prior authorisation from the competent authority of their home country.

Some collective investment funds which specialise in securities are already being freely marketed in all the Member States. These funds must comply with the minimum rules governing investment policy and the protection and information of investors.

More generally, with regard to the purchase of securities and numerous other financial products, you have a right to clear and objective information on the products proposed and on the organisations that issue them. In the case of securities, the information must be published in the form of a prospectus which must contain extensive details, required by Community lax, which are designed to ensure that an investor has all the information necessary to enable him to make an informed assessment of the securities and the offer. This applies, for example, when a company or other issuer publicly offers shares or bonds for sale, or when it applies for those securities to be admitted to trading on a regulated market.

If a prospectus does not contain all the information required by Community law, or is otherwise misleading, you will have a remedy under the national law of the State where the public offer was made, or where the securities were admitted to trading.

As is already the case in the banking sector, measures have also been taken to ensure that investment firms satisfy minimum requirements with regard to capital, share ownership and organisation. Moreover, if the transactions in securities that concern you are carried out on regulated markets, you will be covered by the rules on transparency that apply to the price and volume of transactions carried out there. This means that issuers of traded securities are required to publish regular information which enables investors to assess their financial condition and prospects, and to make public any other information which might affect the price of the securities.

Finally, clients of investment firms in all Member States also have a guarantee against the risk of insolvency of these firms, subject to certain conditions and within certain limits.

INSURANCE

Life insurance and other insurance

You can take out an insurance policy by directly contacting any insurance company of your choice licensed to provide this type of policy in any Member State of the European Union. You may also engage a broker or insurance agent.

Before committing yourself, you are entitled to the following information:

  • whether the insurer directly covers the risk from an establishment situated in your Member State or from another Member State;
  • the law applicable to the contract and whether it is possible to choose this law;
  • the applicable rules and the competent authorities in the event of a dispute and the remedies at your disposal.

Moreover, in the case of life insurance, you must be provided with the details of the name and legal status of the insurance company, and be informed in writing of all the essential features before the contract is concluded. The insurance company must provide you with information on the scope and conditions of the insurance policy (definition of guarantees, exemptions, duration of the contract and cancellation procedures, indication of the surrender and paid-up values, etc.). You should also know that you are entitled to cancel any life insurance contract lasting more than six months within a period which varies from 14 to 30 days according to the Member State, starting from the time the insurance company informs you that the contract has been concluded.

Motor vehicle insurance

You can also have your car insured with any duly licensed insurance company from any Member State of the European Union. This entitlement applies both to compulsory insurance policies in the field of civil liability and to optional insurance policies covering supplementary risks (such as theft, fire, etc.).

If you wish to take out an insurance policy for civil liability with an insurance company established in another Member State, the company is entitled to sell you such a policy only if it satisfies the following conditions:

  • it must be a member of the national motor vehicle insurers’ bureau and the guarantee fund of the Member State in which you reside;
  • if it does not have an establishment in your Member State of residence the company must have designated a representative authorised to settle claims in your Member State.

You are obliged by law to take out insurance against personal injury and material damage caused by your vehicle. This guarantee covers all the passengers in your vehicle including the members of your family. The green card or the insurance certificate, issued by your insurer on conclusion of the contract, is taken as proof that you have fulfilled your insurance obligations with regard to civil liability for motor vehicles.

This insurance covers your civil liability throughout the European Union, no matter where the accident happens. Thus under no circumstances may you be required to pay a supplement for this mandatory civil liability insurance when you travel to other countries of the European Union. When you travel to another Member State, presentation of your green card or insurance certificate is not normally necessary because the licence plates of your car are taken as evidence that you have taken out compulsory civil liability insurance in your Member State.

But if you also want insurance against other hazards, for example against fire or theft abroad, the insurance firm is entitled to demand a supplement.

In the event of a car accident for which you are at fault, your green card or insurance certificate constitutes proof that you have ‘civil liability’ insurance allowing the victims to obtain compensation. All you have to do is to notify your insurance company of the accident. The victim must contact their own insurer who will in turn contact the national motor vehicle insurance bureau. This bureau will handle the formalities between the two insurance companies and the injured party. The same system also operates in some other countries which are not members of the European Economic Area (Switzerland, etc.) but which have adopted the green card system.

In the event of a car accident in another Member State for which you are not at fault, you will be compensated according to the rules in force either in that Member State or in your country of residence if the level of compensation is higher there. These rules still differ from one Member State to another, but in every Member State you have minimum coverage of up to EUR 350 000 for personal injury and EUR 100 000 for material damages1. However, the overall total of the guarantees may be limited in certain Member States where there are several victims of the same accident. These minimum coverage amounts have been raised by Directive 2005/41/EC of the European Parliament and of the Council, of 11 May 2005, to EUR 1 000 000 per victim or 5 000 000 per claim for personal injury and EUR 1 000 000 for material damages. Member States should increase the coverage to at least half of those amounts by 11 January 2010, and to at least these full amounts by 11 June 2012. If the accident occurs in an EU country in which you are not resident (or in a country belonging to the European Economic Area, i.e. Norway, Iceland or Liechtenstein) a special mechanism instituted by Community Directives in order to facilitate payment for such accidents will be applicable as from January 2003. Once you have returned home, you may, if necessary, contact the information office set up for this purpose in your country of residence in order to obtain the full or missing details of the vehicle registered in the country where the accident took place (registration number, number of the insurance policy, etc.). Once you have acquired this information, you can contact the insurance company’s representative in your country of residence (all insurance companies are required to have a representative to settle claims in all the other EU countries). The insurance company must make an offer, stating its reasons, to settle claims arising from the accident within three months, or provide an explanation of the reasons for which it refuses to take responsibility. If the insurance company fails to set out its reasons in a reply within the three-month deadline, you may contact the compensation body set up in your country of residence in order to have your claim settled. This system of protection for persons who have an accident outside their country of residence also applies where the accident occurs between two EU citizens (or citizens of the European Economic Area) in a third country which is a party to the ‘Green Card’ agreement.

If the accident is caused by an uninsured or unidentifiable vehicle, you are entitled under Community law to compensation from the motor vehicle guarantee fund of the Member State in which the accident occurred, in accordance with the rules in force in that Member State.

For further information, see the ‘Motor vehicle insurance’ fact sheet.

TRANSPORT

A high safety level in all modes of transport

During these last ten years, the number of transport accidents has increased significantly on the roads, in the airs, on water and on the railways. In order to fight against these disasters and to guarantee a higher level of safety for transport service users, the European Union has taken numerous initiatives in recent years.

For example, on road traffic, strict safety requirements have been made compulsory throughout Europe regarding safety in tunnels. Technical performance standards for vehicles aiming to guarantee a higher safety level have been established.

On air transport, inspection rules and procedures on the ground for airplanes are now harmonized throughout Europe.

Motor vehicle rental

If you rent a car when on holidays in another Member State, remember that the hiring agreement is also subject to the common rules governing unfair terms outlined in part I of this guide.

Thus, for example, a clause disclaiming liability in the event of accident caused by an intrinsic defect in the vehicle or by poor technical maintenance can be considered to be an unfair term.

Note that the car-hire agency cannot require you to lodge a higher deposit on the grounds that you are not a resident of that Member State.

Air transport

When you are inquiring about flights or making a reservation through a travel agent in the European Union, travel agents must give you precise and objective information on the flights available for the destination chosen. At your request, you must be given the option of consulting the information supplied by the computer system directly by reading the screen or by having the information printed on paper.

Air travel is a contract which confers certain rights on its passengers. You can request a copy of this contract from the airline or your travel agent.

In accordance with international agreements, airlines are responsible for any detriment caused by flight delays, unless they can prove that they have made every effort to avoid causing detriment or that it was impossible to avoid. They are also responsible for any loss or damage to luggage. You should contact your airline or travel agent for further information.

If you are denied boarding, your flight is cancelled, you experienced long delays or your baggage is lost, you may be entitled to compensation under EU law and you can complain to the relevant enforcement body. For more information, please see: http://ec.europa.eu/transport/air_portal/passenger_rights/information_en.htm

PACKAGE TOURS

Package travel, package holidays and package tours

If you purchase a package, Community legislation gives you rights which are applicable in all countries of the Union.

The term ‘package’ means a service that is sold or offered for sale at an all-inclusive price, covers a period of more than 24 hours or includes overnight accommodation and combines at least two of the following:

  • transport;
  • accommodation;
  • other tourist services not ancillary to transport or accommodation and accounting for a significant proportion of the package.

Community legislation lays down various rules concerning information to be provided to consumers , terms which must be included in the contract and strict conditions under which the prices quoted in the contract may be altered. It also lays down rules for the transfer of the package by the consumer to another consumer and the conditions under which the contract may be rescinded or cancelled. The rules also cover provisions concerning liability of the service provider in cases of non-performance or improper performance of the contract and  evidence of a security in the event of insolvency of the service provider.(For further information, see the fact sheet on ‘Package travel’).

FIRE SAFETY IN THE HOTELS

It is good to know that when you stay for holidays or for professional reasons in a hotel established in one of the countries of the European Union, a minimum safety level against fire hazards is strongly encouraged for all accommodation welcoming more than 20 paying guests. The existing technical guidelines refer to:

  • Escape routes
  • Construction characteristics
  • Wall coatings and decoration
  • Electric lightings
  • Heating installations
  • Ventilation systems
  • Means of rescue
  • Alarms and warnings
  • Safety instructions

Ask your hotel for more detailed information on safety measures.

TIMESHARES

The growth of the tourist industry has been accompanied by a proliferation of contracts relating to the purchase of the right to use immovable properties on a timeshare basis: for example, the right to use a flat situated in a seaside or mountain resort for one week of the year.

To protect you against unpleasant surprises which such contracts may conceal, Community rules give you certain rights in the case of contracts concluded for a period of more than three years, and concerning periods of at least one week per year. These rights concern information on the constituent parts of contracts, the arrangements for the communication of that information and the procedures and arrangements for cancellation and withdrawal.

For example, no matter where the property is situated in the European Union:

  • complete information must be provided by the seller, describing inter alia the right which is the subject of the contract, the location of the property and any specific obligations or conditions linked to the right of use in the Member State in which the property is located;
  • the contract you sign must be drafted in your mother tongue, even if the legislation of the Member State in which the property is located provides that a copy of the contract be available in the language of that Member State;
  • it must be stated in writing that the contract can be cancelled within a cooling-off period of not less than 10 days from the date of signature of the contract;
  • the seller may not require down payments during the cooling-off period.

For further information, see the ‘Timeshares’ fact sheet.

STANDARD CONTRACT TERMS AND CLEAR SELLING METHODS WITH NO HIDDEN SURPRISES

Advertising, canvassing, unfair terms, distance contracts

Just as in the case of goods, people want to buy services under clear conditions and without surprises. Although there are no specific rules governing services, most of the Community rules on misleading advertising, canvassing, unfair terms and distance contracts referred to in part I ‘You want to buy safe products under clear conditions and with no hidden surprises’ apply to contracts for the provision of a service.

However, you should be aware that, in the case of canvassing, three types of service contracts are governed by the national rules of each Member State: insurance contracts, contracts concerning securities and contracts concerning the rental of immovable properties. Certain types of services, as well as goods, are exempt from all or some of the provisions concerning distance contracts.

1 Member States may decide that these amounts are replaced, when there are several victims for the same accident, with a minimum cover of EUR 500.000 for all victims of personal injury or a minimum cover of EUR 600.000 for all victims of personal injury and material damages.

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III. YOU WANT TO BUY GOODS AND SERVICES IN ANOTHER EU COUNTRY

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SOME TAX RULES YOU SHOULD KNOW

VAT AND OTHER INDIRECT TAXES

You are entitled to buy goods and services for your personal use in another Member State under the same tax rules that apply to nationals of the country concerned. You can bring your purchases home with you without having to pay additional VAT or excise duties. However, there are some exceptions to this rule. These exceptions mainly concern the purchase of new means of transport and purchases made in the course of business.

When you return home, your purchases cannot be inspected at the border except on grounds of public order.

However, Member States have the right to levy excise duties on tobacco products and alcoholic beverages if these products are not intended for personal use. The indicative quantities below are generally recognised as intended for personal use.

  • 800 cigarettes
  • 400 cigarillos
  • 200 cigars
  • 1 kg of tobacco
  • 10 litres of spirits (over 22 % alcohol content)
  • 20 litres of aperitifs or intermediate products (e.g. sherry)
  • 90 litres of wine, 60 of which may be sparkling wine
  • 110 litres of beer

If you are carrying a larger quantity of such goods, you may be asked to prove that they are intended for personal use at events which justify the purchase of such large quantities e.g. weddings.

The above rules for tobacco products already apply to Malta and Cyprus as of their accession to the EU on 1 May 2004.  But Member States of the EU before enlargement (the EU-15) may apply special transitional arrangements for travellers returning from the other new Members States that joined the EU on 1 May 2004, for as long as these new Member Sates have not reached the minimum level of taxation for cigarettes or other tobacco products.

The following Member States have introduced such restrictions on 1 May 2004: Austria, Belgium, Germany, the United Kingdom, Denmark, Sweden, Finland, Italy (only with regard to Slovenia), France and Ireland. For further information on their import limits, please consult the following pages of Directorate General Taxation and Customs Union: http://ec.europa.eu/taxation_customs/common/travellers/within_eu/index_en.htm

Distance sales

As regards distance selling, when you place an order with a firm located in another Member State, VAT is included in the price and the merchandise will be sent directly to you.

However, when the seller assumes responsibility for shipment the VAT rate applicable to your purchase — depending on the circumstances — may be either the rate that applies in the Member State you reside in or that of the seller’s Member State.. The rate applicable – which depends on the vendor’s total turnover each year in the Member State of destination (or on the option taken by the vendor to submit the sales to VAT in the Member State of destination) – will not affect the price you have agreed to pay for the merchandise, since this price will have been offered and accepted by the seller inclusive of VAT.

Motor vehicles

The rules governing motor vehicle taxation make a distinction between new and used cars. ‘New’ cars (i.e. vehicles of under six months old or with less than 6 000 km on the clock) bought in another Member State are subject to VAT in the Member State of destination, which is, in principle, your country of residence and the country where you are going to register the motor vehicle.   The seller must prepare an invoice exclusive of taxes and you must pay the VAT in your home country.

On the other hand, ‘used’ cars (i.e. vehicles over six months old or with over 6 000 km on the clock) will be taxed differently, depending on whether the transaction is between private individuals or involves an intermediary. In the first case, no VAT is payable. In the second case the seller will invoice you with the VAT.

In the case of both new and used cars, the other taxes — such as vehicle licence or road taxes — must be paid in the vehicle’s country of registration, which is in principle your country of residence.

The Member State in which you register your car cannot require you to pay taxes other than those it imposes on the registration of new or used cars purchased in that same Member State.

For further information on the licensing, registration and taxation of vehicles, see the guide ‘Living in another country of the European Union’ and the associated fact sheets. 

Taxation of capital

In principle, you can spend your money or invest or borrow wherever you think you can get the best bargain within the European Union. However, this does not absolve you from your tax obligations. Thus it is useful to know the tax rules that apply to the financial services you intend to make use of.

In the absence of European harmonisation of taxes on interest, dividends, appreciation and property, tax rates between the Member States of the European Union may differ substantially. However, double taxation is quite unusual because there are a large number of bilateral agreements between the Member States. Under these agreements the Member States agree that the right to impose taxation be granted to only one country or, where the right is shared, that the taxes levied in the first country be taken into account in the second.

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A FEW THINGS YOU SHOULD KNOW ABOUT CONTRACTS

THE LAW APPLICABLE TO THE CONTRACT

Inside the single market you are free to conclude contracts for the purchase of goods and services in any country of the European Union.

For most of your everyday shopping, you might think there is no point in knowing the laws which apply to the contracts you conclude. Consumers are generally more interested in the quality and price of the goods and services purchased. Moreover, standard contract terms, which often contain details on this point, are drawn up by professionals and rarely discussed by the consumer. 

However, knowing the law applicable to the contracts you conclude with professionals may be essential in the event of a dispute concerning a good or service of a certain value, and when it comes to determining the rights and duties of each party.

You should note that, barring specific rules, your contract is subject to the rules of the country which you and the other contracting party have implicitly or explicitly chosen at the time of conclusion (for example, the rules applicable in the country in which you find yourself at the time of the deal). If the choice has not been expressed or demonstrated with reasonable certainty by the terms of the contract or the circumstances of the case, it will be necessary to determine the country with which the contract has the closest links — and this is often no easy matter.

However, in most cases, even if the law of another Member State applies to the contract you have concluded with a professional, this does not mean that you, as a consumer, can be deprived of the protection you are entitled to under certain essential rules of the country where you usually live (for example, the minimum guarantees which a seller must grant you under the law). This is the case when you are in one of the following situations:

  • the conclusion of the contract is preceded by a specific invitation or by advertising in the country where you are domiciled, and you took the steps necessary for the conclusion of the contract in that country;
  • the other contracting party or his representative receives your order in the country where you are domiciled;
  • you go to another country of the European Union and buy a good or service during an excursion organised by the seller with a view to enticing you to buy.

This supplementary protection, however, does not apply to services provided to you exclusively in a country other than the one in which you have your normal place of residence, or to transport contracts. Neither does it apply to contracts giving rights over property (such as owning an apartment, etc.) or the right to use property (tenancy, etc.).

Moreover, the Community rules governing insurance lay down specific provisions for determining the law applicable to this particular category of contracts. In most cases it is the law of the consumer’s country of residence. At any rate consumers must be informed before conclusion of the contract of the law which will be applicable to their insurance contract.

The law applicable to transport contracts is also governed by specific provisions which depart from the general rules.

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IV. PROTECTION OF PERSONAL DATA

Personal information is asked for when you open a bank account, take out an insurance policy or conclude other types of contracts.

All Member States have rules covering the protection of personal data which aim at preventing the use of this data in a way that is detrimental to your privacy, but the arrangements for such protection vary from one country to another.

In order to enable the smooth functioning of the single market, the EU guarantees the free flow of data while protecting individuals against any violation of their privacy. This is why EU-wide legislation, intended to establish a common level of data protection and to guarantee certain rights throughout the EU, has been adopted. This legislation also applies to data processing in the electronic communication sector. The guarantees cover, in particular, the right to be informed about the use to which the data is put, the right to correct data and, in certain cases, the right to give prior agreement on the use of personal data.

For details on these Community or national provisions, contact the authorities responsible for data protection in your home country.

For further information on this subject, please see the guide ‘Data Protection in the European Union’.

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V. HOW TO EXERCISE YOUR RIGHTS

INFRINGEMENTS OF THE RULES BY ECONOMIC OPERATORS

If you ascertain that the law is being broken (fraudulent labelling, absence of price marking, unsafe products, etc.) you can always bring the matter before the national authorities responsible for monitoring the market. These authorities are empowered to take any measures dictated by the urgency and severity of the situation in the framework of specific procedures.

DISPUTES OF A CONTRACTUAL NATURE

As a consumer, you may feel that you have been harmed by misleading advertising or an unfair contract term or you may become involved in a dispute in connection with purchasing goods, obtaining a loan or taking out an insurance policy.

This section of the guide deals with how to resolve disputes which involve your consumer rights under Community law.

Often the problems encountered can be resolved amicably and free of charge simply by complaining to the supplier, manufacturer or distributor of the product or the service provider concerned. To facilitate out-of-court settlement of consumer disputes, the European Commission has designed a special complaint form to help buyers and sellers reach an amicable solution. This form can be used to resolve problems both with a supplier established in your country of residence and with a supplier established in another country of the European Union. You can obtain the complaint form from the website http://ec.europa.eu/consumers/redress/compl/cons_compl/acce_just03_en.htm

Moreover, there are various out-of-court bodies to settle consumer disputes in all Member States. The access to these bodies is quick, inexpensive and it is not necessary to look for a lawyer.

These bodies take on very varied forms from one Member State to another: ombudsman, mediators, arbitration or conciliation organisations, etc.  Some of these organisations have general competence while others have sectoral competence (such as, for instance mediation in the insurance and banking sectors). Some bodies have national competence, while others have regional competence. No bodies cover all sectors or all countries.

Out-of-court procedures can be the result of public or private initiatives. The nature of the decisions adopted under these procedures differs greatly: some are only recommendations, others are binding only for the business concerned (as in the case of most of the bank or insurance ombudsmen), and others are binding for both parties involved.

The European Commission has recommended to Member States that they ensure that these out-of-court settlements of consumer disputes offer the parties a number of quality guarantees such as their independence, transparency, efficiency and the respect of law. Member States can notify the Commission of the bodies respecting these principles, which are then gathered in a database which may be consulted on the Commission’s website:
http://ec.europa.eu/consumers/redress/out_of_court/database/index_en.htm

Consumer organisations are there to help you enforce your rights. They can provide you with useful information, offer legal advice on your rights and, in many cases, establish contact with the business concerned in order to resolve your dispute amicably. You can consult the list of consumers’ organisations in each Member State on the Commission’s website: http://ec.europa.eu/consumers/cons_org/associations/national/index_en.htm

Regarding cross-border disputes, the Commission and Member States have created the European Consumer Centres Network (ECC-Net). This network is made up of 21 centres in 19 Member States, as well as in Norway and Iceland. As from 2006, all Member States should have a European Consumer Centre. The network informs you of your rights within the internal market. The European Consumer Centres can assist you in contacting a business or out-of-court settlement body in another Member State. You can consult the list of the existing centres on the Commission’s website: http://ec.europa.eu/consumers/redress/ecc_network/index_en.htm

You are also entitled to pursue your case before the courts. If you are involved in a dispute with a professional established in your country of domicile and you have concluded the contract in that country, you will naturally be able to rely on the legal remedies provided for in your country. Access to justice can however involve high costs and considerable delays. In order to facilitate the resolution of consumer problems involving relatively small sums, some Member States have established simplified judicial proceedings. These procedures may include simplified arrangements for bringing an action for small claims disputes to a court or an initial attempt at conciliation by the court dealing with the case. In some cases, you may not need to be represented by a lawyer.

In addition, if you are obliged to institute proceedings as a buyer of a good or service coming directly from another Member State, you have the right to sue before the courts of either your country of residence or that of the other party when you are in one of the following situations: the conclusion of the contract was preceded by advertising or a specific invitation made to you in your country of residence and you have taken the steps necessary for the conclusion of the contract in that country.

You have the same option in the case of a contract for a loan to be repaid in instalments or for any form of credit granted to finance the sale of goods.

In the case of insurance contracts, you have the right to choose between the court of the Member State where you are domiciled, the place where the insurer is domiciled or the country in which the establishment covering the insured risk is located. On the other hand, any claims brought against you by the insurer must be brought before the courts of your country of domicile. Specific rules also govern insurance policies for real estate or your civil liability, designed to make it easier for you to exercise your rights against the insurer.

However, you should know that in the case of disputes over contracts for the purchase of immovable property (flats, villas, etc.), only the courts of the country in which the property is situated have jurisdiction. The same applies to tenancies, except for tenancies of immovable property for temporary use for a maximum period of six consecutive months, provided the tenant and the owner are natural persons and are domiciled in the same Member State. In the latter case, the case may also be brought before the courts in the Member State in which the defendant resides.

If you have to sue in courts other than those of the Member State in which you are domiciled, remember that you cannot be discriminated against on the grounds of nationality. For example, no security or bond to cover court costs can be required of you simply because you are not a national of the country. And you also have the right to legal aid under the same conditions as apply to the nationals of that country.

Save for a handful of exceptions — and without needing to rely on a particular legal procedure — a court decision handed down in one Member State will be recognised in the other countries of the European Union. To have your decision enforced (for example, payment of damages) in another Member State, you must submit a request to the court having jurisdiction (generally the court of the losing party’s country of domicile).

Consumer organisations may also be entitled to bring actions before the courts or competent administrative bodies to protect the general interests of consumers. These organisations can have, for example, an important role to play in combating unfair terms in contracts. They may be entitled to bring actions on behalf of consumers before the courts or competent administrative authorities to determine whether the terms in a standard contract are unfair and, if so, to have them banned.

In addition, certain consumer organisations have easier access to justice in the event of cross-border consumers’ disputes. They have been granted the right to bring an action to stop any act which harms the collective interests of consumers and is contrary to the basic texts of European consumer law. This covers, for example, misleading advertising, consumer credit, unfair contract terms, distance contracts and package holidays.

Lastly, a network of the relevant administrative authorities is being created. These authorities will be given important powers to fight against cross-border infringements of European law in the area of consumer protection. In case you are a victim of an unfair commercial practice, you will be able to inform these administrative authorities.

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DISPUTES WITH THE AUTHORITIES

If you feel that a national, regional or local authority has badly interpreted or applied your rights, you may appeal. Moreover, if you feel that you — or a member of your family — have been a victim of discrimination, you have several courses of action open to you.

First, you should complain to the establishment or administration concerned. If you fail to receive satisfaction, you have the right to take other action.

You may first need personalised advice on your European Union rights. For this, you can contact the Citizens Signpost Service, a fast and effective advice service which is provided free of charge in all official languages of the European Union. The legal experts of this service will provide practical information and advice on your rights and signpost you to the most appropriate body at European or national level which can assist you in solving the problem.

For more information on Citizens Signpost Service, please consult the following pages: http://europa.eu/citizensrights/signpost/front_end/index_en.htm

If your case has a cross-border element you can submit it to your national SOLVIT Centre. SOLVIT is a network of national problem solving centres created and supervised by the European Commission. SOLVIT deals with cross-border problems caused by incorrect application of EU rules by public authorities. It aims to find practical solutions within ten weeks and is free of charge. For further information on how to submit a case, see: http://europa.eu/solvit.

You may also decide to start a more formal procedure at national level. National courts have the jurisdiction needed to ensure that measures based on Community law are applied and, where necessary, to set aside any measure which infringes it. They may also award you compensation.

Furthermore,  there are also ways of raising your case more formally at Community level.

For example, you may lodge a complaint with the European Commission (see ‘Useful addresses’). If it is recognised that you have valid grounds for appealing, the Commission can then contact the Member State in question. The Commission will ask for an explanation, and may ask that the failure to apply Community law be rectified. If the Commission is not satisfied with the response it receives, it can start infringement proceedings against the EU country concerned. This may lead to the case being referred to the European Court of Justice. Be aware that such procedures may take a very long time and that SOLVIT may be able to help you a lot faster.

As a citizen of the European Union, you also have the right to petition the European Parliament (see ‘Useful Addresses’) or raise your case with a Member of the European Parliament, who can put questions to the Commission and the Council. The answers to these questions are made public.
Lastly, if your complaint concerns a case of maladministration (e.g. administrative irregularities or omissions) on the part of the Community institutions (e.g. the Parliament, Council or Commission) or any decentralised Community agency (e.g. the European Foundation for Vocational Training), you can contact the European Ombudsman (see ‘Useful Addresses’). However, the European Ombudsman is not empowered to deal with complaints concerning national or local administrations.

For further information, please consult the guide ‘Enforcing your rights in the Single European Market’.

 

Last update: 2005

Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information.

Reproduction is authorised provided the source is acknowledged.

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