Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the functioning of Regulation (EC) No 2006/2004 of the European Parliament and of the Council of 27 October 2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws (the regulation on consumer protection cooperation)

Consumer expenditure currently represents more than 56% of EU GDP and is a strong driver of the European economy. EU consumer policy, by improving consumer conditions and trust in the Single Market, can significantly contribute to higher growth rates in the EU. As identified in the 2012 European Consumer Agenda, the stepped-up enforcement of consumer laws is one of the priorities of consumer policy. The equal and efficient enforcement is geared to boost private consumption and to provide a level playing field for businesses. This in turn stimulates competition and consumer-centred innovation.

The enforcement of EU legislation concerning consumers' economic interests was strengthened in 2004 with the adoption of the Consumer Protection Cooperation Regulation (CPC Regulation). This unique framework brings together national authorities from all EU Member States. Its primary aim is to tackle cross-border infringements by establishing procedures for information exchange, cross-border enforcement requests and coordinated actions, to prevent infringing traders from moving between Member States to exploit gaps in jurisdictional boundaries. It also permits the conclusion of international cooperation agreements.

In two Biennial reports in 2009 and 2012, the Commission assessed the functioning of the CPC Regulation and identified avenues to make enforcement cooperation more efficient, under the existing legislative framework. Article 21a, introduced a review clause in the CPC Regulation, requiring the Commission to assess the effectiveness and operational mechanisms of the Regulation.

Looking ahead, the review process has clearly indicated that in order to respond to the new challenges of the digital economy, enforcement of consumer laws needs to address both the specificities of dematerialised trade and the speed with which infringements to consumer laws can spread across the EU. Consumer scoreboard data and European Consumer Centres' reports also point to the persistence of unequal consumer conditions across countries and to a high number of cross-border infringements of consumer law. The public consultation showed a clear call from stakeholders that policy-makers increase their efforts towards effective enforcement of consumer laws.

The present Report is a further step in the review process. It integrates all the documents cited, new biennial reports submitted by Member States in 2013 and the outcome of the public consultation. In line with the principles of smart regulation, this report will be followed by a thorough impact assessment of the possible improvements to the CPC Regulation to allow the Commission to complete the review called for in Article 21a of the CPC Regulation in early 2015 and to prepare grounds for decision whether a legislative proposal for the amendment of the CPC Regulation is necessary.

• Primary Source

EUR-Lex: COM(2014)439: Follow the progress of this report through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2014:439:FIN

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