The European Commission has proposed a new Fair Commercial Practices Directive in an attempt to simplify consumer protection laws. The measures could result in restrictions on on-line advertising and after-sales practices.

The Commission describes how the move aims to remedy “the large divergences in prices of consumer goods between Member States and the limited volume of cross-border shopping.” Specifically, the Commission hopes the new directive could adapt well to change, and, in this way tackle new unfair or misleading practices such as online advertising and after sales practices.

The proposed legislation would take the place of the existing misleading advertising Directive which covers “misleading and deceptive practices” and introduce a broader concept of “fair commercial practices.”

The Commission is eager to encompass e-commerce and other consumer protection legislation in the Directive and to establish a body of over-arching principles. At present, consumer related e-commerce initiatives are not yet part of the national legal systems of member states.

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