Consumer Protection

Embedded in a network of European authorities, the BVL contributes to EU-wide enforcement of consumer rights

Bild von Flipflops
The legal and economic interests of European consumers are increasingly protected on the basis of European directives and regulations. Consumers have, for instance, comprehensive rights to information and cancellation when purchasing goods via the Internet.
Yet, in the past it has often been difficult to enforce these rights in cross-border conflicts of interest, for example in international mail-order or credit transactions. If, for instance, a product purchased in another EU country, did not keep the supplier’s promises, the consumer was facing legal complications in addition to the probable language barriers.
The BVL, embedded in a network of European authorities, now helps to enforce consumer protection laws based on EU standards. Its action is based on the European Regulation on Consumer Protection Cooperation and the German Act on the Enforcement of Consumer Protection Laws. The aim is to enforce consumers’ rights in cases of intra-Community infringements. The cross-border rules cover only those cases where the interests of many consumers are, or could be, affected. Another condition is that affected consumers do not live in the same Member State from where the infringement is emanating, or where the responsible undertaking is established.

The BVL has a double function in safeguarding consumers’ rights. Firstly, it is the “single liaison office” in Germany; secondly, it is itself a competent authority for the enforcement of consumers’ rights.
Acting as the “single liaison office”, the BVL directs requests received from other Member States to the respective competent authorities in Germany, or it requests other Member States for mutual assistance. The BVL also contributes to the co-ordination of the European network and establishes contact to the European Commission.

Acting as a competent authority itself, the BVL is responsible for misleading and comparative advertising, door-to-door sales, consumer credit sales, package travel, unfair terms in consumer contracts, timesharing of immovable properties, distance selling, sale of consumer goods, e-commerce, and unfair commercial practices.
Beside the BVL, other authorities, too, contribute to the enforcement of consumers’ rights within the EU: the Federal Aviation Office (Luftfahrt-Bundesamt) enforces the rights of air passengers, and authorities of the Länder (federal states) are competent when it comes to problems with television, price indications, medicinal products for human use, or insurance companies falling under their supervision. The Federal Agency for Surveillance of Financial Services (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) is competent when it comes to infringements by insurance companies falling under its supervision or by credit and financial service institutions.

If interests of consumers in other Member States are affected and the authorities of these States ask for mutual assistance, the BVL has far-reaching powers of investigation and enforcement. It may ask sellers or service suppliers for any information which would be necessary to put an end to infringements, carry out necessary on-site inspections, or prohibit unfair commercial practices. If necessary, the BVL may also impose fines to enforce the interests of consumers resident in other Member States.

At the same time, if the BVL is informed of infringements emanating from other Member States and affecting the collective interests of German consumers, it will ask the competent authorities of the other Member States for information and enforcement of the infringed consumers’ rights. Those authorities will have the same powers in enforcing German consumers’ rights in their countries as the BVL has in enforcing the rights of consumers from other EU Member States in Germany.

The BVL uses a special database for the exchange of information with other EU Member States and with the European Commission, set up and maintained by the European Commission for that particular purpose. The database sets the foundation for rapid information exchange and action.