This project has focused on current market barriers to the principal on free trading with special regards to e-commerce. The current state of minimum directives on the consumer legislation has created a situation with diverging consumer laws between the member states. The different set of consumer rules has caused a situation with limited consumer confidence, because the consumer only has knowledge about the homestat’s law, and doesn’t have the necessary confidence in foreign legislation. To improve the market condition and remove the barriers, the European Commission put forth a proposal to fully harmonize the consumer legislation within the EU. This proposal and its potential effects on the market has been the object of this paper. Under the current market frames, consumers kept to their homemarkets, and thus companies were able to segment their core areas of business, and thereby discriminate between buyers. The main argument for the proposal is that by completely harmonizing the consumer rules, the consumer confidence will follow, and this will create incentives for the consumers to do more ecommerce trading across the borders. Even though this may be a realistic target for the proposal, it will also have other, more negative, consequences. Among these consequences are the removal of the member states’ legislative powers, and a lower standard of protection for some consumers. Furthermore, the proposal is lacking an essential element regarding enforcement. It is the member states’ responsibility to make the necessary precaution to ensure enforcement. These measurements vary a lot between the member states, and if the consumer is not aware of these enforcement measures, not only in the homestat, but also in the state where the transaction is made, this will cause another barrier to the free market. Because of this lack, the proposal still doesn’t create the necessary consumer confidence, and therefore the proposal will not have the desired effect on the free market for e-commerce.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||93|