DG Health and Consumers Alpeuregio Summer School Brussels - 9 July 2012

1. DG Health and ConsumersAlpeuregio Summer SchoolBrussels - 9 July 2012 Marco Valletta Assistant to Director General Paola Testori Coggi DG Health and Consumers

2. SANCO Goals • To make Europe a healthier, safer place, where consumers can be confident that their interests are protected. • A zero-risk society may not be possible but we are doing as much as we can to reduce and manage risks for consumers. • These goals are spelled out in three pillars: • - Food safety (food / animals / plant) • - Consumer empowerment and protection • - Public Health

3. WHO WE ARE • DG Health and Consumers has around 960 staff. • About 660 of us are in Brussels; • About 120 work in Luxembourg and another 180 in Grange, near Dublin

4. Food safety Making sure our food is safe and wholesome from farm to fork

5. A unique integrated approach The mad cows disease and the various food scandals of the ninety convinced on the need to act at European level and to define an integrated approach This means: protect the health of crops and forests protect the health and welfare of farm animals ensure Europe's food is safe and wholesome through coherent farm-to-table measures and adequate monitoring, while ensuring the effective functioning of the internal market. 5

6. Making sure our decisions are science based Risk assessment (RA) and management (RM) as separate steps Risk assessment: European Food Safety Authority Risk management: European Commission through a regulatory committee procedure - Transparent process open to 27 MS of the EU and to more than half a billion EU citizens - Individual analysis and authorisations for various dossiers (GMOs, pesticides, additives…..) 6

7. 1 - Health of crops and forest By ensuring that the seeds used in the EU respect minimum quality standards By authorising effective and safe plant protection products By monitoring via EUROPHYT (a notification and rapid alert system) the increasing number of interceptions of pests and diseases By fighting the spread of these diseases when they appear on the EU territory (red palm wevil, pinewood nematode). 7

8. 2 - Health and welfare of farm animal Animal Health Strategy (2007-2013): provides the framework for animal health measures It is based on the principle that “prevention is better than cure”: precautionary measures disease surveillance controls and research minimization of impact. 8

9. 2 - Health of farm animals – 9 areas of action Harmonisation of intra-community trade of live animals, semen, ova and embryos and placing on the market of products of animal origin (AH certificate and vet checks) Preventive measures on imports –(legislation, inspection and certification of Third Countries on the basis of OIE standards, vet controls at the EU Borders and possible corrective measures if needed). TRACES (TRAde Control and Expert System) is a trans-European network for veterinary health which notifies, certifies and monitors imports, exports and trade in animals and animal products Animal disease control eradication and monitoring – of specific animal diseases and zoonoses in EU areas (brucellososis, tubercolosis, rabies….) Traceability - identification and registration, depending on the characteristics of the different species (identifiers, registers or passports). 9

10. 2 - Health of farm animals – 9 areas of action Animal nutrition, feed additives – A register of authorised feed additives + new feed additives, an authorisation procedure Veterinary medicinal products – well defined procedures (centralised / mutual recognition / national) Research - The EU has supported research on animal health in successive multiannual Framework Programmes (FP) since 1984 Science – 3 EFSA panels (additives, AH and biological hazards) and national reference labs Financial aspects - Community financial contribution to the Member States and farmers in case of diseases 10

11. 3 – Animal welfare The European Commission's activities in this area start with the recognition that animals are sentient beings. The general aim is to ensure that animals need not endure avoidable pain or suffering. Requirements  5 freedoms Freedom from hunger and thirst - access to fresh water and a diet for full health and vigour. Freedom from discomfort - an appropriate environment with shelter and comfortable rest area, Freedom from pain, injury and disease- prevention or rapid treatment, Freedom to express normal behaviour- adequate space and facilities, company of the animal's own kind, Freedom from fear and distress- conditions and treatment which avoid mental sufferings. 11

12. 3 – Animal welfare - Community action plan (2006 – 2010) - The new animal welfare strategy (2012 – 2015) - Specific sartor legislation aiming at protecting animals: on the farm and in particular laying hens, calves and pigs during transport at time of slaughter or killing 12

13. 4 – Ensuring the safety of our food Reg. 178/2002 (European food law) - defines the basic principles. Our actions move around four pillars: Authorisations of those substances which might create safety concerns (GMOs, pesticides, additives…) Controls carried out by MS but co-ordinated by the Commission and supervised by the FVO. Rapid Alert System for Food and Feed (RASFF) info exchange and quick reaction to serious risks in the food/feed chain Information to consumers – Reg 1169/2011 13

14. EU Consumer PolicyEmpowering and protecting

15. Lisbon Treaty Article 169 • Current Consumer Policy Strategy, replaced by 2012 - 2020 Consumer Agenda • The 2007-2013 Consumer programme, replaced by the 2014-2020 Consumer programme - €197m (i.e. around €25m per year) • Facts/Evidence about EU Consumer Markets • Financial Instruments • The “acquis” on consumer protection 15

16. Consumers =Driving the economy Final consumption expenditure of private households = 56% of EU GDP

17. A taste of consumer policy: a story of rights and opportunities You expect: Products you buy to be safe Not to be cheated or misled Repair, replacement or refund of faulty goods 17

18. A taste of consumer policy: a story of rights and opportunities You can also expect: To get the best deal To have the same rights wherever you go To be able to get help when things go wrong To Policy makers to listen to your concerns 18

19. Key aspects of Consumer Policy - Quality of life - directly relevant for EU citizens - Competitiveness– more competition/better deal for consumers (in eurospeak = ensures that consumers benefit fully from the Internal Market) - Consumers can buy– what they want, wherever they want - without thinking about borders  Scope: Economic interests of consumers + non-food product safety issues + integration into other relevant policies, such as food safety, energy, transport, etc. Complement to national consumer policy

20. Article 169 To promote the interests of consumers and to ensure a high level of consumer protection: Health Safety Economic interests To promote the right to information, education and the right to organise in order to safeguard consumer interests Integration in other Community policies and activities (article 12) Contribution to the completion of the internal market (article 114)

21. 2012 – 2020 Consumer Agenda Three main challenges stemming from Europe 2020 The digital revolution Sustainable consumption Social exclusion, vulnerable consumers and accessibility Four pillars Reinforce consumer safety Enhance knowledge Improve application, step up enforcement and secure redress Align rights and key policies to economic and societal change

22. Key Actions Consumer market monitoring (Scoreboard and studies) Product Safety Common Sales Law (DG JUST) Package Travel Directive Individual (ADR/ODR) and Collective Redress Enforcement Support to Consumer Organisations Education

23. Consumer Scoreboards = The alarm system informing policymakers of problems in the market Two editions: • 1. Consumer Conditions Scoreboard (CCS)in spring • to track the integration of the retail internal market and the development of cross-border e-commerce • to benchmark national consumer policies • 2. Consumer Markets Scoreboard (CMS) in autumn • to detect potentially malfunctioningmarkets, for in-depth analysis

24. Consumer Conditions Scoreboard Part 1: Integration of the Internal Market Objective = to detect fragmentation and assess cross-border experiences • - Cross-border trade • - E-commerce • - Cross-border complaints, disputes and information requests • - Consumers’ and retailers’ attitudes towards cross-border purchases and sales

25. Consumer Conditions Scoreboard Part 2: Consumer conditions in the MS Objective = to benchmark and measure progress of consumer environment in the Member States • - Consumer Conditions Index • - Enforcement in Member States • - Consumer Affordability • - Country Consumer Statistics

26. 5th Consumer Conditions Scoreboard Main findings • Despite the sustained growth of domestic e-commerce, growth of cross-border e-commerce is modest at best - In 2010: 36% domestic, 9% cross-border • Consumers face very different conditions across the EU. - Existing consumer measures are considered adequate by 4 out of 5 consumers in countries like UK and Ireland while in countries like Bulgaria and Greece less than a third of consumers share this view.

27. Consumer Markets Scoreboard • -Annual market monitoring survey of 50 markets looking at comparability, trust, problems, complaints, satisfaction, switching and choice • -Prices – differences of prices of comparable products (groceries, consumer electronics, cars, energy, bank fees) • -Complaints – harmonised national complaints data as from 2012

28. Main findings: - Services markets continue to under perform, with banking services and telecom services all below average. - Goods markets perform considerably better. • Exceptions: second-hand cars and vehicle fuels - Compared with 2010, the electricity and fuels markets have deteriorated most

29. Market Studies and Behavioural Studies • Prices of current accounts study, published 2009 - showed that opacity is linked to higher prices - prices of accounts with average usage range from 253€ in Italy to 27€ in Bulgaria.  the banking industry will voluntarily develop a code to make bank fees more transparent. • Behavioural study on retail investments, published 2010 - less than 2 in 100 consumers made all investment choices optimally - almost 3 in 5 consumers rely on advice

30. Market Studies and Behavioural Studies • Retail Electricity study: published in November 2010 • Mystery shoppers could save on average 100€ by switching to the cheapest electricity provider • but very few consumers compare offers or switch  the regulators will develop guidelines in the areas of price comparison and switching procedures. • E-commerce studies published in Oct 2009 and Jan 2012: • Great potential for savings and choice goes unfulfilled: retailers refuse 6 in 10 cross-border online orders • If e-commerce were to grow to 15% of the total retail sector and Single Market barriers were eliminated, total consumer welfare gains are estimated to be around €204 billion, an amount equivalent with 1.7% of EU GDP.  Commission communication with recommendations to remove barriers to online trade

31. Market Studies and Behavioural Studies • Electrical and electronic goods study: published in March 2012 • Consumers in some countries could save up to 35% of the price when buying some electrical or electronic goods in another EU country continuing monitoring of competition and for improved consumer information in these markets. Planned behavioural studies on CO2/Car labelling, food information, tobacco, package travel, bank accounts, bank card fees, Common sales law, …

32. Consumer empowerment – why? • - Need for empirical data on consumer empowerment • - Better design of regulation, information and education – at EU and national level • - 55 000 consumers surveyed in EU27+IS+NO in March 2010

33. Consumer empowerment – what? - Perceived confidence - Consumer skills - Consumer awareness - Consumer behaviour - Willingness to take action and detriment

34. Consumer empowerment – awareness - 28% know the cooling-off period in distance selling of financial products (e.g., car insurance) – 14 days - 39% know the length of the guarantee rights – 2 months  2 years - 44% know the cooling-off period in doorstep selling (e.g., when buying a vacuum cleaner) – 7 days

35. ConsumerEmpowerment Index

36. Consumer Safety • - Only “safe” products may be placed on the EU market - General Product Safety Directive (non food) • - EU Member States responsible for market surveillance and enforcement • - European Rapid Alert System for dangerous consumer products (non food) - RAPEX • - International cooperation – Trilateral EU-US-China • - On-going review of the GPSD to ensure greater coherence, facilitate compliance by manufacturers and clarify obligations for all economic operators in the value chain

37. RAPEX Exchange of information between Member States and the Commission on measures taken to prevent or restrict the marketing or use of products posing a serious risk to the health and safety of consumers. In 2010, there were 2.244 notifications

38. RAPEX • In 2011, the five most frequently notified products were: • Clothing, textiles and fashion items – 32% • Toys – 25% • Motor vehicles – 9% • Electrical appliances – 8% • Childcare articles – 4%

39. RAPEX • In 2011, the five most frequently notified risks were: • Injuries – 24% • Chemical – 19% • Strangulation – 16% • Choking – 14% • Electric shock – 9%

40. RAPEX • Country of origin of the notified products in 2011: • China – 58% • EU-27 and EEA countries – 17% • Other – 15% • Unknown – 10%

41. Products standards: RIP cigarettes • Introduction of reduced ignition propensity (RIP) cigarettes which rapidly self-extinguish when left unattended • As of 17 November 2011 all cigarettes must comply with the new standards • They reduce the risk of fire and injuries and are expected to save hundreds of lives every year

42. Emergency measures If necessary, the Commission can impose EU-wide measures to ban the marketing of specific unsafe products.

43. Novelty lighters (example of emergency measures) A Commission Decision requires since 2008 that all “novelty” lighters are banned and other lighters must be child resistant.

44. DMF (example of emergency measures) Dimethylfumarate (DMF) – a biocide used to protect furniture and footwear against mould – is strongly skin sensitising. As of 1 May 2009, all consumer products containing DMF are banned by Commission Decision 2009/251/EC.

45. A type of consumer goods Cosmetics • Make-up, perfumes, sunscreens and products for personal hygiene, tooth-care products, shampoos, soaps… • Europe is the world leader. Over 145,000 people are employed in the cosmetics industry in Europe.

46. New Cosmetics Regulation 1223/2009 Introduction of new definitions Simplified notification system at EU Cosmetics Products Safety Assessment New rules on certain types of substances: CMR and nanomaterials Enhancement of in-market control (MS in charge)

47. Functioning of SCCS -Scientific Committee for Consumer Safety Scientific Assessment DG SANCO Cosmetics Unit Member States concern Update of Cosmetics Directive evaluation request Cosmetics Industry scientific opinion mandate for evaluation DG SANCO Risk Assessment Unit SCCS

48. Unfair Commercial Practices Directive(Directive 2005/29/EC) • New law to stop unfair treatment of consumers • Protecting Consumer’s economic interests • Misleading and aggressive practices • “Black list” of practices banned upfront

49. Alternative Dispute Resolution (ADR) • Efficient and effective redress for EU consumers and businesses is a fundamental pillar of EU consumer policy. ADR offers a quick, inexpensive and simple way to obtain redress out-of-court. • Commission proposal of a Directive on ADR (November 2011) • Boosting growth and contributing to re-launch the Single Market. • ADR proposal aims at ensuring that: i) all EU citizens have access to quality ADR for any consumer dispute in the Single Market; ii) ADR respects binding quality principles; iii) consumers are informed by traders about ADR; iv) ADR are monitored and controlled by national competent authorities. • Together with the ODR proposal, it forms part of the EU priority initiatives with growth potential to be adopted in the course of 2012.

50. Online Dispute Resolution (ODR) Online access to effective and efficient dispute resolution will help to resolve problems arising from online consumer transactions. Commission proposed a Regulation on ODR (November 2011) The ODR proposal establishes a web-based platform accessible directly online by all EU citizens. The ODR platform will offer to consumers and traders a single point of entry for the out of court resolution of disputes related to the cross-border online sale of goods or provision of services. Together with the ADR proposal, it forms part of the EU priority initiatives with growth potential to be adopted in the course of 2012.