Brussels, 2 March 2023
Financial services at a distance
Ministers agreed on a general approach on the directive concerning financial services contracts concluded at a distance.
This directive is another step towards a future-proofed digital transition in the field of financial services. The update of the 2002 legislation ensures a high level of consumer protection and strengthens the legislative framework for the provision of innovative financial services for consumers in the single market.
Gunnar Strömmer, Swedish Minister for Justice
The general approach includes the possibility for Member States to apply stricter information obligations; it clarifies how the provisions complement existing legislation, extends one of the features of the Commission’s proposal, the so-called withdrawal button, not only to financial services but also to all products and services purchased at a distance, and it introduces a right to for consumers to request human intervention when the trader uses online tools, like roboadvice or chatbots to understand the effects that the contract may have on his or her financial situation.
- Council agrees negotiating position on financial services contracts concluded at a distance (press release, 2 March 2023)
- Recording of the public debate
Short-term accommodation rental services
Ministers approved the Council’s negotiating position (general approach) on a proposal for a regulation on data collection and sharing relating to short-term accommodation rental services.
This regulation will benefit players of the short-term accommodation rental segment alike: hosts will have an easy registration procedure, platforms will have a single set of rules for the information they have to provide, travellers will be better protected against fraud and authorities will be able to regulate based on accurate and reliable data.
Ebba Busch, Swedish Minister for Energy, Business and Industry and Deputy Prime Minister
In its general approach, that has been agreed in a speedy manner, the Council supports the objectives of the Commission’s proposal to establish a coherent framework for the collection of data provided by online platforms, whilst taking into account the registration systems that are already in place in some member states.
- Council agrees position on data collection and sharing for short-term accommodation rentals (press release, 2 March 2023)
- Recording of the public debat
Long-term competitiveness and productivity in the single market
Competitiveness is one of the priorities of the Swedish presidency. At the occasion of the 30th anniversary of the single market (created on 1 January 1993) the presidency organised a first dialogue on short-term measures to boost competitiveness in the informal Competitiveness Council of 6 February 2023. Today’s discussion was a follow-up focussed on long-term competitiveness. The dialogue was structured around five pillars:
- market economy
- open trade
- better regulation
- innovation
- secure energy supply
This discussion adds to the European Council conclusions of 15 December 2022 and 9 February 2023 on these issues, and a number of proposals of the Commission such as the Green Deal industrial plan for net-zero age (presented on 1 February 2023 and discussed during lunch) and the coming communication on the 30 years of the single market and the strategy to boost growth and productivity. Commission’s Vice-President Vestager, Commissioner Breton and the Chair of the High-Level Group on competitiveness, Daniel Blockert also took the floor.
- Note for the policy debate: Long-term competitiveness and productivity – Internal market at 30 and beyond
- EU single market (background information)
- EU industrial policy (background information)
Other business
Unitary Patent and Unified Patent Court
The presidency informed ministers on the state of play of the unitary patent system and unified patent court.
Follow-up to the EU-Ukraine summit
The presidency and the Commission informed ministers on the follow up to the EU-Ukraine summit.
Working lunch
Over a lunch, ministers have discussed the Green Deal industrial plan for the net zero-age.
Source – EU Council
EU Council agrees negotiating position on financial services contracts concluded at a distance
Brussels, 2 March 2023
The ministers for competitiveness agreed today on a negotiating mandate (general approach) for the directive concerning financial services contracts concluded at a distance.
The new directive updates current EU legislation (the 2002 directive on distance marketing of consumer financial services) to create a level playing field in the internal market for distance financial services while raising the level of consumer protection.
This directive is another step towards a future-proofed digital transition in the field of financial services. The update of the 2002 legislation ensures a high level of consumer protection and strengthens the legislative framework for the provision of innovative financial services for consumers in the single market.
Gunnar Strömmer, Swedish Minister for Justice
Consumer protection for finances in the digital age
With the development of IT technologies, an increasing number of financial services such as credit, insurance, investments or pension plans are promoted online, and the contracts of these services are concluded at a distance. This trend, which became more prevalent during the COVID-19 pandemic, necessitated amendments to the existing legislation. The Commission proposal, presented on 11 May 2023, repeals the 2002 directive and introduces the modernised provisions for financial services contracts concluded at a distance into the horizontally applicable Consumer Rights Directive (CRD). In addition, certain articles of the CRD (such as those on telephone communication, additional payments, enforcement and penalties) will apply to financial services sold at a distance.
Council position
While the Council’s General approach maintains the objectives of the Commission’s proposal, it introduces several improvements making it more coherent with existing sectoral legislation and clarifying some important points of the directive.
To ensure a high level of consumer protection and avoid any risk of lowering the level of protection for consumers in certain countries, the Council proposes minimum harmonisation as regards pre-contractual obligations which allow member states to have stricter national rules than those established by the directive.
The Council’s mandate clarifies the scope of application and the safety net-feature of the Directive, in particular for financial services that are excluded from other sectoral legislation or only partially covered by it.
The Council position also adds further provisions of the consumers rights directive, applying these to financial services contracts concluded at a distance. These include provisions on telephone contracts, inertia selling (the sending of unsolicited goods or services to potential customers to make a sale), or the possibility for member states to introduce language requirements in national law regarding pre-contractual information.
The withdrawal button
The directive facilitates the exercise of the right of withdrawal in relation to contracts concluded at a distance with the inclusion of a button (or similar function) with the label “withdraw from contract here” (or a corresponding formulation) in the financial service provider’s interface. At a second step, there is a confirmation button “withdraw now” to ensure that the consumer does not withdraw from the contract by mistake. The objective of this “withdrawal button” is to raise the consumers’ awareness and ensure that withdrawing from a contract is not more burdensome than to entering it.
The Council also proposes extending the provisions of this feature to the general chapter of the Consumer Rights Directive, so that “withdrawal buttons” are applied to all contracts concluded at a distance.
The consumer shall have a period of 14 calendar days to withdraw from the contract without penalty, 30 calendar days in in the case of personal pension operations. To align this provision with the Directive on Consumer Credits (currently under negotiation), the general approach proposes limiting this right of withdrawal to 12 months, and 14 days in the event that the consumer has not been informed about his or her right of withdrawal.
Other improvements
The general approach adopted today improves the rules of information disclosure and aims to modernise pre-contractual information obligations and make them future-proofed for financial services in the years to come. In case the trader uses online tools, like roboadvice or chatbots, the consumer must have the right to request human intervention to understand the effects that the contract may have on his or her financial situation.
The Council position enables member states to adapt the explanations that should be provided by financial services providers to the circumstances of the products and needs of the consumers.
Finally, the general approach adopted today extends the transition period, so the industry will benefit from an additional six months to make all the required changes to their IT-systems.
Next steps
The general approach agreed today formalises the Council’s negotiating position. It provides the Council presidency with a mandate for negotiations with the European Parliament.
Background
The review of the 2002 directive on distance marketing of consumer financial services is part of the Commission’s new consumer agenda, which was supported by the Council in its related conclusions on 21 February 2021.
Source – EU Council
EU Council agrees position on data collection and sharing for short-term accommodation rentals
Brussels, 2 March 2023
Ministers for competitiveness agreed today on a negotiating mandate (general approach) for the regulation on data collection and sharing for short-term accommodation rental services, as part of the ongoing efforts to promote a balanced tourism ecosystem within the EU.
This regulation will benefit players of the short-term accommodation rental segment alike: hosts will have an easy registration procedure, platforms will have a single set of rules for the information they have to provide, travellers will be better protected against fraud and authorities will be able to regulate based on accurate and reliable data.
Ebba Busch, Swedish Minister for Energy, Business and Industry and Deputy Prime Minister
Data from online platforms that operate in the short-term accommodation rental market are not currently standardised due to a diversity of rules and different methods established by member states. The Council supports the creation of a data collection and sharing framework at EU level while also including provisions to better take into account the registration systems that are already in place in the member states.
Easier and harmonised system for data collection
Under the new rules, member states that require data from platforms will have to set up a national “single digital entry point” for the transmission of data between online short-term rental platforms and the public authorities.
Every house, apartment or room offered for rent for a limited number of days per year will have a registration number, so that the competent authorities can know the identity of the “host”, i.e. the person that wants to rent the dwelling. The online platforms will have to make reasonable efforts to undertake regular random checks to verify that there are no incorrect declarations of hosts or invalid registration numbers. The treatment of all the information will have to be compliant with European data protection rules.
This will reduce red tape and costs for hosts and platforms while giving authorities the data they need to regulate the activity. This will also create a level playing field with other actors of the tourism sector (such as hotels, hostels or aparthotels) and help combat fraud.
Member states will have to provide the necessary information to allow public authorities, online platforms, hosts and citizens to understand the laws and requirements relating to the provision of short-term accommodation rental services within their territory. Those include registration procedures and requirements concerning access to, and provision of, these services.
Next steps
The general approach agreed today provides the Council presidency with a mandate for starting negotiations with the European Parliament once the latter has established its position.
Background
The rental of apartments, houses, or rooms for short periods of time has become a common form of accommodation for tourists and travellers. Online platforms have boosted the use of these services, which currently amount to nearly one quarter of the total tourist accommodation in the EU. Some member states have implemented different systems of registration that differ in scope, requirements (to be submitted by the hosts or the online platforms), and the level of administration at which the registers are managed (national, regional, or local).
On 5 March 2020, the Commission signed a voluntary agreement with the biggest online platforms for short-time accommodation rental services on data sharing. This has allowed Eurostat to collect data on this activity, but the agreement was not relevant for enforcement.
On 13 July 2022, a coalition for touristic cities, known as the “European cities alliance on short-term holiday rentals”, called on the Commission to propose legislation on registration and data sharing to better control the activities of platforms and hosts at local level.
Finally, on 7 November 2022, the Commission published its proposed regulation on accommodation services. The proposal, for which the Council has today adopted its general approach, is limited to the creation of an easy-to-use registration system with common provisions for establishing registration procedures and is not intended to regulate access to the market.
Source – EU Council