Consumer rights directive

What is happening?

The Consumer Rights Directive consolidates a myriad of consumer protection legislation into one document that aims to provide greater rights to consumers across the EU. It establishes a floor of protection for consumers purchasing at a distance or away from business premises by setting the standards for the information and rights of withdrawl that consumers should require. It ensures that unfair contract terms are not binding on consumers and provides for remedies where goods are faulty.

Who will be affected?

Members that sell any products or services at a distance will be affected by this directive, however, the BVRLA has been successful in securing an exemption for car rental, which is explained in further detail below.

BVRLA Lobbying - car rental

Vehicle rental services are exempt from Article 8 to 19 of the proposed directive covering distance contracts, therefore members will not need to change their business model to accommodate the cumbersome rules and regulations on cancellation rights and pre-contractual information. The BVRLA and its European Trade Association, Leaseurope, estimate that this exemption will save the industry €249 million p.a. in compliance and administrative terms.

In July 2009 the House of Lords committee completed its review of the EU's Consumer Rights Directive and has advised the government not to agree to the directive in its current form. During the review the committee made no comment on the all-important exemption from the "cooling-off period" requirements which the BVRLA secured for the vehicle rental sector.

Next steps

We will be continuing to lobby at a UK and EU level with Leaseurope to ensure that the exemption for rental is maintained throughout the legislative process.

For further information please visit our consumer protection pages which can be accessed in the quick link box.