BETA

Activities of Chris MACMANUS related to 2022/0147(COD)

Shadow opinions (1)

2023/01/25
Committee: ECON
Dossiers: 2022/0147(COD)
Documents: PDF(204 KB) DOC(173 KB)
Authors: [{'name': 'Stéphanie YON-COURTIN', 'mepid': 197581}]

Amendments (19)

Proposal for a directive
Recital 3

(3) Within the framework of the internal market, in order to safeguard freedom of choice, a high degree of consumer protection in the area of financial services contracts concluded at a distance and off-premises is required in order to enhance consumer confidence in distance selling and off-premises sales.

2022/10/28
Committee: ECON

Proposal for a directive
Recital 4

(4) Ensuring ~~the same~~a high level of consumer protection across the internal market is best achieved through ~~full~~minimum harmonisation. ~~Full h~~Harmonisation is necessary in order to ensure that all consumers in the Union enjoy a high ~~and equivalent~~ level of protection of their interests and to create a well-functioning internal market. Member States should ~~therefore not~~ be allowed to maintain or introduce national provisions other than those laid down in this Directive, with respect to aspects covered by the Directive, unless otherwise provided in this Directive. ~~Where no such harmonised provisions exist, Member States should remain free to maintain or introduce national legislation.~~

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point -1 (new)

(-1) In Article 2, paragraph 1, the following point is inserted: (16a) ‘basic financial services product’ means the most low-cost financial services product on offer by a trader that would provide the basic functions of the product to the consumer. Basic financial services products will vary in nature based on the type of financial service, but are generally the most affordable version of the financial service available, with limited features, fees and risks posed to the consumer. Or. en https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02011L0083-20220528

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point -1 a (new)

Directive 2011/83/EU
Article 2 – paragraph 1 – point 17 a (new)

~~https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02011L0083-20220528~~(-1a) In Article 2, paragraph 1, the following point is inserted: (17a) ‘Right to be forgotten’ means that people who have survived relevant communicable and non-communicable diseases such as cancer do not have to declare their diagnosis 10 years after the end of their treatment, and up to five years after the end of treatment for patients whose diagnosis was made before the age of 18. The information about the consumer’s decease should not be included in creditworthiness or any other types of assessments conducted by the financial services provider / trader. Or. en

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16a – paragraph 1 – point g a (new)

(g a) where relevant, information on the consequences of non-compliance with the commitments linked to the financial service such as late/missed payments;

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16a – paragraph 1 – point j

(j) notice of the possibility that other taxes and/or costs may exist that are not paid via the trader or imposed by him, their amount and the conditions under which they can fall due;

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16a – paragraph 1 – point v a (new)

(v a) where applicable, a description of the comparable most basic product in terms of costs and risks offered by the trader that would appropriately meet the consumer’s needs;

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16a – paragraph 2 – subparagraph 1

In the case of telephone communications, the identity of the trader and the commercial purpose of the call initiated by the trader shall be made explicitly clear at the beginning of any conversation with the consumer.Member States shall prohibit any offer or sale of financial services to consumers, without their prior request and explicit agreement

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16a – paragraph 2 – subparagraph 2

Where the consumer explicitly agrees to continue the telephone communications, by way of derogation from paragraph 1, only the information referred to in points (a), (f), (g), (ga) (new), (i), (n), and (p) of that paragraph needs to be provided.

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16a – paragraph 3 – subparagraph 1

The trader shall provide the information referred to in paragraph 1 at least one day before the consumer is bound by any distance contract. Member States shall require that the trader sends a reminder, on a durable medium, to the consumer of the possibility to withdraw from the distance contract and of the procedure to follow for withdrawing, in accordance with Article 16b. That reminder shall be provided tot he consumer, at the latest, one day after the conclusion of the distance contract. The provision of the pre-contractual information shall oblige the creditor to maintain its terms and conditions for a minimum of 14 days from the date of receipt by the consumer

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

2011/83/EU
Article 16a – paragraph 4 – subparagraph 2

Except for the information referred to in paragraph 1, points (a), (f), (g), (ga) (new), (i), (n), and (p), the trader shall be permitted to layer the information where it is provided by electronic means.

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2001/83/EU
Article 16a a (new)

Article 16a a (new) Standard information to be included in advertising 1. Member States shall require that advertising concerning financial services contracts concluded at a distance include standard information in accordance with this Article. 2. The standard information to be included in any advertising of the distance contract shall be easily legible or clearly audible, as appropriate, and adapted to the technical constraints of the medium used for advertising and shall specify in a clear, concise and prominent way, all of the following elements: (a) the main characteristics of the financial service; (b) a representative example of the total price to be paid by the consumer to the supplier for the financial service, including all related fees, charges and expenses; (c) If other costs exist (e.g. late payment fees), a representative example of their amount and the conditions under which they can fall due; (d) If applicable, a general warning about any other possible consequences of non-compliance with the commitments linked to the financial service; (e) where relevant, notice indicating that the financial service is related to instruments involving special risks related to their specific features or the operations to be executed or whose price depends on fluctuations in the financial markets outside the supplier's control and that historical performances are no indicators for future performances; 3. Information listed in points (b), (c) and (e) of the second subparagraph shall be displayed prominently and in a bigger format than all other information. 4. Member States shall ensure that: (a) traders perform mandatory controls of the content of any advertising communications regarding their product(s) on third party online platforms such as social media platforms; (b) traders verify that advertising communications of their product(s) on third party online platforms are actually distributed as approved, i.e., without any material changes being made subsequent to the approval by the trader’s compliance function; (c) periodic reporting is provided to traders’ management bodies on points 4 (a) and (b) above; (d) the trader’s processes and internal controls relevant to the development and distribution of advertising communications of their product(s) on third party online platforms is documented; (e) The advertising communications referred to in paragraphs 4(a) to 4(d) above include any visual and audio content such as posts, messages, banners or videos.

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16b – paragraph 5 – subparagraph 1

Member States shall ensure that~~, for distance contracts concluded by electronic means,~~ the trader provides a possibility to use a withdrawal button in order to facilitate the consumer’s exercise of the right of withdrawal. Such button shall be clearly labelled with the words ‘Withdraw from Contract’ or a corresponding unambiguous formulation.

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16b – paragraph 5 – subparagraph 2

The withdrawal button shall be placed in a prominent manner and permanently available ~~during the entire withdrawal~~ period on the same electronic interface as the one used to conclude the distance contract~~. In addition, the trader may also provide the withdrawal button through another channel~~ and directly and easily accessible on the website of the trader. Where a confirmation e-mail is sent after the conclusion of the contract, it shall also include the withdrawal button. In addition, the trader may also provide the withdrawal button through another channel. The activation of the withdrawal button shall require consumers to identify themselves and the contract they want to withdraw from. The consumer shall be asked subsequently to confirm the withdrawal from the contract with a button labelled “withdraw now”.

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16b – paragraph 5 – subparagraph 3

The trader shall ensure that the activation of the withdrawal „withdraw now” button results in an instant confirmation notice to the consumer that the right of withdrawal has been exercised, which shall include the date and time of the exercise of the right of withdrawal. Confirmation of the exercise of the right of withdrawal shall be provided by the trader to the consumer on a durable medium. The trader shall inform the consumer without delay: a) Whether the right of withdrawal is not applicable for the selected contract or; b) On further requirements to complete the withdrawal process such as sending back the purchased item followed by a confirmation once the process is completed

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16d – paragraph 1 – point c

(c) the specific effects that the proposed contract may have on the consumer, including on their financial situation and the consequences of payment default or late payment by the consumer.

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directriove 2011/83/EU
Article 16e a (new)

Article 16ea Comparison websites 1. Member states shall ensure that only those comparison websites that can demonstrate that they have the following characteristics can identify themselves publicly as comparison websites: (a) operate independently from financial service providers; (b) give non-preferential treatment to those listed in their search results; (c) clearly disclose their owners; (d) use clear, objective criteria on which the comparison will be based; (e) use plain and unambiguous language and, as a minimum, list the key information about the characteristics of the product as listed under Article 16a of this Directive; (f) provide accurate and up-to-date information and state the time of the last update; (g) include a broad range of financial services product offers covering a significant part of the market; and (h) provide an effective procedure to report incorrect information on published costs and fees. 2. Any online comparison tools that do not meet the criteria under Article 16f (1) need to identify themselves clearly and publicly as financial product brokers or sellers instead of comparison websites. 3. Any website that wants to identify as a comparison website must first apply for and receive accreditation after an assessment by the national competent authority to verify that the website meets the criteria under Article 16f (1). 4. Member States shall ensure that information is made available online about the availability of websites that comply with this Article.

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16e b (new)

Article 16eb Profiling and automated processing of personal data 1. Where profiling or other automated processing of personal data is performed by the trader for any reason, Member States shall ensure that this shall be carried out on the basis of relevant and accurate information which is necessary and proportionate for the purpose. 2. Personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership, and the processing of genetic data, biometric data for the purpose of uniquely identifying a natural person, or data concerning a natural person’s sex life or sexual orientation and data collected from social networks shall not be processed or used. Member States shall ensure that consumers with certain medical histories, such as cancer survivors, who meet the criteria for the ‘Right to be Forgotten’ can no longer be treated differently from other consumers when applying for and accessing financial services sold at a distance. Member States shall define their own lists of relevant communicable and non-communicable diseases with the support of medical and scientific experts and relevant stakeholders such as EU agencies (EMA, ECDC) for which the ¨Right to be Forgotten’ should be applied, committing themselves to review this list periodically. 3. Where the trader uses profiling or other automated processing of personal data for purposes such as assessing whether a consumer should be sold a financial service and under what conditions or whether the consumer should be advised to purchase a financial service, Member States shall ensure the trader informs the consumer of this fact, and that the consumer has the right to: (a) request and obtain human intervention on the part of the trader to review the decision; (b) request and obtain from the trader a clear explanation of the outcome, including on (i) the logic and risks involved in the automated processing of personal data as well as its significance and effects on the decision, and (ii) the categories of data processed as part of the process; (c) express his or her point of view and contest the automated decision/advice/assessment, (d) receive information concerning the procedure to contest the outcome. 4. Where algorithms are used for the processing of personal data for any reason, traders must: (a) properly document the design and the evaluative criteria of the algorithm to enable regular reviews by third parties, including supervisors; (b) regularly test the algorithm. Member States shall ensure that national competent authorities regularly review and evaluate algorithms used by traders in order to detect potentially discriminatory outcomes that can lead to financial exclusion. 5. Discriminatory price optimisation practices when selling financial services to consumers, based on individual price sensitivity, should be prohibited. The use of data on a consumer’s shopping habits or a consumer’s individual tolerance for price changes when setting the price for a financial service should be strictly prohibited.

2022/10/28
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2011/83/EU
Article 16e c (new)

Article 16e c Admission, registration and supervision of traders offering consumer financial services 1. Member States shall ensure that traders offering consumer financial services contracts concluded at a distance are subject to an adequate admission process and to registration and supervision arrangements set up by an independent competent authority. 2. The possibility to offer consumer financial services contracts concluded at a distance shall be restricted to those entities that have obtained the authorization referred to in Article 16h (1). The Commission shall regularly monitor and review the efficiency of the measures taken.

2022/10/28
Committee: ECON