Unfair Commercial Practices DIRECTIVE 2005/29/EC Flashcards
(27 cards)
Article 5
General rule: unfair practices are banned
You need to be able to quickly identify and explain:
What type of unfair practise it is: Misleading or aggressive
Which article or Annex I rule it falls under
Why its unfair based on the definition of consumer/trader/diligence/etc
Article 6-7
Misleading practices (actions and omissions)
Articles 8-9
Aggressive practices (harrassment, pressure)
Annex I
Always illegal practices (super useful in case questions)
IRAC METHOD TO ANSWER CASES
I – Issue → What’s the problem? (e.g. misleading claim?)
R – Rule → What law applies? (e.g. Article 6: misleading action)
A – Application → How does it apply in this case? (explain clearly)
C – Conclusion → So, is it unfair or not?
Example Case: A company says “Only 5 items left at this price today!” but it’s always in stock.
Issue: This may be a misleading practice that pressures the consumer.
Rule: Under Article 6(1)(a) and Annex I, point 7, false urgency is unfair.
Application: The company falsely created pressure to buy by claiming limited availability.
Conclusion: This is an unfair commercial practice and is prohibited.
Q: What is the main goal of Directive 2005/29/EC?
To protect consumers from unfair business-to-consumer practices and to harmonize laws across the EU, creating trust and fair competition in the internal market.
Example: A company lying about the effectiveness of a health product would violate this directive.
Q: Who is a “consumer” under this Directive?
A: Any individual acting outside of their job or profession (buying for personal use).
Example: You buying shoes for personal use = consumer. A store buying them to resell = not a consumer.
Q: What is considered an “unfair commercial practice”?
A: A practice that goes against honest business standards and significantly misleads or pressures consumers.
Example: A business falsely claiming “last 5 items left!” to pressure a quick sale.
Q: What are the two types of unfair practices?
A: 1) Misleading practices and
2) Aggressive practices.
Example: Saying a phone has GPS when it doesn’t = misleading. Not letting a customer leave until they buy = aggressive.
Q: What is a “misleading action”?
A: Giving false or deceptive information (even if partly true) that affects the consumer’s decision.
Example: “This cream removes all wrinkles in one week” when it doesn’t.
Q: What is a “misleading omission”?
A: Leaving out important info that the consumer needs to make a good decision.
Example: Not telling the customer about expensive monthly fees until after signing a contract.
Q: What is an “aggressive practice”?
A: Using threats, pressure, or harassment to force or influence the consumer’s decision.
Example: A salesperson repeatedly calling you after you said no.
Q: What is Annex I of the Directive?
A: A list of 31 practices that are always considered unfair — no need for case-by-case judgment.
Example: Pyramid schemes and fake “You’ve won!” messages are always banned.
Q: What if a practice targets vulnerable consumers (e.g. elderly or children)?
A: The practice is judged based on the effect on that specific group.
Example: Using cartoon characters to convince kids to pressure parents = unfair if it manipulates children.
Q: What is the “average consumer” test?
A: It asks: Would a typical, informed, and reasonable consumer be tricked or influenced?
Example: A fake “scientific” claim might mislead the average buyer.
Q: What are examples of banned misleading practices in Annex I?
A: - Fake endorsements
False “free” offers
Creating urgency without reason
Example: “Only 1 hour left!” on a sale that runs all week = misleading urgency.
Q: What are examples of banned aggressive practices in Annex I?
A: - Forcing people to stay until they buy
- Pressuring with emotional tricks (“I’ll lose my job if you don’t buy”)
Example: Saying “If you don’t buy this, I might get fired” = manipulation.
Q: Can a business use “exaggeration” in advertising?
A: Yes, if it’s obviously not meant to be taken literally (called “puffery”).
Example: “The best burger in the universe!” is okay if it’s clearly just opinion.
Q: What is a “code of conduct”?
A: A voluntary set of rules businesses agree to follow (not required by law).
Example: A clothing company promising to be eco-friendly — and promoting that publicly — must actually follow through.
Q: What happens if a trader falsely claims to follow a code of conduct?
A: It’s considered a misleading practice.
Example: A store says it follows a “Fair Trade” code but doesn’t = illegal.
Q: What are Member States required to do under this Directive?
A: Create laws, penalties, and systems to enforce these rules and punish violations.
Example: Belgium must have legal ways for consumers to report or sue dishonest companies.
Q: Who can take legal action against unfair practices?
A: Any person or organization with an interest (including consumer groups and competitors).
Example: A consumer rights group could sue a phone company for fake claims.
