European Commission to increase research on consumer policy

In the planning of the current EU strategy for consumer policy it was stated that there is insufficient information available on the status of consumer markets and consumer policy in member states. One of the focal areas for the 2007-2013 period was to be development of monitoring mechanisms and research. Political decision-makers must be able to form a more in-depth understanding of consumer behaviour in order to improve the quality of regulation.

In the course of the past three years, the Commission has developed a consumer markets scoreboard based on a number of information sources and reports. This year the scoreboard will be published in two parts. The first part, completed in March, consists of information concerning the amount and problems of cross-border trade as well as differences in consumers’ operating environments between member states.

The second part, to be published in October, will shed light on the markets through price comparisons, classifying consumer complaints, statistics on product safety as well as consumer mobility and satisfaction. The two latter aspects will be studied by means of an extensive survey to chart consumer experiences concerning 50 different industries.

The Commission intends to continue this market monitoring activity on an annual basis. More in-depth analyses may be conducted on different topics that are highlighted in basic monitoring. One such analysis is already pending concerning the efficiency of energy markets in different member states.

Actual consumer behaviour as the starting point

Gathering market information is based on different starting points than those previously adopted in consumer policy work. The objective is to understand how consumers make decisions in various practical situations. Real consumers do not act rationally - a fact that should be taken into consideration in regulating consumer markets. Applying behavioural economics to research on consumer behaviour began in the OECD back in 2005 and theories in this scientific field have been used as the basis for the Consumer Policy Toolkit set for publication in the summer of 2010. The EU has participated in discussions organised by the OECD Committee on Consumer Policy and has since adopted a similar approach in consumer policy matters. Look for more information on the Consumer Policy Toolkit in our June issue.

A significant part of the development work has been focused on the quality of statistical information gathered from member states. The Commission’s issued a recommendation on the use of a harmonised methodology for classifying and reporting consumer complaints and enquiries in May. The Consumer Agency has participated in developing the classification system and the indicators derived from statistical data.

Read more:

EU Consumer Policy Strategy 2007-2013 (pdf)
Behavioural economics – Commission seminar in November 2008
Scoreboard pages online