VW’s Alleged Violation of EU Consumer Directives

In the midst of all the tension surrounding the Volkswagen Emissions Scandal, fresh claims have been made that VW has violated two EU Consumer Directives – specifically, the Consumer Sales and Guarantees Directive, and the Unfair Commercial Practices Directive – in 20 European countries.

The first directive is put in place to prevent companies like VW from exaggerating environmental claims when marketing their products. This is, arguably, exactly what VW did when they marketed the vehicles as “green” that instead had “defeat devices” installed in them. Their ‘false advertising’ was used for seven years or so with suggestions of their diesel engines being “clean diesel” engines.

The EU Industry Commissioner, Elzbieta Bienkowska, has called for VW to be held accountable for their actions and violations of such Directives. Thus far, there is yet to be a promising reply. Part of the responsibility lies in the hands of Member States, who only have the power to adopt the Directives, and then it is for the Member States’ national courts to enforce a judgement.

There have been various consumer groups working alongside Vera Jourova, the EU Consumer Commissioner, to place a burden on VW to offer compensation to their customers in Europe like they have in the U.S. Jourova and her team have been working hard to establish a strategy for claiming compensation for the affected victims. She believes VW have disregarded and violated European Consumer Laws, and believes that if European bodies can come together, there may be a higher chance of redress for their nationals.

The nature of the law is complex. Whether VW has violated the consumer laws may depend on how VW marketed the vehicles in a particular Member State or how EU law is adopted into their national legislation. In one country, VW could be found to have violated the consumer laws, whereas in another country they could run free. It could be likened to ‘luck of the draw’.

If VW are found to have violated consumer laws, redress could involve administrative fines, civil proceedings, and even criminal proceedings. Your average Joe would probably be unaware of these legal rights, which is why Jourova and several independent consumer groups are fighting hard to make such rights known. Her mission is to “encourage consumers to think about what protection they have thanks to European legislation” (https://www.ft.com/content/59d57584-737b-11e6-b60a-de4532d5ea35).

Ursula Pachl, from the EU Consumers’ Organisation, praises the Commissions’ involvement in pressuring VW to offer satisfactory compensation to their customers. Jourova states that “trust is the engine of retail”. If VW wishes to gain their trust and credibility back, they must accept liability and provide financial compensation like they are doing in the U.S.