Consumer protection is a key goal of the European Commission, but not all citizens across the EU have the same understanding of their rights. Czechs prove to be especially savvy in some areas and lead the EU in reading contracts — but still feel inadequately unprotected and are reluctant to seek help from consumer protection agencies, a Eurobarometer report on consumer empowerment issued by EU statistical arm Eurostat shows.
The Czech Republic is one of 12 out of 27 EU member states where a majority of respondents said they do not feel protected by consumer law. Bulgaria, Greece, Latvia and Lithuania all had over 70 percent compared to 51 percent in the Czech Republic. The country ranked in the top 5, though, for respondents’ understanding many details for specific protections based on EU directives.
Those surveyed in the 12 new EU member states that joined in 2004 and 2007 are less likely to feel protected by consumer law (53 percent saying they are “not protected”) than those in the EU-15 countries, (36 percent). The countries with the largest numbers who feel protected by consumer law are mainly in the north of Europe.
“Four out of 10 Europeans do not feel protected by consumer law when choosing or purchasing goods and services, answering that they feel either ‘not very’ or ‘not at all’ well protected,” the Eurobarometer report said.
Familiar with the law
However, some 56 percent of Czechs stated the felt knowledgeable as consumers and 64 percent felt confident. Czech respondents scored well on correctly answering some specific questions relating to consumer rights. The report explored eight specific scenarios covered by EU directives. ‘The Czech Republic stands out in that 83 percent understand they are entitled to a free repair or replacement.’
Czechs scored the best out of Europe when asked if they were entitled to a free replacement of a refrigerator after 18 months, even if they did not buy an extended guarantee. “The Czech Republic stands out in that 83 percent understand they are entitled to a free repair or replacement. This is 44 percentage points higher than the EU-27 average of 39 percent. … Across the 27 EU Member States, the majority of consumers in 12 countries provide the correct answer,” the report said.
Another question where Czechs stood out regarded which country’s laws apply when goods are purchased from another EU country over the Internet. “The largest proportions of correct answers are found in the Czech Republic (57 percent), Poland and Slovakia (both at 49 percent). … In 16 of the EU Member States, around half of respondents believe incorrectly that the laws of the country of the trader apply,” the report said.
Out of the EU-27, Czechs ranked fourth for knowing that items purchased by mail, phone or Internet could be returned for a limited time after delivery without giving any reason. Similarly, Czech respondents beat the EU average in knowing that a vacuum cleaner purchased from a door-to-door salesman could be returned as well.
Airline travel rules posed difficulties for a lot of respondents. Czechs were above the EU average in knowing that ads for airline travel must state the total amount, including taxes, fees and charges. Malta did best on this question, while Denmark, Romania and Sweden did worst.
Phone scams tripped up Czech respondents, though. The country was slightly below the EU-27 average in knowing that it is illegal to offer an item like sunglasses for “free” but require a consumer to call a costly telephone number to arrange to get them.
Czechs were also below the EU average in knowing that if an unsolicited product like a DVD was received in the mail, the consumer did not have to pay for it or send it back. Some 61 percent of Czechs thought the item had to be returned, which is not the case.
Most people in the EU had trouble with knowing that a financial product like car insurance purchased over the phone, mail or Internet could be canceled for a limited time without paying any fee or penalty. Only 28 percent in the EU got this right. Czechs were a bit behind, with 22 percent.
The Eurobarometer report tracked which countries had the best knowledge of EU consumer directives based on seven of these eight questions, excluding the one on cross-border law. ‘Interviewees who give correct answers … are found most often in Germany, Finland, the Netherlands, Slovakia, the Czech Republic and Denmark.’
“Interviewees who give correct answers to all seven questions on EU consumer laws are found most often in Germany (7 percent), Finland (each 4 percent), the Netherlands, Slovakia, the Czech Republic and Denmark (each 3 percent); nevertheless, the very highest percentage is found in the non-EU country Norway (8 percent),” the Eurobarometer report said.
The top list of countries with highest awareness stays pretty much the same for those with five or six correct answers. “Highest percentages of interviewees who give at least five correct answers to the seven questions, are found in Norway (56 percent), Germany (47 percent), Finland (42 percent), Denmark (38 percent), the Czech Republic (36 percent), the Netherlands (32 percent), Sweden (31 percent), Malta (29 percent) and Slovakia (28 percent),” the report said.
Conversely, the Countries with highest numbers of respondents who do not give any correct answer are Romania (13 percent), Bulgaria (8 percent) and Ireland (7 percent).
Reading the fine print
Another area where respondents from the Czech Republic excelled was in reading contracts before signing them. “Close to eight in 10 respondents in the Czech Republic (82 percent) and Slovenia (80 percent) read the terms and conditions of the last contract they signed for a service. The Czech Republic also has the highest proportion of respondents stating they read the contract carefully and completely (46 percent) followed by those in Slovakia (43 percent) and Slovenia, Hungary and Austria (41 percent in each country),” the report said. ‘Close to eight in 10 respondents in the Czech Republic and Slovenia read the terms and conditions of the last contract they signed for a service.’
“In all the countries surveyed, the absolute majority of respondents read the terms and conditions at least in part. However, at least three in 10 respondents in the UK, Spain and Belgium say they didn’t read the terms and conditions at all,” the report said.
Of people who did not read contracts, though, the main reason is it is too long or took too much time. This was said by respondents in France (69 percent), the UK (64 percent), the Czech Republic and Finland (both 62 percent). This was the most frequent response for 24 of the 27 EU members as well as in Norway (62 percent). “In two Member States, the absolute majority of respondents said their trust in the service provider resulted in their not reading the terms and conditions: Denmark (70 percent) and Cyprus (57 percent),” the report said.
Those most unlikely to read a contract include people who left education at the age of fifteen or earlier, house persons, people with difficulties paying bills, people who place themselves low on the social scale and those who don’t use the Internet.
Czechs also experienced one the lowest levels of estimated loss due to consumer-related problems. The average estimated value of such losses is €375. “There are five countries where consumers estimate their average financial loss as less than €100: Poland, Hungary, Slovakia, Bulgaria and the Czech Republic,” the report said. By comparison, the average estimated losses in Denmark, Ireland and Spain all exceed €1,000.
Going directly to the retailer or manufacturer is favored greatly over going to outside agencies. “Consumers in Austria, Portugal, Denmark, the Czech Republic and Cyprus were the most likely to have taken some form of action (at least 85 percent in each country), largely via a complaint to the retailer/provider. However, respondents in Austria and the Czech Republic were the most likely to have made a complaint to the manufacturer (22 percent in each country both),” the report said.
The vast majority of consumers in all countries say they did not involve public authorities or consumer organizations. “This is most marked in Greece, Denmark and the Czech Republic, where at least 92 percent didn’t make a complaint to these organizations in relation to any problems. The same was true of 96 percent of respondents in Iceland,” the report said. Reasons for not involving consumer groups include the amount of money being too small or a satisfactory resolution being reached without the need to take the matter that far.
