· Cross-border car purchase within the EU 2 Before purchase What to look out for when bargain...

This report is part of the ECC-Net joint project 2015 on cross-border car purchase and registration.

What to look out for when you re

bargain hunting

CROSS-BORDER CAR PURCHASES

Report

2Cross-border car purchase within the EU

Before purchase

What to look out for when bargain hunting 1516 Wheretofindgeneralinformationoncross-bordercarpurchases?17 Wheretofindinformationonprices?18 AvailabilityofoffersthroughouttheEU21 Checkingthelegitimacyoftheseller22 Identitycheck22 Locationcheck23 Reputationcheck23 Websiteandwebsitehistorycheck25 Cardetailchecks25 Findingoutthetruevalueofacar26 Howtocheckifanadvertisedcarhasbeenstolen27 RecurrentfraudsregisteredbytheECC-Netinthecarpurchasesector28 Thesaleofanon-existentvehicle

Intro

The European Consumer Centres Network 77 Background14 Objectiveofthejointproject


30 Afalsepromiseofapurchase39 Ifthesellerusesamarketplaceorotherintermediarywebsite, cantheconsumermakeaclaimagainsttheintermediaryincasesoffraud?41 Towhomshouldfraudbereported?

Paying for a car 4646 Methodsofpayment47 CashpaymentrestrictionsinEurope52 Dutytodeclarecashmovements58 Paymentcheckanddepositpayments59 Depositpayments61 Creditorloan:Doeswithdrawingfromacarpurchasecancelacreditcontract?

During Purchase

How to verify the quality of a car 7173 Vehicleinspections73 Legaltimeframeforvehicleinspections75 Isthesellerlegallyobligedtoprovideavehicleinspectionbeforesale?77 Whereisitpossibletofindatechnicalinspectioncentreinthecountryofpurchase?81 Isatechnicalinspectionrequiredforregistrationintheconsumer’scountryofresidence?85 Isatechnicalinspectioncarriedoutinthecountryofpurchaserecognised inthecountryofregistration?89 Checksontheseller’spremises91 Averagepricesofchecks


What should consumers look out for in the contract of sale? 9292 Formalrequirementsandmandatoryprovisions101 Whatdocumentationshouldbeprovidedbytheseller?101 Thecontractofsaleoraninvoice101 Registrationcertificate113 Proofthatacarisnotpawned115 Technicalinspectioncertificate115 Servicebook116 Historyofthecar

European Certificate of Conformity 117117 CarswithaEuropeanCertificateofConformity119 SituationintheMemberStates125 CarswithoutaCertificateofConformity126 Nationaltypeapprovalprocedures131 ThenationalapprovalproceduretobefollowedbyFrenchconsumers


After purchase

Driving the car home 134134 Temporaryplates137 SituationintheMemberStates149 Regularnationalplates149 SituationintheMemberStates154 Temporaryinsurancecover161 Otherwaysofgettingthecartotheconsumer’scountryofresidence164 Registrationofacarintheconsumer’scountryofresidence164 Insurance167 SituationintheMemberStates

Payment of VAT 172172 Definitionofnewandsecond-handcars177 VATratesintheEUandNorway178 HowandwheretopayVAT:thesituationintheMemberStates188 Registrationtax188 Nationalregistrationprocedures

Guarantees and warranties 214215 Thelegalguarantees215 Durationofthelegalguarantee219 Burdenofproofoftheexistenceofadefect


Recommendations 233233 Pricesandavailabilityofoffers234 Legitimacyofthetrader234 Cardetailchecks235 Qualitycheck236 Focus:clocking237 Responsibilitiesofonlineplatforms238 Towhomshouldfraudbereported?238 Meansofpaymentandrecourse239 Registrationcertificateandproofthecarisnotpawned239 EuropeanCertificateofConformity240 Temporaryplatesandtemporaryinsurance241 Registrationofthecarintheconsumer’scountryofresidence241 Insurance242 VATpayments243 Registrationprocess243 Registrationtax244 Guaranteesandwarranties244 AlternativeDisputeResolution(ADR),outofcourtbodiesintheMemberStates andtheEuropeanOnlineDisputeResolution(ODR)platform245 Cooperationwithotherstakeholders

The ECC-Net 246247 ContactdetailsoftheECCs

Commercial warranties 222

7

Introduction

// Back to contents Cross-border car purchase within the EU

The European Consumer Centres Network

TheEuropeanConsumerCentresNetwork(ECC-Net)consistsof30 centres(oneineachEuropeanUnion(EU)MemberState,NorwayandIceland).Itisco-financedbytheEUandbyeachoftheparticipatingstates.

TheaimoftheNetworkistoincrease consumer confidence in the European Internal Marketbyprovidingconsumerswithinformation on their rights under European consumer legislation,andbygivingthemadvice on, and assistance with the resolution of their cross-border complaints.As theECC-Netdealswithcross-borderconsumercomplaintsanddisputes,itisinauniquepositiontodocumenttheproblemsconsumersfacewhenshoppingwithintheEU.

Background

Theyear2015marksthe10thanniversaryoftheECC-Net.Overthelast10years,theECCshavereceivedmorethan650.000requestsforinformationaboutEUconsumerrightsandhelpedsome300000consumers.

TheECC-Netdealswithalargenumberofcross-borderconsumercomplaintseachyear.Ofthe93741instancesofcontactfromconsumersreceivedbytheECC-Netin2014,37609wereactualcomplaints(1)(anincreaseof16%from2013).

Thoughonly2.1%ofthecomplaintsreceivedbytheECC-Netin2014concernedpurchasesofneworsecond-handvehicles(carsandmotorcycles),this topic has been identified as a major concern among consumers, as the problems incurred by consumers when something goes wrong are considerable, with vehicles being expensive consumer goods and many consumers depending on them.

TheECC-Netthereforealso launchedapublicappeal forconsumertestimonialsvia itswebsites. Inall,373consumersfrom17countries(includingonefromtheUSA)answeredbetweenAprilandAugust2015.

(1) http://ec.europa.eu/consumers/solving_consumer_disputes/non-judicial_redress/ecc-net/docs/ecc_net_-_anniversary_report_2015_en.pdf

http://ec.europa.eu/consumers/solving_consumer_disputes/non-judicial_redress/ecc-net/docs/ecc_net_-_anniversary_report_2015_en.pdf

8

Introduction


Consumer’s residence country

They all purchased a car in another EU Member State,Norway, Iceland and the USA (for a total of 24 countries).

Belgium74

France54

Sweden14

Finland204

Luxemburg3

Slovenia3

UK3

TheNetherlands

2

Austria2

Lithuania2 Latvia

1Estonia1

Poland1

USA1

Malta1

Romania1

Germany6

Total 373

9

Introduction


Car purchase country

Sweden19

France18

Estonia11

Spain12

Germany227

Lithuania3

Romania3

Ausria3

Latvia2

Poland2

Slovakia2

Greece1

Denmark1

USA1

Bulgaria1

Malta1

Norway1

Iceland1

Finland9

Italy9

UK7

Belgium16

TheNetherlands

18

Luxemburg5

Total 373

Consumersidentifiedinamultiplechoiceoption503problemstheyhadencountered.81consumersdidn’t encounter any problem. The main problems concerned respectively difficulties with theauthoritiesoftheconsumer’sresidencecountrywhenregisteringthecarpurchasedabroad(19.52%)anddoublepaymentofVAT(12.84%).Underthecategoryother(17.81%),especiallymanyFinnishconsumerscomplainedaboutalackoftransparencywithregardtonationaltaxestobepaidwhenregisteringacarboughtabroadinFinland.

10

Introduction


Did everything go well with the purchase?

(multiple choice possible)

Yes13,87%

No86,13%

11

Introduction


If you encountered difficulties, what were they?

Total 503

114

104

75

47

30

22

22

21

20

20

18

10

Difficul�es with the authori�es of your country when you registered/tried to register the car

Other, please specify

Double payment of VAT

The seller didn’t provide a Cer�ficate of Conformity (COC) for the car

Suspicious clauses in the sales contract (exclusion of legal guarantee, purchase presented as having been passed between two private individuals even if you purchased from a professional car dealer)

Difficul�es to obtain insurance cover for the way back home

Transit plates for the way back not recognized abroad

The car broke down shortly aer purchase and the seller refused to cover the repair

Vic�m of Clocking (manipula�on/winding back of the odometer)

The car broke down shortly aer purchase and the seller insisted that you bring back the car to his premises

Manufacturer guarantee not recognized in your country

The seller didn’t provide a registra�on cer�ficate for the car

ECCs’adviceisespeciallyvaluableinthepre-contractualphase,asmostofthequestionsfromconsumersrelatetotheperiodbeforetheactualpurchaseofacar.Also, ECCs try to emphasise preventive information in order to avoid consumer disputes. In2014,outofallcontactfromconsumers,2.8%ofinformationrequests(1574requests)concernedcross-bordercarpurchases.71.5%concernedpurchasesofsecond-handcars,against28.5%fornewcars.

Cross-border car purchases seem to be a major concern of European citizens consulting the ECCs and consumers need information on this subject. FromJanuary2014untiltheendofJune2015,thoseECCswhopublishinformationontheirrespectivewebsitesonthissubjectregisteredmorethan174000pageviewsordownloads(2).

(2) Thenumbersmightevenbehigher.SeveralECCsrelaunchedtheirwebsitesduring2014andcountedpageviewsonlyonthenewwebpages.ECCswithoutaccesstothesestatisticshavenotbeencounted.

12

Introduction


ECC-Net’s experience recorded in this report and backed by concrete case examples shows that cross-border car purchases in the EU could be made easier. Obstacles still exist and procedures differ within the EU, especially when it comes to bringing a car back to and registering it in a consumer’s home country.

Cross-border car purchase and registration has been a concern among European legislators for many years. They have tried to tackle this using various legal acts such as:

CouncilDirective1999/37/EContheregistrationdocumentsforvehicles;(3)

Regulation(EC)No1160/2005oftheEuropeanParliamentandoftheCouncilof6July2005amendingtheConvention implementing theSchengenAgreementof14 June1985on thegradualabolitionofchecksatcommonborders,asregardsaccesstotheSchengenInformationSystembytheservicesintheMemberStatesresponsibleforissuingregistrationcertificatesforvehicles;(4)

Directive2007/46/ECoftheEuropeanParliamentandoftheCouncilof5September2007establishingaframeworkfortheapprovalofmotorvehiclesandtheirtrailers,andofsystems,componentsandseparatetechnicalunitsintendedforsuchvehicles;(5)

EuropeanCommissioninterpretativecommunicationonproceduresfortheregistrationofmotorvehiclesoriginatinginanotherMemberState(2007/C68/04);(6)

ProposalforaRegulationoftheEuropeanParliamentandoftheCouncilsimplifyingthetransferofmotorvehiclesregisteredinanotherMemberStatewithintheSingleMarketCOM(2012)0164;(7)

SecondReportoftheCommitteeontheInternalMarketandConsumerProtectionontheproposalforaregulationoftheEuropeanParliamentandoftheCouncilsimplifyingthetransferofmotorvehiclesregistered in another Member State within the Single Market (COM(2012)0164 – C7-0092/2012 –2012/0082(COD))–A8-0028/2015;(8)

TheEuropeanParliamentendorsed, inMarch2014,anEUlegislative“RoadworthinessPackage”.TheRoadworthinessPackageincludedanewDirectiveontheperiodicalroadworthinesstestingofvehicles(Directive 2014/45/EU(9)), a newDirective on roadside inspections of commercial vehicles (Directive2014/47/EU(10)) and a Directive amending Directive 1999/37/EC on the registration documents forvehicles (Directive2014/46/EU(11)).Oneof theaimsof these rules is to improve road safetyand setminimumcommonrequirementsacrosstheEuropeanUnionfortheperiodicaltechnicalinspectionofmotorvehiclesandtheirtrailers;

Member Statesmust adopt and publish, by 20May 2017, the laws, regulations and administrativemeasuresnecessarytocomplywiththethreedirectivesandapplythosemeasuresasfrom20May2018.

Nationalandregionalpoliticalbodies,suchastheRégionAlsaceandtheConseilRhénan(whichismadeupofelectedrepresentativesfromtheFrench,GermanandSwissborderarea),havealsopickedupthesubject.In

(3) http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32003L0127andhttp://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A31999L0037(4) http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2005.191.01.0018.01.ENG(5) http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32007L0046(6) http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:52007SC0169(7) http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2012:0164:FIN(8) http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2015-0028&language=EN(9) http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0003(10) http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0005(11) http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0004

http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0003http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0005http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0005http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0004http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32003L0127http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A31999L0037http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2005.191.01.0018.01.ENGhttp://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32007L0046http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:52007SC0169http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2012:0164:FINhttp://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2015-0028&language=EN

13

Introduction


addition,the“Franco-Germandialogueoncross-bordercooperation”includedthisasatopicinOctober2014basedoninformationprovidedbythehoststructureoftheECCsofFranceandGermany.

The “Centre Européen de la Consommation” (Centre for Consumer Protection in Europe), which hosts the ECCs

France and Germany, receives many information requests and complaints concerning purchases of vehicles and

their registration, especially in a Franco-German context. The practical experience of consumers shows that the lack

of harmonisation presents difficulties for consumers purchasing cars, especially across the French/German border.

InJune2013,onajointrecommendationofthehostorganisationoftheECCsFranceandGermanyandtheRégionAlsace,theConseilRhénan(12)adoptedaresolutionwhichwasthensubmittedasaconcreteproposaltotheFrenchandGermangovernmentsinorderto:

Obtainapositiononthenon-recognitionofFrench‘WW’temporaryplatesoutsideofFrance; Drawattentiontothemutualnon-recognitionofFrenchandGermanvehicleinspections; SimplifynationaltypeapprovalproceduresofcarspreviouslyregisteredinanotherMemberState.

InMarch2014,inalettersenttotheConseilRhénanandtheRegionAlsace,FrenchPrimeMinisterManuelVallsconfirmedthattwoofthoseproblemshavebeensolved:

AvalidvehicleinspectioncarriedoutinanotherMemberStateisnowrecognisedinFrance. Temporary‘WW’platescanbeusedoutsideofFrancewithintheEU(aclauselimitingtheuseofthose

platestoFrancehasbeendeleted).

On14October2014,ontheoccasionofthe5thFranco-Germandialogueoncross-bordercooperation,nationaltypeapprovalproceduresandexportofcarsfromFrancetoGermanywithoutexportplateswereidentifiedasmainissues.Simplificationofthoseproceduresispendingatthetimeofthisreport.

(12) http://www.conseilrhenan.org/fr/conseil-rhenan/

14

Introduction


Objective of the joint project

This joint project aims to provide in-depth insight into all information necessary for drafting a practical guide to cross-border car purchases by collecting practical and preventive information for consumers.As legislation is not harmonised throughout Europe, applicableEUandnationallegislationisexplainedandpracticaladviceisgiventoavoiddifficulties.

TheinformationprovidedinthisreportisbasedonthemostfrequentquestionsidentifiedfromtheECC-Net’scasehandlingexperienceandontheconsumertestimonialscollectedbymembersoftheECC-NetfromApriltoAugust2015.Itcoversevery step before, during and after purchase, including registration and driving in the buyer’s home country.

Thereportfocusesonbusiness-to-consumercross-bordercarpurchasesandexcludesmotorcyclesastheyaregoverned,onmanypoints,byspecificlegislation.

Itiscompletedbyaseparatebrochureforconsumersgivinggeneralrecommendationswhengoingcar bargain hunting (13) andcountryfactsheetsallowingconsumerstohavealltheinformationneededforpurchasingacarinoneandregisteringitananotherMember State of the EU and Norway (14).

The European Consumer Centre France has led this project in close cooperation with the ECCs of Bulgaria, Germany, Croatia, Italy, Lithuania, Poland and

Portugal which formed the working group for the project. 29 ECCs participated in the compilation of this report.

The views and interpretations reflected in this report are not those of the European Commission or the national funding bodies. They are solely those of

the working group based on conclusions in the reports cited and on the data and questionnaire answers submitted to the working group by all project

participants. This document is intended to present the information consumers might need for a successful car purchase abroad and registration in various

European countries at the moment of publication and in the most user-friendly manner possible.

It has no legal value and the working group will not be held liable for any loss or cost incurred by reason of any person using or relying on the information

in this publication.

(13) Link consumer recommendations(14) Link country fact sheets

http://www.europe-consommateurs.eu/en/consumer-topics/on-the-road/buying-a-car/cross-border-car-purchase-and-registration/http://www.europe-consommateurs.eu/en/consumer-topics/on-the-road/buying-a-car/cross-border-car-purchase-and-registration/

Before purchase

15 // Back to contents Cross-border car purchase within the EU

What to look out for when bargain hunting

Before purchase

Before purchase


Where to find general information on cross-border car purchases?

AstheEuropeanCommissionstates,“TheSecond Hand Cars market hashadthelowestoverallscoreamongthegoodsmarkets inthe8th Consumer Markets Scoreboard (2012),whichwasthecasealso in2010and2011.Themarket isaffectedbyasymmetric information,whichexplains itsparticularly lowscoresontrust(lowestamonggoodsmarkets for threeconsecutiveyears); italso registered theworstperformanceofallgoodsmarketsonproblemsexperiencedbyconsumersandoncomparability.

ThisiswhytheEuropeanCommissionconductedastudy on the functioning of the market for second hand cars from a consumer perspective in the European Union.”(15).Thefourmainresearchissuesthatwereidentifiedandaddressedbythisstudywere:

1.Dealers’practicesandcompliancewiththeexistingregulatoryframeworkforsellingsecond-handcars;

2.Consumersandtheirsearchforasecond-handcar-informationsourcesandthedecision-makingprocess;

3.Problems,complaints,complainthandlinganddisputeresolution;4.Marketfeatures–supplyanddemandstructure,cross-bordertrade,prices.(16)

Consumers in every Member State can find information on cross-border car purchases. However, currently the information is dispersed among various sources and therefore difficult for consumers to follow. Also, most of the information concerns administrative or tax questions rather than practical consumer issues.

Whenitcomestocross-bordercarpurchases,consumerscanrefertotheYourEuropeportal(17)orseekadvicefrom YourEurope(18).Also,mostECCsprovideinformationontheirwebsites,andsomeinpaperpublications,butnotallarticlesorbrochurescoverallaspects.Somefocus,forexample,onfraudpreventionoradministrativeprocedures.WhenECCsdonotcoveraspecifictopic,theyusuallydirectconsumerstootherconsumerortradeorganisationsortoinformationpublishedbyMemberStateauthorities(19).

This joint project aims at compiling country fact sheets allowing consumers to find the main information for the country of purchase and registration easily.

(15) http://ec.europa.eu/consumers/consumer_evidence/market_studies/second_hand_cars/index_en.htm(16) Thestudy’sfindingsandrecommendationscanbeparticularlyusefulforsupportingMemberStates’policyinitiatives(e.g.awarenessraisingcampaignsonguarantees,morevigilantenforcementinrelationtoinformationprovision,measurestoprevent

odometerfraud).Theproposedremediestoimproveconsumerconditionsareaddressedtoarangeofstakeholders,suchastradersandtheirassociations,automobileclubs,consumerorganisationsandconsumersthemselves.(17) http://europa.eu/youreurope/citizens/vehicles/index_en.htm(18) http://europa.eu/youreurope/advice/index_en.htm(19) Forexample,theLatvianRoadTrafficSafetyDirectorate(CSDD),incooperationwiththeStatePolice,haspublishedinfographicswithsuggestionsofwhattolookoutforwhenpurchasingsecond-handcars.

http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/8_edition/index_en.htmhttp://ec.europa.eu/consumers/consumer_evidence/market_studies/docs/2ndhandcarsreportpart1_synthesisreport_en.pdfhttp://europa.eu/youreurope/advice/index_en.htmhttp://www.europe-consommateurs.eu/en/consumer-topics/on-the-road/buying-a-car/cross-border-car-purchase-and-registration/http://ec.europa.eu/consumers/consumer_evidence/market_studies/second_hand_cars/index_en.htmhttp://europa.eu/youreurope/citizens/vehicles/index_en.htmhttp://europa.eu/youreurope/advice/index_en.htm

Before purchase


Where to find information on prices?

InsomeMemberStates,itiseasyforconsumerstocompareandcheckpricesofnewandsecond-handcarsinthatcountryviawebsitesormagazinesofconsumerorganisations(20),tradebodiessuchasautomobileclubs,ordealershipsforthegeneralpublicortheirmembers.WhenitcomestocomparingpricesbetweendifferentEUMemberStates,thesituationoftenbecomestricky. Currently,thereisnocross-bordertoolforcomparisonofcarpriceswithintheEU.The“ReportoncarpriceswithintheEuropeanUnion”publishedannuallybytheEuropeanCommissionwasdiscontinued in2011, theCommissionconsidering that, “Whenthe reportwaslaunched,thereweremajorcarpricedifferencesamongMemberStates,anditwasmuchmoredifficultforconsumerstocomparepricesacrossborders.Sincethen,thesituationhasimprovedgreatly, inpartduetoenforcementactionbytheCommission,andalsothankstotheincreasedavailabilityofpriceinformationontheinternet.ThismeansthereisnolongeraneedfortheCommissiontoduplicatethisinformationintheCarPriceReport. (21)”.Nonetheless,theCommissionstudyonthefunctioningofthemarketforsecond-handcarsalsoincludedapricecollectionexercisewheresecond-handcarpricingdatawascollectedintheEU,IcelandandNorwayforninespecificcars(withacertainageandmileage).

In general then, consumers should conduct their own research by consulting different dealers, manufacturer advertisements and information online. As the standard equipment and technical features on a car may not be the same on all national markets, consumers must be thorough when comparing the price of a particular brand and model in different countries, so as to be sure that they are comparing cars with the same equipment, options and interiors.

Consumers should not only consider the price of the car, but all additional costs they will have to pay, such as taxes, including taxes for registering or owning a car, VAT(22), and, if applicable, environmental taxes or badges, etc.. In some cases, depending on the type of vehicle they purchase consumers may also be able to claim certain environmental bonuses.

(20) Forexample,http://www.anwb.nl/auto/zoekvergelijk/zoekauto,http://www.consumentenbond.nl/auto/autos-vergelijken,http://www.which.co.uk/cars/choosing-a-car/buying-a-car/car-comparison/,http://www.fdm.dk,http://www.deco.proteste.pt/motor/automoveis

(21) http://ec.europa.eu/competition/sectors/motor_vehicles/prices/report.html(22) Seealsopage172.

http://www.anwb.nl/auto/zoekvergelijk/zoekautohttp://www.consumentenbond.nl/auto/autos-vergelijkenhttp://www.which.co.uk/cars/choosing-a-car/buying-a-car/car-comparison/http://www.fdm.dkhttp://www.deco.proteste.pt/motor/automoveishttp://www.deco.proteste.pt/motor/automoveishttp://ec.europa.eu/competition/sectors/motor_vehicles/prices/report.html

Before purchase


A Croatian consumer bought a car on the Internet in Germany.According to the informationpublishedon thewebsite, the caremitted122gofCO2perkilometre.However,afterreceivingtheoriginalcardocuments,theconsumernoticedthatthevehicleemitted135gofCO2perkilometre,whichputthecarintoadifferenttaxbracket.Thetaxbracketwasthemainreasonwhytheconsumerboughtthecar,asitmadeitmoreaffordabletoregisterthecarinCroatia.Asaresultofthetrader’s falseadvertising, theconsumerwasobligedtopayEUR850extra.WhencontactedbyECCGermany,theGermantraderadmittedthatthe informationpublishedonthewebsitewaswrongand,afterhavingreceivedacopyoftheCroatiantaxregulations,agreedtorefundtheEUR850.

Availability of offers throughout the EU

Offers made in one EU Member State are sometimes not open to consumers from another. This may relate to car purchases or accessory services such as commercial warranties. The ECC-Net report “Commercialwarranties–aretheyworththemoney?”(23)lookedatthenewandsecond-handcarsectorandatgeographicalrestrictionstocommercialwarranties(24).

(23) Concerningguaranteesandwarranties,seealsopage214.(24) Page84and88ffhttp://www.europe-consommateurs.eu/fileadmin/user_upload/eu-consommateurs/PDFs/PDF_EN/REPORT-_GUARANTEE/Garanties_2014_FINAL.pdf.

http://www.europe-consommateurs.eu/fileadmin/user_upload/eu-consommateurs/PDFs/PDF_EN/REPORT-_GUARANTEE/Garanties_2014_FINAL.pdf

Before purchase


AnIrishconsumerwantedtopurchaseasecond-handcarfromanofficialcardealershipintheUK.TheconsumerpaidaGBP1000depositandthentransferredthebalanceofGBP35620.Aftera number of exchanges between the consumerandthedealerinconnectionwiththeconsumer’splaceof residence, thedate for theconsumer tocollect the car was eventually agreed upon andconfirmedbyemail.However,whentheconsumertravelledtothedealer’spremisesintheUKtopickupthecar,thedealerrefusedtoreleaseitastheconsumerpresentedanIrishpassport.Thedealerrefundedtheconsumerandstatedthat“thereasonfornotcompletingthesaleofthe[car]isbecause[the consumer] paid the funds from a bank insouthernIreland”.Theconsumerfeltdiscriminatedagainstandalsoexpressedhisdissatisfactiondueto the losses incurred as a result of processingbank transfers (bank fees and fluctuations inthe currency exchange ratewhichworked to hisdetriment), as well as the travelling expenses,such as flights and accommodation. FollowingtheinterventionoftheIrishandBritishECCs,thedealeragreedtoreimbursetheseexpenses,aswellaspayingcompensationfortheinconvenience.Intotal,theconsumerreceivedapaymentinexcessofEUR2000.Thedealershipalsoagreedtoretrainitsstafftoavoidsimilarsituationsinfuture,andtosellacartotheconsumerifsorequested.

AnAustrianconsumerwantedtobuyanewcarfromaDanishdealership.Due tohigh taxesin Denmark (25 % VAT, 180 % registration tax),thenetpriceofthecarwaslowerthaninAustria.As the consumerwanted to buy a new car*, hewouldhavetopaythenetpriceinDenmarkand,after importing the car to Austria, the VAT andconsumptiontaxinAustria.Thetotalpriceofthecarwouldbeverycompetitiveascomparedwithoffers on the Austrian market. The consumerwrote emails to 12 Danish car dealerships anddid not receive a single answer. On the phone,onetradertoldhimthattheyarenotallowedtosell cars to Austrian consumers. The consumerfelt discriminated against based on his placeof residence and asked ECC-Net to contact thecompany.Afteran interventionbyECCDenmark,theDanishsalesagentagreedtosellthecartohim.However,thesalesagentincreasedthenetpricetowhatitwouldhavebeeninAustria.Thus,theofferwasnolongerprofitabletotheconsumer.

*Onthedefinitionofnewandsecond-handcarsandtheconsequencesforVATpayments,seepage172.

Before purchase


Extrawarrantiesadvertisedas covering thewholeEUoften seemveryattractive to consumers comparingpriceswithintheEU(25)andpurchasingcarsfromotherMemberStates,ortothosewantingtheircarrepairedinanotherMemberState,whenliving,forexample,inaborderregion.

Whatconsumersoftendonotseeisthatproducers’commercialwarrantiesandextrawarrantiesarecountryspecificandthecariscoveredbythewarrantyofthecountryofpurchase.SpecificoffersarethusforspecificmarketsandarenotappliedalloverEurope(26).Thedurationofthewarrantymayalsodifferfromonecountrytoanother.

Ifthen,oncethecarisbackintheconsumer’shomecountry,defectsbecomeapparent,theconsumerwillrequestapplicationofthecommercialwarrantyfromtherepaircentreinhis/herhomecountry.

AlthoughRegulationEU461/2010oncategoriesofverticalagreementsandconcertedpracticesinthemotorvehicle sector(27) allows consumers to have cars examined andmaintained by any dealer (brand dealer orotherwise),thesellerorproducerusuallyinvitetheircustomerstogotoanauthorisedrepairerforapplicationofthecommercialwarranty.InadifferentMemberStatefromtheoneinwhichacarwasbought,anyremediesdependon the goodwill of the repair centreor thenational representativesof theproducer.Quiteoften,consumersareconfrontedwithrestrictiveconditionsandnumerousexclusionssuchasgeographicallimitations.Whereassomecommercialwarrantiesallowtheconsumertocontacttheproducer’snearestpartner,othersimposeanobligationtocontacttheguarantorfirst,usuallytheproducer,tobeadvisedontherepaircentretocontactortowaitfortheproducertocontacttherepaircentre.Consumersaresometimesunawareofthisanddirectlycontactthenearestrepaircentre.Therepairer,eagertosecurethejob,mightnotinformtheconsumeroftheconditionsofmakingtherepairandasaresult,thecostsarenotcovered.

Article 20 of Directive 2006/123/EC on services in the internal market(28) prohibits discrimination based on nationality or place of residence unless directly justified by objective criteria.TheDirectivegivessomeexamplesofsituationswheredifferencesin“tariffs,pricesandconditionsarejustifiedforobjectivereasonsthatcanvaryfromcountrytocountry,suchasadditionalcostsincurredbecauseofthedistanceinvolvedorthetechnicalcharacteristicsoftheprovisionoftheservice,ordifferentmarketconditions,suchashigherorlowerdemandinfluencedbyseasonality,differentvacationperiodsintheMemberStatesandpricingbydifferentcompetitors,orextrariskslinkedtorulesdifferingfromthoseoftheMemberStateofestablishment.Neitherdoesitfollowthatthenon-provisionofaservicetoaconsumerforlackoftherequiredintellectualpropertyrightsinaparticularterritorywouldconstituteunlawfuldiscrimination.”

(25) Until2011theEuropeanCommissionpublishedanannualcarpricesreport,seealsopage17ofthisreport.(26) MemberStatesoftheEUnotoftheEuropeanEconomicArea,whereconsumersoftencannotbenefitfromanEUwarranty.(27) http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32010R0461:EN:NOT (28) http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32006L0123

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32010R0461:EN:NOThttp://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32006L0123

Before purchase


Forfurtherinformation,consumerswhohavetheimpressionofbeingdiscriminatedagainstwithregardtopricesoravailabilityofoffersbasedontheircountryofresidence,cancontactthecompetentcontactpointsforconsumers: http://ec.europa.eu/internal_market/services/docs/services-dir/guides/bodies_designated_en.pdf.(29)

Checking the legitimacy of the seller

ECC-Net’s experience shows that consumers are mainly interested in price, and only very few check the identity of traderseventhoughthisisnotalwaysverydifficult,especiallyforon-premisespurchases.In2014,in44%ofcomplaintsrelatedtothepurchaseofneworsecond-handcarsorcycles,theitemhadbeenboughtonsite.

However,whenitcomestocross-borderdistancepurchases,whichaccountfor47%ofthe2014complaints,itisoftenmuchmoredifficulttofindoutabouttheseller.ManyofthestoriescollectedbytheECCsshowthatconsumersoftendonotchecktheidentityortheaddressofthesellerordonotknowhowto.

Before investing in a car, consumers should be as certain as possible that the seller is legitimate. Thepointsbelowwillnotenableconsumerstoavoidallrisks,buttheymaysetalarmbellsringingincertainsituations.

Inanycase,consumersshoulddocumentthepre-purchaseprocessbyprintingorsavingthemaindocuments,suchasorderconfirmations,invoices,generaltermsandconditions,e-mailexchanges,etc..

(29) TheECC-NetanalysedArticle20.2-andArticle21-relatedconsumercomplaintswhichitreceivedbetween2010and2012initsreport“EnhancedConsumerProtection–theServicesDirective2006/123/EC”.

http://ec.europa.eu/internal_market/services/docs/services-dir/guides/bodies_designated_en.pdf

Before purchase


Identity check

WhenbuyingontheInternet,consumersshouldlookforallinformationindicatingtheidentityofthecompany/seller(namesofthecompanyanditsdirectors,headquartersorofficeaddress,telephonenumbers,etc.).

Oncethisinformationisgathered,itispossibletocheckthelegalexistenceofthetraderbeforepurchaseonpubliccompanyregistersorthoseofchambersofcommerceorcourts.Mostofficialcompanyregistershavebasicservicesavailableforconsumersfreeofcharge,butforspecificdocumentssuchasannualaccounts,theconsumermayneedtopay.

Consumersmayalsocallthecompanytogetanideaofitscustomerservice.

Sellers do not always respect the information obligation laid down in Directive 2000/31/EC on electroniccommerce(30)andthenationaltranspositionlawsconcerningcompanies’legalnotices.It is easy for fraudsters to take advantage of the situation by:

Usingdetailsandsometimesevenmirrorwebsitesoflegitimatecompanies; UsingfalseaddressesorP.O.boxes; Settingupseveralwebsites,onefortheallegedsellingcompany,onefortheallegedshippingcompany,

etc..

Location check

Oncetheaddressdetailsaregathered, publiclyavailablemapsandstreetviewsontheInternetallowconsumerstolocateaddresses.Iftheaddressseemstobeinapurelyresidentialarea,consumersshouldbeveryvigilant.

(30) http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32000L0031:EN:NOT

Before purchase


Reputation check

Consumersarealsoadvisedtocheckthereputationofaseller,forexampleonlineoronpubliclyavailablelistssuchasthoseofoutofcourtdisputesettlementbodies,toseeifthetraderisblacklisted(31).Eventhoughnotallcountrieshavelegislationonconsumerreviewsinplaceyet(32),andtheremightbesomefalseones,reviewscangiveanoverallpicture(33).

Consumersmayalsocontactconsumerprotectionbodiesandassociationstoseeiftheyhavealreadyreceivedcomplaintsagainstatrader.

Website and website history check

Consumers should check whether the website indicates the general terms and conditions and whethermandatoryrulesareincludedandwordedcorrectlywithnospellingmistakes,etc..Forexample,rulesonthelegalguaranteeandwithdrawal/coolingoffrightshouldbeincluded.

ThestudyconductedbytheEuropeanCommissiononthefunctioningofthemarketforsecond-handcarsfromaconsumerperspectiveintheEuropeanUnion(34)revealsthat“Between21and27%ofsurveyrespondentsdidnotreceiveinformationonCO2emissions,consumerrightstoalegalguarantee,maintenancecosts,safety/securityreputationofthecar,carmileagecheckstoverifyodometeraccuracyandaccidenthistory.Afurther12to19%wereunsurewhetherornottheyhadreceivedthisinformation.Only5%oftradersspontaneouslyprovidedinformationonconsumerrightstoalegalguarantee(mysteryshopping)(35).”

(31) See,forexample,theDanishConsumerOmbudsman’swebsitetocheckifasellerisblacklisted.(32) SuchasinFrance:http://www.afnor.org/en/news/news/2013/july-2013/a-world-first-france-adopts-a-standard-enabling-reliable-processing-all-online-consumer-reviews(33) Onconsumerreviews,seealsotheECC-Netreport“CanItrustthetrustmark”,page51ff:http://ec.europa.eu/dgs/health_food-safety/information_sources/docs/trust_mark_report_2013_en.pdf(34) http://ec.europa.eu/consumers/consumer_evidence/market_studies/second_hand_cars/index_en.htm(35) http://ec.europa.eu/consumers/consumer_evidence/market_studies/docs/factsheet_second_hand_car_04_web_en.pdf

http://www.afnor.org/en/news/news/2013/july-2013/a-world-first-france-adopts-a-standard-enabling-reliable-processing-all-online-consumer-reviewshttp://ec.europa.eu/dgs/health_food-safety/information_sources/docs/trust_mark_report_2013_en.pdfhttp://ec.europa.eu/consumers/consumer_evidence/market_studies/second_hand_cars/index_en.htmhttp://ec.europa.eu/consumers/consumer_evidence/market_studies/docs/factsheet_second_hand_car_04_web_en.pdf

Before purchase


Good to know

Fordistanceandoff-premisescontracts,theconsumerhastherighttoacoolingoffperiodofatleast14daysfromdelivery,unlessthecarhasbeenspecificallydesigned/customisedorspecificoptionsandaccessories have been integrated. However, consumers should beawarethatthecoolingoffrightdoesnotapplyifthefinalcontractissignedattheseller’spremiseswhentheconsumerpicksupthecar.

The datewhen awebsitewas set up and registeredwith the domain registry gives an indication of howtrustworthyitis.Themorerecentthecreationofthewebsiteandthemorecomplaintsreceived,themorecarefulaconsumershouldbe.

Itcanalsohelptocheckwithhistorysearchengineshowandwhenwebsiteshavebeenupdated,ortoverifythatthepicturespublishedhavenotbeentakenfromanotherwebsite.

Ifthesellerofferstousetheservicesofanescrowcompany,consumersshouldbejustasthoroughincheckingthisthirdpartyasincheckingtheseller.

A Danishconsumerwaslookingforasecond-handcaronaDanishintermediary web portal and found a competitive offer forDKK 40 000 (EUR 5 333 approx.) including Danish registration andinsurancepapers.Itseemedlikelythatthesellerwasaprivateperson,awomanwhohadbeenlivinginDenmarkbuthadnowmovedbacktotheUKduetoadivorce.ThiswasthereasongivenforthecarbeingintheUKandthewomanneedingthehelpofanescrowservicetocompletethetransaction.Shortlyafterwards,theconsumerreceivedane-mailconfirmingdeliveryofthecarandwithit,acontractforpaymentanddelivery.TheconsumerpaidadepositofDKK10000andsubsequentlyreceivedamessagesayingthatsomethinghadgonewrongbutthathecouldspeedthingsupbypayingtheremainingDKK30000.Hepaid,butthecarwasneverdelivered.ECCUKfoundthatthefraudulentescrowservicewasusingthedetailsofagenuinecompany,sothecasewasreportedtothepolice.Noamicablesettlementcouldbereached.

Before purchase


Car detail checks

Togetanoverallfeelingfortheseller,itcanbeusefultoaskthemtosendalldetailsconcerningthecar(serialnumber,aphotocopyoftheowner’stitleofownership,odometerreadingandpurchaseinvoice).Consumersshouldavoidanysellerthatanswerssuchrequestssuperficiallyorevasively.

Finding out the true value of a car

More often than not, questionable adverts give a particularly attractive price or, if the price they give is close to the market average, it often includes free transport of the car to the consumer and back to the seller if the consumer does not like it. Given how the cost of the latter tends to be fairly significant, consumers should be encouraged to question this.

Especially in the second-hand car sector, it may be of interest for consumers to check the real value of the car. If it looks too good to be true, then it probably is! Inmostcountries,consumerswillhavetouseprivatewebsites.AutomobileClubsordealershipfederationsmightprovidesuchlists(36).Valuationsonprivatewebsitesmightnotalwaysbeaccurateastheyonlytakeaccountofgeneralinformationaboutthecar(brand,model,fueltype,productionyear).

However,someareverydetailedandprovideinformationaboutthehistoryofacarfromproductionyearandcountry,tofirstregistration,technicalinspectionsandrepairs,insuranceandwhetherithasbeenregisteredasstolen(37).

Some of these private initiatives have become reference points for professionals, from producers anddistributorstonotaries, lawyers,bailiffs,publicauthoritiessuchasthepoliceandtaxoffices,andeventheinsurancesector(38).

Public partners also now offer possibilities for carrying out such checks. For example, the Estonian RoadAdministrationhasanonlineservice(39) offeringabackgroundcheckonvehicles(40) whichtheyrecommendthatpurchasersusebeforebuying.Also, theSwedish Transport Agency (Transportstyrelsen)providesanonlineserviceforbackgroundchecksonvehicles(41).

(36) TheDutchMotoringAgencypublishesacarvalueindicator.TheSocietyoftheIrishMotorIndustry(SIMI)providesmonthlypriceguidesonitswebsite.Thepricesindicatedthereinareaguideanditisstatedthatcarsellersarefreetochargewhateveramounttheydeemappropriate.

(37) Forexample,https://www.carfax.eu/about-carfax.html,http://www.eurotaxglass.com/products-and-services/price-or-trade-used-vehicles/(38) http://www.largus.fr/cote/,http://www.schwacke.de/(39) https://eteenindus.mnt.ee/main.jsf(40) https://eteenindus.mnt.ee/public/soidukTaustakontroll.jsf(41) http://www.transportstyrelsen.se/Sms-tjansten-vem-ager-fordonet/

https://www.carfax.eu/about-carfax.htmlhttp://www.eurotaxglass.com/products-and-services/price-or-trade-used-vehicles/http://www.largus.fr/cote/http://www.schwacke.de/https://eteenindus.mnt.ee/main.jsfhttps://eteenindus.mnt.ee/public/soidukTaustakontroll.jsfhttp://www.transportstyrelsen.se/Sms-tjansten-vem-ager-fordonet/

Before purchase


How to check if an advertised car has been stolen

A Swedish consumer purchased a used car. When he tried toregisterthecarinSweden,theSwedishTransportAuthorityfoundirregularitiesregardingthecar’soriginandrequestedaninvestigation.TheconsumeraskedaSwedishcompanytoperformaninvestigationandtheyfoundthatthecarhadbeenreportedstoleninItalyandthatthevehicleidentificationwasforged.Theconsumercomplainedtothesellerandwantedtocancelthesale,butthetraderwantedtheoriginalregistrationdocumentsback.TheSwedishTransportAuthorityrefusedtogivethedocumentsbacktotheconsumerastheywereforged.Theconsumer contacted the ECC-Net for assistance in getting awrittenresponsetohiscomplaintandcancellingthesale.

The trader finally agreed to reimburse the price indicated in thecontract if theconsumerreturnsthevehicleandoriginalpapers.ThisishoweverimpossibleastheSwedishpolicehasseized/confiscatedthecarandpapers(searchandseizure,SchengenInformationSystem(SIS))asitwasstoleninItaly.Furthermore,theconsumerclaimedthathehadpaidEUR29995wherasthecontractonlyindicatesEUR18800.Theconsumerisconsideringacourtactionfortheentireamountifthetraderdoesn’treimburseatleastEUR18800outofcourt.

Wheneveracarisregisteredinanationaldatabase,MemberStatepoliceand/ortransportauthoritieshaveaccesstothedataonthatcar.InseveralMemberStates,detailsareneededofthehistoryofthecarsonationalandinternationaldatabasesarescreened.

In some Member States, publicly available lists exist and can be accessed by consumers(42).

Iftheconsumersuspectsfraud,he/shemayinformthepolicewhocanthencheck.

(42) Forexample,http://www.police.gov.cy/police/police.nsf/dmlvehwanted_gr/dmlvehwanted_gr?OpenDocument(notupdated),http://coordinamento.mininterno.it/servpub/ver2/SCAR/cerca_targhe.htm,http://www.ic.iem.gov.lv/lv/node/483,theRDWdatabaseintheNetherlands,www.historiapojazdu.gov.pl,http://www.policija.si/seznami/ukradenavozila/uv_prikaz.php

http://www.police.gov.cy/police/police.nsf/dmlvehwanted_gr/dmlvehwanted_gr?OpenDocumenthttp://coordinamento.mininterno.it/servpub/ver2/SCAR/cerca_targhe.htmhttp://www.ic.iem.gov.lv/lv/node/483www.historiapojazdu.gov.plhttp://www.policija.si/seznami/ukradenavozila/uv_prikaz.php

Before purchase


InotherMemberStates,primarilyonlytheauthoritiescanaccessregistrationdata,soseveralprivateinitiativeshavedrawnuplistsofstolencars.

ConcerningcarsregisteredinotherMemberStates,nationalauthoritiescanconsulttheotherMemberStates’vehicleregistersviaEuropeancaranddriving licence informationsystem(EUCARIS),“auniquesystemthatprovidesopportunitiestocountriestosharetheircaranddrivinglicenceregistrationinformationand/orothertransportrelateddatahelpinga.o.tofightcartheftandregistrationfraud.EUCARISisnotadatabasebutanexchangemechanismthatconnectstheVehicleandDrivingLicenceRegistrationAuthoritiesinEurope.EUCARISisdevelopedbyandforgovernmentalauthorities.”(43)

ThoughEUCARISwasoriginallybasedontheEUCARISTreaty(44),MemberStatescanalsoconnecttotheEUCARISvehicleinquiryserviceandaccessthevehicleregistersofotherMemberStatesonthebasisofaDeclarationofEndorsementandwithoutbecomingasignatorytotheTreaty.Forthetimebeing,notallMemberStatesusethisfunctionality.

Basedonbilateralormultilateralagreements,MemberStatescanalsoexchangedatawithoutgoingthroughEUCARIS.

It should be easy for consumers to obtain information about the legal status of a car before buying. This is currently impossible in most Member States.

Recurrent frauds registered by the ECC-Net in the car purchase sector

If in doubt, consumers shouldn’t buy as protection in fraud cases is very limited. Onceaconsumerfallsintosuchatrap,ifnochargebackmechanisms(45) areavailable,themoneytheyhavespentisalmostcertainlylost.

The procedures in place usually tend to protect the collective interest of consumers rather than givingcompensation to individual victims of fraud. Therefore, in order to provide consumers with preventive information, ECCs try to identify fraud schemes quickly and make them public. WhereassomeECCs“nameandshame”,othersoptforabroaderdescriptionofthecommercialpracticeemployedbythefraudster.

(43) https://www.eucaris.net/(44) https://www.eucaris.net/countries(45) Formoreinformationonchargeback,seetheECC-Netreport“ChargebackintheEU/EEA-Asolutiontogetyourmoneybackwhenatraderdoesnotrespectyourconsumerrights.”http://www.konsumenteuropa.se/globalassets/rapporter/chargeback_

report_en.pdfand“ChargebackintheEU/EEA-Legislationandtimelimits”http://www.cecbelgique.be/20150424/ecc-net-report-chargeback-in-the-eu-eea-legislation-and-time-limits-Attach_s83851.pdf

https://www.eucaris.net/https://www.eucaris.net/countrieshttp://www.konsumenteuropa.se/globalassets/rapporter/chargeback_report_en.pdfhttp://www.konsumenteuropa.se/globalassets/rapporter/chargeback_report_en.pdfhttp://www.cecbelgique.be/20150424/ecc-net-report-chargeback-in-the-eu-eea-legislation-and-time-limits-Attach_s83851.pdf

Before purchase


At the same time, ECCs try to inform stakeholders about frauds of which they are aware. SeveralECCsworkcloselywiththeConsumerProtectionCooperation(CPC)Network(46)inordertoalertnationalauthorities.

ThroughcooperationagreementswiththeCPCauthority(ies)intheirrespectivecountriesorthepolice,ECCsinformpublicstakeholdersaboutfraud.Theymayalsocontactothernationalconsumerprotectionauthorities.

OnlyinNorway,evenforfraudcases,doesanoutofcourtdisputesettlementbody(47)receiveconsumerreports.

ThefollowingtypesofcasecanbefoundallovertheEUinvariousforms.

The sale of a non-existent vehicle

Anadvertisementforanattractivevehicleatabargainpriceisplacedonanintermediaryplatformandquicklyfindsabuyer.Thebuyerisimmediatelyinformedthatthesellerandthevehiclearenotlocatednearbyanditwillbedifficulttomakeanappointmentforthesale.

To“reserve”thevehicle,thesellerrequirespaymentofadeposittoprovethebuyer’sinterest.Thebuyerisinvitedtouseamoneytransferserviceorabanktransfertoanaccountbasedinanothercountryandgenerallyopenedinthenameofaprivatepersonora“falsecompany”.Cashmoneyservicesallowmoneytobewithdrawnanonymouslyandarethereforeextremelyriskyiftheconsumerdoesnotknowtherecipient.

Toreassurethebuyer,thefraudstersmightsendfalsifiede-mailssuggestingthattheintermediaryplatformrecommendssuchamethodoftransferof funds,orguaranteesarefund intheeventofaproblem.Thesemessageslookjustliketherealmessagesthistypeofintermediarywebsitewouldsend,butobviouslytheydonotcomefromtheintermediaryasintermediariesneverintervenedirectlyinasale.Veryoften,theconsumerisredirectedtothewebsiteofafakeescrowortransportcompanywhichmighthelpwiththetransferofthecartotheconsumer’scountry.Again,fakeemailsaresenttothebuyertostrengthentrust.

Finally,fakesellersdonothesitatetosendtheirvictimscopiesofstolenidentitycardsorfamilyphotoscollectedontheinternet.

Oncethemoneyistransferred,thesellerdisappears.

Manyintermediarywebsitesspecialisingincarshaveissuedwarningsontheirsitestopreventsuchfrauds.Inseveralcountries,criminalproceedingsareongoingtotrytotracetheperpetrators.

(46) http://ec.europa.eu/consumers/enforcement/index_en.htm(47) ForfurtherinformationonADRschemesavailableinthecarsector,seepage224.

http://ec.europa.eu/consumers/enforcement/index_en.htm

Before purchase


Consumersshouldbeawarethatintermediarywebsiteswillnevercontactthemtointerveneinatransaction.Theydonotrecommendspecificpaymentmethods,nordotheytrytotalktheconsumerintoasale.

AnIrishconsumerintendedtobuyacarviaawebsitepurportingtobeoperatedbyacarauctioneerbasedintheUK.HepaidGBP8000bybanktransferbutnocarwaseverdelivered.Theconsumerturnedto ECC Ireland for assistance, only to be told that the website hadbeenregisteredjustmonthsbeforethetransactionandusedgraphicmaterialsandvehiclespecificationsfromanothersite,andthattherewere other irregularities in connection with its own content andadvertisingchannels.Noamicablesettlementcouldevenbeattemptedgiventhesefindingsandthematterwasreferredtothepolice(ActionFraud), who liaised with the UK National Fraud Intelligence Bureauas well as the Metropolitan Police Service’s Criminal InvestigationDepartment.Accordingtothepolice,theyhadreceivedreportsfrom40victimsinrelationtothisfraud.

A Bulgarianconsumer looked foracarand likedonehe foundonan intermediarywebsite.Hecontacted thesellerbyemail,whoreplied.Theconsumeraskedhowhecouldbestexamineandbuythecar.ThesellerproposedtheservicesofatransportcompanyandaUKcourier.This thirdpartywould transfer themoney to theselleronlyafterreceiptofthecarandiftheconsumerclearedthetransaction.Thecarwasnotdeliveredontime. InsteadthesellersentanotheremailaskingforanadditionalEUR4900foraninsurancepolicyrequiredtogetthecaracrosstheEstonianborder.Theconsumerwastoldthatifhepaid,hewouldreceiveaEUR500discount.Theconsumerrealisedthatitwasascamandaskedforhismoneyback.Thesellerrepliedthatifhedidnotpay, thedealwouldbecancelledandnomoneywouldbereturned.Nofurthercommunicationcouldbeestablishedwiththeseller.ECCBulgariaandECCUKworkedtogetheronthiscase,butthesellerneverreplied.

Before purchase


A false promise of a purchase

Forthistypeofscam,theprincipleisinvertedwithregardtothescamdescribedabove.AnindividualplacesanadvertisementontheInternettosellacarandisquicklycontactedbyaninterestedbuyerwhodoesnotliveinthesamecountry.

Paymentforthevehiclemustthereforebemadeatadistance,butthisisnotaproblemforthebuyerwhowritesa(stolen)chequeissuedbyaforeignbanktotheseller.Thevalueofthechequeexceedsthepriceofthecar,usuallybyseveralthousandeuros.Thefakebuyerexplainsthattheadditionalamountshouldbeusedtopayforaservicefacilitatingthetransaction(mechanicalexpert,carrier,agenttomakethepurchaseonbehalfofthebuyer).

Oncethevalueofthechequeiscreditedtotheaccountoftheseller,thescammerasksthesellertopaya(false)companyfortheaforementionedservicesbycashtransfer.Therecipientofthepaymentisactuallyanaccomplice,oreventhefakebuyerinperson.

Somedayslater,theseller’sbankdiscoversthatthechequeisstolen,butitisalreadytoolate...

Thesellershouldonlyacceptchequesforthecorrectamountanddeliverthecar2to3weeksaftercashingthechequesothatthebankcanverifythetransaction.

Ifindoubt,he/sheshouldaskforacopyofthebuyer’sidentitycardorpassport,certifiedbytheembassyorconsulate.

Before purchase


Focus: clocking

Clocking involves winding back the odometer on a high–mileage used car, usually to increase its apparent value.Itisquiteeasytodowithmechanicalordigitaltoolswhicharewidelyavailableviae-commerce.Thesaleofthistypeoftoolisnotprohibited,buttheiruseisrestricted.

Asidefromthepricemanipulation,clockingputsthesafetyofroadusersatriskasthemorewearandtearonacar,thehighertheriskofabreakdownoraccident. It therefore makes sense to check, as far as possible, the real mileage of a car before buying.

A CzechconsumerboughtacarinSweden,fromacardealeractingasanintermediaryforaprivateseller.Thecarwaspresentedasnever-wrecked with 53.200miles. The car broke down in GermanyduringthewaybacktotheCzechRepublic.Theconsumersentthecarto inspectiontofindout that thecarwaswrecked,andthemileagedifferent–alreadyin2011thecarhad113.180milesaccordingtotheinspection.

A FrenchconsumerboughtacarfromaBelgiumdealerwithofficially145.000kmontheodometer.Thecarbrokedownduringthewaybackhomeandwascheckedbyabranddealer inFrance.Thisgarageinformedtheconsumerthecaralreadyshowed265.000kmsixmonthsbeforethepurchase.ECCBelgiumnevergotanyresponsefromthesellerandnosolutioncouldbefoundthroughtheECC-Net.

Before purchase


Clocking – an illegal practice?

Clocking is illegal in 26 European countries:Austria(48),Belgium,Bulgaria(49),Croatia(50),CzechRepublic,Denmark,Estonia,Finland,France(51),Germany(52),Greece(53),Hungary(54),Ireland(55),Italy(56),Lithuania,Luxembourg,Malta,Netherlands(57),Norway(58),Poland(59),Romania,Slovakia(60),Slovenia(61),Spain(62),SwedenandUK.

Sanctions differ considerably from one Member State to another. InGermany,clockingispunishableby1yearinprisonorafine.InFrance,itispunishablebyupto2years’imprisonmentandaEUR37500fine,whileinSlovakia,thefineisjustEUR266.

Inordertomakeaclaim,theconsumerwillusuallyhavetostartcriminalproceedingswhicharecomplex,costlyandlong,especiallyinacross-bordercontext.Theconsumerwillalsohavetoprovidefactualevidenceofthefraudandoftheintentofthesellertoprovidefalseinformation.

It is not illegal in 3 Member States: Cyprus, Latvia(63) and Portugal.

TheAssociationofEuropeanVehicleandDriverRegistrationAuthorities(EReg)submittedareportonthetopicinApril2014(64) expressing theview that, “Mileage fraud isa real societalproblem inEurope.”Oneof therecommendationsofthereportwasthat,“MileagefraudshouldbeconsideredasaseriouslegaloffenceineveryMemberState.”

(48) Basedon§146oftheAustrianCriminalCodewithregardtofraud(“Betrug”)andtheprovisionsoftheAustrianCivilCodewithregardtomisdirectionanddeceit(“Irreführung”,“ArglistigeTäuschung”,§871ABGB,§870ABGB).(49) Basedonthenationallawfortheprotectionofconsumers(unfaircommercialpractices)andtheCriminalCode.(50) BasedontheConsumerProtectionActandCriminalAct.(51) BasedonArticle3-Décretn°78-993du4octobre1978,ArticleL213-1duCodedelaConsommation(deceit,“fraudesetfalsificationsenmatièredeproduitsoudeservicesencequiconcernelesvéhiculesautomobiles”and“délitdetromperie”).(52) Basedon§22bStVG,punishableby1yearinprisonorafine.(53) Basedonarticle386oftheGreekpenalcode.(54) BasedonActCof2012ontheCriminalCode,Section348“Anypersonwho,forunlawfulfinancialgain,manipulatestheodometerreadingofamotorvehiclebycompromisingthereadingmechanismofthedeviceitselfortheprocessofmetering,or

disengagestheodometerinanyway,isguiltyofmisdemeanourpunishablebyimprisonmentnotexceedingoneyear,insofarastheactdidnotresultinamoreseriouscriminaloffence.”(55) BasedontheConsumerProtectionAct2007.Itisanoffencetotamperwithanodometer,ortoprocuresomeoneelsetotamperwithoneundertheRoadTrafficAct2014.(56) Basedonarticle640oftheItalianCriminalCode.(57) Basedonarticle70moftheRoadTrafficAct1994.(58) BasedonStraffeloven§270(criminallaw).(59) Whereitcanbetreatedeitherasanerrororlackofintentfromtheconsumertopurchaseacarinthisconditionorasafraudbasedonarticle286ofthePolishPenalCode.(60) WhereitcanbesanctionedwithafineofEUR266.(61) BasedontheSlovenianPenalcode,article211.(62) Basedonarticle248oftheSpanishPenalCode.(63) However,inFebruary2015,theLatvianParliamentdiscussedamendmentstotheLatvianAdministrativeViolationsCodewhichforeseeprosecutionofindividualsandlegalpersonsfordeliberatedistortionofcarodometers(increasingordecreasingthe

recordedmileage).TheamendmentsforeseefinesforindividualsofuptoEUR100,andforlegalpersonsofuptoEUR1000.(64) https : / /www.goog le . com/ur l ? sa= t&rc t= j&q=&es rc= s&source=web&cd=2&cad= r j a&uac t=8&ved=0CCEQF jABahUKEw iApOC6rZL IAhUBVRQKHXm9C4E&ur l =ht tps%3A%2F%2Fwww.e reg -a s soc i a t i on .

eu%2Fdownloads%2Fpublic%2Fgeneral%2FPublications%2FFinal%2520reports%2520Topic%2520Groups%2FFinal%2520Report%2520EReg%2520Topic%2520Group%2520XIII%2520-%2520Vehicle%2520Mileage%2520Registration.pdf&usg=AFQjCNFuc1DqKrJm6s0BziOpnV0fIyMNsQ&sig2=Jw4f7McWMYZIctDqbrxFTA&bvm=bv.103627116,d.d24

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Initiatives to prevent clocking

AsclockingisanissueoftenseenbyECCs,manyprovidespecificinformationonthistopicontheirwebsite.Also,public serviceshave taken this subjectonboard. Forexample, theBelgianFederalPublic Service fortheEconomypublishedabrochureonodometerfraud(http://economie.fgov.be/fr/modules/publications/general/carpass_folder_fr.jsp)andledaninformationcampaigntogetherwiththeBelgianConfederationofMotorVehicleDealers,RepairersandOperatorsinRelatedSectors(http://www.vuesurvotregarantieauto.be/go.to/modix/now/home-frbe.frbe.html).

AutomobileclubsthroughouttheEUhavealsoraisedawarenessofthisissueamongstakeholders(65).

The French enforcement authority has carried out 5 543 checks over the last 3 years and launched legalproceedingsin146cases.Anationwideinspectioncampaignisforeseenfor2015(66).

At EU-level, Directive 2014/45/EU(67)which is part of the “Roadworthiness package(68)”, repealingDirective2009/40/EC(69),aimstofightodometermanipulationandforeseesthat,odometerfraudshouldberegardedasapunishableoffence,becausemanipulationofanodometermay leadtoan incorrectevaluationof theroadworthinessofavehicle.The recordingof themileage in the roadworthinesscertificateandaccess forinspectors to that information should facilitate the detection of odometermanipulation. The exchange ofinformationonodometerreadingsbetweenthecompetentauthoritiesofMemberStatesshouldbeexaminedbytheCommission.

AccordingtotherecommendationsoftheEuropeanCommissionstudy on “the functioning of the market for second hand cars from a consumer perspective in the European Union”(70),and“AccordingtotheprovisionsofDirective2005/29/ECconcerningunfairbusiness-to-consumercommercialpractices(71),inparticularArticles6and7,acommercialactshouldnotcontainfalseinformationaboutaproduct’smaincharacteristicsandshouldnotomitmaterial informationthattheaverageconsumerneedsinordertotakeaninformedtransactionaldecision.Inaddition,accordingtotherecentlyadoptedRoadworthinessPackageandDirective2014/45/ECinparticular,odometerfraudshouldberegardedasanoffenceliabletopenalties.However,resultsofthestudyshowthattradersofsecondhandcarsdonotalwayscomplywhenitcomestoinformingprospectivebuyersabouttheaccuracyofacar’sodometer.Inthatrespect,thestudysuggeststhattradersofsecondhandcarsshouldprovidemorereadilyinformationoncarmileagecheckstoverifytheodometeraccuracyandwithmore

(65) TheGeneralGermanAutomobileClub(ADAC),forexample,claimsthatoneverythirdusedcarsoldinGermany,theodometerhasbeenmanipulated.ValuesareinflatedbyanaverageofEUR3000acar,leadingtoanoveralllossofapprox.EUR6000000000inGermany.PartoftheADACinitiativeinvolveslobbyingEuropeanstakeholdersinordertointegrateprotectionagainstmanipulationofodometersintoEUtypeapprovalrules.MoreinformationinGerman:https://www.adac.de/infotestrat/fahrzeugkauf-und-verkauf/gebrauchtfahrzeuge/tacho-manipulation/default.aspx?prevPageNFB=1andhttp://www.fr-online.de/auto/tuev-rheinland-tacho-betrug-erschuettert-vertrauen-in-handel,1472790,32227104.html

(66) http://questions.assemblee-nationale.fr/q14/14-77805QE.htm(67) http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0003(68) TheRoadworthinessPackagecontainsDirective2014/45/EUonperiodicroadworthinesstests,Directive2014/47/EUontechnicalroadsideinspectionsforcommercialvehiclesandDirective2014/46/EUonvehicleregistrationdocuments.(69) http://www.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2012/0184%28COD%29(70) http://ec.europa.eu/consumers/consumer_evidence/market_studies/second_hand_cars/index_en.htm(71) http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:149:0022:0039:EN:PDF

http://economie.fgov.be/fr/modules/publications/general/carpass_folder_fr.jsphttp://economie.fgov.be/fr/modules/publications/general/carpass_folder_fr.jsphttp://www.vuesurvotregarantieauto.be/go.to/modix/now/home-frbe.frbe.htmlhttp://www.vuesurvotregarantieauto.be/go.to/modix/now/home-frbe.frbe.htmlhttp://ec.europa.eu/consumers/consumer_evidence/market_studies/docs/2ndhandcarsreportpart1_synthesisreport_en.pdfhttps://www.adac.de/infotestrat/fahrzeugkauf-und-verkauf/gebrauchtfahrzeuge/tacho-manipulation/default.aspx?prevPageNFB=1https://www.adac.de/infotestrat/fahrzeugkauf-und-verkauf/gebrauchtfahrzeuge/tacho-manipulation/default.aspx?prevPageNFB=1http://www.fr-online.de/auto/tuev-rheinland-tacho-betrug-erschuettert-vertrauen-in-handel,1472790,32227104.htmlhttp://questions.assemblee-nationale.fr/q14/14-77805QE.htmhttp://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0003http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0003http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0005http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:JOL_2014_127_R_0004http://www.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2012/0184%28COD%29http://ec.europa.eu/consumers/consumer_evidence/market_studies/second_hand_cars/index_en.htmhttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:149:0022:0039:EN:PDF

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trustworthymeansthansimplyofferingverbalassuranceoraskingconsumerstovisuallychecktheodometerthemselves.Asbefore,MemberStatesarecalleduponformoreeffectiveenforcementoftheexistingconsumerlegislation;“.

AccordingtoEReg,“Mostofthosecountriesthinkthatthereisaneedofmileageregistration: duringtheroadworthinessinspection; eachtimethecargoestothegarageforrepairandmaintenance,soduringthelifetimeofthevehicle; ontheinvoicewhenthecarissold(guaranteeforthebuyer).”

EReghasidentifiedEUCARIS(72)asthe“appropriatetooltoexchangemileagedata”.

However, these proposals do not provide for consumers or organisations acting on behalf of buyers to obtain such information before purchasing.

AlthoughmostMemberStatesrequiremileagetobenotedduringperiodicalinspections,itiscurrentlyquitedifficultforconsumerstoaccessthisinformationevenafterpurchasetoverifytheinformationprovidedbytheseller.Inmostcases,theywouldneedtohaveanindependentcheckofthecarcarriedout(73).

However,thesellerwillhavetoagreetosuchacheckbeforepurchase.Theconsumermayalsoaskthesellerifsuchacheckhasalreadybeenperformed.

In Germany for example, the « Gebrauchtwagenuntersuchung » costing about EUR 70, can be carried out on a used car together with the technical inspection and is likely to show up the car‘s real mileage.

(72) Seealsopage26.(73) Seealsopage73ontechnicalcontrolsandindependentexpertopinions

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Thecarowner’smanualorservicebookcangiveanindicationofthecoherenceoftherecordedmileagewiththeageofthecaratthetimeofchecksandservices.

Insomecases,agaragemightbeofassistanceinaccessingtheelectronicservicebook.InLatvia,theRoadTrafficSafetyDirectorate(CSDD)checksthemileagewhenacarisregisteredandduringCSDDtechnicalinspections.However,thisrequiresthattheconsumerhaveaccesstothecartotakeittoaservicecentre.Itisquiterarethatconsumerscanhavethatkindofaccesstoacarwhentheyarestilldecidingwhethertobuyit.

Only in five countries does it seem possible to find pre-purchase mileage information:

IntheUK,consumerscancheckthemileageusingtheMOTschemerecords: https://www.gov.uk/check-mot-status.

InBelgium,sinceDecember12006(74),consumerscanbenefitfroma“Car-Pass”whicheveryseller(privateorprofessional)ofausedcarhastoprovidetothebuyer.TheCar-Passhastobecreatedunder2monthsbeforesale.Itindicatesthemileageofthecaratthetimeswhenitunderwenttechnicalinspections,repairs,etc..IftheCar-Passisnotprovided,theconsumercanaskforcancellationofthesale.MoreinformationisavailableonthewebsiteoftheBelgianFederalPublicServicefortheEconomy(75).

IntheNetherlands,asimilarsystemexists.TheNationaleAutoPas(NAP)registersthemileageateveryperiodictechnical inspection.AsofJanuary2014,theNAPdatabase ismanagedbytheDutchtransportauthority–RijksdienstvoorWegverkeer (RDW).

OnthewebsiteoftheSwedishTransportAgency, consumerscanfindthedateofthelastapprovedtechnicalinspectionandmileageatthattime.

InHungary,itisalsopossibletocheckcertaindetailsofthecarpre-purchase.Tousetheserviceitisnecessarytoregisteronacentralwebsite(76)anddetailscanbeaccessedforafee(HUF275(~EUR1)/vehiclebutaminimumofHUF625(~EUR2)isdue).Registereduserscangetaccesstoinformationsuchasthelicenceplatenumber,themakeofthevehicle,mileageandwhetherthecarisallowedtobedrivenontheroad.Theycanalsocheckwhetherseveralothertypesofdetailinthevehicledocumentsmatchwiththoseintheregistry(numberoftheregistrationcertificate,yearofmanufacture,dateofthefirstregistration,weight,fueltype).PaymentcanbemadeonlinewithabankcardandtheresultismadeavailableinPDFformat.

TheEuropeanParliamentresolutiononCARS2020:towardsastrong,competitiveandsustainableEuropeancarindustry“CallsontheCommissiontotakemeasures,incooperationwiththeMemberStates,toensureahighlevelofconsumerprotection,transparencyandsafetyinthesecond-handcarmarket,andtoworktowardsagradualphasing-outofpollutingandlesssafevehicles;commendstheCommission’srecommendationinthe

(74) TheCar-PassisestablishedbylawandaRoyalDecree.(75) http://economie.fgov.be/fr/consommateurs/Car-Pass/#.VcSppvmNNv0(76) http://kekkh.gov.hu/gepjarmuadat-lekerdezo/canbeconsulted.

https://www.gov.uk/check-mot-statushttp://www.car-pass.be/http://economie.fgov.be/fr/binaries/CarPass_folder_fr_tcm326-28738.pdfhttp://kekkh.gov.hu/gepjarmuadat-lekerdezo/

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roadworthiness testing regulation to requiremileage recordingateach test; considers that initiatives suchasthe‘CarPass’schemeinBelgiumcouldbeencouragedbyaEuropeanStandard;notesthatre-registrationproceduresforvehicletransfersmustalsodiscouragecross-bordermileagefraud”(77).

InFrance,amileagecheckispossiblebutonlyafterregistrationofthecar.ForeveryregisteredcarthatpassesatechnicalinspectioninFrance,consumerscanrequestdetailsoftheinspectionscarriedoutinFrancefromtheTechnicalUnionfortheAutomobile,MotorcycleandCycleIndustries(UTAC-OTC),byprovidingacopyoftheregistrationcertificateintheconsumer’snameandacopyofhis/heridentitycard(78).ThetechnicalinspectionsperformedinFranceincludedetailsofmileage,allowingconsumerstodiscoverdiscrepancieswithouthavingtoorganisechecks.

Ifaconsumersuspectsthattheyhavebeensoldacaronwhichthemileagehasbeenmanipulated,theycanreportthecasetothepolice,theprosecutororthecompetentenforcementauthorityforconsumerprotectionortransport.IncountriessuchasNorway,outofcourtdisputesettlementbodiesmightbeavailable.

(77) http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+REPORT+A7-2013-0391+0+DOC+XML+V0//EN(78) http://www.utac-otc.com/fr/ctvl/faq.asp#q8

http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+REPORT+A7-2013-0391+0+DOC+XML+V0//EN

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Can a contract be cancelled or amen-ded for clocking?

Cancellationofacontractof sale in instancesofclockingmayneedtobepronouncedbyacourt inacivilprocedure.Hereagain,thesituationintheMemberStatesvariesconsiderably.

InFrance,thecivilcodeallowsaconsumertoaskforcancellationofasalebasedonhiddendefects if theconsumercanprovethatthemileageindicatedinthecontractdoesnotcorrespondtotherealmileage.Acourtcanpronouncethecancellationofthecontractevenifthesellerdidn’tknowaboutthemanipulation.Iftheydid,furtherdamagescouldbeawardedtotheconsumer.

InGermany,cancellationofthecontractisonlypossibleiftheconsumercanprovethemanipulationandtheintentoftheseller.GiventhatmanycarsalecontractsinGermanycontainclausessayingthattheindicatedmileageisjustanestimationandtherealmileageisnotknown,recoursebecomesdifficult.

AsageneralruleinAustria,Belgium,Croatia,CzechRepublic,Denmark,Estonia,Finland,France,Germany(79),Greece,Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,Malta(80), Netherlands(81), Norway(82), Poland,Romania,Slovakia,Slovenia,SwedenandUKconsumersmaybeabletocontestthevalidityofacontractbasedonfraud,non-conformity,hiddendefectsorlackofconsent.

InPortugal, given that theodometer isonlyone sourceof informationabout the car andotherelementscanbetakenintoconsideration,itisverydifficultorevenimpossibletocancelapurchasebasedsolelyonadiscrepancyinthemileage.

(79) Ifthesellerknewaboutthemanipulation.(80) Ifthesellerknewaboutthemanipulation.(81) Basedonabsenceofconsent.(82) Aslongasthesellerdidnotnotifytheconsumerinadvance.

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Focus: cloning

Cloning involves giving a car the identity of another, already registered, car using either the plate number or the identification number. In some cases, the plate number is an invention and doesn’t correspond to that of another registered vehicle.

Consumersmaybealertedtothiswhencarshoppingbypriceswhicharesubstantiallylowerthanthoseofcomparablemakesandmodels.

Toavoidcloning,(inasfaraspossible,asitisusuallyperformedbywell-organisedcriminals)consumersshouldrequestacopyofthecar’svehiclehistoryreportbeforepurchaseandlookoutformistakesinthevehicle’spapers.Theyshouldalsovisitthedealershipandcheckthecarinperson,lookingoutforanysignoftamperingwiththeregistrationplates.

If consumers are offered a cloned car, they should contact the local police immediately.

Unfortunately,consumersoftenonlyrealisethattheyhavefallenvictimtocloningafterpurchase,whentheyreceivenoticesaboutunpaidparkingticketsorspeedingoffences.

Ifconsumersreceiveanysuchnotice,theyshould contest itbyprovidingacopyoftheregistrationpapersoftheirvehicleandpersonalidentification.

InFrance,a consumerwho receivesanoticeof thiskind,a “procèsverbal (PV)”,whichgives their vehicleregistrationnumberbutadifferentmakeormodelofcarhas45daysfromreceivingthePVtocontestit.Theyshoulddothisbysendingacopyoftheregistrationcertificate(“cartegrise”)togetherwithawrittennoteontheformprovidedstatingthatthevehicleidentifiedonthePVdoesnotbelongtothemtothepublicprosecutor’soffice“OfficierduMinistèrePublic(OMP)”.

Ifthemakeandmodelareidenticaltothoseoftheconsumer’scar,theconsumerneedstocontestthePVinwritingbysendingalettertotheOMPtogetherwithproofthathe/shecouldn’thavebeenintheplacewheretheoffencetookplace(statementfromanemployer,bankslips,trainorplaneticketsoranyotherdocument).

Iftheregistrationplatehasbeencopied,othernoticesusuallyfollow.Theconsumershouldprepareafileofalloftheevidence(noticesreceived,lettersexchangedwiththepublicauthorities,courtdecisionsifapplicable).Theconsumershouldcontesteverynoticebycontactingthecompetentregionalpublicauthorityandreferringtothepreviousnotices.

Assoonasthesecondnoticearrives,consumersshouldthinkaboutgetting the plates changed.Thismaynotbenecessaryincountrieswheretheregistrationplatesremainonthevehicleforitsentirelifetime.

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Usually,theywillneedtofileacomplaintwiththepoliceortheprosecutor.Theymayalsoreportthemattertotheregistrationauthority.

InFrance,theconsumershouldcomplaintothepoliceandthenstartproceedingswiththeregistrationauthority(thedepartmentaladministrativeheadquarters-“Prefecture”)towhomhe/sheshouldpresentacopyoftheacknowledgementof thecomplaint fromthepolice, theregistrationcertificate,personal identificationandproofofaddress.Theconsumerwillreceiveanew“cartegrise”andregistrationnumberfreeofcharge.Iftheyhavetobesentbypost,theconsumermightberequiredtopayaboutEUR2.50.He/shewillalsohavetopayforthenewplatestobeputonthevehicle.

If the seller uses a marketplace or other intermediary website, can the consumer make a claim against the intermediary in

cases of fraud?

Manyintermediarywebsitesexist inthecarpurchasesector.Severalofthemoperate indifferentMemberStates.Theyareusedbymanyconsumerstolookforattractiveprices.

AstudyconductedbytheEuropeanCommissiononthefunctioningofthemarketforsecond-handcarsfromaconsumerperspectiveintheEuropeanUnion(83)revealedthat,“Internetcarportalswereratedhighlyforanumberofcharacteristicsandmorethan50%ofrespondentspurchasedtheircarviaaportal.Theywereratedmuchlowerforthetransparencyofinformationonthebusinessmodelofsuchportalsandthecoverageofcarsfromabroad.”

(83) http://ec.europa.eu/consumers/consumer_evidence/market_studies/second_hand_cars/index_en.htm

http://ec.europa.eu/consumers/consumer_evidence/market_studies/second_hand_cars/index_en.htm

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But what is the extent of their responsibility if something goes wrong?Usually,accordingtothetermsandconditionsofthesesites,theydonotbearanyresponsibilityfortheadvertspublishedandonlyactasintermediariestofacilitatesales.

Theyarenotresponsiblefordata,images,advertisingorinformationonthewebsiteprovidedbyadvertisersunlessanadvertisillegalorthewebsiteoperatordoesnotcomplywithnationallegislationtransposingtheE-Commerce Directive(84) (notice and take-down processes)(85) or any other national legislation thatmayapply(86).Intermediariesusuallycooperatewithjudicialauthoritiesorpoliceonrequestandifissuesofprivacyanddataprotectionhavebeensettledbyajudge.

Ascontractsaresignedbytheconsumerandtheseller,recourseisonlypossibleagainsttheseller.Tostartjudicialproceedingsagainstanintermediarywebsite,aconsumerwouldhavetobaseanyactionongenerallawandprovethatthewebsiteadministratorswereatfault,whichisusuallyimpossible.

Whenfraudissuspected,consumersshouldreportittothewebsiteadministratorwhomaybeabletopreventthesellerfrompostinganyfurtheradverts.Iftheyfailtodoso,futurevictimsmaybeabletoarguethattheyactednegligently,butsolidevidencewillbenecessary.

Oneexceptionshouldbehighlighted. IntheNetherlands,aclaimagainst intermediarywebsites ispossibleunderDutchlawastheconsumerhastherighttoexpectthatthewebsiteonlydoesbusinesswithreliabletraders.Also,thewebsiteneedstomakesurethatthecarisdelivered.Thewebsiteadministratorisresponsiblefortheadvertisementaccuratelydescribingthecar.Ifanadvertisementstatesthatasecond-handcarhasair-conditioningandaGPS,aconsumerwillexpectittohavethem.

(84) Directive2000/31/EConelectroniccommerce:http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32000L0031:EN:NOT(85) http://ec.europa.eu/internal_market/e-commerce/notice-and-action/index_en.htm(86) Forexample,accordingtoItalianlaw(art.16,comma1,delDLgs.N.70/03)websitesarenotliableforinformationstoredattherequestoftherecipientofaservice,onconditionthattheydonothaveactualknowledgeofillegalactivitiesorinformation

and,asregardsclaimsfordamages,arenotawareoffactsorcircumstanceswhichwouldmakeillegalactivityorinformationapparent.Theyarealsonotliableif,afterobtainingsuchknowledge,theyremoveordisableaccesstotheinformation.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32000L0031:EN:NOT

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To whom should fraud be reported?

Inhis/herhomecountry,aconsumerwouldreportfraudtothepolicestationorpublicprosecutor’soffice.

Intheseller’scountry, iftheconsumerisnottherehe/shecanoftensendarecordeddeliverylettertothenearestpolicestationtowherethesellerislocated.However,insomecountries,theconsumerisadvisedtoonlyreportfraudtotheauthoritiesofhis/herhomecountry(87).

Several countries have specific cybercrime units within the police whom consumers can contact to report scams.

Austria

Anypolicestationorthecompetentpublicprosecutionauthority;orthecybercrimereportingofficeattheFederalCriminalPoliceOffice:

BundesministeriumfürInneres,

Bundeskriminalamt–MeldestelleCybercrime,

Josef-Holaubek-Platz1,1090Wien;

e-mail:[email protected]

Belgium Thereisnospecificauthorityforsuchcomplaints.Consumerscanlodgeacomplaintwiththelocalpolicestation.

Bulgaria Theconsumershouldsendalettertothelocalpoliceorthelocalpublicprosecutor’soffice.

Croatia TheconsumershouldreportthemtotheDepartmentforHigh-techCriminalityoftheMinistryoftheInterior.

(87) Forexample,inPoland.

mailto:[email protected]

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Cyprus

ConsumerscanreportonlinefraudstotheCriminalInvestigationOfficeoftheCyprusPolice(EconomicCrimeInvestigatingOffice).IftheconsumerisaresidentinCyprus,he/shecanreportthistotheabovementionedpolicedepartment,eitherbysendinganemail,reportingthisonthephoneorvisitingthenearestpolicestation.Thesameappliesforaconsumerfromanothercountry,ifthetraderislocatedinCyprus”.Forfurtherinformation:

http://www.police.gov.cy/police/police.nsf/f5d3aa79835d246ec22578b0003515a8/

5ef7a1c0a814eb74c22578a900271b1c?OpenDocument

Czech Republic Consumersshouldreporttothenearestpolicestation.

Denmark Consumersmustreportinpersonatthelocalpolicestation.

Estonia

Fraudshouldbereportedtothepolice(PoliceandBorderGuardBoard)ortothepublicprosecutor’soffice.Contactdetailsandinstructionsonhowtofileacomplaintarepublishedatthepolicehomepageandattheprosecutor’sofficehomepage.

Finland

Consumersshouldreporttothepolice.Reportscanbesubmittedatthepolicestationoronlinehttps://www.poliisi.fi/crimes/reporting_an_offence_online.ReportsinEnglishmustbemadeatthepolicestationorusingaprintableformwhichcanbefoundathttps://www.poliisi.fi/crimes/report_of_an_offence.

France

Consumerscansendarecordeddeliverylettertothenearestpolicestationtowherethetraderislocated.Onlinescamscanbereportedtothepolicecybercrimeunit.

https://www.internet-signalement.gouv.fr/PortailWeb/planets/Accueil%21input.action

GermanyConsumerscanfileacomplaintwiththelocalpoliceorpublicprosecutor’soffice.SomeGermanstatesofferthepossibilitytofileacomplaintonline(“Onlinewache”).

Greece

Consumerscanreportfraudatthelocalpolicestation,byphone(11188),fax(+302106476462)ore-mailFormoreinformationwww.hellenicpolice.gr.

ThecompetentauthorityforonlinescamsistheGreekpolicecybercrimeunitccu@cybercrimeunit.gov.gr.

http://www.police.gov.cy/police/police.nsf/f5d3aa79835d246ec22578b0003515a8/5ef7a1c0a814eb74c22578a900271b1c?OpenDocumenthttp://www.police.gov.cy/police/police.nsf/f5d3aa79835d246ec22578b0003515a8/5ef7a1c0a814eb74c22578a900271b1c?OpenDocumenthttp://www.police.gov.cy/police/police.nsf/f5d3aa79835d246ec22578b0003515a8/5ef7a1c0a814eb74c22578a900271b1c?OpenDocumenthttps://www.poliisi.fi/crimes/reporting_an_offence_onlinehttps://www.poliisi.fi/crimes/reporting_an_offence_onlinehttps://www.poliisi.fi/crimes/report_of_an_offencehttps://www.poliisi.fi/crimes/report_of_an_offencehttps://www.internet-signalement.gouv.fr/PortailWeb/planets/Accueil%21input.actionhttps://www.internet-signalement.gouv.fr/PortailWeb/planets/Accueil%21input.actionhttp://www.hellenicpolice.grhttp://www.hellenicpolice.grmailto:[email protected]

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Hungary Consumersshouldreportanycasesoffraudtothenearestpolicestationtowherethetraderislocated.

Ireland

ConsumersareadvisedtoreportfraudtotheGardai.ConsumersresidentinIrelandcanreporttheproblemtotheGardaBureauofFraudInvestigation.Theymayalsocontacttheirlocalpolicestation,whichmayinturnreferthecomplaintonward.

Italy

Thereisnospecificentityfortheautomotivesector,butconsumerscanreportonlinescamsingeneraltothepolicestationnearesttowherethetraderislocated.Theycanalsoreportbyemail([email protected])totheanti-ITcrimegroup(“Gruppoanticriminetecnologico–GAT”),aspecialdepartmentoftheGuardiadiFinanza,thelawenforcementagencydealingwithfinancialcrime,aswellastothePostalandCommunicationsPolice(Poliziapostaleedellecomunicazioni)viatheirwebsite.

Inbothcases,consumersneedtoconfirmthereportatthelocalpolicestation.

Latvia

ConsumerscanreporttothenearestpolicestationortotheEconomicCrimesAdministrationoftheStatePolice.ResidentsinanotherEUMemberStatecancontactthemainofficeoftheStatePolice:

Ciekurkalna1stline1,k-4,Riga,LV-1026,Tel:+37167075212,Secretariat:+37167075030,e-mail:[email protected]

Lithuania Consumerscanreporttothenearestpolicestationtothetrader’spremises.

Luxem-burg

Consumersshouldreporttothenearestpolicestation..Onlinereportscanbemadethrough

http://www.police.public.lu/fr/support/contact/index.php

Malta ConsumerscanreporttothePoliceCyberCrimesUnit.

Nether-lands

Onlinefraudcanbereportedtothefraudhelpdesk(byphoneorathttps://www.fraudehelpdesk.nl/).ADutchconsumercanalsoreportfraudtothelocalpolicebyvisitingthepolicestation,byphoneorbyfillinginaformhttps://www.politie.nl/aangifte-of-melding-doen.Aconsumerfromanothercountrycancontactthepolicehttps://www.politie.nl/en/contact.

mailto:[email protected]://www.police.public.lu/fr/support/contact/index.phphttps://www.fraudehelpdesk.nl/https://www.politie.nl/aangifte-of-melding-doenhttps://www.politie.nl/en/contacthttps://www.politie.nl/en/contact

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Norway

FraudcasescanbereportedfreeofchargetotheNorwegianConsumerCouncilformediation.Ifthepartiescannotfindasolution,thecasemaybehandledbytheConsumerDisputeCourt.

Fraudcasescanalsobereportedtothenearestpolicestationhttps://www.politi.no/kontakt_oss/kontakt_ditt_politidistrikt/.Foreigncitizensmustcomeinpersoninordertofileareport.

Poland Consumersshouldreporttothelocalpolicestationortothepublicprosecutor’soffice.

PortugalTothelocalpolicestationandtothecriminalinvestigationdepartment(PoliciaJudiciaria)bysubmittingacomplaintform,availableontheirwebsite,withanelectronicsignature,orbyphone(+351211967000).

Romania

ConsumersshouldreportonlinetothelocalofficesoftheNationalConsumerProtectionAuthority.ComplaintsmustbemadeinRomanianandanydocumentsinotherlanguagesmustbetranslatedintoRomanian.

Consumerscanalsoreportfraudtothepoliceinwritingorbyphone,usingthecontactdetailsontheirwebsite.Thepolicestationclosesttowherethetraderiscanbefoundbasedontheonlinemap.Itisadvisabletohaveanye-mailswritteninRomanianortohavesomeonewhospeaksRomaniantohelp.

Slovakia

Consumersshouldreporttothenearestpolicestationortotheprosecutor’soffice.Consumerscancontacttheembassybeforehandinordertogetaccurateinformationontheprocedureintheirnativelanguage.

SloveniaConsumerscanreportonlinefraudtothelocalpoliceinpersonbycallingtheemergencynumber113

[email protected].

Spain Consumersshouldreportfraudtothepolice(“CuerpoNacionaldePolicia”)ortotheGuardiaCivil.

SwedenConsumerscanreportfraudtothepolicebytelephone,e-mail,online(https://polisen.se/en/Languages/Victims-of-Crime/Make-a-report1/)orinpersonatapolicestation.

https://www.politi.no/kontakt_oss/kontakt_ditt_politidistrikt/https://www.politi.no/kontakt_oss/kontakt_ditt_politidistrikt/mailto:gp.policija%40policija.si?subject=https://polisen.se/en/Languages/Victims-of-Crime/Make-a-report1/

Before purchase


United Kingdom

ConsumersshouldreportfraudtothelocalTradingStandardsthroughtheCitizens’AdviceConsumerHelpline: 03454 04 05 06(especiallyifthedetailsgivenbytheperpetratorarethoseofalegitimatetraderwhoisunawareofthefraud).

ItmightbeusefulforconsumerstolookforInternetforumsordiscussiongroupstoseeifthereisanopportunitytosubmitnumerouscomplaintsaboutfraudulentpracticestothesamepolicestationorpublicprosecutor’soffice.

Consumersshouldalsocheckwhether theircontractswith theirbankorcreditcard issuerprovide foranyreimbursementfollowingfraud.

Before purchase


Paying for a car

Methods of payment

ECCs advise consumers to carefully check the methods of payment accepted by traders and to ensure that transactions are as secure as possible(88).

Sometradersmight askforadepositandacceptadepositincash,othersmightaskforadebitorcreditcardpaymentandothersstillmightacceptcheques(89),moneytransfersorpostalorders.Consumercreditmightalsobeusedwidely.

IntheSingleEuroPaymentsArea(SEPA)(90),consumerscanmakefastandsecuremoneytransfersviabankswithintheeuroarea(91).ForamountsofuptoEUR50000,feesarethesameasfornationalbanktransfersiftheconsumerusestheIBANandBICinternationalbankidentificationcodestoindicatetherecipient’sbankaccountandbank. However, given that these transfersarenowprocessedwithinaworkingday,once themoneyiscreditedtotheseller’saccountthepaymentisdifficulttoreverse(92).

Insomecountriesdebitcardsmaybeanoption,butastheyoftenhavelimitsontheamountthatcanbespent,consumersmustcheckwiththeirbankspriortopurchaseand,ifnecessary,increasetheamountforashortperiod.

Manyconsumersusecash.However there are limitations on cash payments within the EU and entering or leaving a country with cash may be subject to customs declarations.

TheBelgianFederalPublicServicefortheEconomyconductedaninvestigationintothesecond-handcarsectorin2014andfoundthatthelargestnumberofinfringementsconcernedillegalcashpayments(47%)followedbymileagefraudandnon-respectoflegalguaranteeobligations(both18%)(93).

(88) Seealsopage58.(89) However,thismeansisnotverywidelyusedasveryhightransactionfeesforcashingachequefromanotherEUcountrymayapply,chequesnotbeingcoveredbytheSEPARegulation(EC260/2012).(90) http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012R0260:EN:NOT(91) https://www.ecb.europa.eu/euro/intro/html/map.en.html(92) WhereaswithadirectSEPAdebit,theconsumercanrefusethedebitupuntil1daybeforetheduedate,contestanauthorisedpaymentwithin8weeksandaunauthoriseddebitwithin13months.(93) http://economie.fgov.be/fr/binaries/20150724_communique_de_presse_enqu%C3%AAte_voiture_occasion_tcm326-270486.pdf

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012R0260:EN:NOThttps://www.ecb.europa.eu/euro/intro/html/map.en.htmlhttp://economie.fgov.be/fr/binaries/20150724_communique_de_presse_enqu%C3%AAte_voiture_occasion_tcm326-270486.pdf

Before purchase


Cash payment restrictions in Europe

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