retailers' attitudes towards cross-border trade and consumer

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Flash EB N o 300 – Retailers’ attitudes towards cross-border trade and consumer protection Analytical report page 1 Flash Eurobarometer 300 The Gallup Organization This survey was requested Directorate-General Health and Consumers and coordinated by Directorate-General Communication. This document does not represent the point of view of the European Commission. The interpretations and opinions contained in it are solely those of the authors. Flash Eurobarometer Retailers’ attitudes towards cross-border trade and consumer protection Analytical report Fieldwork: September - October 2010 Report: March 2011 European Commission

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  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 1

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    This survey was requested Directorate-General Health and Consumers and coordinated by Directorate-General Communication.

    This document does not represent the point of view of the European Commission. The interpretations and opinions contained in it are solely those of the authors.

    Flash Eurobarometer

    Retailers attitudes towards

    cross-border trade and

    consumer protection

    Analytical report

    Fieldwork: September - October 2010

    Report: March 2011

    European Commission

  • page 2

    Flash EB Series #300

    Retailers attitudes towards cross-border trade and consumer

    protection

    Conducted by The Gallup Organization

    upon the request of Directorate-General

    Health and Consumers

    Survey coordinated by the Directorate-General Communication

    This document does not reflect the views of

    the European Commission. The interpretations and opinions contained

    in it are solely those of the authors.

    THE GALLUP ORGANIZATION

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 3

    Contents

    Contents ..................................................................................................................................... 3

    Introduction .............................................................................................................................. 4

    Main Findings ........................................................................................................................... 5

    1. Characteristics of the retailers surveyed ............................................................................ 9

    1.1 Number and type of retail channels used .......................................................................... 9

    1.2 Estimated turnover from e-commerce and other distance sales ..................................... 14

    1.3 Retailers willingness to sell in different EU languages ................................................. 15

    1.4 Retailers having subsidiaries or retail outlets in other EU countries .............................. 17

    2. Level of cross-border trade in the internal market ......................................................... 19

    2.1 Current cross-border sales .............................................................................................. 19

    2.2 Estimated turnover from cross-border activities ............................................................ 21

    2.3 Retailers advertising in other EU countries .................................................................... 22

    2.4 Cross-border trade if regulations were the same in the EU ............................................ 24

    3. Information and awareness of legal obligations towards consumers ............................ 32

    3.1 Perceived level of information about legislation on consumer protection, food and

    product safety ....................................................................................................................... 32

    3.2 Specific knowledge of consumer legislation .................................................................. 36

    3.3 Specific knowledge of product safety legislation ........................................................... 43

    3.4 Finding information about consumer legislation ............................................................ 52

    4. Compliance with consumer and product safety legislation ............................................ 55

    4.1 Incidences of non-compliance ........................................................................................ 55

    4.2 Enforcement and market surveillance ............................................................................ 61

    4.3 Perceived compliance monitoring with consumer and product safety legislation ......... 70

    5. Alternative Dispute Resolution (ADR) mechanisms ....................................................... 76

    5.1 Use of ADR mechanisms to settle disputes with consumers.......................................... 76

    5.2 Preference for dispute resolution mechanisms ............................................................... 79

    I. Annex tables ........................................................................................................................ 82

    II. Survey details ................................................................................................................... 226

    III. Questionnaire ................................................................................................................. 229

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 4

    Introduction

    The objective of Flash Eurobarometer Retailers attitudes towards cross-border trade and

    consumer protection (No300) was to assess business attitudes towards cross-border trade

    and consumer protection in the EU internal market. Managers of retail companies (with at

    least 10 employees) were interviewed on several topics:

    the use of distant sales channels and the extent of cross-border sales

    their interest in making (more) cross-border sales if regulations were harmonised

    their knowledge of legislation on consumer protection and product/food safety

    their compliance with consumer and product safety legislation

    their experience with enforcement and market surveillance actions

    the use of, and preference for, different dispute resolution mechanisms

    This Flash Eurobarometer (No300) is part of a trend survey; earlier waves with (partly)

    similar content were conducted in 2006 (Flash Eurobarometer No186)

    1, 2008 (Flash

    Eurobarometer No224)

    2 and 2009 (Flash Eurobarometer N

    o278)

    3.

    The survey covered all 27 EU Member States, Iceland and Norway. Companies included in

    this study were those in sectors that were considered to be likely to have significant retail

    activity and to be able to sell via distance sales channels4. Of the companies surveyed, 71%

    were small companies (between 10 and 49 employees), while 20% were medium-sized

    companies (between 50 and 249 employees) and 9% were large companies (with at least 250

    employees).

    In most EU Member States and in Norway, the targeted sample size was 250; in Luxembourg,

    Malta and Iceland, the targeted number of interviews was reduced to 200. Overall, 6,680

    companies were interviewed, between 28th

    September and 6th

    October 2010, using a fixed-line

    telephone methodology. Eligible respondents were general managers and marketing or

    commercial managers.

    Post-stratification weights were used to restore the sample proportions according to company

    size and industry sector (to match these in the sample to external reference statistics). When

    EU-wide summary estimates are discussed, the results of the interviews have been weighted

    to correct for the disproportional selection of countries in the starting sample, so that countries

    are proportionally represented in the EU average. For more details about interviewing

    methods, sampling and the margins of sampling error, see the survey details section.

    1 http://ec.europa.eu/public_opinion/flash/fl_186_en.pdf

    2 http://ec.europa.eu/public_opinion/flash/fl_224_en.pdf

    3 http://ec.europa.eu/public_opinion/flash/fl_278_en.pdf

    4 For more details, see the technical note in annex.

    http://ec.europa.eu/public_opinion/flash/fl_186_en.pdfhttp://ec.europa.eu/public_opinion/flash/fl_224_en.pdfhttp://ec.europa.eu/public_opinion/flash/fl_278_en.pdf

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 5

    Main Findings

    Sales channels and cross-border sales

    Almost three-quarters of retailers in the EU used the traditional method of selling goods or services to consumers via shops (73%; compared to 75% in 2009); a similar proportion

    said they used at least one distance sales channel; for example, Internet sales or sales by

    phone or post (72%; compared to 70% in 2009).

    The Internet was the most common distance sales channel: a slim majority of retailers said they sold goods or services via the Internet (53%; up from 51% in 2009). The use of the

    telephone as a sales channel was mentioned by 43% of retailers and mail order (e.g.

    selling by post) was offered by 29% of retailers; these results were unchanged

    compared to 2009.

    In Ireland, Denmark and the UK, the norm was to offer customers the possibility to purchase goods or services without visiting the companys physical store or production

    site: between 88% and 93% of retailers in these three countries used distance sales

    channels.

    Somewhat more than a fifth (22%) of retailers in the EU said they were selling their products or services in other EU countries. This proportion was lower than in 2006 (29%)

    or 2009 (25%), but slightly higher than the proportion observed in 2008 (20%). Similarly,

    the proportion advertising across borders was 24% in 2010; this proportion was 21% in

    2008 and 25% in 2006.

    The prevalence of cross-border activity continued to vary significantly across the EU: the proportion of retailers that reported selling their products or services in at least one other

    EU country ranged from 9% in Romania to 54% in Luxembourg.

    Companies with at least 50 employees, those with subsidiaries or outlets in another EU country, companies using distance sales channels and those prepared to carry out

    transactions with customers in more than one EU language were more involved in cross-

    border advertising and sales activities.

    One-third of all retailers answered that they would be interested in making cross-border sales if laws regulating transactions with consumers were the same across the EU.

    Moreover, 31% of retailers thought their cross-border sales would increase in a more

    harmonised regulatory environment. The surveys current results were similar to those

    observed in 2009, but were considerably less positive than in 2008 (49% interested in

    making cross-border sales and 46% cross-border sales will increase)

    Information and awareness of legal obligations towards consumers

    More than 8 in 10 (82%) of retailers felt they were at least well informed about legal obligations towards consumers arising from consumer legislation in force in their country.

    This figure was practically unchanged compared to 2009; in 2008, on the other hand, a

    lower proportion of retailers felt at least well informed about consumer legislation (77%).

    Almost 9 in 10 retailers that sell consumer products felt at least well informed about rules and regulations relating to product safety (86%; +6 percentage points compared to

    2009). Similarly, about 8 in 10 (81%) retailers that sell food products felt at least well

    informed about legislation on food safety.

    A large majority (81%) of retailers answered that they knew where to find relevant information or where to ask for advice about consumer legislation in force in their

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 6

    country, and 29% knew where to look for information or advice about consumer

    legislation in force in other EU countries (up from 22% in 2009).

    Specific knowledge about consumer and product safety legislation

    About a quarter (26%) of retailers knew the exact period during which consumers have the right to return a defective product. Among retailers that use distance sales channels,

    less than 3 in 10 (27%) could correctly state the length of the cooling-off period for

    distance sales in their country.

    In terms of knowledge about prohibited practices, a fifth or more of retailers incorrectly assumed that it was not prohibited in their country:

    to describe a product as free although it is only freely available to customers calling a premium rate phone number (21% incorrect responses)

    to advertise products at a very low price compared to other offers without having a reasonable quantity of products for sale is prohibited in their country (29% incorrect

    responses)

    to include an invoice or a similar document seeking payment in marketing material (26% incorrect responses).

    A majority of retailers in the EU thought that a small number of non-food products currently on the market in their country were unsafe (60%) and a somewhat lower

    proportion (57%) said the same about unsafe food products marketed in their country.

    A large majority of retailers that sell consumer products correctly identified the following statements about product safety as being true:

    Retailers must not place unsafe products on the market (9% incorrect responses)

    Retailers must be able to present technical documentation on the safety of their products (10% incorrect responses)

    Upon the authorities request, retailers must cooperate with the authorities to prevent risks posed by products which they supplied (10% incorrect responses).

    Similarly, a large majority of retailers that sell food products correctly identified the following statements about food safety as being true:

    All businesses are responsible for the safety of the food products they sell (6% incorrect responses)

    All businesses selling food to final consumers must be able to identify their suppliers (6% incorrect responses)

    All businesses in the food sector must implement HACCP procedures for risk containment purposes (8% incorrect responses).

    Compliance with consumer and product safety legislation

    When asked whether they complied with all legislation dealing with the economic interests of consumers, virtually all retailers declared that they did: 70% agreed strongly

    and 27% agreed. Retailers were more sceptical when asked whether their competitors

    complied with consumer legislation: 80% agreed and 9% disagreed that their

    competitors complied with this legislation. These results were practically unchanged

    compared to 2009.

    Respondents who said they were fully informed about consumer legislation were more likely to strongly agree that they complied with this legislation (80% vs. 62% of

    respondents who did not feel well informed about consumer legislation).

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 7

    Virtually all retailers in all countries surveyed answered that they complied with legislation dealing with the economic interests of consumers. Moreover, in almost all

    countries in this study, a vast majority of retailers also thought that their competitors acted

    in accordance with consumer legislation, with respondents in Malta and Finland having

    the firmest view in this matter (89% agreed).

    About a fifth of retailers had come across fraudulent advertisements or offers made by competitors in the past 12 months (21%; practically unchanged compared to 2009), and a

    quarter had come across misleading or deceptive advertisements (25%; -3 point compared

    to 2009). Among retailers that sell consumer products, 7% said they were aware that their

    competitors had knowingly sold unsafe products in the past 12 months (unchanged

    compared to 2009).

    Enforcement and market surveillance

    One in six retailers in the EU said that consumer authorities had contacted them in the past two years for an inspection of their national sales. Less than 1 in 20 (3%; compared to 2%

    in 2009) retailers said that they had been contacted by consumer authorities for an

    inspection of their cross-border sales. Focusing solely on retailers that made cross-border

    sales 4% stated the same.

    Retailers in Hungary and Romania were the most likely to have been contacted by consumer authorities in the past two years in the framework of an inspection of their

    national sales (50% and 53%, respectively).

    As in the previous wave of this trend survey, somewhat more than a fifth (22%) of retailers had learned about a breach of consumer legislation in their market through the

    media in the past two years. In addition, just 5% had been contacted by consumer

    authorities (or consumer organisations) about a possible breach of consumer legislation by

    their own company during that period.

    Focusing solely on retailers that sell consumer products, somewhat more than 4 in 10 (42%; up from 38% in 2009) declared that they had carried out product safety tests in the

    past two years, while a smaller proportion (27%; down from 29% in 2009) had been

    subjected to a product safety test by the authorities.

    Retailers in Cyprus and Romania were not only among the most likely to have carried out safety tests themselves in the past two years (70% and 57%, respectively), they were also

    among the most likely to have been subjected to a test by the authorities (55% and 65%,

    respectively).

    Product recalls concerned a minority of retailers: in the past two years, 10% of retailers were asked by the authorities to withdraw or recall one of their products and 5% were

    asked to issue a public warning about one of their products. Finally, 11% of retailers in the

    EU had received complaints from consumers about the safety of a product they sold in the

    past two years. These results were practically unchanged compared to 2009.

    Perceived compliance monitoring with consumer and product safety legislation

    About 8 in 10 (79%) retailers agreed that public authorities actively monitor and ensure compliance with consumer legislation in their sector in their country, this proportion was

    somewhat higher than in 2009 when 74% agreed with the statement. A similar picture

    emerged when retailers were asked about monitoring compliance with legislation of

    product safety (81% agreed; up from 76% in 2009) and food safety (76% agreed).

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 8

    Slightly more than 6 in 10 (62%) retailers agreed that consumer NGOs actively monitor compliance with consumer legislation in their sector in their country and the same

    proportion agreed that self-regulatory bodies actively monitor the respect of codes of

    conduct or codes of practice in their sector in their country. These results were unchanged

    compared to 2009.

    Although about two-thirds (66%) of retailers answered that the media regularly report on businesses which do not respect consumer legislation, less than a fifth (18%) said they had

    changed their commercial practices as a result of a media story. The results were similar

    to the ones observed in 2009 (65% and 17%, respectively).

    Alternative Dispute Resolution (ADR) mechanisms

    On average, 9% of retailers in the EU had used ADR mechanisms to settle disputes with customers in the past two years and 6% said they were a member of an ADR body, 44%

    of retailers were not aware of the existence of such mechanisms. The current survey and

    the one conducted in 2009 measured similarly low levels of ADR usage (in 2009, 8% of

    retailers had used ADR mechanisms and 5% reported being a member of an ADR body).

    ADR mechanisms were most frequently used in Denmark (24%) and Norway (21%). In Italy, Sweden, Cyprus, Malta and France, however, not more than 1 in 20 retailers had

    used ADR mechanisms in the two years prior to the survey (3%-5%).

    In case of a dispute with a group of consumers, a slim majority of retailers said they would prefer to use ADR mechanisms to resolve the issue: 40% mentioned individual

    ADR and 14% selected collective ADR. Less than a sixth (16%) of retailers would prefer

    to go to court in order to settle a dispute.

    Retailers appeared to prefer individual ways to settle disputes over collective ones (40% individual vs. 14% collective for ADR mechanisms and 11% vs. 5% for court

    proceedings).

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 9

    1. Characteristics of the retailers surveyed

    For this study, companies were chosen that are among those engaged in direct retail activity

    or providing services targeted at final consumers, and employing at least 10 people. The study

    is therefore only representative of the Business to Consumer (B2C) sector; it includes a

    sample of such businesses in each EU Member State, as well as Norway and Iceland. For

    reasons of simplicity, the surveyed companies will be referred to as retailers throughout this

    report, although the supply of both goods and services is included.

    The current chapter sets out the basis for the remainder of the report by presenting

    information on the following characteristics of the retailers surveyed:

    number and type of sales channels used

    estimated turnover from e-commerce and other distance sales

    number of languages that retailers were prepared to use with customers

    number of subsidiaries or retail outlets in other EU countries

    1.1 Number and type of retail channels used

    Almost three-quarters (73%) of

    retailers in the EU used the traditional

    method of selling goods or services to

    consumers via shops; a similar

    proportion (72%) mentioned at least

    one out-of-premise (distance) sales

    channel.

    The Internet was the most common

    distance sales channel: a slim

    majority (53%) of retailers said they

    sold goods or services via the

    Internet. The use of the telephone as a

    sales channel was mentioned by 43%,

    while 29% of retailers mentioned mail

    order (e.g. selling by post) and 9%

    said they used doorstep selling.

    Finally, about a quarter (26%) of

    retailers used other out-of-premises

    sales channels (e.g. fairs, markets or street vending). These results were practically unchanged

    from the previous wave conducted in 2009.

    Type of retail channels used

    73

    53

    43

    29

    9

    26

    2

    75

    51

    43

    29

    7

    25

    1

    In-premises sales

    Internet

    Phone

    Post

    Doorstep selling

    Other out-of-premises channels

    DK/NA

    Fl300 (2010)

    Fl278 (2009)

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions, EU27

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 10

    In-premises sales5

    Malta and Portugal had the highest proportion of retailers that used in-premises sales channels

    to sell goods or services to consumers (91% and 94%, respectively). In Spain, the Czech

    Republic and Latvia, on the other hand, less than 6 in 10 retailers offered their goods and

    services directly to customers in shops (52%-56%).

    94 9187 86 86 85 85 83 80 80 79 79 79 77 76 76 76 74 74 73 71 69 67 64 64

    56 55 52

    84 81

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    Retailers sales channels: In-premises sales

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

    Distance sales

    In almost all countries included in this study, more than half of retailers mentioned at least

    one out-of-premise (distance) sales channel; the only exception being Portugal: 47% of

    retailers in this country indicated that they used at least one of the distance sales methods

    listed in the survey, including the other out-of-premises sales channel option.

    In Ireland, Denmark and the UK, the norm was to offer customers the possibility to purchase

    goods or services without visiting the companys physical store or production site: between

    88% and 93% of retailers in these countries offered at least one distance sales method to

    customers.

    5 Country charts in this report show the results for each of the 27 EU Member States, Iceland and

    Norway. The EU27 results present the average result for the 27 EU Member States (without Iceland

    and Norway) weished according to differences in population size across individual Member States.

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 11

    9389 88

    80 80 7974 73 72 71 69 69 68 68 67 66 64 63 61 59 59 58 56 55 55 53 51

    47

    81

    63

    0

    20

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    UK

    DK

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    FI

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    LV

    MT

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    PL

    CY

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    PT IS

    NO

    Retailers using distance sales channels

    Note: proportion of retailers that were using at least one distance sales channel (incl. via the Internet, by phone, via the postal service, doorstep selling or other out-of-premises channels)

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

    The following chart shows for the EU overall and for each country the proportion of

    retailers that mentioned at least one distance sales channel in 2009 and in 2010. The country

    rankings showed similarities between the two surveys; for example, both in 2009 and in 2010,

    retailers in Ireland, Denmark and the UK were the most likely to say that they used at least

    one of the distance sales methods listed in the survey6.

    91

    90

    83

    63

    72

    73

    52

    64

    70

    72

    64

    73

    66

    68

    62

    57

    68

    63

    61

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    55

    67

    55

    68

    67

    43

    51

    52

    79

    83

    93

    89

    88

    80

    80

    79

    74

    73

    72

    71

    69

    69

    68

    68

    67

    66

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    63

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    59

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    55

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    53

    51

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    0

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    LV

    MT

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    PL

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    BE

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    BG

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    PT IS

    NO

    Fl278 (2009) Fl300 (2010)

    Retailers using distance sales channels, 2009-2010

    Note: proportion of retailers that were using at least one ditance sales channel (incl. via the Internet, by phone, via the postal service, doorstep selling or other out-of-premises channels)

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

    When analysing the average number of distance sales channels (i.e. Internet, sales by phone,

    by post, and doorstep sales7) used for retail purposes, it appears that an average retailer in the

    EU offered at least one of these channels (1.35; the equivalent figure in 2009 was 1.31). Irish

    and British retailers were those making the most use of multiple distance sales channels

    (average number of such channels: 2.03 and 2.30, respectively), while those in Latvia, Bulgaria,

    Portugal and Romania seemed to show less interest (averages between 0.56 and 0.60).

    6 Due to the relatively small sample sizes, some caution should be exercised when comparing

    individual country results across the different waves of the survey. 7 This number excludes other out-of-premises sales channels.

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 12

    2.3

    0

    2.0

    3

    1.5

    8

    1.5

    4

    1.4

    9

    1.3

    8

    1.3

    8

    1.3

    5

    1.3

    5

    1.3

    2

    1.2

    7

    1.2

    6

    1.2

    0

    1.2

    0

    1.15

    1.0

    3

    0.9

    9

    0.9

    7

    0.9

    4

    0.8

    6

    0.8

    5

    0.8

    0

    0.7

    5

    0.7

    3

    0.6

    0

    0.5

    7

    0.5

    7

    0.5

    6

    1.6

    5

    1.2

    7

    0

    1

    2

    3

    4

    UK IE DK

    FR SI

    EL

    EE

    AT

    EU

    27

    DE

    LU

    NL

    SE

    HU ES

    CZ FI

    MT IT SK

    PL

    BE

    LT

    CY

    RO

    PT

    BG

    LV IS

    NO

    Average number of distance sales channels used for retail purposes(Internet, telephone, mail order and doorstep selling)

    Note: sum of affirmative answers (incl. via the Internet, by phone, via the postal service and doorstep selling)

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

    While about a fifth (19%) of retailers in Romania said they sold goods or services via the

    Internet, this proportion was almost four times higher in the UK (78%). In a further 12

    countries, more than half of retailers used the Internet as a sales channel; for example, 54% in

    Estonia, 57% in Iceland and 65% in Ireland.

    Across most countries surveyed, the Internet was the most common distance sales channel.

    For example, 58% of retailers in Austria said they sold goods or services via the Internet,

    while using the telephone or mail order as sales channels were mentioned by smaller

    proportions (43% and 27%, respectively).

    78

    6558 57 56 56 55 54 53 53 53 52 50 50 49 49 48 48

    42 4136 35

    31 31 28 26 2419

    5751

    0

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    UK IE AT

    DK SI

    EL

    FR

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    MT FI

    LU

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    BE

    LT

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    PL

    BG

    LV

    RO IS

    NO

    Retailers sales channels: the Internet

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

    In accordance with the results observed in 2009, retailers in Romania, Latvia and Bulgaria

    remained the least likely in the EU to use e-commerce for retail purposes. For example, in

    both waves of the survey, roughly a fifth of retailers in Romania said they sold goods or

    services via the Internet (19%-23%). Retailers in the UK, on the other hand, were once

    again the most likely to use the Internet as a sales channel8.

    8 Due to the relatively small sample sizes, some caution should be exercised when comparing

    individual country results across the different waves of the survey.

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 13

    71

    58

    57

    50

    55

    44

    52

    37

    54

    51

    46

    49

    44

    54

    47

    34

    58

    48

    31

    35

    53

    46

    26

    30

    35

    27

    29

    23

    54

    65

    78

    65

    58

    57

    56

    56

    55

    54

    53

    53

    53

    52

    50

    50

    49

    49

    48

    48

    42

    41

    36

    35

    31

    31

    28

    26

    24

    19

    57

    51

    0

    20

    40

    60

    80

    100

    UK

    IE

    AT

    DK

    SI

    EL

    FR

    EE

    DE

    EU

    27

    CZ

    NL

    ES

    SE

    IT

    HU

    MT

    FI

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    SK

    BE

    LT

    CY

    PT

    PL

    BG

    LV

    RO IS

    NO

    Fl278 (2009) Fl300 (2010)

    Retailers sales channels: Internet

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

    As in the previous wave of this trend survey, sales by phone and via the postal service were

    most frequently mentioned in the UK and Ireland: 80% and 74%, respectively, for the

    telephone as a sales channel and 63% and 53%, respectively, for mail order.

    In Portugal, Romania, Latvia and Bulgaria, on the other hand, less than a fifth of retailers said

    they sold their products or services by phone (15%-18%), and mail order was mentioned as a

    sales channel by less than a tenth of retailers in Latvia, Cyprus, Belgium and Portugal (5%-6%).

    8074

    5349 49 49

    45 43 43 41 41 39 39 3934 34 33 33

    30 29 28 25 2522

    18 17 17 15

    58

    44

    0

    20

    40

    60

    80

    100

    UK IE DK

    FR

    SE

    EE SI

    AT

    EU

    27

    DE

    NL

    EL FI

    LU ES

    HU

    BE

    CZ

    MT

    CY

    SK IT LT

    PL

    BG

    LV

    RO

    PT IS

    NO

    Retailers sales channels: Telephone

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

    63

    53

    36 3631 29 29 28 27 25 25 23 21 19 18 17 16 14 14 13 13 10 10 10

    6 6 5 5

    35

    24

    0

    20

    40

    60

    80

    100

    UK

    IE

    FR

    SI

    DE

    EU

    27

    DK

    LU

    AT

    NL

    EL

    EE

    ES

    SE

    HU

    MT

    PL

    CZ

    SK

    LT

    IT

    RO FI

    BG

    PT

    BE

    CY

    LV IS

    NO

    Retailers sales channels: Mail order

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 14

    Doorstep sales were most often used as a sales method by retailers in Denmark, Greece,

    Luxembourg, Hungary and Poland (18%-20%), but were rarely used by retailers in Malta,

    Lithuania, Finland, Sweden, the Czech Republic and Slovakia (2%-3%).

    20 19 19 19 1815 14 13 12 11 10 10 9 9 8 7 7 7 6 6 5 4 3 3 3 2 2 2

    158

    0

    20

    40

    60

    80

    PL

    HU

    LU

    EL

    DK

    FR

    RO SI

    EE

    IE

    LV

    ES

    EU

    27

    UK

    NL

    CY

    AT

    DE

    IT

    PT

    BE

    BG

    SK

    CZ

    SE

    FI

    LT

    MT IS

    NO

    Retailers sales channels: Doorstep selling

    D3. Which of the following sales channels do you use?Base: all retailers, % of mentions by country

    Company characteristics

    9

    Selling products or services via distance sales channels was more characteristic of companies

    with more employees; for example, while roughly two-thirds (66%) of respondents in large

    companies (with 250 employees or more) said they made e-commerce sales, this proportion

    dropped to 51% for respondents in small companies (between 10 and 49 employees).

    Similarly, roughly half of respondents in medium-sized and large companies used the

    telephone as a sales method (both 49%); the corresponding proportion for respondents in

    small companies was 42%.

    For further details, see annex table 4b.

    1.2 Estimated turnover from e-commerce and other distance sales

    Retailers were also asked to estimate turnover generated by e-commerce and other distance

    sales. Many respondents found it difficult to answer these questions10

    . For example, among

    retailers that reported using the Internet as a sales channel, 22% said they did not know what

    percentage of their turnover came from e-commerce, 8% said that this question was not

    applicable to their situation and 4% thought that no turnover was generated by Internet sales.

    In this section, we focus solely on those retailers that were able to estimate how much of their

    total turnover came from Internet sales or other distance sales.

    Focusing solely on retailers that were selling products or services via the Internet (and that

    were able to estimate their turnover from e-commerce), 27% estimated that these sales

    accounted for more than 30% of their total turnover and 24% said that this share was between

    11% and 30%. About half of retailers in this group estimated that between 1% and 10% of

    their turnover came from e-commerce.

    9 This section and others discussing results by company characteristics focuses solely on

    interviews conducted in the EU (i.e. they do not include Iceland and Norway). 10

    Given that a relatively small number of respondents answered this question, caution should be

    exercised when interpreting the results at individual country level; for more details, see annex table

    10b and 11b.

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 15

    Estimated percentage of total turnover from e-commerce and

    Internet sales

    33

    1624

    27 1 - 5%

    6 - 10%

    11 - 30%

    30+ %

    A2_a. Please indicate an estimate of the percentage of your total turnover from: e-commerce/Internet salesBase: retailers using e-commerce, % valid responses, EU27

    22

    9

    20

    49

    Estimated percentage of total turnover from other distance sales

    (by phone, via the postal service or via home visits)

    A2_b. Please indicate an estimate of the percentage of your total turnover from: other distance sales (i.e. by

    phone, post or home-visit)Base: Retailers using other distance sales channels than the

    Internet, % valid responses, EU27

    Focusing solely on retailers that were selling products or services via telephone, the postal

    service or home visits (and that were able to estimate their turnover from such distance sales),

    the largest proportion (48%) estimated that these distance sales accounted for more than 30%

    of their total turnover. A fifth estimated that between 11% and 30% of their turnover came

    from distance sales method other than e-commerce and about a third estimated that this

    percentage was between 1% and 10%.

    1.3 Retailers willingness to sell in different EU languages

    More than 4 in 10 (45%) retailers in the EU said they were only prepared to carry out

    transactions with customers in their own countrys language; this proportion was higher than

    in previous waves (39% in 2008 and 34% in 2006).

    Conversely, a slim majority of retailers were prepared to carry out transactions with

    customers in more than one EU language. More precisely, 22% said they were willing to use

    two EU languages with customers, 15% were able to carry out transactions in three EU

    languages and 17% in four or more EU languages.

    Number of EU languages that can be used to carry out transactions with customers

    45

    39

    34

    22

    25

    26

    15

    19

    20

    17

    15

    18

    2

    2

    2

    Fl300 (2010) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    Country's language 2 languages 3 languages 4+ languages DK/NA

    D6 (2010)/Q4(2008)/Q5(2006). In how many EU languages are you currently prepared to carry out transations with consumers?

    Question not included in Fl278 (2009)Base: all retailers

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 16

    Respondents in Ireland and the UK were the most likely to say that they were only prepared

    to use English with customers (67% and 74%, respectively). In a further five countries, a

    majority of respondents said they would only use their countrys language when carrying out

    transactions with customers: 51% in Sweden and Bulgaria, 54% in Poland, 55% in Spain and

    57% in France.

    In several countries, the ability to use several languages with customers was the norm. More

    than 8 in 10 retailers in Luxembourg (86%), Finland (89%) and Malta (92%) said they were

    able to use at least one additional EU language to carry out transactions with customers. The

    proportion of retailers that were prepared to use more than one EU language with customers

    was also higher than three-quarters in Germany, Cyprus, Austria, Greece, Belgium and

    Estonia (76%-78%).

    7467

    57 55 54 51 51 49 46 45 43 43 39 38 37 34 33 31 26 25 23 22 22 21 2013 11 7

    35 31

    2532

    41 43 45 48 46 50 51 54 55 57 59 61 6258 66 67 72 76 76 76 76 76 78

    86 89 92

    6163

    2 1 2 2 1 1 3 2 3 2 2 1 2 1 2 81 2 3 0 1 2 2 3 2 1 0 1 4 7

    0

    20

    40

    60

    80

    100

    UK IE FR

    ES

    PL

    BG

    SE

    RO

    LV

    EU

    27

    DK

    PT IT SI

    CZ

    NL

    HU

    SK

    LT

    DE

    CY

    AT

    EL

    BE

    EE

    LU FI

    MT IS

    NO

    Country's language only At least one other EU language DK/NA

    Number of EU languages that can be used to carry out transactions with consumers

    D6. In how many EU languages are you currently prepared to carry out transations with consumers?Base: all retailers, % by country

    Company characteristics

    More than 4 in 10 (45%) respondents in small companies said they were only prepared to

    carry out transactions with customers in their own countrys language; this proportion

    decreased to 35% for respondents from large companies.

    The proportion of respondents who said they were prepared to use two or three EU languages

    with customers was similar in small, medium-sized and large companies (between 34% and

    37%); respondents in large companies, however, were more likely to answer that they were

    able to use four or more EU languages to carry out transactions with customers (28% vs. 16%

    in small companies and 23% in medium-sized companies).

    For further details, see annex table 8b.

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 17

    1.4 Retailers having subsidiaries or retail outlets in other EU countries

    As in 2009, a tenth of retailers

    said that they had subsidiaries or

    retail outlets in the EU outside

    their own country. More

    precisely, 4% of retailers had

    subsidiaries or retail outlets in

    one other EU country, 2% in two

    or three countries other than the

    one in which the interview took

    place, and 4% in at least four

    other EU countries.

    More than 8 in 10 (83%) retailers

    in the EU said they had no

    business units in other EU

    countries; at the individual

    country level, this proportion

    varied between 58% in Estonia

    and 92% in Greece.

    A quarter of retailers in Luxembourg (25%), and about a fifth of those in the Czech Republic,

    Estonia and Slovakia (19%-20%), reported having at least one subsidiary or outlet in another

    EU country. It should, however, also be noted that 23% of respondents in Estonia did not

    know the exact number of countries in which they had subsidiaries or retail outlets; other

    countries with a high proportion of dont know responses were Spain (15%), the

    Netherlands (17%), Romania (18%) and Bulgaria (26%).

    92 89 88 88 88 87 87 86 86 86 83 82 81 81 80 80 80 78 77 77 76 76 75 74 70 69 6958

    8271

    6 8 8 8 12 5 8 1114

    8 10 12 10 1219

    13 1310 12 13 8

    177

    20

    1325

    619

    17

    16

    2 3 4 4 1 7 6 30

    7 8 6 8 71

    7 7 12 11 11 157

    186

    176

    26 23

    113

    0

    20

    40

    60

    80

    100

    EL

    UK

    DE

    SE IE

    HU

    MT FI

    SI

    PL

    EU

    27

    LT IT PT

    CZ

    FR

    LV

    AT

    DK

    CY

    ES

    BE

    RO

    SK

    NL

    LU

    BG

    EE IS

    NO

    None At least one DK/NA

    Number of EU countries where retailers have subsidiaries or retail outlets

    D1. In how many EU countries outside [YOUR COUNTRY] do you have subsidiaries or retail outlets?Base: all retailers, % by country

    Number of EU countries where retailers have subsidiaries or retail outlets

    83

    82

    83

    82

    4

    3

    4

    4

    2

    2

    3

    3

    4

    5

    4

    5

    8

    8

    6

    6

    Fl300 (2010) %EU27

    Fl278 (2009) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    None 1 2 - 3 4 + DK/NA

    D1(2010)/C5(2009). In how many EU countries outside [YOUR COUNTRY] do you have subsidiaries or retail outlets?

    D4(2008). Besides [COUNTRY], in how many EU countries do you have subsidiaries or retail outlets?

    D4(2006). Including [COUNTRY], in how many EU countries do you have subsidiaries or retail outlets? - countries

    Base: all retailers, %EU27

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 18

    Company characteristics

    The larger a retailing companys workforce, the more likely it was to have subsidiaries or

    retail outlets in several EU countries. For example, a sixth of respondents from companies

    with at least 250 employees said that they had subsidiaries or retail outlets in at least four

    other EU countries, compared to 6% of respondents in companies with between 50 and 249

    employees and 3% in companies with between 10 and 49 employees.

    For further details, see annex table 2b.

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 19

    2. Level of cross-border trade in the internal market

    The level of cross-border transactions is one measure of the degree of integration of the retail

    side of the internal market; it reflects the extent to which retailers are prepared to sell directly

    to consumers throughout the internal market. Business potential for cross-border trade,

    however, has failed to materialise in the past few years: in the current survey, 22% of retailers

    said they were conducting cross-border transactions. This proportion was lower in 2006

    (29%) or 2009 (25%), but slightly higher than what was observed in 2008 (20%).

    In detail, this chapter looks at the following characteristics of the retailers surveyed:

    number of EU countries to which retailers make cross-border sales

    estimated turnover from cross-border activities

    number of countries where retailers actively advertise their products or services

    interest in making (more) cross-border sales if regulations were harmonised

    2.1 Current cross-border sales

    Roughly three-quarters (74%) of retailers in the EU did not sell products or services to

    customers in other EU countries. This proportion was slightly higher than was measured in

    2009 (71%), but similar to what was observed in 2008 (75%).

    Slightly more than a fifth of retailers said they also sold to consumers in other EU countries.

    More precisely, 2% of retailers reported selling products and services in just one additional EU

    country, 6% mentioned two or three other EU countries and the largest proportion 13% was

    engaged in cross-border sales in at least four other EU countries.

    Number of EU countries where retailers make cross-border sales to final consumers, 2006-2010

    74

    71

    75

    67

    2

    5

    4

    6

    6

    6

    6

    9

    13

    14

    10

    14

    4

    4

    4

    4

    Fl300 (2010) %EU27

    Fl278 (2009) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    None 1 2 - 3 4 + DK/NA

    A1(2010)/C6(2009)/Q5(2008)/Q6(2006). To how many EU countries do you currently make cross-border sales to final consumers?

    Base: all retailers

    The prevalence of cross-border activity continued to vary significantly across the EU: the

    proportion of retailers not selling to consumers in other EU countries ranged from 45% in

    Luxembourg to 90% in Poland. In Finland and Romania, nearly 9 in 10 retailers only sold to

    customers in their own country (87%-88%).

    Cross-border selling was most common in Luxembourg: 54% of retailers in this country

    reported selling their products or services in at least one additional EU country. Furthermore,

    25% of retailers in Luxembourg said they sold their products or services in at least four other

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 20

    EU countries. Retailers in Italy, the UK, Greece, Slovenia, Malta and Iceland were, however,

    almost as likely to make cross-border sales in at least four EU countries (18%-22%).

    In accordance with the results observed in 2009, retailers in Luxembourg and Romania were

    at the extremes in terms of cross-border activity. Furthermore, for the EU overall and for

    many individual countries, the proportion of retailers that reported selling their products or

    services in at least one additional EU country appears to be somewhat lower in 2010 than in

    200911

    .

    46

    43

    32

    29

    15 22

    33

    30

    25

    24

    24

    37

    26

    32

    35

    25

    19 14 23

    29

    15 25

    19 15 12 16 30

    8 32

    21

    54

    32

    30

    30

    29

    29

    27

    27

    27

    25

    24

    24

    23

    23

    22

    22

    21

    20

    19 19 19 18 18 17 14

    10 10 9

    30

    18

    0

    20

    40

    60

    80

    100

    LU

    AT

    EL

    SK

    BE

    IT

    SI

    DK

    NL

    UK

    MT

    IE

    LT

    EE

    DE

    EU

    27

    HU

    LV

    CY

    CZ

    SE

    FR

    ES

    PT

    BG

    FI

    PL

    RO IS

    NO

    Fl278 (2009) Fl300 (2010)

    Number of EU countries where retailers make cross-border sales to final consumers

    A1(2010)/C6(2009)/Q5(2008)/Q6(2006). To how many EU countries do you currently make cross-border sales to final consumers? Base: all retailers, % Sell to at least one another EU country by country

    5 5 2 4 6 3 1 17 3 2 3 5 3 2 2 2 4 3 3 3 1 2 1 3 2 3 1 3 4

    2515

    913 11

    87 10

    8

    3 2 77 11

    6 7 11 6 9 6 7 6 4 5 5 1 4 35 4

    25

    1220

    13 1218

    20 1613

    19 2114 11 9 13 13 8 10 8 10 9 11 12 11 6

    7 3 5

    22

    11

    0

    20

    40

    60

    80

    LU

    AT

    EL

    SK

    BE

    IT

    SI

    DK

    NL

    UK

    MT

    IE

    LT

    EE

    EU

    27

    DE

    HU

    LV

    CZ

    CY

    SE

    FR

    ES

    PT

    BG

    FI

    PL

    RO IS

    NO

    1 2 - 3 4 +

    Number of EU countries where retailers make cross-border sales to final consumers

    A1. To how many EU countries do you currently make cross-border sales to final consumers?Base: all retailers, % by country

    Number of countries other than own:

    11

    Due to the relatively small sample sizes, some caution should be exercised when comparing

    individual country results across the different waves of the survey.

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 21

    54

    32 30 30 29 29 27 27 27 25 24 24 23 23 22 22 21 20 19 19 19 18 18 1714

    10 10 9

    30

    18

    45

    6168 69

    64 66

    73 71

    6368

    75 74 73 7677 74

    7974

    77 78 7880 78 80

    8287

    90 88

    67

    81

    0

    20

    40

    60

    80

    100

    LU

    AT

    EL

    SK

    BE IT SI

    DK

    NL

    UK

    MT IE LT

    EE

    DE

    EU

    27

    HU

    LV

    CY

    CZ

    SE

    FR

    ES

    PT

    BG FI

    PL

    RO IS

    NO

    Selling in at least one other EU country Selling only to consumers in their own country

    Number of EU countries where retailers make cross-border sales to final consumers

    A1. To how many EU countries do you currently make cross-border sales to final consumers?Base: all retailers, % by country

    Company characteristics

    Companies with at least 50 employees, those with subsidiaries or retail outlets in another EU

    country, companies using distance sales channels and those prepared to carry out transactions

    with customers in more than one EU language were more likely to be engaged in cross-border

    sales. For example, 45% of companies with subsidiaries or outlets in another EU country sold

    their products or services in different countries, compared to only 19% of companies without

    such subsidiaries or outlets.

    For more details, see annex table 9b

    2.2 Estimated turnover from cross-border activities

    As seen in section 1.2, many respondents found it difficult to answer questions about turnover

    generated by e-commerce and other distance sales; as such, caution should be exercised when

    interpreting the results in this section12

    . In this section, we focus solely on those retailers that

    were able to estimate how much of their total turnover came from Internet sales or other

    distance sales to consumers living in other EU countries.

    Focusing solely on retailers that were using e-commerce and that reported selling their

    products or services across borders (and that were able to answer this question), 56% said that

    more than 10% of their e-commerce turnover came from sales in other EU countries and 44%

    estimated that this proportion was between 1% and 10%. The corresponding proportions for

    retailers that were using other distance sales channels were 55% and 45%, respectively.

    12

    Given that a relativaley small number of respondents answered this question, caution should be

    exercised when interpreting these results at individual country level; for more details, see annex table

    12b and 13b.

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 22

    Estimated percentage of the total value of e-commerce and Internet sales to

    consumers living in other EU countries

    31

    13

    56

    1 - 5%

    6 - 10%

    11 + %

    A3. Of the total value of your E-COMMERCE/INTERNET SALES, can you estimate the percentage to consumers

    living in other EU countries?Base: retailers making cross-borders sales and involved in e-

    commerce, and that gave an estimated percentage of their total turnover from e-commerce, % valid responses, EU27

    32

    12

    56

    Estimated percentage of total turnover from from distance sales to consumers living in

    other EU countries

    A4. Can you estimate what percentage of your total sales to final consumers by phone, post, e-commerce and home-

    visit are cross-border sales to EU countries?Base: retailers that were using other distance sales channels and

    selling across borders and that gave an estimated percentage of their total turnover from distance sales, %EU27

    2.3 Retailers advertising in other EU countries

    Two-thirds of retailers in the EU did not actively advertise their products or services to

    consumers in other EU countries; almost a quarter (24%) said they did. The latter proportion

    was 21% in 2008 and 25% in 2006.

    In order to facilitate cross-border sales, 5% of retailers advertised in one other EU country

    (5% in 2008) and the same proportion said they marketed their products or services in two or

    three additional countries (6% in 2008). Almost three times as many (14%) of retailers said

    they advertised in four or more other EU countries (10% in 2008).

    Number of other EU countries where retailers actively market/advertise to final consumers

    67

    72

    69

    5

    5

    5

    5

    6

    7

    14

    10

    13

    9

    7

    7

    Fl300 (2010) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    None 1 2 - 3 4 + DK/NA

    D5(2010)/Q2(2008). Besides [COUNTRY], to how many EU countries do you actively market/advertise to final consumers?

    Q2(2006). Including [COUNTRY], to how many EU countries do you actively market/advertise to final consumers?

    Question not included in Fl278 (2009)Base: all retailers

    In accordance with the results for prevalence of cross-border trade, retailers in Luxembourg

    were the most likely to say that they actively advertised their products or services in other EU

    countries (43%). Slovakia was close to Luxembourg with 40% of retailers advertising across

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 23

    borders. In Romania, Sweden, Hungary, Finland and Norway, however, less than a sixth of

    retailers marketed their products or services in other EU countries (13%-15%).

    43 4033 33 32 32 30 29 29 27 27 26 25 24 24 23 23 23 20 19 19 18 18 17 15 15 13 13

    31

    15

    48 52 6457 61 63 66

    53

    71

    50

    7065 66 65 67 68 63 65 72 71

    62 6874

    58

    82 79 79 74

    63

    66

    9 83

    10 7 54

    18

    0

    23

    39 9 11 9 9 14 12

    8 1019 14

    7

    25

    4 6 814

    619

    0

    20

    40

    60

    80

    100

    LU

    SK

    CZ IT

    MT

    EL IE AT SI

    EE

    DE

    LV

    UK

    BE

    EU

    27

    LT

    PT

    CY

    DK

    FR

    NL

    ES

    PL

    BG FI

    HU SE

    RO IS

    NO

    At least one other EU country Only their own country DK/NA

    Number of EU countries where retailers actively market/advertise to final consumers

    D5. Besides [COUNTRY], to how many EU countries do you actively market/advertise to final consumers?Base: all retailers, % by country

    As expected, cross-border advertising and cross-border sales were linked to each other: more

    than a quarter (28%) of retailers selling across borders indicated that they also marketed their

    products or services in one, two or three additional countries and almost half of them said

    they advertised in at least four other EU countries; the latter figure has gradually increased

    from 31% in 2006 and 34% in 2008 to 45% in 2010.

    Number of other EU countries where retailers actively market/advertise to final consumers

    30

    31

    37

    4

    13

    12

    14

    18

    16

    45

    34

    31

    8

    4

    3

    Fl300 (2010) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    None 1 2 - 3 4 + DK/NA

    D5(2010)/Q2(2008). Besides [COUNTRY], to how many EU countries do you actively market/advertise to final consumers?

    Q2(2006). Including [COUNTRY], to how many EU countries do you actively market/advertise to final consumers?

    Question not included in Fl278 (2009)Base: retailers that made cross-border sales

    The following chart illustrates that cross-border advertising and cross-border sales were not in

    all countries linked to each other. For example, while 88% of Czech retailers that were selling

    their products or services in other EU countries said they also actively advertised their

    products or services to consumers in other EU countries; the corresponding proportion was

    just 31% in the Netherlands. In the latter country, 57% of those selling across borders

    indicated that they did not advertise their products or services across borders.

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 24

    88 83 83 81 81 80 80 80 8073 72 71 71

    64 64 63 62 59 59 59 58 5444 42 39 35 31 30

    63

    43

    1110 10 11 9 14 11

    17 18

    1325

    1422

    2936 35

    3031

    3931 34 37

    47 48 57

    3857

    64

    26

    25

    1 6 7 7 10 6 94 2

    153

    146 8

    0 18 10

    211 8 9 9 10

    3

    27

    126 10

    32

    0

    20

    40

    60

    80

    100 C

    Z

    SK

    *P

    L

    MT

    IT

    *L

    V

    *RO

    EL

    *P

    T

    EE

    IE

    ES

    *C

    Y

    LU SI

    DE

    EU

    27

    LT

    *F

    I

    AT

    *FR

    UK

    BE

    DK

    *S

    E

    *BG

    NL

    *H

    U IS

    *NO

    At least one other EU country Only their own country DK/NA

    Number of EU countries where retailers actively market/advertise to final consumersBase: retailers making cross-border sales

    D5. Besides [COUNTRY], to how many EU countries do you actively market/advertise to final consumers?Note: * n

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 25

    Number of EU countries where companies would make cross-border sales if laws regulating transactions were the same in the EU, 2006-2010

    57

    58

    41

    46

    3

    3

    5

    5

    5

    5

    16

    13

    5

    7

    12

    12

    20

    18

    16

    18

    10

    9

    10

    6

    Fl300 (2010) %EU27

    Fl278 (2009) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    None 1 2 - 3 4 - 10 10+ DK/NA

    A5(2010)/C7(2009)/Q13(2008)/Q17(2006). If the provisions of the laws regulating transactions with consumers were the same throughout the

    27 Member States to how many EU countries would you be interested in making cross-border sales to final consumers?

    Base: all retailers

    Focusing solely on retailers that made domestic sales only, more than 7 in 10 (72%; up from

    62% in 2006) said that they would also not be interested in making cross-border sales if laws

    regulating transactions were the same across the EU, while half of retailers that made cross-

    border sales (51% vs. 36% in 2006) would be interested in selling their products or services in

    more than 10 other Member States.

    72

    76

    51

    62

    3

    2

    5

    5

    5

    4

    17

    11

    4

    4

    10

    7

    11

    8

    9

    9

    7

    6

    10

    6

    Fl300 (2010) %EU27

    Fl278 (2009) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    Number of EU countries where companies would make cross-border sales if laws regulating transactions were the same in the EU, 2006-2010

    14

    14

    9

    12

    3

    5

    6

    6

    5

    8

    16

    18

    11

    16

    22

    24

    51

    45

    39

    36

    15

    11

    8

    3

    Fl300 (2010) %EU27

    Fl278 (2009) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    A5(2010)/C7(2009)/Q13(2008)/Q17(2006). If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States to how many EU countries would you be interested in making

    cross-border sales to final consumers?Base: all retailers

    Retailers that made cross-border sales

    Retailers that do not made cross-border sales

    14 3 5 11 51 15Fl300 (2010) %EU27 None 1 2 - 3 4 - 10 10+ DK/NA

    Retailers in Finland were not only among the least likely to sell their products across borders

    (see previous section), they also most frequently reported not being interested in cross-border

    sales even if regulations on cross-border transactions were harmonised (75%). Somewhat lower

    proportions of uninterested retailers were found in Portugal (69%), France and Malta (both

    67%).

    In Greece and Luxembourg, on the other hand, a majority of retailers answered that they would

    be interested in making cross-border sales if laws regulating transactions were the same across

    the EU (60% and 53%, respectively). It should, however, also be noted that retailers in Greece

    were twice as likely as their counterparts in Luxembourg to say that they would like to sell their

    products or services in all other Member States (25% vs. 13%).

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 26

    7569 67 67 63 61 61 60 59 58 58 58 57 56 56 55 54 51 51 51 50 50 48 48 48 42 38

    30

    74

    39

    811

    82 12 10 10

    2115

    920

    6 11 1319 15

    820 15 16

    6

    22

    1018 22

    1934

    18

    5

    17

    6 76

    84 10 8

    612

    12

    7

    13 10 6

    117

    10

    88 10

    16

    12

    139

    11

    7

    7

    17

    5

    13

    5 7 1215 5

    1613 1

    69

    715 12

    5

    8

    1 116

    510 19

    8

    16 11

    14

    10

    12

    25

    4

    14

    7 7 7 916

    39 12 8 12 9 8 10

    207

    21 18 16 2114 10

    8 13 155

    229 10 13 18

    0

    20

    40

    60

    80

    100

    FI

    PT

    FR

    MT

    SE

    DE

    DK

    HU

    CZ IE PL

    ES

    EU

    27

    BE

    AT

    NL IT EE

    RO

    LV

    UK

    SK

    CY

    BG SI

    LT

    LU

    EL

    NO IS

    None 1-6 7 -25 26 DK/NA

    Number of EU countries where companies would make cross-border sales if laws regulating transactions were the same in the EU

    A5. If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States to how many EU countries would you be interested in making cross-border sales to final consumers?

    Base: all retailers, % by country

    More than 7 in 10 (72%) retailers that were not making cross-border sales at the time of the

    survey said that they would also not be interested in making cross-border sales if laws

    regulating transactions were the same across the EU. In comparison, among retailers selling

    across borders, 14% said they would no longer be interested in making cross-border sales in a

    more harmonised regulatory environment, while more than a quarter (28%) would be

    interested in selling their products or services in all other Member States.

    EU harmonised regulations boosting cross-border activity

    14

    72

    3

    2

    5

    5

    6

    2

    28

    5

    28

    7

    15

    7

    Selling to at least one other EUcountry

    Selling only to consumers in theirown country

    None 1 2 - 3 4 - 6 7 - 25 26 DK/NA

    A1. To how many EU countries do you currently make cross-border sales to final consumers?

    A5. If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States to how many EU countries would you be

    interested in making cross-border sales to final consumers?Base: all retailers

    The proportion of retailers that would not engage in cross-border sales even if regulations

    were harmonised was considerably smaller than the proportion that are currently not selling

    across borders (57% vs. 74%). It appears, therefore, that retailers would be somewhat more

    open to engaging in cross-border sales if the risks of failing to comply with various national

    regulations could be eliminated (i.e. by establishing harmonised EU rules). The survey in

    2009 reached a similar conclusion (71% said they did not sell across borders at the time of the

    survey and 58% would not engage in cross-border sales even if regulations were harmonised).

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 27

    EU harmonised regulations boosting cross-border activity

    5

    8

    6

    2

    74

    4

    20

    5

    5

    3

    57

    10

    More than 10 EU countries

    4-10 EU countries

    2-3 EU countries

    1 EU country

    Selling only to consumers inown country

    DK/NA

    Current cross-border sales

    Cross-border sales, ifregulation were harmonised

    A1. To how many EU countries do you currently make cross-border sales to final consumers?

    A5. If the provisions of the laws regulating transactions with consumers were the same througout the 27 Member States to how many EU countries would you be interested in making cross-border sales to final consumers?

    Base: all retailers, % EU27

    Base: all retailers

    23

    38

    29

    11

    0

    0

    51

    11

    5

    3

    14

    15

    More than 10 EU countries

    4-10 EU countries

    2-3 EU countries

    1 EU country

    Selling only to consumers inown country

    DK/NA

    Current cross-border sales

    Cross-border sales, ifregulation were harmonised

    A1. To how many EU countries do you currently make cross-border sales to final consumers?

    A5. If the provisions of the laws regulating transactions with consumers were the same througout the 27 Member States to how many EU countries would you be interested in making cross-border sales to final consumers?

    Base: retailers that made cross-border sales, % EU27

    EU harmonised regulations boosting cross-border activity

    Base: retailers making cross-border sales

    0

    0

    0

    0

    100

    0

    11

    4

    5

    3

    72

    7

    More than 10 EU countries

    4-10 EU countries

    2-3 EU countries

    1 EU country

    Selling only to consumers inown country

    DK/NA

    Current cross-border sales

    Cross-border sales, ifregulation were harmonised

    A1. To how many EU countries do you currently make cross-border sales to final consumers?

    A5. If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States to how many EU countries

    would you be interested in making cross-border sales to final consumers?

    EU harmonised regulations boosting cross-border activity

    Base: retailers not making cross-border sales

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 28

    In all countries surveyed, retailers appeared to be more open to sell their products or services in

    other EU countries if regulations were harmonised. The difference between actual and potential

    engagement in cross-border trade was the largest in Greece and Romania. About two-thirds

    (68%) of Greek retailers did not sell across borders at the time of the survey; however, just 30%

    said they would not engage in such sales even if regulations were harmonised. The

    corresponding proportions in Romania were 88% and 51%, respectively.

    In Austria, on the other hand, the proportion of retailers that would not be interested in cross-

    border sales in a more harmonised regulatory environment was similar to the proportion not

    currently engaged in cross-border sales (56% vs. 61%).

    68

    88

    82

    90

    73 7

    7

    73 7

    6

    74 7

    8

    69

    79

    78

    68

    74 77

    74 7

    8 80

    87

    66

    80

    71

    64

    63

    75

    45

    61 6

    7

    81

    30

    51

    48

    58

    42 4

    8

    48 5

    1

    51

    58

    50

    60

    59

    50

    57 6

    1

    58 6

    3 67

    75

    54

    69

    61

    56

    55

    67

    38

    56

    39

    74

    0

    20

    40

    60

    80

    100

    EL

    RO

    BG

    PL

    LT

    CY SI

    EE

    LV

    ES

    SK

    HU

    CZ

    UK

    EU

    27

    DE IE SE

    FR FI

    IT PT

    DK

    BE

    NL

    MT

    LU

    AT IS

    NO

    Not trading cross-border No interest in cross-border sales, even if regulations were harmonised

    EU harmonised regulations boosting cross-border activity

    A1. To how many EU countries do you currently make cross-border sales to final consumers?A5. If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member

    States to how many EU countries would you be interested in making cross-border sales to final consumers?Base: all retailers, % by country

    EU harmonised regulations boosting cross-border trade total level of cross-border sales

    Roughly 3 in 10 retailers in the EU thought their cross-border sales would increase if laws

    regulating transactions with consumers were the same across the EU: 8% said that such sales

    would increase a lot and 23% thought they would increase a little. In accordance with the

    results discussed in the previous section, the surveys current results were less positive than

    those measured in 2008 when 46% of retailers thought their cross-border sales proportion

    would increase a lot or a little.

    Virtually none of the retailers participating in the survey thought that their cross-border sales

    would decrease in a more harmonised regulatory environment. A slim majority (55%) said

    that EU harmonised regulations would have no effect on their cross-border sales and 13%

    could not say if there would be any effect.

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 29

    Estimated effect of EU harmonised regulations on cross-border activity, 2006-2010

    A10b(2010)/Q12(2008). If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States of the EU

    do you think that the level of your cross-border sales would ...Q16_A(2006). If the provisions of the laws regulating transactions with

    consumers were the same throughout the 25 member states of the EU do you think that ... - the proportion of your cross-border sales would

    Base: all retailers, %EU27

    8

    16

    15

    23

    30

    28

    1

    2

    2

    0

    1

    1

    55

    41

    39

    13

    10

    14

    Fl300 (2010) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    Increase a lot Increase a little Decrease a little

    Decrease a lot Would not change DK/NA

    Half of the retailers that were making cross-border sales at the time of the survey also said

    that their sales would increase if laws regulating transactions with consumers were the same

    across the EU (12% increase a lot and 38% increase a little). In comparison, among

    retailers not selling across borders, a quarter said that their level of cross-border sales would

    increase in a more harmonised regulatory environment (7% increase a lot and 18%

    increase a little).

    Estimated effect of EU harmonised regulations on cross-border activity

    12

    38

    0.20.4

    41

    8

    Increase a lot

    Increase a little

    Decrease a little

    Decrease a lot

    Would not change

    DK/NA

    A10b(2010)/Q12(2008). If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States of the EU do you think that the level of your cross-border sales would ...

    Base: all retailers, %EU27

    7

    18

    0.80.4

    60

    14

    Retailers conducting cross-border transactions

    Retailers selling only to consumers in their own country

    In accordance with the results discussed above, even when focusing solely on retailers that

    were making cross-border sales at the time of the survey, the surveys current results were

    less positive than those observed in previous years. In the current survey, 50% of this group of

    retailers thought that their cross-border sales would increase a lot or a little; the

    corresponding figure was 57% in 2008 (+7 points compared to 2010) and 53% in 2006 (+3

    points compared to 2010).

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 30

    Estimated effect of EU harmonised regulations on cross-border activity, 2006-2010

    A10b(2010)/Q12(2008). If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States of the EU

    do you think that the level of your cross-border sales would ...Q16_A(2006). If the provisions of the laws regulating transactions with

    consumers were the same throughout the 25 member states of the EU do you think that ... - the proportion of your cross-border sales would

    Base: retailers that made cross-border sales, %EU27

    12

    19

    18

    38

    38

    35

    0

    3

    3

    0

    1

    2

    41

    35

    36

    8

    4

    7

    Fl300 (2010) %EU27

    Fl224 (2008) %EU27

    Fl186 (2006) %EU25

    Increase a lot Increase a little Decrease a little

    Decrease a lot Would not change DK/NA

    In accordance with results for the previous question about potential engagement in cross-

    border trade, retailers in Greece were the most likely to say that regulatory harmonisation

    would have a positive effect on their level of cross-border sales (62%). In Malta, France,

    Finland, Portugal, Denmark and Sweden, on the other hand, less than a quarter of respondents

    said there would be such a positive effect (17%-24%). In five of these countries, roughly two-

    thirds or more of retailers said that EU harmonised regulations would have no effect on

    their cross-border sales (between 65% and 77%); in Malta, however, just 39% of retailers

    shared this view and 43% were unable or unwilling to say if their cross-border sales

    would change.

    62

    46 46 43 43 41 40 38 37 37 36 35 34 33 32 32 31 30 29 29 28 28 24 23 21 18 17 1723 20

    2

    2 21 3 1 2 1 1 1 2 2 2 2 0 1 1 1 1 1 1 2

    1 10 1 1 1

    00

    24

    3850

    2832

    50 48

    40 47 4657

    42 44 4962

    4355 62 64 54

    4656 65 67 75 77

    71

    39

    6258

    13 143

    2822

    8 1021

    15 165

    21 2115

    6

    2413

    7 616

    2415

    10 84 4

    10

    43

    1421

    0

    20

    40

    60

    80

    100

    EL

    SK

    LU

    RO

    CY IE SI

    BG

    ES

    PL

    AT IT LV

    BE

    DE

    LT

    EU

    27

    CZ

    HU

    EE

    NL

    UK

    SE

    DK

    PT FI

    FR

    MT IS

    NO

    Increase Decrease Would not change DK/NA

    Estimated effect of harmonised regulations on cross-border activity

    A10b. If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States of the EU do you think that the level of your cross-border sales would ...

    Base: all retailers, % by country

    In accordance with results for all respondents, when focusing on companies that were making

    cross-border sales at the time of the survey, retailers in Greece were the most likely to say that

    regulatory harmonisation would have a positive effect on their level of cross-border sales

    (70%).

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 31

    8270 67 66 66 65 63 61 61 59

    53 53 51 50 50 50 48 47 47 45 42 41 41 39 36 36 36 35 36 35

    0

    0 0 0 0 0 0 0 1 34 0 1 5 2 3

    0 2 0 0 0 1 2 40 0 3 0 0 1

    925 29 26 28 34 36 35 37 33

    3536 41 36 36

    46

    3244

    40 42 51 5055 52

    52 4855 60

    5340

    9 5 4 7 51 1 3 1 5 8 11 8 9 12

    1

    207

    14 136 8

    2 512 16

    6 5 1224

    0

    20

    40

    60

    80

    100*R

    O

    EL

    IE

    *P

    L

    SK

    CZ

    DE

    ES

    AT

    SI

    *L

    V

    *C

    Y

    EU

    27

    EE

    IT

    LU

    MT

    LT

    BE

    *BG

    *F

    I

    NL

    *H

    U

    *S

    E

    UK

    *F

    R

    DK

    *P

    T IS

    *NO

    Increase Decrease Would not change DK/NA

    Estimated effects of harmonised regulations on cross-border activity

    A10b. If the provisions of the laws regulating transactions with consumers were the same throughout the 27 Member States of the EU do you think that the level of your cross-border sales would ...

    * Note: n

  • Analytical report Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection

    page 32

    3. Information and awareness of legal obligations towards consumers

    In this chapter, we look at retailers knowledge of their legal obligations towards consumers

    distinguishing between legislation dealing with the economic interests of consumers (in this

    report referred to as consumer legislation) and legislation on food and product safety.

    In almost all countries included in this study, more than two-thirds of retailers felt they were

    at least well informed about their legal obligations towards consumers arising from consumer

    legislation in force in their country.

    In the last section of this chapter, we analyse retailers knowledge of where to find relevant

    information or where to ask for advice on consumer legislation in force in their country or in

    other EU countries.

    3.1 Perceived level of information about legislation on consumer

    protection, food and product safety

    More than 8 in 10 (82%) retailers felt they were at least well informed about legal obligations

    towards consumers arising from consumer legislation in force in their country: 58% of

    respondents felt well informed and 24% said they were fully informed.

    A minority of respondents answered that they did not feel informed about this topic: 13% said

    they were not well informed about consumer legislation and 3% did not feel informed at all.

    These results were practically unchanged compared to those in the previous wave.

    Self-perceived level of information about legal obligations towards consumers, 2008-2010

    A6(2010)/A1(2009)/Q15(2008). How well informed are you about your legal obligations towards consumers arising from consumer

    legislation in your country?Base: all retailers

    24

    23

    19

    58

    60

    58

    13

    13

    17

    4

    3

    5

    2

    1

    1

    Fl300 (2010) %EU27

    Fl278 (2009) %EU27

    Fl224 (2008) %EU27

    Fully informed Well informed Not well informed

    Not informed at all DK/NA

    Across all countries surveyed, more than 6 in 10 retailers felt at least well informed about their

    legal obligations towards consumers (ranging from 65% in France to 96% in Slovakia).

    Retailers in Malta were the most likely to answer that they were fully informed about consumer

    legislation in force in their country (80%). In Austria, Latvia, Spain, Hungary, Cyprus and

    Bulgaria, more than a third of retailers gave a similar response (between 35% and 39%).

    Retailers in Poland, Belgium, Sweden and France, on the other hand, most frequently said

    they did not feel well informed or did not feel informed at all about this topic (between 23%

    and 32%).

  • Flash EB No 300 Retailers attitudes towards cross-border trade and consumer protection Analytical report

    page 33

    25

    80

    2113

    33 39 35 30 34 34 2534 36

    27 21 2531

    1927

    1624 19 19

    2613

    2415 15 10

    16

    71

    15

    7381

    58 51 54 60 55 5462

    52 5059

    64 5953

    6557

    6658

    62 60 51

    6351

    5950

    6964

    3 4 5 65 8 9 9 10 10 13 11 11 11 12 11 9

    14 1310 13 9 16 16 19 18 15

    21

    17 13

    0 0 0 0 2 2 1 1 1 10 2 3 3 3 4 7

    1 34

    47

    5 5 4 5 8 112 5

    0

    20

    40

    60

    80

    100S

    K

    MT

    EE

    PT

    CZ

    BG

    HU

    RO

    AT

    LV

    DE

    ES

    CY FI

    IE SI

    LU LT

    EL

    NL

    EU

    27

    UK

    DK IT PL

    BE

    SE

    FR IS

    NO

    Fully informed Well informed Not well informed Not informed at all DK/NA

    Self-perceived level of information about legal obligations towards consumers

    A6. How well informed are you about your legal obligations towards consumers arising from consumer legislation in your country?Base: all retailers, % by country

    Retailers in the EU were as confident when it came to their knowledge of rules and

    regulations relating to product safety: 56% of retailers that sell consumer products13

    felt

    well informed and a further 30% said they were fully informed on this topic (+8 percentage

    points compared to 2009). About a tenth (11%) of retailers did not feel well informed, or did

    not feel informed at all, about product safety regulations.

    Self-perceived level of information about legislation on product safety, 2009-2010

    30

    56

    92 2

    Fully informed

    Well informed

    Not well informed

    Not informed at all

    DK/NA

    A7(2010)/A3(2009). How well are you informed about the legislation on product safety? Base: retailers that sell products, %EU27

    22

    58

    15

    3 2

    Fl300 (2010) Fl278 (2009)

    Focusing solely on retailers that reported selling consumer products, it was noted that 95%-

    96% of these retailers in Hungary, Malta and Slovakia felt at least well informed about

    product safety legislation; this proportion, however, decreased to 57% in Sweden. Almost 4 in

    10 (37%) respondents in Sweden admitted feeling not well inform