There has been a development regarding the long expected (new) draft law of the Ministry of Development (being the competent Ministry for consumer affairs in general) purported to codify and update consumer law in general and at same time to incorporate the EU Directive on Unfair Commercial Practices (Directive 2005/29/EC of 11 May 2005). A previous short reference to that draft law was made by my report of 30 June 2006 under section B).

In particular:

1. The draft law titled "On protection of the consumer" (the New Law) was circulated by the Ministry of Development for a public consultation in early October 2006, which ended on 1 November 2006. The New Law is to abolish the currently applicable Law 2251/1994 (as in force having been amended repeatedly - Law 2251) "For the protection of the consumers" as well as any other legal provision contradicting to New Law's provisions (after its incorporation).

2. Regarding product liability, the New Law (art. 7) follows Law 2251 (art. 6 incorporating the respective EU Directive 85/374) with one significant exception: it gives a broader definition of the "defective product" depending same not only on the safety which is reasonably expected (which has been the case thus far) but also on the expected performance according to the specific product's capabilities (art. 7, para.5). That expansion of the definition of defectiveness, moreover made by the use of generic terms, is neither understood nor is it reasoned by the New Law. Whether this proposed change will be eventually included in the law to be passed from the Parliament remains to be seen.

Also, the New Law (art. 7, para.6) adds to the indicative list of damages compensated under the product liability regime the "right of use of environmental goods"; the expression used has a rather broad meaning and it will have to be specified by the case law in the future.

3. Further, the New Law deals with a broad spectrum of other consumer law topics, such as with: the general terms and conditions of consumer contracts, distance contracts and same concluded outside a commercial shop, the right of the consumer to demand reparation or the temporary substitution of a product at the time it is repaired, the introduction of special provisions on the mental protection of minors and on contracts concluded with beauty/slim centres and gyms (which is a field of extensive consumer disputes, especially few years ago), whereas it incorporates Unfair Commercial Practices Directive, as said above.

4. It is interesting that the New Law allows for the first time ever the formation of second-lever consumer organisations and it regulates more extensively the supervision of all consumer organisations, their book keeping and the grants /income they receive by the Greek State. The New Law maintains the so-called collective actions that consumer organisations may bring on behalf of their members against those breaching its provisions; the erga omnes effect of any decision issued on a collective action, being a unique legal concept of the Greek law, is also maintained.

Lastly, the right of the Minister of Development to order the deletion of a general term, which was considered abusive by an irrevocable decision following a collective action filed, will be enacted by the New Law also for the first time.