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Penalties in Case of Non Respect of the Conversion Rules

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Penalties in Case of Non Respect of the Conversion Rules 0(02 Brussels, 18 December 2001 3HQDOWLHV LQ FDVH RI QRQUHVSHFW RI WKH FRQYHUVLRQ UXOHV ,QWKHHDUO\GD\VRIDQGXQWLOWKHHQGRIWKHWUDQVLWLRQSHULRGFLWL]HQV ZLOO VWDUW SD\LQJ LQ HXUR EXW ZLOO YHU\ RIWHQ VWLOO SD\ DWWHQWLRQ WR WKH SULFH H[SUHVVHG LQ WKH QDWLRQDO FXUUHQF\ XQLW 5HVSHFWLQJ WKH FRQYHUVLRQ UXOHV ZKLOHPDNLQJDGXDOGLVSOD\RISULFHVLVWKHUHIRUHDNH\HOHPHQWWRSUHVHUYH FXVWRPHUFRQILGHQFH7KHSURWHFWLRQRIWKHFXVWRPHUDJDLQVWSRWHQWLDOIUDXG LV HQVXUHG E\ DOO QDWLRQDO OHJLVODWLRQV LQWHQWLRQDO YLRODWLRQV FDQ OHDG WR KHDY\SHQDOVDQFWLRQVZKLOHDFFLGHQWDOPLVWDNHVJHQHUDOO\FRXOGJLYHULVHWR FRPSHQVDWLRQ IRU SRVVLEOH ORVV 7R KHOS OLPLW QRQLQWHQWLRQDO PLVWDNHV VHYHUDO0HPEHU6WDWHVKDYHGLVWULEXWHGZLGHO\HXURFRQYHUWHUV Precise rules have been adopted by the Council (Council Regulation N° 1103/97 of 17/6/97) to ensure fairness in rounding both up and down. For any conversion from national currencies into euro, these rules provide for rounding up to the nearest cent if the result is exactly half way or above and down if it is less than half way. For example : - if after conversion the amount is 1.455 euro, this would be rounded to 1.46 euro; - if the amount is 1.457, the rounded sum is 1.46 euro; - if the amount is 1.454 euro, the rounded sum is 1.45 euro For conversions from the euro to a national currency, the same rounding rule applies to the lowest sub-unit of that currency, e.g. pfenning for the Deuschmark or centime for the French franc. Here is a quick overview of the national sanctions applicable in case of intentional violating: %HOJLXP - Fine between EUR 6.2 up to EUR 247.89 (law of 30 October 1998) - The trading standards authority (inspection économique) can also warn the offender and give him formal notice to put an end to the infringement. As an alternative it may propose payment of a fine between EUR 25 and EUR 25.000 to end public prosecution. In case of repeated infringements, the amounts are cumulated (within a maximum ceiling of EUR 50.000). *HUPDQ\ - A violation of the rules is a fraud according to Article 263 of the Penal Code (Strafgesetzbuch). - Fraud can be punished by imprisonment of up to 5 years or by a fine. In very serious cases, the imprisonment can go up to 10 years. *UHHFH - Fine between EUR 146.74 and EUR 58 694 (law 2842 of 27-9-2000). 6SDLQ - General Spanish legislation imposes sanctions on the falsification of consumer prices. /X[HPERXUJ - General Luxembourg legislation imposes sanctions on the falsification of consumer prices. )UDQFH - Specific rules set by a decree of 25 November 1998 and standard rules set by the consumer code: violation to conversion rules is a fraud. - Consumer protection rules allow sanctions with imprisonment of up to 2 years and / or a fine of up to EUR 38 112,25. ,WDO\ - The Interdepartmental Committee of Budgetary Planning has the power to monitor prices and tariffs in specific sectors, especially for public utilities. The Committee can also apply sanctions up to EUR 1 032 913,80. Heavy violations can be punished by imprisonment of up to 3 years. )LQODQG - The general provisions of the criminal law for fraud and dishonesty can apply. - Intentional misuse of conversion rules can be punished by a fine and/or imprisonment of up to 4 years. - In case of accidental misuse of conversion rules, there is an obligation to compensate the financial loss incurred by the customer. 1HWKHUODQGV - A “name and shame” operation managed by consumer organisations is in place. Black-lists of companies making incorrect conversions are put on the Internet if they fail to correct mistakes within 4 days. - A customer can claim for compensation in case of financial loss. $XVWULD - Fine of up to EUR 1453,46 (Euro-Währungsangabengesetz 1999) 3RUWXJDO - The respect of conversion rules is controlled by the General Inspectorate for Economic Activities. - Violations of the rules can be punished by a fine up to EUR 29 928. ,UHODQG - Criminal law (fine and/or imprisonment up to 5 or 10 years) can apply in the case of fraud. Other sanctions (negligence or professional standards …) can also apply. - Under consumer regulations, there are legal obligations – with penalties for non- compliance - on retailers as regards the display of prices. 2.
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