Potential new rules designed to protect consumers from unfair business practices have been welcomed by the Retail Motor Industry Federation.

The European Union has adopted a proposal for a directive aimed at clarifying consumer rights and making cross-border trade simpler. It would protect consumers from misleading and aggressive practices, such as deceptive advertising, whether buying from a local outlet or a website in another member state. The directive could come into force as soon as 2005.

Matthew Carrington, RMI chief executive, said: “If the directive comes into force it could offer consumers the kind of protection on many products that they enjoy already when they deal with an RMI member. For those buying a car, it could give added protection behind the Good Garage Code, which will be operational in 2004.”