Comparative Study On Consumers Withdrew Right System

Consumer’s right of withdrawal as an important tool for consumer protection in modern society is the result of economic and social development. With the changes in the balance of power between traders and consumers, as well as the changes in transaction type and transaction mode, most developed countries all over the world have established the system of consumer’s right of withdrawal to solve consumer problems to some extent. Especially in the European Union, many scholars take the right of withdrawal as an independent consumer rights. Compared with the developed countries consumer protection in China is still at a low level. Establishing the system of consumer’s right of withdrawal is of great significance for China to improve consumer protection. This dissertation aims to provide suggestions to the construction of consumer’s right of withdrawal in China through the study on the basic theory of the right of withdrawal, as well as the investigation and comparison of the consumer’s right of withdrawal system between Europe (mainly the European Union and Germany) and United States. This dissertation will discuss in the following chapters from five aspects.Chapter one studies on the concept and institutional evolution of consumer’s right of withdrawal. From the legislative point of view, the concept, the nature and some other general issues of consumer’s right of withdrawal is still not clear. The evolution of consumer’s right of withdrawal experience three stages of the origin, development and expansion accompanied by the development of transactions of consumer credit, off-premises and other special types or modes. This reveals the main and the most important fields of application of consumer’s right of withdrawal. Consumer’s withdrawal right can protect consumer’s autonomy, increase consumer’s information opportunities and reduce consumer’s irrational factors through extricating the consumer from the contract. But that led to conflict with the traditional freedom of theory, so consumer’s right of withdrawal need sufficient justification.Chapter two discusses the the legitimacy of consumer’s right of withdrawal. The legitimacy not only concerns the premise of the system, but also relates to the construction of the system. Consumer’s right of withdrawal mean to resolve three kinds of problems in Consumption activities, and those are nonfreedom, asymmetric information, and irrational behavior. The settle of those above problems can get supports from the following theory:the substantive justice of contract, the consumer sovereignty theory and the legal paternalism, and also the legitimacy of can be demonstrated. On the other hand moral hazard and other risk issues existed in the consumer’s the right of withdrawal can not be ignored, which should be argued from the point of view of the economics of cost and cost control.Chapter three proceeds to analyze consumer’s right of withdrawal in European Union. The European Union is a typical representative of the consumer’s the right of withdrawal legislation in Europe. In more than20years, the European Union enacted eight directives on consumer’s right of withdrawal (five of them in force now), introducing the right of withdrawal into off-premises transactions, distance transactions, consumer credit transactions, timeshare transactions, life insurance contracts and other areas, and constructed a relatively perfect system. In the member states of the European Union, Germany is the typical representative of the legislative codification of consumer’s right of withdrawal. Consumer’s withdrawal right system-mainly includes the scope of the right of withdrawal, the withdrawal period, the obligation of notice and the legal consequences of the exercise of the right, among which the scope of application is the most complex aspect, and the obligation of notice and the legal consequences are the core institutions of the system.Chapter four analyzes consumer to withdraw the right system the United States. The federal legislation of the United States of consumer’s right of withdrawal has always been stuck in the early two legislation, the federal Truth in Lending Act and the Rule Concerning Cooling-off Period for Sales at Homes or at Certain Other Locations of Federal Trade Commission, which are applicable to two areas of consumer credit and off-premises transactions. In addition there are legislations on consumer’s right of withdrawal among the state law, and there is great difference between these legislations from states. Overall, the legislation of consumer’s right of withdrawal in the United States is not as extensive as the European Union. But there is extensive and mature return policy in American business practices, which to a certain extent have the similar effects as the right of withdrawal, and make up for the deficiencies of the legislation. The different attitude on the legislation consumer’s right of withdrawal between the Europe and United States, reflecting the dominant ideology of consumer protectionism in the European Union and the liberalism philosophy in the United States. It is very important to balance the relationship between consumer protection and market freedom in the legislation, which can be achieved through limiting consumer’s withdrawal right in a proper scope and selecting the appropriate type of legal norms.Chapter five analyzes the status quo and prospect of consumer’s right of withdrawal in China. The current legislation of China is on low level, simple and not applicable. The provisions of Consumer Protection Law (Revised Draft) on consumer’s withdrawal right are also unreasonable in many aspects. In addition, the business practice of return policy in China is still in its early stage and its complementary role to the withdrawal right as in the United States is very limited. The legislation of consumer’s right of withdrawal in China is a foregone conclusion. In amendments to the Consumer Protection Act, the overarching provisions of consumers right of withdrawal can be set down in advance, and the specific legislation in relevant departments can be gradually developped, adhering to the leading principles of consumer protection for to combine market freedom, considering China actual reality, and fully assimilating the mature experience and institution on consumer’s right of withdrawal the Europe and United States.