Consumer Protection by the ECJ in Unit-Linked Group Contracts: On Transparency, Liability and Nullity under the UCPD

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This case note addresses the ECJ’s drafting of essential information to be given to a consumer in the event of a unit-linked group contract. This information enables consumers to make an informed decision. The ECJ subsequently qualifies the failure to transfer this information as a misleading omission under Article 7 UCPD, which in turn may result in a violation of the transparency requirement enshrined in the UCTD. Liability of the traders on whom the responsibility rests to furnish this information is also examined in this comment, as the ECJ makes a distinction between the responsibilities of traders and intermediaries. The Polish action for annulment when the traders infringe the UCPD was lastly deemed compliant with the UCPD and proportionate by the ECJ, thereby using a cross-reference to its case law in the field of consumer credits on the requirement that national sanctions have to be effective, proportionate and dissuasive. The possible consequences of this cross-reference method are discussed afterwards.