Guidelines – Services Directive 2006/123/EC

Casual Trading Legislation and the Services Directive

( Directive 2006/123/EC)

Important notice regarding the implications of the Directive on

Casual Trading Bye Laws.

The Directive comes into force on 28th December 2009.

Each local authority is a competent authority for the purpose of the Directive and it is the responsibility of each local authority to ensure that they are conforming to the provisions of the Directive.
This note does not purport to deal with every aspect of the Directive. The note is based on those provisions of the Directive which appear to the Department to be most relevant to casual trading. The note takes the order of the Articles in the Directive. Note on terminology-this Note uses the terms “traders” and “customers” instead of the respective terms “provider” and “recipient” as used in Art. 4 (definitions) of the Directive. However the detailed definitions in the Directive apply. The Department will be nominated as the “Point of Single Contact” (PSC) in Art. 6.

Guidelines

3.Local authorities must publish the criteria on which their casual trading bye laws are made. The criteria are referred to in Art. 10 (2). Note that Art. 10 (2) (f) & (g) say that the criteria must be made public in advance and be transparent and accessible. Local authorities should consider whether these criteria should be available on their websites.
4.The licence must be issued as soon as all the conditions have been met (i. e. once the form has been correctly completed and the fee paid and any other conditions met) [Art. 10 (5)].

14.Some local authorities delegate the decision on who will trade in a particular market and other decisions to the traders themselves. This is usually done by the local authority either directly or indirectly delegating this function to the traders or a representative group of traders. This practice is now prohibited. In future any such decisions can only be made by the local authority [Art. 14 (7)].
15.Under the Directive [Art. 22] there is an extensive list of information which the trader must make available to the customer. Local authorities must ensure that this information is made available. Art. 22 (2) sets out how and under what circumstances the trader provides the information to the customer. Under Art. 22 (4) the local authority must ensure that the information required of the trader is made available or communicated in a clear and unambiguous manner. It also states that the information must be made available before the conclusion of the contract. Given the nature of casual trading it is suggested that the information be either displayed by the trader at or on the stall.
16.Local authorities may ensure that traders have professional liability insurance (i. e. public liability insurance). However there are limitations on competence in this area. Recital 99 states that local authorities can no longer stipulate the level of cover which traders must have. Further local authorities can only insist on traders having public liability insurance if there is “a direct and particular risk to the health or safety of the recipient or a third person” [Art. 23 (1)]. In each case where a local authority determines that a trader should have public liability insurance they should justify this requirement by detailing the risks they consider need to be insured against.
17.Local authorities must keep the traders contacts details so that customers can make complaints if they so wish. Local authorities must ensure that traders respond to any complaints and have to make their best effort to find a satisfactory solution [Art. 27 (1)].
18.Local authorities have to take measures to ensure that traders comply with the information requirements of the Directive [Art. 27 (2)]. One way of ensuring that is achieved is to make these provisions a condition [see section 4 (3) (a), (b) & (c) of the Act] of the granting of a licence. If the trader does not comply with these conditions an offence is committed.

Competition & Consumer Policy Section

Department of Enterprise, Trade and Employment

17th December 2009