ABSTRACT

This chapter investigates under which circumstances the corporate social responsibility (CSR) statements of a Dutch multinational company could give rise to liability towards a consumer on the basis of unfair commercial practices and whether this is a desirable development. First, the author describes under which acts of legislation Dutch multinational companies are obligated to publish CSR-related information and under which circumstances a company can be held liable vis-à-vis a consumers on the basis of the Unfair Commercial Practices Directive. This chapter concludes that CSR statements will generally qualify as commercial statements under the Unfair Commercial Practices Directive. As a result, such CSR statements could be used as a legal ground for liability in respect to unfair commercial practices, should these statements prove to be incorrect and/or misleading. Concurrently, the supply chains of multinational companies are long, international and frequently not very transparent. As a result, multinational companies are not always aware of what goes on at all levels in their supply chains. Companies therefore run a risk of publishing CSR statements that may turn out to be misleading. The question then arises of whether companies should find a “safe harbor” if they comply with their statutory duty of transparency, so that they cannot be held liable on the basis of unfair commercial practices if they are transparent in respect to their CSR practices.