The New Consumer Rights Directive

The European Parliament has announced that its members have voted strongly to support a new Consumer Rights Directive. However MEPs have decided to postpone their final position. The new rules, currently due to come into force in 2013, should cover nearly all forms of sale, whether made in a shop, by phone, by post or on-line. It is hoped that the new Consumer Rights Directive will protect shoppers and boost consumer confidence within the EU.

In particular, the rules will provide better protection for on-line shoppers. In many cases the rules will strengthen consumer rights in relation to information, delivery and withdrawal from contracts and provide clarity on rules on digital downloads. Four key consumer protection Directives will be consolidated within the new Directive: those relating to Distance Selling, Sale of Goods, Doorstep Selling and Unfair Contract Terms.

For example, at the moment when shopping online or ordering from a catalogue, the identity of the seller and the total cost may not always be clear. Pre-ticked boxes can confuse online consumers into paying hidden charges. New information rights attempt to put an end to any hidden charges by requiring the buyer to knowingly accept the total price before a sale is concluded.

Delivery of online shopping is a key issue as well. Under the new rules, any goods or services ordered at a distance must be delivered to the buyer within 30 days, otherwise the buyer has the right to cancel the purchase. The new rules also extend the (currently 7 day) period within which a consumer can cancel and demand a refund for a ‘distance’ or ‘off-premises sale’ to 14 days.

Card surcharges are also due to be altered, with current surcharges, especially in relation to airline and ticket agencies, sometimes vastly disproportionate to the costs they are supposedly covering.

But will the new rules impose additional burdens on businesses? The European Commission is hoping it will be less costly for traders to offer their products to consumers in other countries, by creating a level playing field with a single set of core rules. However some things to not fall in the seller’s favour. The ‘cooling off’ period could make online business models less attractive. Making retailers liable for the cost of the return of a product valued at over €40 where a consumer has exercised their right to cancel within the 14 day period could place an unreasonable burden on retailers.

Oliver Kew

Published on 27/04/2011