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BackThis Thursday, the Committee on Internal Market and Consumer Protection in the European Parliament has voted on a new consumer right in the European Union. In the run up to the vote, following a number of informal talks with the Council, agreement was reached between the two EU institutions. Both the vote in the plenum of the European Parliament and the approval at the next Council of Ministers are regarded as a mere formality. Most of the deteriorations for consumers included in the Commission proposal could be averted. However, apart from some improvements for consumers, several provisions of the new Directive have to be regarded as negative.
Some examples of what will change for the consumer:
In accordance with the new Directive, the consumer has a right to withdraw within 14 days in case of distance selling (mail order, online shopping, order via email) and of doorstep selling. If no right to withdraw instructions have been given, the withdrawal period will be extended to a year. This extension applies to distance selling but not to doorstep selling. With regard to doorstep selling, the consumer always has a right to withdraw, independent of the fact whether he initiates the contract or not. In case of withdrawal, the trader has to refund the payments of the consumer including the delivery charges. However, the costs for returning items have to be borne by the consumer, unless he was not informed accordingly or the trader agrees to assume them.
With regard to cost traps on the internet, provisions have now been made that in future such contracts are only valid, if the consumer explicitly confirms that the contract includes a payment obligation. Concerning telephone contracts, the Member States may introduce a provision that these contracts only become valid when they have been separately confirmed by the provider and signed by the consumer.
With regard to purchases made in business premises, companies have to fulfil a number of new information duties. The controversial right to withdraw in case of online auctions for the consumer remains. And in respect of mail order purchases it has now been ruled that the company has to bear the risk of damage or loss of the goods during transport.
What is definitely negative, is the fact that the Directive includes many exemption clauses. For example the Member States are allowed to relax the provisions concerning pre-contractual information duties with regard to repair and maintenance contracts if the order value is below € 200. Quite a number of transactions are exempt from the right to withdraw, for example those concerning made-to-measure items, unsealed audio or video recordings or software or digital contents, whereby it doesn’t matter whether the purchase was made via distance or doorstep selling. Many consumer purchases, such as package holidays, financial or social services do not come under the provisions of the new legislative text at all. Apart from that, due to the new Directive, Member States will in many cases not be able to react to regional consumer problems with national regulations.
The reading on the Consumer Rights Directive is finalised at the end of June. Following the publication in the official journal of the EU, the Directive will come into force in two years’ time.
In accordance with the new Directive, the consumer has a right to withdraw within 14 days in case of distance selling (mail order, online shopping, order via email) and of doorstep selling. If no right to withdraw instructions have been given, the withdrawal period will be extended to a year. This extension applies to distance selling but not to doorstep selling. With regard to doorstep selling, the consumer always has a right to withdraw, independent of the fact whether he initiates the contract or not. In case of withdrawal, the trader has to refund the payments of the consumer including the delivery charges. However, the costs for returning items have to be borne by the consumer, unless he was not informed accordingly or the trader agrees to assume them.
With regard to cost traps on the internet, provisions have now been made that in future such contracts are only valid, if the consumer explicitly confirms that the contract includes a payment obligation. Concerning telephone contracts, the Member States may introduce a provision that these contracts only become valid when they have been separately confirmed by the provider and signed by the consumer.
With regard to purchases made in business premises, companies have to fulfil a number of new information duties. The controversial right to withdraw in case of online auctions for the consumer remains. And in respect of mail order purchases it has now been ruled that the company has to bear the risk of damage or loss of the goods during transport.
What is definitely negative, is the fact that the Directive includes many exemption clauses. For example the Member States are allowed to relax the provisions concerning pre-contractual information duties with regard to repair and maintenance contracts if the order value is below € 200. Quite a number of transactions are exempt from the right to withdraw, for example those concerning made-to-measure items, unsealed audio or video recordings or software or digital contents, whereby it doesn’t matter whether the purchase was made via distance or doorstep selling. Many consumer purchases, such as package holidays, financial or social services do not come under the provisions of the new legislative text at all. Apart from that, due to the new Directive, Member States will in many cases not be able to react to regional consumer problems with national regulations.
The reading on the Consumer Rights Directive is finalised at the end of June. Following the publication in the official journal of the EU, the Directive will come into force in two years’ time.