EU Consumer Legislation Fit for Purpose but Cosmetic Changes Are Needed

Current EU Consumer and Marketing law is largely fit for purpose, but it has to be properly enforced and applied. Still, there is room for improvement.

Digitalization, new business models and an increase in online retail trade are among elements that stress the need for targeted legislative changes. For instance, many consumers are uncertain about whether they enter into B2C or C2C contracts in online marketplaces. These are the conclusions of a seminar organised by CEBRE together with the Permanent Representation of the Czech Republic to the EU on 25th September.

In May, the European Commission published its Reports regarding the Fitness Check on EU Consumer and Marketing Law and Evaluation of the Consumer Rights Directive. The exercise pointed out the need for more transparency in online marketplaces, the extension of consumer rights to contracts for “free” digital services, individual remedies in the area of unfair commercial practices, more effective deterrent penalties and the simplication of some rules regarding pre-contractual information and withdrawal right. The speakers from different institutions and stakeholder groups were divided in their opinions on the remedies and sanctions, however they agree on the need for better information for consumers. They also agree that awareness and education among not only consumers, but also businesses, is crucial in order to increase the trust in EU consumer legislation.

Soft legal instruments are helpful tools. The European Commission is preparing guidance on an unfair contract terms directive as well as a self-regulatory project on better presentation of consumer information. Targeted legislative amendments of Consumer legislation will be tabled by the Commission at the beginning of next year on the basis of the inception impact assessment and public consultation which runs until 8th October.