Online shopping: European Parliament strengthens consumer protection against fraudsters

On Tuesday, Members of the European Parliament (EP) adopted eu-wide rules for better consumer protection and a faster suspension of unfair traders.
- 37% online store and travel, entertainment, clothing, electronics and consumer credit purchase sites identified EU consumer rights violations in 2014;
- Member States' authorities will have wider powers to stop unfair traders;
- better coordinated action AT EU level to prevent cross-border infringements.
EU Member States' authorities will have wider powers to detect and stop consumers' rights violations online. The amended regulation on consumer protection cooperation will also make it possible to act more closely AT EU level. The new rules will address the gaps stemming from different consumer protection mechanisms. Under the Regulation, national authorities will have, inter alia, the following powers:
- request information from domain registers and banks to identify unfair traders;
- to carry out checks on purchases and, where necessary, to purchase goods and services using a different identity;
- order the deletion of digital content or deny access if it is not possible to prevent unlawful conduct by other means;
- impose fines;
- inform consumers about the possibilities to claim compensation.
The European Commission will coordinate action in cases where the infringement does or could harm consumers in at least two thirds of the Member States, affecting at least two thirds OF THE EU population. One of Parliament's demands for negotiations with THE Council of THE EU was the widest possible involvement of consumer organisations. As such organisations often have access to information earlier than the authorities, they will play a significant role in reporting potential irregularities.
The draft law, which was approved by Parliament with 591 votes against 80, with 15 abstentions, was yet to be approved by THE EU Council. The Regulation will apply 24 months after its entry into force.
Existing practices against which new EU rules should be addressed:
- the airline deploys a cross-border campaign by temporarily offering cheaper tickets, which are then cancelled;
- long-term contractual obligations, which are masked by an offer of one euro to obtain a telephone;
- the trader does not deliver his own sold furniture online and changes the address four times over three years;
- car renters discriminate against consumers based on their country of residence.
Other information: HERE.