Omnibus Directive: New Protections for Consumer Rights June 2020A key part of the EU’s New Deal for Consumers entered into force earlier this year: The Omnibus Directive, which strengthens consumer rights through enhanced enforcement measures and increased transparency requirements.
Key changes introduced by the new Directive are:
EU Member States have two years to transpose these new rules: national implementation measures must be adopted by 28 November 2021 and in force by 28 May 2022.
- A requirement for increased transparency online in particular for search result rankings, fake reviews, endorsements and personalised pricing.
- The extension of consumer rights to “free” digital content and services.
- Fines and Enforcement powers: fines of up to 4% of the trader’s annual turnover in the Member State (or Member States) where the breach occurred, or EUR 2 million in cases where information on turnover is not available, with individual Member States able to introduce even higher fines
EU consumer legislation applies to traders targeting consumers in the EU, regardless of the trader’s location. Online traders worldwide will need to use this two-year window to ensure their EU-facing practices comply and mitigate the risk of fines.
By Judy de Castro - Regulatory Consultant