Omnibus Directive: New Protections for Consumer RightsJuly 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
By Judy de Castro - Regulatory Consultant