NEWS

On April 17, the Parliament approved the new rules to improve the transparency of online markets and eliminate double-quality products.

The reform is part of the new agreement for consumers and consists of a review of four European directives. It is intended to address the significant differences that persist between the countries of the European Union. This new agreement is an important step for citizens to have the same rights in all Member States.

It will strengthen consumer protection by introducing collective redress and imposing more dissuasive penalties for companies that do not meet the requirements. In addition, it will cover new topics on which there is no European law, especially on the internet, as well as in relation to the dual quality of the products.

# 1 More protection when shopping online

Consumers should be clearly informed about who is selling products or services and whether the seller is a professional or another consumer, so that it is clear from the beginning where the responsibility resides and what laws are applicable.

The new agreement for consumers will ensure greater transparency in online search results. Users will be clearly informed if the products or services that are first in the search engines is due to the paid locations.

The rights of consumers with respect to "free" digital services, ie contracts for which money is not paid but which allow merchants to use the personal data of consumers, will also be extended. Contracts may be canceled based on the use of personal data in the same way that consumers can cancel online contracts for digital payment services (before 14 days). Cloud storage services, social networks or email accounts will also be covered.

Check what the European Parliament did to eliminate barriers to online shopping and improve its digital life in 2018.

# 2 Introduction of collective reparation in all the countries of the Union

If a large number of consumers are harmed by the same merchant, it will be possible to be represented in all Member States by non-profit organizations to obtain compensation, replacement or repair. Consumers from different EU countries can also be grouped cross-border to organize a claim.

The right to claim financial compensation or the termination of the contract in case of unfair commercial practices, such as aggressive or deceptive marketing, will be the same throughout Europe and will not vary from one country to another as it happens today.

# 3 Most dissuasive penalties

The EU consumer authorities are not always well prepared to sanction practices that create "situations of mass harm" and that affect a large number of consumers across Europe. The level of penalties varies and is usually too low to provoke a deterrent effect. Therefore, this update will give the national consumer authorities the power to impose effective, proportionate and dissuasive sanctions in a coordinated manner.

# 4 Eliminate double-quality products

One of the unfair practices is to market products with the same brand and packaging, while offering a significantly different composition of the product, without informing the consumer of it. Studies have shown evidence of these practices in the food industry.

The consumers are deceived into believing that they are buying the same product when in reality it is not like that. Following the guidelines of the Commission as of September 2017, the new agreement will update the directive on unfair commercial practices.

Read more about Parliament's initiatives to combat double-quality products.

Next steps

Once approved by the Council, the Member States will have two years from the date of entry into force of the directive to incorporate it into their national legislation.