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New EU consumer rules come into effect

The European Consumer Centre (ECC) Ireland has reminded consumers that new rules on consumer rights come into force across the EU tomorrow (28 May).

The body, which helps Irish consumers with complaints against EU-based businesses, says that the rules contained in a new directive address the challenges posed by digital traders, platforms and marketplaces, and will equip consumer authorities with stronger tools to enforce consumer rights.

Directive (EU) 2019/2161, or the Better enforcement and modernisation Directive, amends previous measures contained in some existing EU directives.

Professional sellers

The new rules introduce an obligation on digital platforms or marketplaces to clearly state whether a buyer engages in a purchasing transaction with a third-party vendor that is a professional seller, or another private individual.

This is important, as consumer-to-consumer transactions are not covered by EU legislation.

Under the directive, professional traders must provide information on who is responsible for delivery and returns.

Platforms and marketplaces must tell consumers about how sellers’ offers are ranked in search results, and identify paid advertisements, when this is the case.

Ticket ‘bots’ targeted

Sellers must also provide transparency on ‘tailored prices’ that are based on consumer location and behavioural profiling, while they must also disclose how they operate price reductions.

The directive includes a ban on the resale of event tickets bought in bulk by professional traders that use online ‘bots’.

There are also fines of up to 4%, or €2 million of a trader’s turnover, for breaches of consumer rights

The measures leave it up to member states to decide on what penalties should be imposed for infringing the new law.

Beefed-up powers for CCPC

Member states were required to transpose the directive by 28 November 2021 and to apply its provisions from 28 May 2022.

In Ireland, its main provisions will transposed through the Consumer Rights Bill 2022, along with Directive 2019/770 on contracts for the supply of digital content and services, and Directive 2019/771 on contracts for the sale of goods.

The new rules give the Competition and Consumer Protection Commission (CCPC) stronger powers to uphold consumer rights.