Consumer rights directive

 

What is it?

One of the problems the directive addresses is the confusing patchwork of consumer rights across the EU, which had become a barrier to cross-border trade. It also addresses issues such as doorstep selling and distance selling (sales that are not conducted face-to-face). The law was widely seen as outdated in this area, giving inadequate protection to online consumers.

A press release by the European Parliament highlights the 10 most important changes for consumers in the directive:

1. The elimination of hidden charges and costs on the internet.
2. Increased price transparency.
3. Banning pre-ticked boxes on websites.
4. A 14-day ‘cooling-off’ period in which consumers can withdraw from online, telephone and mail order sales contracts (rather than the current seven days). The consumer has until 14 days after receipt of goods in which to withdraw from the contract.
5. Traders must refund consumers for products purchased and subsequently cancelled within 14 days of the cancellation. This includes costs of delivery incurred by the customer.
6. Introduction of an EU-wide model form for withdrawing from a sales contract.
7. Eliminating surcharges for the use of credit cards and telephone hotlines.
8. Clearer information on who pays for returning goods.
9. Better consumer protection in relation to digital products, such as music and video downloads. Consumers will have the right to withdraw up to the moment the download process begins.
10. Common rules for businesses to make it easier for them to trade across Europe.

 

Who will be affected?

BVRLA members who sell any products or services at a distance will be affected by this directive, although the BVRLA has secured an exemption for car rental (see below). The directive does not cover financial services, eg services of a banking, credit, insurance, personal pension, investment or payment nature, sold at a distance. These are covered by the Distance Marketing Directive.

BVRLA lobbying – car rental

After extensive lobbying by the BVRLA and Leaseurope at EU level, an exemption from the legal right to provide a 14-day cooling-off period has been secured for car rentals concluded at a distance. This means that BVRLA members will not need to change their business model to accommodate the cumbersome rules and regulations on cancellation rights. The BVRLA and Leaseurope, the European federation of leasing company associations, estimate that this exemption will save the industry €249m (about £218m) a year in administration.

Without the exemption, consumers would have been entitled to cancel their contract within 14 days of booking and receive a full refund.

Next steps

The directive has been adopted by the European Parliament. If it is formally approved by the Council of Ministers in September, EU member states will have until the end of 2013 to implement the new rules.

It is still unknown whether the exemption will use the word ‘vehicle’ rather than ‘cars’, but the BVRLA will continue to lobby to ensure that it can be interpreted as including vans as well.

For further information, please visit our consumer protection pages, which can be accessed in the quick link box.

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