20/06/2011

Easy online shopping across borders
Parliament and Council agree on new EU directive on consumers rights

By Thomas Bickl, German Press Adviser

Increasingly popular: buying online

Online shopping is a convenient tool for both consumers and sellers. Orders can be placed from home, processed automatically and then delivered swiftly. Usually consumers know their rights and both parties have got legal security. In 2010, nearly 60% of consumers purchased goods or services on the internet, compared to nearly 40% in 2009. Between 2004 and 2010 there was a real boost of online-shopping, rising from 20% to 40% of those who have shopped online.



Now also across borders

Shopping online across borders has been more challenging as standards in the EU Member States vary considerably, but that is going to change soon. Parliament and Council have just agreed on the details of a new EU directive on consumer rights. Until now, if companies wanted to sell in other EU countries, they had to adapt to the legal provisions in those countries. This can be expensive for companies. Consumers still tend to be wary of buying from providers abroad as they feel uncomfortable about defending their rights. As a result, there has been relatively little cross-border activity from consumers and retailers in the EU. Also, many online shops are not willing to sell to consumers from every EU country, which means that Internet transactions are often discontinued when it becomes apparent that the consumer resides outside a particular market.

Making it easier

In the future, consumers will have to explicitly agree that they want to buy a product or a service. A detailed statement on the exact price will be mandatory on the part of the seller which has not always been the case with online shopping. Generally, there will be a right of withdrawal of 14 days throughout the EU. It will be explicitly visible on the site by requiring a separate click, the so-called 'button option'. "This is bound to increase consumers' confidence and ensure they are aware of their rights. At the same time, this will boost companies' activities across borders and create new market opportunities," says Andreas Schwab.

What next?

The Plenary of the European Parliament is going to adopt the new EU standards on 24 June. Council will have to formerly adopt them too. The new rules on consumers rights can take effect as from 2013.