New rules on consumer rights apply in the European Union from May 28 as the so-called Omnibus Directive comes into force.

The EU Commission says the rules address the challenges posed by digital traders, platforms and marketplaces, and will equip consumer authorities with stronger tools to enforce consumer rights.

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

Consumer-to-consumer transactions are not covered by EU legislation.

EU Commissioner Justice and Consumers, Didier Reynders, stated: "Consumers are entitled to the highest standards of protection. For instance, while searching for a product online, transparent information must now be provided by platforms about the way offers are ranked. This is to avoid misleading commercial practices.

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“Access to individual remedies, as well as penalties for cross-border infringements will also be reinforced.” 

The main provisions of the EU directive will be transposed into Irish law through the Consumer Rights Bill 2022, which is currently before the Dáil.

The new EU rules also specify:

•     An obligation on professional traders to provide information on who is responsible for delivery and returns.

•     An obligation on platforms and marketplaces to inform consumers about how seller offers are ranked in search results and identify paid advertisements, when this is the case. 

•     An obligation on sellers for transparency on ‘tailored prices’ based on consumer location and behavioural profiling. 

•     An obligation on sellers to disclose how they operate price reductions, which must be referenced against the product’s regular price recorded within the previous 30 days.

•     A ban on the resale of event tickets bought in bulk by professional traders that use online ‘bots’.

•     Fines of up to 4% or €2m of a trader’s turnover for breaches of consumer rights. 

•     Tackling ‘dual quality’ products whereby branded goods sold as identical have different compositions in different member states. 

•     A ban on manipulating or posting fake reviews or endorsements either directly or via third parties .

The remedies for victims of unfair commercial practices include a right to compensation and contract termination.

According to the European Consumer Centre Ireland, located in Dublin, there will be increased enforcement powers for national consumer authorities and regulators.

The Competition and Consumer Protection Commission (CCPC) will continue to be responsible for the enforcement of the provisions of general consumer protection, while sectoral regulators will maintain their current enforcement responsibility for their own areas.

When the Consumer Rights Act 2022 is enacted, probably this year, the CCPC  will have enhanced powers to uphold consumer rights, particularly where traders do not provide the remedies or reimbursement to which consumers are entitled.