As expected, the European Parliament has thrown its weight behind the European Commission’s proposed Consumer Rights Directive (COM(2008)0614)

This means that by the end of 2013, it will probably become law in the member states and will apply to businesses offering goods or services to consumers online - in other words, distance selling. The Directive is broad, and covers everything from extra fees for credit card payments to the cost of returning unwanted goods (called the right of withdrawal). E-commerce website owners based in the EU will need to start taking action when the final version is published in their countries and well before it gets implemented into their national law.

The implications of the Consumer Rights Directive for website owners

The Directive broadens the information you'll need to display or make available at the moment a sale goes through. Some of it is already required under UK and EU law, but the Directive aims to remove ambiguity from the e-commerce contract of sale, and website owners may want to review the proposed measures to check they have everything shipshape. In particular, the Directive obliges traders to provide  

• A proper description of the goods or services 
• A trading name, address and telephone number 
• The total price including taxes and postal charges. If these can't reasonably be provided, then traders should give a description of how they will be calculated
• In some cases, the time by which the goods or services will be delivered and a description of the company's complaints policy

Clarity at the moment of sale is crucial. The proposal requires that the button used to make the sale be labelled "order with duty of payment" or include an equivalent text, and it must be made clear at the beginning of the process what methods of payment are acceptable.

The right of withdrawal under the Consumer Rights Directive

The Directive also puts some hefty obligations on traders as regards returns.

Consumers get 14 days to return goods instead of 7 days, and this cooling-off period runs from the moment the goods arrive, instead of the moment when they were sold. If you fail to properly inform the consumer about his or her right of withdrawal from the contract of sale, the return period is extended to a year.

Refunds should be made within 14 days. The cost of postage or delivery will fall to the trader if it has not been made clear who will bear the cost of returning the goods at the time of the sale. If the goods are damaged in transit to the consumer, that is the trader's problem.

The practice of only selling to certain countries will be forbidden. Currently some traders refuse to sell in certain member states, on the grounds that delivery and other risks are higher, but the Commission considers this harmful to the creation of the single market.

You will not be allowed to assume a consumer wants an additional service. This is likely to mean that travel companies, for example, will not be allowed to pre-tick boxes for the purchase of insurance, car hire, or similar additional services.

Consumers will have the right to withdraw from a contract of sale for digital products such as software downloads, but not after they've started the download. And if you sell digital products and downloads, you may need to make it (more) clear if there are restrictions on copying it.

There are numerous exceptions and caveats which will apply to different businesses and trades, so once the national version of the Directive has been published in your jurisdiction it will be worth speaking to a lawyer if you think your business will be affected.

The text of the Directive and information from the European Commission

The text of the proposed Directive is online here:  In addition, the European Commission has explained the rationale behind it here: 

Note: This is intended as commentary on the proposal as it stands, and should not be understood as legal advice.