Locations
The Consumer Rights Directive 2011/83/EC was transposed into Irish Law in December 2013, by virtue of the European Union (Consumer Information, Cancellation and Other Rights) Regulations, 2013 (the “Regulations”). The purpose of the Regulations is to consolidate the current consumer legislation, to enhance consumer protection and to align rules for traders across Europe. Elizabeth McCann and Feilim O'Caoimh take a look at when the Regulations apply, the key changes and enforcement and penalties that can apply.
When do the Regulations apply?
The Regulations will apply to following contracts between traders and consumers concluded after 13 June 2014:
- Off premises contracts (contracts concluded away from the trader’s premises, for example, at the consumer’s home or workplace);
- Distance contracts, (contracts concluded online, by telephone or by post); and
- On premises contracts.
Key Changes
The key changes for consumers include:
- the elimination of hidden charges and costs on the internet;
- the cooling off period (the period in which a consumer can unilaterally decide to withdraw from any obligations under the relevant contract) has been extended from 7 to 14 days;
- the introduction of an EU-wide model withdrawal form;
- improved refund rights, for example, refunds must be made within 14 calendar days, reduced from 30 calendar days;
- clearer information on who bears the cost of returning goods;
- the elimination of excessive surcharges for the use of credit cards. The Regulations prevent the charging of fees for the use of a particular means of payment, which exceed the cost borne by the trader for the use of such means of payment;
- the banning of pre-ticked boxes on websites; and
- improved consumer protection in relation to digital products, for example, the right to withdraw from purchases of digital content up until the actual downloading process begins.
Enforcement and Penalties
Traders found guilty of engaging in prohibited practices under the Regulations may be guilty of a criminal offence and fines of between €4,000 and €5,000 and/or 12 months imprisonment on summary conviction and €60,000 and/ or 18 months imprisonment on indictment.
Conclusion
The Regulations have introduced a number of additional obligations for traders, in particular, in the sphere of online trading. It is critical that all traders review their business practices to ensure that as of the 13 June 2014 they will be in full compliance with their legal obligations under the Regulations. For further information on this issue contact Elizabeth McCann, Associate or Feilim O'Caoimh, Partner and Head of Commercial.