Online boost for EU consumers and businesses

IRISH consumers and businesses will be able to avail of fresh business opportunities after the European Parliament rubber-stamped regulations covering online shopping.

The EU’s Consumer Rights Directive was passed yesterday, meaning people buying items such as flights online should no longer be charged credit card fees and will enjoy new rights on unwanted or damaged returns.

Vendors will also now be responsible for any damage to goods during transit, while online opt-in boxes for buying goods and services cannot be pre-ticked.

Traders will also have to supply clear information on final price and complaint procedure before purchase and traders will also be barred from using premium-cost phone lines for customer service.

The new laws will equalise many of the differing consumer protections that exist in member states and have been broadly welcomed by consumer groups and politicians.

However, the European Consumer’s Organisation (BEUC) warned that there would be some disadvantages to the new laws, including that more goods bought by “doorstep selling” will be excluded from the new standards, and certain national protections will have to be abolished, such as in cases where the cost of the returning goods is on the trader in circumstances of customer withdrawal.

However, consumers will also be able to cancel an online order and get a full refund if goods are not delivered within 30 days. Online shoppers will also have 14 days to cancel an order and get a full refund, although in those circumstances the consumer will have to pay the cost of return.

The passing of the new regulations comes after years of talks between EU institutions, trading groups and consumer rights representatives.

Director general of the European Consumers Organisation Monique Goyens, said: “This law is a tough compromise and we regret that some national rules will be overruled, but on the whole there will be progress for consumers.

“Consumers will benefit from more information and transparency, in particular when buying online. Moreover, this law will put an end to growing unfair business practices like when buying flights, they will not be charged unjustified fees just to use their credit card.”

Labour MEP Phil Prendergast welcomed the advent of the new laws, saying they would open up avenues in online retail for businesses and allow consumers greater protections and increased confidence in online European-based purchases. “These rules should also encourage more cross-border shopping and offer consumers better choice and value.”

With online sales worth in the region of €163bn last year, Ms Prendergast said: “The rules will protect consumers from sharp practice and set minimum rights for returning goods.”