A stitch in time saves fine

If I said to you “4% of annual turnover”… yeah, yeah, fines under the GDPR, old news. Move on…

Nope, this is different. Wait, what? More massive fines?

Yup, in this case for breaches of EU consumer law. But, we’ve just started expanding our business to consumer offerings to make up revenue lost to COVID-19.

Fret not, you have just under two years until 28 May 2022 when you need to ensure compliance. Compliance with what, exactly?

With the Enforcement and Modernisation Directive (aka the ‘Omnibus Directive’). Which does what?

Well, my three takeaways were that: (i) various EU consumer law Directives will be updated1 (covering a range of requirements from information to be made available to consumers, via rights around free digital services, to parity of treatment across member states); (ii) the definitions of digital content and digital services will be aligned across EU directives2; and (iii) maximum fines will run at 4% of turnover across all member states or, if such turnover cannot be established, €2,000,000.3 Well, that’s all well and good, but those are only your takeaways.

You’re free to read the Directive yourself. Oh, er... is that a Teams coming through? I've got to go; just give me some key impacts.

The increase in sanctions (along with the more active approach EU regulators have been taking of late) will mean companies offering digital content? across the EU will need to get a grip on their compliance with the directive. Sounds like we may want to use those two years to avoid a mad rush in 2022.

Truth. See, sometimes I am wise.

FOOTNOTES

1 The Unfair Commercial Practices Directive (2005/29/EC), which is implemented in the UK by the Consumer Protection from Unfair Trading Regulations 2008. The Consumer Rights Directive (2011/83/EU), which is for the most part implemented in the UK by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. The Unfair Contract Terms Directive (93/13/EEC), which is implemented in the UK by the Consumer Rights Act 2015. The Price Indications Directive 1998/6/EU, which is implemented in the UK by the Price Marking Order 2004.

2 By aligning Directive 2011/83/EU to the definitions in Directive (EU) 2019/770 (Article 2).

3 See Article 4 amendments to Directive 2011/83/EU Article 24, clauses 3 and 4.

? And those who sell products with different specifications across the EU.

Boring disclaimer - I've written/created the above in my personal capacity (as a legal nerd) for information purposes only and it is not intended to be legal advice. I make no warranty of any kind and will not be responsible for any actions (or inactions) if anyone is foolish enough to rely on my writing.