EU eCommerce news - the Omnibus directive
What does the new consumer protection law mean for webshops and what is changing in the display of prices?
The goal of the so-called Omnibus directive is the modernization of rules on consumer protection and information in line with market developments, especially the regulation of relations between parties in ecommerce. The changes outlined in the Directive come into force EU-wide from May 28th 2022.
Based on the new consumer rigths laws, the seller is, among other, obligated to:
- during promotional sales, seasonal discounts, final sales and sales of defective goods, in addition to the valid retail price (which, as always, must include all taxes and duties), highlight the lowest price of the product in the past 30 days.
- clearly inform the customer if the retail price is personalized based on an automated decision making system.
The aim of this directive is clear - to protect consumers from unfair commercial practices, but how will the changes affect ecommerce?
Although a good part of the changes and innovations relate to legal issues that merchants will cover with changes in the General Terms and Conditions, some of the changes require refinement of ecommerce solutions. The Act does not specify in which specific places the lowest price in the last month should be highlighted, so interpretations differ depending on the source. Although the law applies to all sales channels, in terms of price placement, legislators seem to have focused on physical sales again.
Where should all the obligatory information be presented and will the requested changes affect the look of the webshop too much?
- Information on the lowest price of the product in the last 30 days must be displayed on the product page only
- When the product is on sale, the old price will no longer be highlighted and crossed out, below it the promotional price and a percentage of the discount, but only the current promotional price and the lowest price on the product in the last 30 days, regardless of what it was and whether it was a regular or special price
The Shipshape team, in cooperation with the legal department, is working on devising solutions that will meet the new legal regulations, ensure our customers smooth operation while maintaining high standards of responsive design of our ecommerce solutions.
These changes are not the only ones that await online retailers soon. Strating from September, in Croatia, double disclosure of prices will become mandatory, as one of the parts of the mechanism of switching from the kuna to the euro. Dual prices will need to be displayed in all positions where the consumer evaluates and makes a decision to purchase the product. Speaking of webshops, this goes for the front page, the category page, the product page, and the cart itself.
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