CONSUMERS LAW
EU Commission: published the report on the status of implementation in Member States of Directive 2019/2161 on the modernization and strengthening of online consumer protection.
The European Commission has published a report on the implementation of Directive 2019/2161 on better enforcement and modernization of the Union's consumer protection rules, which has introduced significant updates to existing legislation, especially regarding:
- bans on unfair online practices such as advertising and paid placements in search results;
- new transparency requirements regarding the placement of online search results and the conclusion of a contract in an online marketplace; and
- the extension of the Consumer Rights Directive to free digital services for which consumers provide personal data rather than monetary compensation.
In particular, the report highlighted gaps in the national implementation of transparency rules on search results. In addition, it was noted that rules requiring online search service providers that include advertisements in search results to ensure that they are clearly visible and easily distinguishable from other search results should be better enforced. The report mentioned that in the case of large online platforms (VLOPs) and large online search engines (VLOSEs), the Digital Services Act (DSA) requires the availability of at least one non-personalized recommendation system option.
In addition, the report found that online marketplaces have implemented a requirement to provide additional information about the status of third-party vendors, but that consumers are still unsure of the identity of the vendors and how the transaction will take place.
Finally, although several EU member states have implemented new options to allow consumers to withdraw consent in transactions based on the provision of personal data, there is still no measurement of the impact of these practices.
- bans on unfair online practices such as advertising and paid placements in search results;
- new transparency requirements regarding the placement of online search results and the conclusion of a contract in an online marketplace; and
- the extension of the Consumer Rights Directive to free digital services for which consumers provide personal data rather than monetary compensation.
In particular, the report highlighted gaps in the national implementation of transparency rules on search results. In addition, it was noted that rules requiring online search service providers that include advertisements in search results to ensure that they are clearly visible and easily distinguishable from other search results should be better enforced. The report mentioned that in the case of large online platforms (VLOPs) and large online search engines (VLOSEs), the Digital Services Act (DSA) requires the availability of at least one non-personalized recommendation system option.
In addition, the report found that online marketplaces have implemented a requirement to provide additional information about the status of third-party vendors, but that consumers are still unsure of the identity of the vendors and how the transaction will take place.
Finally, although several EU member states have implemented new options to allow consumers to withdraw consent in transactions based on the provision of personal data, there is still no measurement of the impact of these practices.
