Omnibus Directive – E-commerce has until May 28 to comply with the new law
Online stores have until 28 May to comply with the EU Omnibus Directive, which extends the protection of consumer rights. The new rules are designed to prevent m.In. dishonestly inflating prices before introducing discounts or publishing false reviews of products. Adapting store operations to these regulations may, however, pose a problem for eCommerce, especially in terms of the obligation to inform about the individual adaptation of the price to the consumer. For a discussion of what the new regulations mean for e-commerce, see the latest e-book Polish software house Advox Studio, specializing in eCommerce.
Implemented in 2018. The Data Protection Regulation, commonly known as RODO, has been quite a change for many companies. Now another EU directive is coming into force, the so-called “Digital Agenda for Europe”. Omnibus, which aims to strengthen the protection of the consumer as the weaker party in the purchasing process conducted nowadays not only in stationary, but also online.
Bat for rogue retailers, but also a hassle for eCommerce
New regulations will regulate m.In. price cuts. These are the most encouraging way of promotion in online stores, as it results from report on the e-shopping habits of Poles developed by Advox Studio, a software house headquartered in Poznan and with branches in Europe, which has completed over 200 e-commerce projects. According to the data Gemius personalized promotions motivate more than ¼ of online consumers to shop at a specific store.
Analysis of promotions for Black Friday in 2021. indicate that actual discounts averaged only 3.6 percent. In appendix ca. 10-15%. entities inflated the prices of their products compared to Friday a week earlier, and a few days later – on Cyber Monday – every tenth online store raised its price once again – says Rafał Gadomski, CEO Advox Studio – It is because of such unfair practices that the new regulations introduce a requirement that, in case of a discount, the lowest price that was in effect during the 30 days prior to the introduction of the promotion – will be placed next to the new price. Very importantly for eCommerce, it also overlaps with businesses The duty to inform about individual adjustment of the price to the consumer on the basis of the collected data about his/her preferences and consumer behaviour, if such activities take place. This will bring many difficulties for online stores, which organize complex promotional actions – e.g. create package deals or target price reductions to selected customer groups – and dynamically set prices.
An entrepreneur will also be able to receive a penalty for publishing or having published false opinions on its products – i.e. recommendations coming from people who have never used them. Removing and hiding negative reviews or discouraging people from posting them will also be a violation of the law. According to report Advox Studio almost ¾ of online consumers pay attention to product reviews published on the store’s website, and as many as 86% of consumers have. check reviews about the store itself before making a purchase there. The seller will be obliged to indicate what actions he takes to verify product reviews on his website, and there will be sanctions for failure to do so.
High penalties for non-compliance with the new rules
Omnibus directive It will also affect the functioning of sellers on marketplace platforms like Allegro, Amazon or Facebook’s sales platform. It will be necessary to m.in. make available information on whether the seller of an online platform is an entrepreneur or is listing as a private individual. Failure to provide such information will be treated as an unfair commercial practice. This is important from the point of view of consumer protection because if the seller is not an entrepreneur, the provisions of the Act on the Protection of Consumers will not apply. consumer protection. In such a situation the buyer is not entitled to e.g. The right to withdraw from the agreement within 14 days from the receipt of goods – explains Rafał Gadomski, CEO Advox Studio.
Changes in regulations apply to both new and existing stores. You can read a detailed description of the new regulations and their impact on eCommerce in the e-book “The New Deal for Consumers vs. the New Reality of eCommercials. Get ready for the “Omnibus Directive”, prepared by experts from the eCommerce sector. By 28 May 2022. each online store should adapt its documentation and regulations to the new regulations and implement new operating procedures in terms of customer service. Failure to comply could result in fines of up to 40k. PLN or, as in the case of using fictitious discounts, 10 percent. turnover from the previous year.