DEFINITION

When a business sells to consumers (B2C) by mail order, phone, fax, Internet or digital TV (at a distance as opposed to face-to-face) the seller must give the consumer a cooling-off period during which the consumer has an unconditional right to cancel the contract. This rule is laid down in Directive 97/7/EC Art.6. It is NOT APPLICABLE to auctions, vending automats and real estate sales. Furthermore, for perishable goods (e.g. food, but also newspapers), services for a fixed date (e.g. tourism industry: room reservation, train/air ticket etc., catering), for goods made to specifications, and unsealed CDs,DVDS, CD-ROMs, the cooling off period is not applicable.

IMPACT ON e-BUSINESS

Consumers enjoy special protection as the weaker part in a business contract. The cooling off period is meant to allow consumers to "change their mind" in case they did not give enough thought to the purchase, or that the good/service in question does not correspond to their expectations. The business is obliged to take back the good and pay back the price (not the mailing costs, though). The  Directive sets the cooling off period at a minimum of 7 days. The period shall start running on the day:
- the goods are received by the consumer
- the service contract is concluded (= offer made, accepted and confirmed)
AND all information necessary provided by the seller to the consumer (see Consumer Protection, Art. 4 and 5 of the Directive), whatever is later. If some of the required information is not provided, the cooling off period is extended to 3 months.
That means for a business:
1. It is important to know what information it needs to provide to consumers
2. It needs to be aware that transactions are never final unless a certain period of time expired.
BUT WHICH PERIOD OF TIME?
The Directive prescribes a minimum period but leaves the implementation to the discretion of the Member States. The results are by far not homogeneous:
AT     7 working days (excluding Saturdays)
BE    7 working days
CY    14 days
CZ    14 days
DK    14 days
EE    14 days
FI     14 days
FR    7 working days (but expression "jours francs" not clarified)
DE    2 weeks
GR    10 working days
HU    8 working days
IRL    7 working days
IT    10 working days
LV    14 days minimum
LT    7 working days
LUX    7 working days
MT    15 days
NL    7 working days
PL    10 days
PT    14 days
SK    7 working days
SL    15 days

DEFINITION

Consumer protection comprises rules and legislation for the protection of the consumer = private client (as opposed to business client). Consumers are considered as deserving specific protection to avoid an unfair situation in a market place. This is valid in particular for distance selling, i.e. when consumers buy not in a face-to-face situation but "remotely" via catalogues, TV or the Internet.

IMPACT ON e-BUSINESS

Rules for consumer protection are laid down in particular in the Directive 97/7/EC in respect of distance contracts. Any business who sells over the Internet should be aware of these rules as they may have a substantial impact on business performance (see for example cooling off period).
Art. 4 determines what is the minimum information given when selling "at a distance", e.g. via a website:
Prior information
1. In good time prior to the conclusion of any distance contract, the consumer shall be provided with the following information:
(a) the identity of the supplier and, in the case of contracts requiring payment in advance, his address;
(b) the main characteristics of the goods or services;
(c) the price of the goods or services including all taxes;
(d) delivery costs, where appropriate;
(e) the arrangements for payment, delivery or performance;
(f) the existence of a right of withdrawal, except in the cases referred to in Article 6 (3) (these are: perishable goods, newspaper, goods made to specification of consumer, services with a specific date such as hitel reservations, tickets, catering etc.)
(g) the cost of using the means of distance communication, where it is calculated other than at the basic rate;
(h) the period for which the offer or the price remains valid;
(i) where appropriate, the minimum duration of the contract in the case of contracts for the supply of products or services to be performed permanently or recurrently.

USEFUL LINKS

Text of the proposed Directive on consumer rights of 8 October 2008 that foresees harmonised, strong protection of consumers in particular in an on-line, cross-border shopping context.

DG Health and Consumer Protection's 10 principles of European consumer protection

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