DEFINITION

B2C stands for Business-to-consumer, that is, e-commerce where one party (the supplier) is the business, and the client is the consumer. B2C is subject to consumer protection rules that might represent some hardship to smaller companies, in particular in a cross-border context.

IMPACT ON e-BUSINESS

Consumer protection is strictly regulated in Europe, and every business company that caters for consumers must comply with these rules. Whenever your company sells merchandise to a private person, it engages in B2C. Classical on-line stores like Amazon conduct mainly B2C. [Check on specific VAT - Value added tax rules for non-EU suppliers selling to EU end users = consumers]
B2C in an e-commerce context falls under the rules of distance selling (which is defined as: contract conclusion that does not require the simultanous physical presence of both parties) . The legal basis for these rules is the Directive 97/7/EC on the protection of consumers in respect of distance contracts. As a supplier, you must give a whole set of information to the potential client that includes (Art.4 of th Directive):
(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 (that is, a clear description of the goods and 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 (that are payment terms, e.g. in advance, within 30 days etc.; the means of payment, e.g. transfer, credit card etc.; how and when the goods are delivered, e.g. registered mail, after receipt of payment etc.)
(f) the existence of a right of withdrawal, except in the cases referred to in Article 6 (3); for details, see Cooling off period
(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.
The consumer has certain rights that protect him/her vis-à-vis the supplier:
1. S/he can withdraw from the contract within 7 working days,without giving a reason and without penalty (30 days if not all the required information has been supplied). This period is called cooling off period and has been implemented in the EU Member States with quite some differences. For details see Cooling off period
2. If s/he has effectuated a payment, the supplier needs to pay it back within 30 days.
3. The supplier can be sued for non-compliance at the court at the place of the consumer, no matter where the supplier is based.
4. For receiving an advertising mail, the consumer must give his/her prior consent. It is not sufficient that s/he was in business contact with the supplier before. See also Spam.
5. Consumer data are subject to Data Protection law for personal data.

PRACTICAL LINKS

Distance selling rules/rights

RELATED ISSUES

Consumer Protection