The European Union is making progress in the green transition and digital transformation, constantly updating European legislation with changes aimed at ensuring the smooth functioning of member states and guaranteeing equality among them. In the context of the rapidly evolving digital market and the intensification of online commerce, the European Union is proposing new regulations to strengthen consumer protection and hold merchants accountable.
Legislative projects, such as Directive 2023/2673 on distance financial services contracts and Directive 2024/825, focus on transparency of information, preventing unfair commercial practices, and protection against manipulations like “greenwashing.” These measures reflect the need for modern legislation to address technological challenges and ensure fairness in the consumer-merchant relationship, promoting a sustainable and ethical business environment. The National Consumer Protection Authority (ANPC) is considering the transposition of the aforementioned directives and harmonization with European legislation on consumer protection.
Thus, merchants are obligated to provide clear understanding and precise pre-contractual information. Moreover, the draft law also covers rules merchants must follow regarding the transmission of information on small screens, such as phones, ensuring that information is legible and arranged to facilitate comprehension and prevent misinterpretation during viewing.
Directive (EU) 2024/825 introduces significant changes to support consumers’ green transition, focusing on combating unfair commercial practices and increasing transparency about products’ environmental impact. It amends the Unfair Commercial Practices Directive (2005/29/EC) and the Consumer Rights Directive (2011/83/EU), bringing the following key changes:
- Combating “greenwashing”: The directive prohibits generic environmental claims unsupported by standardized sustainability labels or clear specifications, including penalties for misleading declarations about the ecological features of products.
- Additional product information: Merchants must provide detailed information about the durability, reparability, and environmental impact of products. These requirements aim to support conscious consumer choices and prolong product usage.
- Establishment of a standardized label for durability guarantees: This label, distinct from the legal guarantee of conformity, eliminates potential confusion. Additionally, it prohibits the use of sustainability labels not certified by a recognized body or public authority.
- Promoting the green transition: The directive seeks to create a framework encouraging the development of sustainable products and consumers’ access to them, fostering transparency in supply chains and business responsibility toward eco-friendly practices.
- Prohibiting premature obsolescence: The commercialization of products with intentionally limited lifespans is now more strictly regulated to reduce waste and encourage a circular economy.
- Transparent communication to clients regarding eco-friendly delivery options, such as bicycle or electric vehicle transport.
These changes are an integral part of the European Green Deal and the Consumer Agenda for the Green Transition, applicable starting in September 2026.
In the same vein, Directive (EU) 2023/2673 introduces significant changes regarding distance financial services contracts. It updates Directive 2011/83/EU to integrate specific regulations for these types of contracts, replacing Directive 2002/65/EC, considered outdated due to technological developments and market evolution, eliminating redundancies and legislative gaps. Thus, the legal framework becomes simpler and more adapted to current realities.
Main changes:
- New chapter dedicated to distance financial services: Directive 2011/83/EU has been extended to include a specific chapter for these services, making the legislation clearer and adapted to regulate in detail the particularities of financial services offered online, by phone, or other remote communication methods, as well as procedures for secure contracts with high transparency levels.
- Expansion of pre-contractual information obligations: Before concluding a contract, merchants must provide consumers with comprehensive information in a clear and standardized format, including essential financial details: fees, interest rates, commissions, hidden costs, financial product features (benefits and risks), termination conditions (clear information on what happens in case of contract termination), and interactive tools to better understand financial products.
- Strengthening the right of withdrawal: The directive simplifies the exercise of the right of withdrawal (including digitally), allowing consumers to cancel remote contracts within 14 days and informing consumers about associated withdrawal costs if applicable.
- Increasing transparency in digitization regarding strict rules for algorithms: If algorithms are used to personalize offers, merchants must explain how they work; all terms and conditions must be accessible, even on mobile devices, protecting against abuses and preventing manipulative digital techniques, such as deceptive design (dark patterns).
- Effective sanctions: Member states must adopt a proportional and deterrent sanction regime for non-compliance with the directive, including financial penalties, mandatory compensation for affected consumers, and other corrective measures, such as temporary bans on offering certain services.
By transposing the aforementioned directives, a unified approach is promoted across all member states, eliminating legislative differences that could undermine consumer confidence. Moreover, member states cannot adopt stricter regulations than those provided by the directive, ensuring uniform application. Finally, the European Commission will evaluate the impact of these changes by 2030 to decide on possible necessary adjustments.
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Mihaela Murariu – Attorney at Law