Enforcement and Modernisation Directive

Directive (EU) 2019/2161 on better enforcement and modernisation of EU consumer protection rules

Status

EU

Date of application was 28 May 2022.

EEA

Incorporated in the EEA agreement. Compliance date and entry into force is 1 April 2024.

Norway

Implemented with effect from 1 October 2023.

Scope

The Directive amends existing rules on unfair terms in consumer contracts (Directive 93/13/EEC), consumer protection in the indication of the prices of products offered to consumers (Directive 98/6/EC), unfair business-to-consumer commercial practices (Directive 2005/29/EC), and other consumer rights (Directive 2011/83/EU).

Relevance

The changes aim to make consumer protection rules more robust and adaptable in a digital world. There are now more formal requirements when consumers “pay” with personal data. Additionally, the new rules concerning digital marketplaces will require a closer examination of how the Directive affects individual businesses and service providers. For Norway, the Directive is implemented through amendments to the Marketing Act, Right of Withdrawal Act, Contract Act, E-commerce Act, Consumer Sales Act, Digital Services Act, and more.

Key obligations

The Directive aims to further strengthen consumer protection, and we will outline some of the changes. Firstly, the rules regarding penalties for violations of consumer rights will be enhanced. Responsible supervisory authorities will be able to impose fines, among other measures. Secondly, it will be prohibited to not clearly label promoted search results, in which a business has paid to appear at the top of a search result. This applies to search engines, digital marketplaces, and price comparison services, among others. The Directive on unfair business-to-consumer commercial practices and the Directive on other consumer rights (which includes the right of withdrawal) will include rules on information requirements for digital marketplaces. The term “digital marketplace” has a technology-neutral definition.

The rules in the Directive on other consumer rights, which include the right of withdrawal, will also apply to digital services where the consumer “pays” with personal data. Furthermore, new requirements for marketing price reductions will be introduced, requiring the lowest previous price in the last 30 days to be disclosed.