Consumer law in the EU plays a vital role in safeguarding rights and promoting fair business practices across member states. In a rapidly evolving digital and physical marketplace, EU consumer law provides robust protections for buyers, covering areas from transparent pricing and product safety to fair contracts and returns. This publication explores the foundational principles, current regulations, and recent developments within EU consumer law, highlighting how these rules empower consumers and help create a trusted, balanced, and competitive market. Understanding these laws is essential for consumers, businesses, and policymakers alike, as they navigate the complexities of the EU marketplace.
Notion of a Trader
Directive 2005/29/EC1 (hereinafter referred to as UCPD) includes a definition for traders. The law clearly states that ‘trader’ refers to:
any natural or legal person who, in commercial practices covered by this Directive, is acting for purposes relating to his trade, business, craft or profession and anyone acting in the name of or on behalf of a trade (Article 2 (b) of UCPD);
The notion of commercial practices is widely interpreted. It includes communication which aims to advertise or sell products or services. Therefore, reviews are also considered as commercial practices. Simply put, an ‘influencer’ is considered as engaging in advertising. When one evaluates a product in return for compensation - one leverages advertising abilities to enhance revenue. Conversely, if an airline pilot purchases a lipstick you promote, which is completely unrelated to their profession and is an additional item they wish to purchase, s/he are regarded as your consumer. This has also been further confirmed by case law.
Unfair Commercial Practices
When buying goods and services anywhere in the EU – from a website, a local shop or a seller outside your home country – EU law protects you against unfair commercial practices.
When promoting, selling or supplying products, companies must provide enough accurate information to enable the consumer to make an informed buying decision. They must provide all mandatory details in a 'clear and comprehensible manner' and in 'plain, intelligible language'.
The consumer is protected against two main types of unfair commercial practices2:
- Misleading practices3: This includes actions that provide false information or omissions of essential details that are likely to deceive the average consumer, including deceiving the consumer into taking decisions which they would have not taken otherwise.
- Aggressive practices4: Tactics such as harassment, coercion and use of undue influence or force that are likely to impair the average consumers freedom of choice are deemed aggressive practices. By way of example, the European Court of Justice held5 that the sale of SIM cards with pre-loaded and pre-activated services without adequately informing the consumers is to be considered as aggressive.
Across the EU, sellers are required to display product prices clearly, enabling you to easily compare similar products and make informed decisions, regardless of packaging or unit quantities.
Pricing
Companies are legally obligated to provide complete clarity regarding the total price payable when advertising or selling a product to you. In case of online shopping, the price must include all taxes and delivery charges. If there might be extra costs that can't be calculated in advance, this must also be made clear upfront.
Price reduction claims like “was €50, now €25” can also be misleading if the original selling price (referred to as the “anchor price”) has been artificially inflated. In all EU countries, traders are required to disclose the lowest price at which the item was sold at least 30 days prior to the price reduction announcement6.
As an EU national, a trader cannot charge more for a product or service solely based on the nationality or country of residence. While some price differences may be justified by objective criteria—such as varying postage costs that result in higher delivery fees in certain countries—traders can still set different net sale prices across various points of sale, like physical stores and websites. They may also tailor specific offers to certain territories within a Member State. However, all these offers must remain accessible to consumers from other EU countries.
If a trader operates multiple country-specific versions of the same website—such as a web shop catering to various EU countries—one should have the option to choose which version to view. As a consumer, you must consent to be redirected to a particular country version of the website, and should be able to change your selection at any time.
Guarantee
Under EU regulations, if goods are faulty or do not match their advertised description or function, the seller must repair or replace them at no cost to you. If repair or replacement isn’t possible, or if it cannot be done within a reasonable timeframe or without significant inconvenience, you are entitled to a full or partial refund. You are always entitled to a minimum 2-year guarantee starting from the date you receive the goods, although your country may offer additional protections.
If a defect appears within the first year of delivery, it is assumed the defect was present at the time of purchase, unless the seller can prove otherwise. In some EU countries, this “reversed burden of proof” period extends to 2 years.
Goods bought from private individuals are however not covered by these rules, therefore such consumer protection seems to apply when buying from traders, as defined in EU legislation.
Right to Withdraw
When you purchase a product or service online, by phone, or from a seller at your doorstep (known legally as a “distance contract” or “off-premises contract”), you have the right to withdraw from the contract. This means you can cancel within 147 calendar8 days without needing to provide any justification (the "cooling-off period"). For goods, this 14-day period starts from the date of delivery, while for services, it begins from the day the contract is agreed upon9. If the cooling-off period ends on a non-working day, your deadline is extended to the next working day to ensure you, as a consumer, have the necessary protection.
In some EU countries, you may have up to 30 days to cancel a contract that was concluded during unsolicited doorstep selling or commercial excursions.
What does this mean to you?
Together with the legal repercussions of non-adherence with consumer legislation, retailers face several other consequences, including, brand reputation management, customer trust erosion and market share decline. Knowledge of these laws fosters fair competition, encourages innovation, and ultimately enhances trust in the marketplace
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1 DIRECTIVE 2005/29/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of11May 2005 concerning unfair business-to-consumer commercial practices inthe internal market
2 Article 5 (2), UCPD
3 Article 6, UCPD
4 Article 9, UCPD
5 Autorità Garante della Concorrenza edel Mercato vs Wind Tre SpA, formerly Wind Telecomunicazioni SpA (C‑54/17),Judgment of the Court (Second Chamber) decided on the 13th September 2018.
6 Commission Guidance on the interpretation andapplication of Article 6a of Directive 98/6/EC of the European Parliament andof the Council on consumer protection in the indication of the prices ofproducts offered to consumers, (2021/C 526/02).
7 Article 9, UCRD.
8 Recital 41, URCD.
9 Article 9 (2)(b).
