A European directive will be in force Saturday in France to regulate certain commercial practices.
“Europe is leading in the regulation of e-commerce marketplaces. American companies that operate in Europe will need to follow the example of Europe,” John Hornell, vice-president of Pasabi, which offers authentication solutions for E-commerce, stated in a note.
The directive was adopted in France by an ordinance in December 2021. The regulations stipulate that online marketplaces must verify that notices posted under products for sale are validly issued by those who purchased the product. If the consumer has not exercised their right to withdraw, they will need to provide additional information to them, such as the existence or consent of the “capital link” between seller and marketplace.
Merchants must also display the reference price at which the price reduction was calculated to counter excessive price reduction announcements. According to the December 23rd 2021 order, this must be the “lowest price that the professional has charged to all consumers in the last 30 days”.
In the event that certain legal information obligations are breached or abusive clauses in contracts, sanctions can be increased. It may be up to 4% of the turnover of the target company in the case of “massive infringement”.
The Saturday order, which goes into effect on Saturday, also prohibits door-to-door sales visits if the consumer has “clearly and unambiguously stated that he doesn’t want to be the subject”
