EU agrees draft directive to enhance consumer protection

The EU has agreed the terms of a draft directive that, if passed, will amend a number of consumer protection directives, including the consumer rights directive (2011/83/EU), to introduce measures such as:

  • harmonised penalties for breaches of consumer protections, including the power to impose a fine, in certain circumstances, of up to 4% of a trader’s turnover;
  • a right to individual remedies for consumers who have been harmed by unfair commercial practices;
  • greater transparency in online marketplaces and comparison tools; and
  • protection of consumers who are receiving services that are ostensibly free but which receive (and have the ability to monetise) consumers’ personal data.

The EU Council and Parliament are going to seek agreement on adopting the directive at first reading.