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EU consumer rights – digital and fair

Does European consumer law also ensure fairness in the digital world? The European Commission is currently conducting a “fitness check” to find out. It is examining the Unfair Commercial Practices Directive’ (2005/29/EC), the Consumer Rights Directive (2011/83/EU), as well as the Directive on unfair terms in consumer contracts (93/13/EEC). The Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband – vzbv) sees an urgent need for the European legislator to set up clearer rules to protect consumers online.

In the digital world, companies have an advantage over consumers. Automation, combined with detailed user profiles based on comprehensive data collection, increases structural asymmetries in relation to knowledge, information processing, vulnerability, and decision-making autonomy, to the detriment of consumers.

Furthermore, many companies use manipulative designs (dark patterns) on websites or apps. The use of artificial intelligence reinforces these asymmetries in digital communication. Due to the complexity involved, it is not possible to compensate for these challenges solely by obliging companies to provide additional information.

vzbv works to eliminate legal uncertainty, strengthen consumer rights, and shape consumer legislation that is fit for purpose in times of digital transformation. It is necessary to fundamentally review European consumer law.

vzbv recommends:

  • Oblige companies to fairness by design and by default: Companies must be obliged to design the digital realm – above all, their websites and apps – in a fair manner and guarantee a high level of consumer protection. Consumers should not have to protect themselves against negative consequences.
  • Clear prohibitions: Manipulative designs that either compel, hinder, or manipulate consumer behaviour or decisions must be prohibited. The same goes for psychographic profiling, i.e. exploiting people’s situations, emotions, or predicaments, as well as the use of sensitive and situational data for personalised pricing.
  • Clear requirements concerning design and transparency: Clear rules are needed, for example, concerning the presentation of user reviews. Companies should also be obliged to create standardised and easy-to-read summaries of their general terms and conditions (GTCs) with key points included.
  • Clear rules for digital costumer communication: Clear rules are needed concerning the fair design of digital customer mailboxes. Consumers must also have the right to a human point of contact.
  • Reverse the burden of proof: Consumers and consumer organisations are often unable to identify legal violations in complex, data-based digital environments. Companies should therefore have to explain their actions in a clearly comprehensible manner and, as required, prove that they comply with relevant legislation.