Having already taken tough action two months ago against an online store by taking its website offline, the Authority for Consumers and Markets (hereinafter: ACM) did not hold back last week against five other online stores either. The well-known companies Tommy Hilfiger, G-Star, Leen Bakker, JYSK, and Day Trayders were fined a combined total of €621,000. Once again, this was the result of a breach of consumer protection rules. By imposing this sanction, the ACM appears to be continuing the trend of more strictly monitoring, and more harshly punishing, online stores that don’t take consumer rules very seriously.
What did the companies do wrong?
The online stores involved had misled consumers by offering products with discounts that did not reflect reality. The price on which the discount was based was often used for only a very short period, or not at all. As a result, consumers were wrongly encouraged to make a quick purchase on the website because of the seemingly attractive discount. For example, one of the companies presented a product “from” 699 euros “for” 629 euros, while the product had actually cost 539 euros in the thirty days preceding the discount. That amounts to unfair trade practices, which are prohibited under Dutch and European legislation.
Legal basis
The fines were imposed based on the Consumer Protection Enforcement Act (Whc), which gives the ACM the power to act against such unfair trade practices. One of the key provisions of this law is that trade practices may not be misleading. Article 6:193g of the Dutch Civil Code lists various trade practices that are considered misleading in practice. Providing incorrect price information and stipulating unfair discounts fall under this. It is also a form of unfair competition when companies with clear pricing compete against companies with unclear pricing.
Legal requirements for online stores
Honest information provision and transparency rank high when it comes to consumer protection. Hence the wide range of legal requirements in this area that online stores must comply with. This obligation to provide information goes far beyond just the price of the product.
For example, you are required to state, among other things, company details, product descriptions, shipping costs, availability, and delivery times. The ordering process must also be clear, including payment methods and order confirmation. Consumers must also be informed about delivery times, delivery conditions, the right of withdrawal, return policy, and warranty conditions, and the complaints procedure must also be clear. The privacy statement and cookie policy must make clear how personal data is collected and used, and the terms and conditions must be available to everyone on the website.
Not sure whether your webshop meets the requirements set by Dutch and European legislation? Want to make your webshop privacy compliant, or does your terms and conditions or GDPR documentation and/or cookie banners need an update? The lawyers at The Legal Company specialize in this and can take all your legal concerns off your hands. Contact us at 020-3450152, email us at info@thelegalcompany.nl, or stop by for a cup of coffee and an introduction!
Nothing changes as constantly as laws and regulations. Please note that our blogs may no longer align with current laws and regulations and may therefore be outdated. If you have questions or an issue relating to this blog, or would like legal assistance, please contact us.