New Deal for Consumers (Omnibus Directive)

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What is it about?

The "New Deal for Consumers" is an initiative of the European Commission that has been pursued since April 2018 and was launched with the aim of modernising and unifying European consumer protection. This has far-reaching implications, especially for online retailers and platform operators. With the implementation of the so-called Omnibus Directive, consumer rights are to be strengthened, which poses new challenges for companies.

Current status and timeline

The Omnibus Directive was transposed into German law through numerous amendments to competition law, which came into force on 28 May 2022.

Who is affected?

The changes in the law affect a wide range of players, including online marketplaces, webshops, influencers, platform operators and suppliers of digital products.

What are the challenges?

The challenges that the "New Deal for Consumers" poses for businesses are many and require careful attention:

Adaptation of business models: Companies must review and, if necessary, adapt their business models to meet the new legal requirements. Among other things, this may require adjustments in business processes, contractual terms or corporate strategy.
Increased information obligations: The new regulations provide for more extensive information obligations for companies. For example, online marketplaces and comparison portals must make the criteria and their weighting for search results ("ranking") transparent. The rules for consumer ratings will also become stricter.
Compliance with new consumer rights: With the strengthening of consumer rights, businesses need to ensure that they respect these rights throughout their operations. This may require a revision of the T&Cs or the implementation of new procedures to ensure consumer rights.
High fines for violations: Violations of the new regulations are subject to high fines, which can amount to up to 4% of a company's annual turnover. Companies must therefore ensure that they fully comply with the new regulations in order to avoid such fines.
Requirements for digital products: The law creates a new type of contract for digital products that includes both digital content and services. Providers of digital products must ensure that their products comply with the new legal requirements.
Requirements for influencers and bloggers: Influencers and bloggers must clearly label when they are remunerated for recommending products and services. This labelling requirement can be challenging for many influencers and bloggers.
Update obligation for digital products: Companies are obliged to provide function-preserving updates and security updates for their digital products. This may require additional resources and technical expertise.
Special rules for discount promotions: Businesses must quote the lowest previous price charged for the product within the last 30 days when quoting prices as part of discount promotions. This requires detailed price tracking and may impose additional administrative burdens.

Our expertise for your success

SKW Schwarz is ideally positioned to support companies in implementing the "New Deal for Consumers". Our expertise spans the full range of challenges raised by the new law. Our advisory services include:

Compliance check: We review your current business practices to ensure that they comply with the new regulations and provide recommendations for action for any adjustments.
Legal advice for online marketplaces and influencers: We advise on the extended information obligations, the labelling obligation for influencers and other specific requirements of the law.
Contract management: We support you in drafting and reviewing contracts for digital products in line with the new requirements.
Avoiding fines: Our team will help you avoid fines by guiding you through the requirements of the new law and helping you implement necessary compliance measures.
Crisis management and prevention: We assist you in legal disputes and develop preventive strategies to minimise risks.
Training: We provide individual training for your team to ensure an in-depth understanding of the New Deal for Consumers and that all staff are aware of and comply with the relevant regulations.