{"id":3890,"date":"2020-05-07T11:32:49","date_gmt":"2020-05-07T09:32:49","guid":{"rendered":"https:\/\/www.textmaster.com\/blog\/from-consumer-protection-to-taxes-eu-legislation-changes-for-online-retailers-in-2020\/"},"modified":"2020-05-18T12:13:51","modified_gmt":"2020-05-18T10:13:51","slug":"eu-legislation-changes-retailers-2020","status":"publish","type":"post","link":"https:\/\/www.textmaster.com\/blog\/eu-legislation-changes-retailers-2020\/","title":{"rendered":"From consumer protection to taxes: EU legislation changes for online retailers in 2020"},"content":{"rendered":"

This is a partner article from the H\u00e4ndlerbund e-commerce association<\/strong> and was written by legal editor Melvin Dreyer<\/strong>. Discover everything you need to know about the main legislation changes for European e-commerce in 2020.<\/strong><\/p>\n

2020 will be another eventful year for online retailers: the EU has already planned and approved numerous changes to its legislation.<\/strong><\/h2>\n

The majority of the laws which affect online retailers are now based on the European Union\u2019s legal guidelines<\/strong>. Intensive work is under way to create a standardised single market which will make <\/strong>cross-border trade easier and more accessible for small and medium-sized businesses<\/strong>. In this regard, certain initiatives have been proposed for 2020<\/strong> which will impact online retailers and the e-commerce sector later this year and in the years to come.<\/strong><\/p>\n

CPC Regulation: Authorities can close shops<\/strong><\/h3>\n

The EU legal framework needs to be harmonious not only for employers, but also for consumers: as of 17 January 2020,<\/strong> the CPC Regulation (Consumer Protection Cooperation) in the European economic area has been addressing cross-border trade<\/strong>. Purely domestic trade is not included in this.<\/p>\n

The regulation allows for a network of consumer protection authorities<\/strong> that will get involved if the rights of consumers from a member state are violated by a company from another state<\/strong>. In such an event, the authorities will be granted extensive powers and can carry out on-site inspections<\/strong>, view documentation<\/strong> and make test purchases<\/strong>.<\/p>\n

Greater emphasis will be placed on the ability to react: consumers can be informed via claims for compensation<\/strong>, while certain businesses will be prohibited. In addition to imposing fines<\/strong>, another last resort is also available. If nothing else proves effective, authorities may be permitted to close down shops in serious cases<\/strong>.<\/p>\n

Omnibus policy with numerous amendments<\/strong><\/h3>\n

The Omnibus policy<\/strong> put together a package of measures for e-commerce. It entered into effect on 7 January 2020<\/strong>, however this date is of little significance to retailers. As it involves EU legislation<\/strong>, their regulations must be implemented by national legislature in order for them to take effect.<\/p>\n

The forthcoming amendments affect many aspects: for example, changes will be made to consumer rights and the Price Indication Directive<\/strong> which will require action regarding labelling and information requirements<\/strong>. Marketplaces will be particularly affected by this and will then need to disclose their key ranking factors<\/strong>. This transparency could also be beneficial for marketplace retailers. Other changes involve simplifying the conclusion of contracts via chat<\/strong>, real-time customer reviews<\/strong> and notification obligations <\/strong>for personalised prices. Potential fines should be harmonised across the EU<\/strong>.<\/p>\n

The concrete nature of the changes will depend on their implementation by the legislature in each country.<\/p>\n

Tax package: Focus on cross-border trade<\/strong><\/h3>\n

Certain changes have also been made to taxes which particularly affect value-added tax<\/strong>.<\/p>\n

At the end of 2020<\/strong>, the European Public Prosecutor<\/strong> will resume its work. 22 member states are participating in this project and want collaboration between individual authorities<\/strong>, particularly regarding the topics of subsidy fraud, corruption and cross-border VAT fraud<\/strong>.<\/p>\n

In general, cross-border taxation<\/strong> should become more simplified<\/strong>. From 2021, <\/strong>a central coordinating body <\/strong>will be founded to which the taxes for other member states<\/strong> will be paid, similar to the mini one-stop-shop system for digital services. Marketplaces should be actively incorporated into the taxation of turnover of marketplace retailers<\/strong> to curb taxation fraud. In Germany<\/strong>, a similar regulation has been applied since last year<\/strong>, however this works differently to the one planned by the EU and so changes will almost certainly be made in this regard. For 2025, <\/strong>measures will also be taken to reduce compliance burdens for small businesses with regards to taxes.<\/strong><\/p>\n

ePrivacy Regulation: What is the current status?<\/strong><\/h3>\n

It was due to take effect in 2018<\/u><\/strong> along with GDPR<\/strong> to enhance data protection. However, nothing has come of it yet. At the end of 2019<\/strong>, it seemed as though the final draft was ready, but nothing has appeared on the table yet.<\/p>\n

However, there are clearly conflicting positions and a need for explanation<\/strong> regarding the content. Whether, when and how the regulation will be adopted cannot be said with any certainty<\/strong>.<\/p>\n

PSD2: Deadline for Christmas trade<\/strong><\/h3>\n

PSD stands for Payment Service Directive<\/strong> and affects payment service providers. The regulation focuses on secure and future-oriented payment transactions<\/strong>. An important point of the PSD is Strong Customer Authentication (SCA),<\/strong> which will bring additional security elements for electronic payment processes.<\/strong> However, its implementation, which should have happened last year, is behind schedule. The European Banking Authority has therefore moved the deadline for implementing online credit card payments to 31\/12\/2020<\/strong>. All banks and credit card issuers must adopt the technical implementation. However, this will also change the payment process for online purchases. In the e-commerce sector<\/strong>, there are fears about the effect on Christmas trade<\/strong> due to cancelled purchases. Online retailers should therefore start informing <\/strong>customers and shop visitors about the changes as early as possible.<\/p>\n

Brexit: Impacts in 2020 <\/strong><\/h3>\n

On 31 January 2020<\/strong>, the United Kingdom<\/strong> left the European Union<\/strong>. The topics addressed in this article show the significance of EU membership for a nation from a legal standpoint. Accordingly, the UK’s departure will also have an impact on online retail<\/strong>. However, much will remain the same initially<\/strong>: a transition period will apply until 31 December, in which EU regulations will continue to apply <\/strong>as they did before. During this period, negotiations will be held regarding the future legal situation<\/a>, for example concerning the conditions of a free trade agreement<\/strong>. Customs, shipping, taxes, consumer protection, data protection: there is much that needs to be considered.<\/strong> And so, although things will remain the same for now, the future is interesting: if the EU and the United Kingdom do not reach an agreement<\/strong> by the end of the transition phase, this will result in a hard Brexit<\/strong>. In this case, as of 1 January 2021, the United Kingdom<\/strong> would become a third country with no special agreements in place. Further information is available in our Brexit FAQs.<\/p>\n

The H\u00e4ndlerbund is here to help!<\/strong><\/h3>\n

The legal protection<\/strong> of their online presence<\/strong> can create a huge amount of work for many online retailers. The H\u00e4ndlerbund is available to assist you with any legal queries you may have<\/strong>. If, as a retailer, you opt to use the extensive legal services of the H\u00e4ndlerbund, you will receive a 3-month discount for the first year of your chosen membership package by using the discount code<\/strong> P841#2015.<\/p>\n

About the author<\/strong><\/h4>\n

Melvin Dreyer has been working as a legal editor for the H\u00e4ndlerbund since mid-2018. During his law degree, he passionately contributed to articles and imparted specialist knowledge. As an editor, he now regularly reports on new legal changes and queries regarding e-commerce.<\/p>\n

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