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    Consumer protection in e-commerce in the European Union

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    Consumer protection in e-commerce in the European Union

    By David Wildt

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    About

    E-commerce is a growing industry with more and more consumers buying
    online. Buying at a distance bears a higher risk for a consumer, as the
    consumer cannot inspect the good beforehand. In addition, online-distance
    sales are often also cross-border transaction, which the consumer is not
    necessarily aware of. This brings uncertainty for the customer concerning their legal rights. It is therefore advisable to know the valid legislation for the
    conclusion of the contract. As there is much different national legislation that
    could be applied, and the consumer is not likely to know them all, it is beneficial
    to know the commonality of this legislation, in this case, the minimum
    requirements laid down by the European Union in the applicable Directives.

    The aim of the thesis is to answer the following questions:
    • How does the European Union protect consumer rights?
    • What legislation is in place on a European level to protect consumer
    rights in general and especially in e-commerce?
    • How do Terms and Conditions of selected vendors comply with European
    Union consumer rights legislation?
    To answer these questions, the paper deals with the competencies of the
    European Union in the field of consumer protection, discusses the instruments
    available to protect consumers, describes the valid Directives and compares
    them with actual Terms and Conditions of selected vendors.

    Answering these questions will benefit consumers and businesses alike as it
    provides an overview about effective legislation and therefore helps to bring
    clarity concerning rights and responsibilities of the parties involved.
    It should also create awareness for the topic of consumer rights in electronic
    commerce and the beneficial role of the Union in creating a common framework
    of legal requirements. A common framework is on the one hand beneficial for
    businesses as it eases cross-boarder transactions by eliminating obstacles to
    trade and on the other hand beneficial for consumer as it enhances their ability
    to choose between a variety of providers and products and strengthens legal
    certainty.

    The following paper is divided in three main parts. The first part deals with
    background of European Legislation, defines the different kinds of it and how
    they are adopted. The legal basis for the Union’s competence in consumer
    protection is described and a definition of the term “consumer” is given.
    Furthermore the Union’s consumer policy strategy is described and an insight in
    an initiative of the Union, the European Consumer Centres Network, is given. In
    addition the first part provides an overview and summarises current legislation
    on consumer protection, including the unfair commercial practices, unfair
    contract terms, consumer sales and guarantees, direct selling, price indication
    and package travel. In the end, current developments in the legislative process
    are discussed including the new Directive on Consumer rights.
    The second part deals with legislation dealing with consumer protection in ecommerce.
    These are the Directive on distance selling and the e-commerce
    directive. The Directives will be discussed in detail and legal cases dealing with
    the Directive will be debated.

    The last part of the thesis deals with compliance of Terms and Conditions of
    selected vendors with the legal requirements. To work the topic out, a
    qualitative research in the form of a case study was conducted. The Terms and
    Conditions of Amazon and Apple where analysed and compared with the legal
    requirements. This part also presents the research method “case study” and
    provides an overview of the legal requirements concerning consumer rights.
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