The European Commission unveiled proposals on October 8 2008 for EU-wide rights to make it easier for consumers to shop on the internet and in the main street, the EC said in a media statement.

The new proposal will guarantee consumers, wherever they shop in the EU, clear information on price and additional charges and fees before they sign a contract, the statement said.

It will strengthen consumer protection against late delivery and non-delivery, as well as setting out tough EU-wide consumer rights on issues from cooling off periods, returns, refunds, repairs and guarantees and unfair contract terms.

The proposed Consumer Rights Directive simplifies four existing EU consumer rights directives into one set of rules.

It targets e-commerce as part of a wide-ranging overhaul and upgrading of existing EU consumer rights online and in the high street.

"The aim is to boost consumer confidence and at the same time to cut red tape which is holding back business within national borders - denying consumers more choice and competitive offers," the statement said.

A standard set of consumer contract terms will cut compliance costs substantially - by up to 97 per cent for EU wide traders, according to the statement.

The proposed directive upgrades existing consumer protection in key areas where there have been large numbers of complaints in recent years, such as pressure selling.

It adapts the legislation to new technology and sales methods, for example, m-commerce and online "ebay" auctions. There is a clear requirement in the new proposal for clear information about consumer rights to be displayed at point of sale.

The statement quoted European Consumer Protection Commissioner Meglena Kouneva as saying: "With household budgets under strain and purchasing power at the top of citizens' concerns, it has never been more important for consumers to be able to compare prices and shop around to get the best value on offer.

"These new rules are designed to strengthen protection and close the loopholes in key areas that are undermining consumer trust. The Single Market has the potential to deliver a lot more choice and opportunities for consumers," Kouneva said.

"But for that we need an EU-wide safety net of rights so consumers have the security they need to shop around with peace of mind."

The statement said that the internet is "one of the most empowering tools consumers have ever had".

The internet provides a wealth of information regarding products and prices and gives easy access to many more retailers than they could ever have reached before, the statement said.

"Already 150 million EU citizens, a third of our population, shops over the internet. So far only 30 million of them shop cross border online in the EU."

Overall, cross border shoppers spend on average 800 euro a year, meaning a total of 24 billion euro, which demonstrates the enormous potential of the internal market if more people were confident to venture beyond their national borders.

The statement said that current rules EU consumer protection result from four EU directives, on unfair contract terms, sales and guarantees, distance selling, and doorstep selling. 

"These directives contain certain minimum requirements; member states have added rules in an unco-ordinated manner over the years, making EU consumer contract laws a patchwork of 27 sets of differing rules for example: a mix of differing information obligations, differing cooling off periods ranging from seven to 15 days and differing obligations in relation to refunds and repairs," according to the statement.

The new proposed Consumer Rights Directive concerns contracts for sales of goods and services from business-to-consumer.

Generally all contracts are covered, meaning purchases made in a shop, at a distance or away from business premises.

On pre-contractual information, the directive obliges the trader to provide the consumer with a clear set of information requirements, for all consumer contracts so the consumer can make an informed choice, for example, the main characteristics of the product, geographical address and identity of the trader, the price inclusive of taxes, all additional freight, delivery or postal charges;

Rules on delivery and passing of risk to the consumer (currently not regulated at EU level): A maximum of 30 calendar days for the trader to deliver the goods to the consumer from signing the contract. The trader bears the risk and cost of deterioration, loss of the good until the moment the consumer receives the goods. For late or non-delivery, the consumer will have a right, new in most member states, to a refund as soon as possible and no later than seven days from the date of delivery.

Cooling off periods (distance sales, for example internet sales, mobile phone, catalogue and pressure sales): An EU wide cooling off period of 14 calendar days when you can change your mind. Introduction of an easy to use standard withdrawal form.

To give more certainty, there will be one and the same standard set of remedies available to all consumers who have bought a faulty product (i.e. repair or replacement in the first place, followed by the reduction of the price or the reimbursement of money).

Unfair Contract Terms: a new blacklist of unfair contract terms which are prohibited across the EU in all cases and an EU-wide grey list of contract terms deemed to be unfair if the trader does not prove the contrary.

Protection is also strengthened in many areas, including:

-       Online auctions: the directive requires auctions, including e-auctions, to meet the standard information obligations.

-       Protection against pressure selling - sales negotiated away from business premises/direct selling is significantly strengthened in response

to a high number of consumer complaints particularly in pressure selling situations where no or insufficient consumer protection was granted - with a broader new definition of direct selling contracts and other steps to close loopholes.