European Union: Adopted Omnibus Directive (EU 2019/2161) concerning enforcement and modernisation of Union consumer protection rules by Council

On 8 November 2019, the Council of the European Union adopted the Omnibus Directive (EU 2019/2161) concerning the enforcement and modernisation of Union consumer protection rules. The Directive is revising the consumer rights legislation applicable to online marketplaces and provides definitions regarding "personal data," "digital content," and "digital service." Furthermore, the Directive mandates the provision of additional information to consumers before their contractual commitment through an online marketplace. This information must include the classification of the item or service in question, as well as the status of the third-party vendor as either a professional or non-professional. Additionally, the Directive clarifies the consumer's right to withdraw from a contract, which can be exercised through an express request. Concomitantly, provisions for penalties have been established. The Member States are obliged to enforce penalties for any violations of national regulations derived from the Directive. These penalties must be both effective and proportionate to serve as a deterrent. If annual revenue information is unavailable, the maximum pecuniary penalty imposed shall be a sum of EUR 2 million. Alternatively, in instances where annual revenue information is available, the maximum penalty shall not exceed 4% of the annual revenue.