Source: https://www.lawteacher.net/free-law-essays/commercial-law/the-distance-selling-directive-applies-to-any-consumer-distance-contract-commercial-law-essay.php
Timestamp: 2019-04-22 22:12:00+00:00

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John ordered a number of small items from the same online supplier for his child’s birthday. The items included a games console together with several games, a tricycle (his child had picked this toy when they visited a high street store), music CDs, an e-book (compatible with his e-book reader), an iPod engraved with his child’s name and a selection box of chocolates. Some items arrived a month before his child’s birthday. Other items did not arrive at all. John doesn’t have a telephone number to contact the supplier about the undelivered items, and it is taking a few days to get a response to e-mails which he has sent demanding redress. Ignoring issues of jurisdiction and applicable law, does John have any protection available to consumers under existing rules, particularly those concerning distance contracts and/or the provision of information society services, remedies available to John under the existing Legal framework, and are there any proposals for this position to change in the future?
Shopping has evolved with growth of technology which has made it possible for people to conclude on line rather in store and with this came the advent of electronic transactions (E-Contacts). Electronic commerce (EC or e-commerce) describes the process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet  and a legal frame work that would regulate the buying and selling of goods at a distance has been created.
The aim of the European Union legislation in the field of distance selling is to put consumers who purchase goods or services through distance communication means in a similar position to consumers who buy goods or services in shops thereby creating confidence and certainty in distance contracts.
The Directive 1997/7/EC  (Distance Selling Directive) was put in place to address the growing trend and provides a number of fundamental legal rights for consumers in order to ensure a high level of consumer protection throughout the EU. The E-commerce Directive 2000/31/EC  was also adopted to provide a legal framework for the provision of Information Society Services  within the European Union.
This essay is going to look at protection available to consumers under existing rules, particularly those concerning distance contracts and/or the provision of information society services, remedies available to John under the existing Legal framework, the challenges of cross border e – commerce in the EU and evaluate the proposals in the new framework.
The Distance Selling Directive applies to any consumer distance contract made under the law of an EU-Member State as well as the European Economic Area (EEA).  The directive ensuring the protection of consumers within the EU in respect of distance contract  using “means of distance communication”  has provided certain rights and obligations between a supplier and consumer.
Article 4 of the Directive provides the provision of comprehensive information by the supplier before the purchase.
The Consumer’s right to cancel the contract within a minimum of 7 working days without giving any reason and without penalty, except the cost of returning the goods (right of withdrawal) is provided for by Article 6.
Article 6(2) provides the consumer’s right to a refund within 30 days of cancellation, in the event that where the consumer cancels the contract.
Article 7 provides that the delivery of the goods or performance of the service by the supplier shall be wi within 30 days of the day after the consumer placed his order or where the goods or service ordered is not available inform the consumer of any alternative at the same price or a refund as soon as possible or within 30 days.
Article 8 Provides Protection from fraudulent use of payment cards by allowing a consumer to request cancellation of a payment where fraudulent use has been made of his payment card in connection with distance contracts covered by this Directive.
As regards John case it can be said that requirement of Article 4( 1) (a) (e) and (f), as stated above and that of ‘address’ ‘performance ‘  and a ‘right of withdrawal’ was not complied with. And the provisions of Art 5(1) which provides that consumer must receive written confirmation or confirmation in another durable medium available and accessible to him of the information referred to in Article 4 (1) (a) to (f), in good time during the performance of the contract was not complied with.
It can be categorically said that if the provisions of (Art 5(1)) was met as required John would not be having difficulty contacting the supplier seeking redress, because the ‘prior information’ in writing or a durable medium would have availed him of the ‘geographic address’ of the supplier , time for performance of the contract and his right of withdrawal.
In the event that the contract is part performed and the issues of non delivery of the some of the goods ordered arises, items that John purchased which falls under the directive would be required to be listed.
Considering the words ‘any service normally provided for remuneration, at a distance, by means of electronic equipment’ the e-book accurately falls under it as John’s computer being the ‘equipment’ that would receive the e – book and John been the recipient of the service.
Taking a look at the provisions of Article 5(1) (a)-(c) the question now is if the online supplier meets the requirements for provision of an ISS. In John’s case a geographic address was not provided pursuant to Art. 5 (1) (b) an e – mail address was provided pursuant to Art. 5(1) (c) of the directive.
the service, in addition to its electronic mail address, with other information in order to achieve the result intended by that provision”  That is the ISS provider is to provide details including its e – mail address to achieve the purpose of rapid communication in a direct and effective manner.
Borrowing the decision in the above case,the provision of Art 5(1) (c) is not fully satisfied by the on line supplier as ‘details of the service provider ’ which allow him to be contacted rapidly and communicated with in a direct and effective manner” is not provided, as this is evident in the fact it is taking a few days to get a response to e-mails which John has sent demanding redress.
they are addressed are able to access them”  In this circumstance there is no indication that any statement was in fact provided regarding the different technical steps John would take to conclude the contract or access the service requested , as John would be better informed. Information on how to identify and resolve input errors nor was language requirements also provided.
The statutory duty required by the directive to provide the requisite information for the conclusion of contract has not been fully complied with by the on line supplier. And also the acknowledgement of receipt as provided for by Article 11 was not sent to John.
The next question to ask is that are there any remedies available to John under the directives (97/7/ec & 2000/31/ec).
In accordance with the provisions of Article 6 under the distance selling directive the right of withdrawal can be exercised by John and where the right of withdrawal has been exercised the supplier shall be obliged to reimburse the sums paid by the consumer free of charge as soon as possible or within 30 days he shall only bear the cost of return of the goods.
John can only exercise his right of withdrawal for the music CD’s and games, if the goods have not been ‘unsealed.’ The iPod engraved with his child’s name also falls under the Art 6(3) because it is made to John’s specifications and personalized with engraving of his son’s name. The box of chocolate cannot be returned as it is liable to deteriorate or expire rapidly.
Art.11 provides ‘John’ with judicial or administrative redress thus he can approach the courts in his country’s court or an administrative body responsible for consumer protection, to ensure that the national provisions for the implementation of this Directive are applied.
By the provisions of Art. 12 consumer may not waive the rights conferred on him by the transposition of this Directive.
In this regard the supplier has breached the provisions of Articles 4, 5, 6 & 11 of the directive.
An action for a breach of duty under the E- Commerce directive (2000/31/EC) to provide information prior to contract can also be brought by the customer by the provisions of Art 5 as the supplier did not state the different technical means in concluding the contract or an acknowledgement of receipt of the information in when accessed or, hence the supplier is in breach of Art 11  As the required information were not provided by the ISS prior to the conclusion of the contract. The requirements are important as provided in Articles. 5,10 & 11 of the EC directive.
On the issue of exercising the right of withdrawal we refer to Recital 11 of the directive which provides that the E – commerce directive is subject to the protection in 97/7/EC with regards right of withdrawal under Art 6 97/7EC.
Also by Art 6(3) the e – book reader purchased by John, if he was able to access it, would be precluded by Art 6(3) because due to its nature it cannot be returned.
Potential for cross-border online trade is also failing to materialize . 51% of EU27 retailers sell via the internet, but only 21% are currently conducting cross-border transactions, down from 29% in 2006 (in the EU25). The same proportion (21%) advertises cross-border. And retailers who do trade cross-border usually only sell to very few Member States: only 4% of those retailers trade with 10 or more Member States, most trade with one or two other Member States.
or services ordered, while 15 % of the complaints was for delayed delivery and 7% was for partial delivery  which is similar to the case of ‘John’ and e- toys4U.hk. This is due largely divergent consumer protection regimes in different Member states and non compliance of e – merchants with the directives.
To build consumer confidence and to promote cross-border consumer purchases within the EU, a new consumer rights directive has recently been proposed by the European Commission. If implemented, the Directive will replace four existing consumer directives, namely the Doorstep Selling Directive (85/577/EEC), the Unfair Terms in Consumer Contracts Directive (93/13/EEC), the Distance Selling Directive (97/7/EC) and the Consumer Sales and Guarantees Directive (1999/44/EC). The effect would be one of full harmonisation across each of the 27 member states.
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Art.11
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