Fine for online stores

Some time ago, we wrote about the new rules for Internet sales to consumers, which will apply across Europe as of June 13, 2014. By now, ample attention has been paid to them. Yet it has become apparent that far from all online stores have set up their websites correctly. That failure to comply with the regulations can have unpleasant consequences has meanwhile become apparent: the Authority Consumer & Market (ACM) recently imposed the first fine on online stores. It involved a fine of no less than €500,000.00 for the webshops of T.O.M. BV. Bicycles, sportswear and accessories, among others, are sold through these web stores. Via the Consumers' Association, the ACM received a signal that consumers were not getting their money back from the webshops in question if they cancelled an order, but instead received a credit note. So time to review the most important rules.

The fine imposed by the ACM relates to the so-called right of withdrawal. This means that the consumer has the right to cancel the purchase of a product or service without giving reasons within 14 days of receiving the order. The consumer need only make known within 14 days that he wishes to use his right of withdrawal, but does not yet need to return the product within this period. In fact, the consumer only has to actually return the product within 14 days after notifying the cancellation. The webshop must refund the purchase price including any shipping costs to the consumer within the same 14 days. However, the online store may wait until the product is received back or the consumer has proven that the product was returned. The refund must be made by the same means of payment the consumer used to pay. This means that a refund by means of a voucher is only allowed if the consumer himself has also paid with a voucher.

And that, according to the ACM, was exactly the problem in T.O.M. BV's online stores. In case the consumer cancelled a purchase from one of T.O.M. BV's online stores, the purchase amount was not refunded. Only when the consumer went after it, he or she received a credit note. Only in the event that the consumer was not satisfied with that either, did the consumer eventually receive a cash refund of the purchase price. T.O.M. BV defended itself by arguing that these were returns for which the consumer had not provided his or her account number, so that it was not possible for T.O.M. BV to refund the purchase amount. However, the ACM did not go along with this and saw reason to impose a fine of €500,000.00 on T.O.M. BV. In addition, the two directors of the company are each liable for part of the fine, namely an amount of €125,000.00 each.

Incidentally, the fine did not come out of the blue for T.O.M. BV. Already in 2014, the online stores had been addressed, but a later investigation in 2015 found that the rules were still being violated despite the earlier warning.

Considering the above, it is good to check if your online store complies with the regulations. With regard to the right of withdrawal, it is in any case important to make use of the compulsory model form. If this form is not provided, the period within which the consumer can cancel the order is extended by 14 days after the form is provided. In total, the period can be extended by up to 12 months. By the way, consumers are not obliged to use the form. For example, they may also cancel the contract by means of an e-mail. If a consumer does not mention the necessary information for the refund in it, you as a webshop will have to go after that yourself. All in all, the necessary things to watch out for.