Consumer Empowerment: ECC-Net's Recommendations Post-European Elections 2024/2029

In its case handling, ECC-Net has seen many ways in which consumers have been scammed. Pyramid schemes, phishing, financial frauds, rental scams, tickets and subscription frauds are among the major categories, often enhanced by social media. One of the raising issues is also the promotion of goods by influencers. 

As online shopping and social media advertising become increasingly popular, consumers are bombarded with messages encouraging them to buy things. However, not all of these messages are transparent or truthful. Some ads are hidden, products are misrepresented, and deals can be unfair. This leaves consumers unsure of what is really happening when they shop online. 

Influencers have become an indispensable part of modern marketing in Europe. Companies have recognised the potential of influencers and use them for their advertising campaigns. Very present on social networks, influencers who test, praise and promote products of all kinds have one mission: to encourage or even convince consumers to buy them. And it works! From lipsticks to tooth whiteners, from slimming products to branded clothing from all over the world, many consumers click on the link of the featured brand to buy the featured product. If influencers are mostly paid or receive gifts for this activity (free hotel stay, clothes, beauty products...), they do not always inform consumers who then think that it is a personal, spontaneous opinion as influencers are not clearly identifying the commercial promotion of the product. What are the obligations of an influencer towards consumers in Europe? Are the rules of influencer marketing the same all over Europe or would EU intervention be suitable to hold influencers liable? 

In our Digital Fairness Fitness Check paper you can delve into the network’s insights and recommendations concerning influencer practices. Explore more about the observations and recommendations outlined in this comprehensive report.

ECC-Net's recommendations  

• Provide for a specific definition of the ‘influencer marketing’ in UCPD. 
• Tackle hidden advertising and insufficient disclosures of commercial contents 
• Adapt liability to cover influencers, their agencies, brands etc. 
• Enforcement authorities to publish non-compliant actors. 

Example of French law: Loi n°2023-451 du 9 Juin 2023 visant à encadrer l’influencer commercial et à lutter contre les dérives des influenceurs sur les réseaux sociaux.

A radiant smile with straight, white teeth and a perfect, slim body are no longer trends exclusive to Hollywood; they have evolved into highly sought-after beauty standards, particularly among young adults. These ideals, often amplified by social media and influenced by celebrities and influencers, have sparked widespread interest in health treatments. 

An increasing number of start-ups are capitalising on this trend, aiming to revolutionise health treatments through a purely digital approach known as the Direct-to-Consumer concept, as opposed to the traditional Doctor Directed Care concept. In this model, the involvement of treating physicians is significantly reduced, with consumers overseeing treatments through apps, effectively assuming the role of physicians themselves. However, the efficacy of this treatment concept has been called into question, as evidenced by the numerous complaints received by the ECCNet regarding digital providers of i.a. invisible aligners for misaligned teeth.

ECC-Net's recommendations

• Develop a regulatory framework to safeguard consumer interests in digitally supported medical treatments. 
• Ensuring that digital health treatments can only be provided directly by doctors, rather than by commercial providers, is imperative for safeguarding patient safety and ensuring high-quality care.

Examples found in ECC-Net case-handling: 

• Deceptive practices (dark patterns) in website/app design 
  These design elements or e-commerce features, which are deliberately placed on shopping websites, are designed to entice or manipulate consumers into making a purchase or signing up for a service or subscription, for example pop-ups that announce a “limited-time offer”. These practices undermine consumers’ autonomy and agency in making an informed and conscious decision to make a purchase or subscribe to a contract. 
• AI and customer interactions 
  AI-powered and even human chatbox customer service interactions are problematic at present as increasingly more traders – large and small – are using digital apps to manage customer service. In some cases, AI-powered chatbots are limited in their functionalities and the amount of information or questions they can deal with, which essentially makes them not useful in terms of consumers making real contact with the trader or trying to resolve issues and disputes. In other cases, as consumers do not have access to the discussion with the customer service agent or chatbox so they are not provided with the evidence that they have made contact or submitted an inquiry/complaint. 
• Product scalping 
  Scalping, facilitated by automated software, is a problem in the online retail space, especially for popular products like limited-edition consumer goods and consumer electronics.

ECC-Net's recommendations 

• Ethical AI Guidelines: Develop and enforce ethical guidelines for AI development and application, prioritising consumer privacy and data protection. 
• Transparency Standards: Mandate transparency in AI algorithms to ensure consumers understand how AI impacts their choices and lives. 
• Consumer Consent: Implement strict consent requirements for data use in AI systems, ensuring consumers have control over their personal information.
• Impact Assessments: Require AI developers to conduct impact assessments that evaluate potential risks to consumer rights and implement mitigating measures. 
• Ongoing Monitoring: Establish a framework for the continuous monitoring of AI technologies’ impact on consumers, adjusting regulations as needed to protect consumer interests 
• Ensure key laws affecting the digital sphere are thoroughly and swiftly enforced. 
• Ensure AI Liability Directive to be concluded and implemented soon so consumers can successfully claim compensation when suffering harm from AI systems.

Providing help and information for passengers are among ECC-Net’s most frequent tasks, and our expertise on passenger issues is often required by various consultants and stakeholders. ECC-Net had the chance to prove its value to consumers during the COVID-19 pandemic and its aftermath. The pandemic caused many issues in consumer markets, with the most affected sectors linked to international travel and leisure. 

During the pandemic, the Network experienced significant strain, with a 30% increase in complaints. However, we successfully managed to maintain uninterrupted service and meet our established goals. Consumers widely appreciated our reliability in providing knowledge and assistance during this challenging time. The ECC-Net received over 94 thousand queries related to pandemic-related issues, handling approximately 17 thousand complaints. We achieved satisfactory results in nearly 65% of cases, consistent with our usual resolution rate.

Top 3 - problematix sectors due to the pandemic

1. Transport by air (especially transport services on international flights) 54 %
2. Accommodation services 17 %
3. Package holidays 11 %

However, the pandemic highlighted legal gaps needing to be addressed to protect consumers effectively, especially regarding booking platforms and online intermediaries handling transport ticket sales.

ECC-Net's recommendations 

We strongly recommend a comprehensive simplification and clarification of all passenger rights regulations to ensure better understanding and enforcement by European Consumer Centres (ECCs) and enforcement officers. Simplifying these regulations is essential for ensuring that consumers are well-informed about their rights and to minimise disputes among involved parties. For an effective application of passenger rights attention should be paid to the following: 

• Establishing a regulatory framework for airline insolvency. It is crucial to develop legislation that provides clear procedures for passenger compensation, rebooking, and repatriation in cases of airline insolvency, thereby enhancing consumer confidence and safeguarding their interests. 
• Standardising voucher policies (including validity periods, bonuses, etc.) is crucial to prevent confusion like what occurred due to airline practices during the COVID-19 pandemic. This standardisation should apply to package travel and to individual transport ticket purchases.

• Enhancing air passenger rights to ensure timely and fair compensation in the event of delays, cancellations, and other service disruptions. 
• Increase the information given by airlines and sellers (intermediaries or travel agencies) about airport taxes (by clearly stating in the booking confirmation/ticket what costs concern the actual transport and what costs concern taxes) and make them refundable free of charge. Airport taxes are only due when a passenger effectively boards the flight, so consumers should be entitled to a refund of the amount corresponding to these taxes if they do not board the plane without having to pay for it. Such a system has been in place in France since 2016 and has proven very effective. 
• Require airlines to offer rerouting not only on their own fleet but on other airlines or other transport modes as well, if it allows the consumer to reach the destination earlier and in comparable transport conditions. 
• Define the notion of extraordinary circumstances in line with the case law already developed by the ECJ and list the events that may justify non-payment of compensation by airlines. 
• Implementation of rules and responsibilities for booking platforms and online intermediaries handling transport ticket sales. 
• Even if a reservation for a flight is made via an intermediary, airlines should allow consumers to manage their reservation directly and submit a refund request directly to the airline instead of referring them to the intermediary. 
• Establishing clear, accessible mechanisms for complaints and redress for passengers. As consumers increasingly opt for multimodal travel options, there is a pressing need to address the complexities of such journeys thus, the EU Passenger Mobility Package is of great importance for ECC-Net. For the detailed position of ECC-Net on the Passenger Mobility Package read here: https://www.eccnet.eu/publication/passenger-mobility-package-feedback-e…

Digital Payment Safety is pivotal for consumer protection as it addresses the vulnerabilities in digital transactions, which are increasingly common in our digital economy. With cyber threats on the rise, ensuring the security of digital payments is crucial to protect consumers’ financial data and prevent fraud. The EU Parliament’s focus on this area can lead to the development of robust regulatory frameworks that safeguard digital transactions, building consumer trust in digital markets and supporting the growth of secure, innovative payment solutions. 

While ECC-Net welcomes the set of legislative proposals known as the “Payments Package”, aimed at promoting innovation and competition in the payment industry, insists that attention must be paid on an improved liability regime which is paired with better enforcement mechanisms. 

Fair treatment of consumers in case of payment fraud would increase trust in digital payments and provide clear incentives for banks to invest in fraud prevention. The European Parliaments vote on payment services on the 14th of February 2024 is very positive and towards the right way for protecting consumers.

ECC-Net's recommendations 

• Strong Encryption and Security Standards: Ensuring all digital payment platforms adhere to the highest encryption and cybersecurity standards to protect consumer data. 
• Consumer Authentication Improvements: Implementing more secure, user-friendly authentication methods to prevent unauthorised access to digital wallets and payment accounts. 
• Transparency and Consent: Mandating clear communication to consumers about how their payment data is used and stored, with strict consent protocols. 
• Fraud Monitoring and Reporting: Requiring payment service providers to implement advanced fraud detection technologies and facilitate easy, efficient reporting of suspicious activities by consumers. 
• Reimburse consumers more systematically for fraudulent payments via chargeback mechanism, all kind of payment methods.

It is the general opinion within the ECC-Net that applicable laws will only ever be partially effective because enforcement is lacking, it is the one essential aspect that needs to be improved. Without clear sanctions, penalties, and concrete consequences to breaches of consumer rights, there is no incentive for traders to fulfil all their obligations. 

While EU consumer laws provide a fundamentally useful foundation for addressing many problematic practices in the digital environment, there can be regulatory gaps, particularly when it comes to emerging and rapidly evolving digital practices. These gaps may arise due to the difficulty of keeping pace with technological advancements and innovative business models. It is essential to rely on effective enforcement mechanisms in order to ensure that consumer protection laws remain effective and adaptable to new challenges. Traders should also play an active role and strengthen their respect of already existing basic consumers’ rights when they design and implement their services. 

ECC-Net is seeing a rise in complaints from consumers who receive unsafe and poor-quality products from third countries, primarily Asia, notably China, often ordered through platforms like Amazon, Aliexpress or Temu. These products frequently do not match the order and pose safety risks. Under the current Product Liability Directive, platforms like Temu or Amazon (Marketplace) are not liable as importers since they typically do not import products themselves but provide a platform for direct purchasing. The EU Customs Code reform is more than welcome by ECC-Net. We are looking forward to platforms being regulated more closely as well as goods entering the EU from third countries. We expect the New Parliament will continue the work on the biggest EU customs reform since 1968 to fully take into consideration the rights and protection of the European consumers. 

ECC-Net's recommendations 

• Extending law enforcement to third countries 
• Extending liability to platforms if they offer warehousing, packaging, addressing or dispatching services. ECC-Net supports the EU Commission’s proposal for a new product liability directive in this context, which suggests holding fulfilment service providers liable alongside importers