News

Below is an update on the recent developments concerning contracts and distribution.

• ACM fines web shops for violating the rules on reimbursements

The Dutch Authority for Consumers and Markets (ACM) has imposed a € 500,000 on web shop owner T.O.M. bv. and its two directors for violating the rules on reimbursing cancelled orders. T.O.M. bv sells internet-bikes, internet-toys, internet-sportclubs and internet-sportcasuals. Through Consuwijzer (a Dutch online consumer information desk) and investigation by the Consumentenbond (Dutch consumer-protection agency), ACM received serious signals. Consumers cancelling their orders were not reimbursed unless insisting upon it themselves.

In doing so, the web shops violated various rules protecting consumers when buying online. ACM previously announced it would act against web shops failing to refund, doing this in part or too late. There are more web shops that ACM is focusing on in this matter. This is the first case in which ACM has imposed a fine for this kind of transgression. ACM has fined T.O.M. bv to a total of €500,000. Both managers are severally liable for a part of the amount, Euro 125.000 per person.

It is important that businesses comply with the legislation and regulations concerning online contracting. More information on this can be found on the ACM website a.o.:

https://www.acm.nl/nl/onderwerpen/verkoopmethode/webwinkels/regels-voor-webwinkels/

• The European Commission publishes its preliminary report on its e-commerce sector inquiry

The preliminary report of the European Commission on its e-commerce sector inquiry confirms the rapid growth of e-commerce in the EU, and identifies business practices that could lead to a restriction of competition and consumer choice. Commissioner Margrethe Vestager:

“E-commerce has become important for consumers and it has significant impact on the business and strategies of companies. Businesses should have the freedom to determine their sales strategies online. At the same time, antitrust authorities must ensure that they do not engage in anti-competitive business practices. These practices can prevent European consumers from reaping the full benefits of e-commerce in terms of greater choice and lower prices.”

The Commission launched the sector inquiry in May 2015 as part of its strategy for the digital single market. One of the most important parts of the digital single market is guaranteeing consumers and businesses a better access to goods and services. The sector inquiry aims at enabling the Commission to track down possible competition problems on the European markets for e-commerce. In the published preliminary report, the Commission presents its first findings in this investigation. The report points to business practices that could lead to competition concerns. In specific cases, the Commission can start an investigation to make sure that businesses adhere to the EU-regulations concerning anti-competitive practices and abuse of dominant market positions. The full report can be consulted at:

http://ec.europa.eu/competition/antitrust/sector_inquiry_preliminary_report_en.pdf

• Status of the Dutch Franchise Code: legal underpinning?

The Dutch Franchise Code (NFC) was presented to Mr. Kamp, the Dutch Minister for Economic Affairs, by the drafting committee in February 2016. During the last couple of months, Mr. Henk Kamp has been exploring the possibility of providing the Dutch Franchise Code (NFC) with a “legal peg”. On Wednesday 12 October 2016, he informed the Tweede Kamer (Second Chamber of the Dutch Parliament) to put in motion a legislative process with the aim of legally underpinning the NFC. It is expected that in the course of next year a legislative proposal will be submitted. Where self-regulation was initially leading in proposing a new franchise code, the Minister now appears to have decided on starting a legislative process in order to enforce compliance with the NFC. The legal underpinning is in contrast to the self-regulating character of the NFC. Now that the NFC is not supported by the whole branch, it is doubtful whether the NFC (also sometimes called “the supermarket code”, because of the close involvement of the “Vakcentrum” (https://www.vakcentrum.nl/home) in drawing it up) will really lead to fewer conflicts between franchisee and franchiser.