A recent EU-wide investigation into misleading advertising and unfair practices on websites selling consumer electronic goods has revealed that 55% of 369 websites investigated showed irregularities.

Earlier this year national enforcers of 26 member states and Norway and Iceland inspected websites selling six of the most popular electronic goods to consumers in the EU - digital cameras, mobile phones, personal music players, DVD players, computer equipment and games consoles - to check for compliance with three EU consumer laws:

  • the Distance Selling Directive defines some of the minimum information which online traders must provide, including the identity and contact details of the trader. The aim of this Directive 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;
  • the e-Commerce Directive sets additional information requirements related specifically to online shopping. For example, it requires the trader to confirm the receipt of the order promptly and by electronic means accessible to the consumer; and
  • the Unfair Commercial Practices Directive outlines 'sharp practices' which will be prohibited throughout the EU, such as misleading and aggressive marketing and includes a general ban on unfair commercial practices. The Directive includes that traders must display clearly all the key information that consumers need to make an informed choice.

Websites selling electronic goods were targeted because they are among the most popular product categories bought on-line, with one in four people who have bought goods online having bought electronics, and also due to the large number of complaints received in this product category across Europe. In 2007, more than a third of complaints regarding online sales handled by the European Consumer Centre Network concerned the purchase of electronic equipment.

The 'sweep investigation' covered more than 200 of the biggest websites selling electronic equipment in the EU as well as more than 100 websites which were targeted on the basis of consumer complaints.

The study focused on three key areas: contact information for the trader; clear information about the offer (total price and clear product description); and clear information about consumer rights.

The results found that of the websites investigated:

66% gave misleading information about consumer rights. Common errors included that buyers were either not informed or misinformed about their right to cancel an order and return the product within a minimum of seven days from purchase;

45% gave misleading information about the total price. For example, information on extra delivery charges was either missing or difficult to find and extras were added only at the final payment stage;

33% include missing or incomplete contact details of the trader. Details of the trader's name, address or email address were missing or incomplete, so that they could not be contacted in case of problems.

Following on from the initial findings, the traders responsible for the incompliant websites will be contacted by national authorities and are required to correct their websites or face sanctions under national laws. The Office of Fair Trading is the national enforcer for the UK. The EU-wide enforcement results will be known by mid-2010.

The results of this investigation should be a warning to any traders who sell products online, as the next study could target any product type or service. Traders, be aware that failure to bring a website in line with the law can result in legal action leading to fines or websites being closed.

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