Talking Shop October 2023
Welcome to the October 2023 edition of Talking Shop. This edition includes a summary of the CJEU's recent clarification on the scope of the right of withdrawal in distance contracts including a free trial period; an update on the French consumer authority's new power to impose daily penalties on its injunctions for breach of the consumer code; an overview of the extension of the protection of geographical indications in the EU to include craft and industrial products; and much more.
Please get in touch or visit our webpage for more information about Bird & Bird's Retail & Consumer Group.
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In this newsletter:
Consumer Law
Europe: CJEU clarified the scope of the right of withdrawal in distance contracts including a free trial period
After pointing out that consumers have a period of 14 days to withdraw from a distance contract, the CJEU added that consumers must be fully informed by the professional of the conditions, periods and modalities for exercising the right of withdrawal, as well as the price they will pay at the end of the free trial period. As a consequence, the CJEU stated that the consumer's right of withdrawal from a distance contract is only guaranteed once, while the contract is providing for a free trial period then automatically renewed with a fee subscription.
Australia: Love in court - takeaways for FMCG brands on avoiding subscription traps and misleading claims
A trend in the retail – and many other – industries is the rise of the subscription model. Whether it is olive oil makers, wine, farm-fresh boxes of fruits and vegetables or pet food, the subscription model presents a fountain of opportunity. It does, however, also come with legal challenges. In this article, we consider recent enforcement action taken by the Australian Competition and Consumer Commission against a digital membership provider, which provides some useful takeaways for businesses that have adopted or are considering adopting, a subscription or membership-type product or service offering.
France: DGCCRF new power to impose daily penalties on its injunctions for breach of the French consumer code
The Law no. 2023-451 of 9 June 2023, strengthened by the Decree no. 2023-887 of 20 September 2023 which came into force on 22 September 2023, has given the DGCCRF the power to impose a daily penalty on its injunctions for breaches of the French Consumer Code. As a reminder, the DGCCRF is the competent authority for ensuring consumer protection and fair competition. In addition to its investigative powers, the DGCCRF has the power to issue injunctions, and the strengthening of its powers reflects its central role in the implementation of the French Consumer Code.
Sweden: Examining the Swedish consumer agency’s prioritisation of customer service - essential website information for traders
The Swedish Consumer Agency is placing significant emphasis on enhancing customer service provided by traders to consumers. Consequently, the supervisory authority has conducted investigations into 100 trader websites and the contact information they present. Initially, the scope of these investigations was unclear, but the Swedish Consumer Agency’s focus has solely been on traders selling products to consumers online.
Competition
Europe: Some thoughts on the standard of proof in competition wrongdoings
The standard of proof in competition law can roughly be summarised as “evidence capable of demonstrating the existence of the facts constituting an infringement, thereby defeating the presumption of innocence.” So, what is the role of a competition lawyer when safeguarding a client’s rights? No doubt to whisper doubt in the judge’s ear. In this regard, the topic at issue is material, as the standard of proof is key to being on the right side of the rule of law and the naked will of an enforcer. In this article, we review the evolution of the standard of proof at EU level.
UK: Pet-ential competition concerns in the vet industry? UK watchdog launches review into the veterinary services market
The UK Competition and Markets Authority has launched a market review into the veterinary services market for household pets, amid concerns that: (i) information about prices and treatment options are not easily accessible to pet owners, and (ii) consequently pet owners are not able to make good choices about which vet to use and which services to purchase. The review will focus on pricing, access to prescriptions and medications, the variety of services available, and pet owners’ awareness that their vet may be part of a larger chain.
Regulatory
Europe: The new boundaries of the protection of geographical indications in the EU - the protection of craft and industrial products
Following the approval of the European Parliament, on 9 October 2023 the Council of the European Union also finally approved the document entitled 'Regulation of the European Parliament and of the Council on the protection of geographical indications for craft and industrial products. The aim of the Regulation is to extend the protection of GIs for agricultural products, foodstuff, wines and spirits to non-agri-food products. The focus is on products such as Carrara marble, Limoges porcelain, Murano glass, Swiss watches, Solingen knives and many others, which are an integral part of local identities and which can attract tourism and create new jobs by supporting the local and EU economy.
News & Events
The DIS Franchise Industry Group: New approaches to alternative dispute resolution in franchising
The franchising industry, which is characterised by dynamic and international relationships, requires special approaches and an expert understanding of conflict resolution - this also applies to alternative dispute resolution methods. From the qualification of arbitrators to international freedom of choice and neutrality, the challenges are manifold.
Against this background, the German Arbitration Institute (DIS) and Bird & Bird, under the leadership of partner Dr Jiri Jaeger and Eric Bartoletti, supported by DIS Secretary General Dr Ramona Schardt, have established the DIS Franchise Group to promote the potential of alternative dispute resolution methods in franchising and to further develop current methods and approaches in practice. The initiative is aimed at all players in the franchising industry who would like to make an active contribution to ensuring that alternative dispute resolution methods become the standard in the event of conflict in franchise partnerships in German-speaking countries.
Find out more about how you can participate here
Webinar: International Business-to-Consumer annual update
29 November, 16.00 GMT, online
Our International Business-to-Consumer Group is delighted to invite you to its Annual Update – an essential webinar for any business that interacts with consumers. In this webinar, you will hear from members of our international B2C team, who will kick off the event with a brief summary of the current UK & European landscape, before looking ahead with a focus on six core areas: consumer contracts; advertising and marketing; green claims; consumer enforcement; consumer litigation; product compliance and liability.
We will provide a high-level overview of the key trends and upcoming developments in each area. We will end the webinar with a Q&A to make sure we have covered all areas that are important to your business. We hope you can join us virtually!
