20160317 shopping innovation expo: juridische update in e-commerce

The legal playing field for e-commerce is constantly shiftingBrussels Hilton, 16 February 2016

Sirius Legal

Media & advertisement lawCopyright - trademarks - datebases - software - knowhowTravel & consumer protectionTax & tax planningIT, Internet & e-commercePrivacy & cookiesGambling & gaming

Since 2013Consumer protection in distance salesCookie directive (under review in 2016 as part of e-privacy directive!)VAT in cross border delivery of servicesFood labelingPrivacy regulationODR regulation and ADR directivePotentially new rules for market placesPotentially new rules for geo blocking & geo fencingVAT in cross border delivery of goods

The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016

First aid in case of fire burns

Update on

CookiesPrivacyConsumer protectionMarket placesGeo blocking


Privacy Law

Current privacy law = based on EU RegulationTransferred into national law by each member stateSet of rules dates back to eighties/ninetiesBased on location of company and/or serverAt the time most elaborate and progressive set of rules in the world


“Right to privacy” >< data processingDefinition of personal data is very largeECJ 2015: Even IP address – browser historyImpact on data collection and big data is considerable

Privacy Law

Straight and simple:Basic rule = prior “opt-in” for all processingOr implicite opt-in if “legitimate grounds” for processing“Free and informed” opt-inTransfer of data to third party = additionnal opt-in

Cfr. Analytics tools, apps, cookies, database enrichment through mailings and actions, …: always opt-inCfr. also social media content

Privacy Law


Rights of data subjectsopposition – access – correction - information

Obligations of data processorInformation – opt-in – data security – (export)

Privacy Law


New Regulation

2016 – 2017

Regulation in stead of DirectiveWork in progress since 2012Complex procedure in European InstitutionsHeavy lobbyingPolitical slow downFinally voted in Dec 2016 – signed in May 2016 – into force Dec 2017


New Regulation

Heavily influenced by consumer protection activists in EPLIBE Committee (protection of civil liberties)

Result:Consumer friendly, but somewhat unrealistic for direct marketing sector, e-commerce sector and especially credit scoring/rating…


New Regulation

For all services offered in EU (even free services)Personal data = also online identifiers, “pseudonymous data”Direct marketing can be a legitimate interestInformation obligation (icons)Right not to be submitted to profilingRight to be forgottenConsent for children“Data protection by design”Sanctions: up to 4% of yearly turnover or 20 million euro


Council Proposal

Data Protection Officer – notified with Authority – Task?Data breach risk analysesData breach action planObligation to warn within 24 hours Standard clauses in data processing contractsAdditionnal information obligations1 Data authority (Seat? Activity?)


What should you do in the meantime?

Follow training and info sessions (www.siriuslegal.be)Start review vendor contracts (in view of data security obligation) Start to prepare for full update of policies, contracts, business processesPut in place data breach notification procedureAppoint (temporary) Data Protection OfficerPut in place impact assessment and/or risk analyses policyCreate compliance statements for annual business reportsTrain staffSit back and wait, because you will be pprepared…


Consumer protection indistance salesBook VI WER since May 2014


Consumer protection

Information obligations“From the start of the order proces”

Vs.“Prior to order confirmation”


Information obligation“In language comprehensible to consumer”

“prior to order confirmation” + again at the latest upon delivery (pdf, text in mail, etc…).

Consumer protection


S-commerce & M-commerce?

Consumer protection


Legal obligationFor professionnal seller2 year minimum (1 jaar 2°hand)All consumer gooodsManufacturers’ warranty

Legal warranty


Legal warranty

FreeReplacement or repairDeprication or dissolutionDamage compensation

6 months presumption“orginal packaging”“with invoice”

EU is working on harmonisationOnly for e-commerce2 year presumption


2015

Alternatice Dispute resolution in B2C

Warranty issuesDelivery issuesPayment issuesCooling of period issues…

ADR and ODR


“Consumenten Ombudsdienst” within FOD EconomieCOC/FOD recognizes number of ADR institutionsEg. Geschillencommissie Reizen, Geschillencommissie Bouw, -Geschillencommissie Meubel, Ombudsdienst Telecom

COD can mediate directly

ADR and ODR


ADR

Consumer files complaint with CODCOD transfers to recognized ADR institutionIn principle decision within 90 days

ADR and ODR


2016ODR Regulation – Online Dispute Resolution

Cross border platform for online complaintsConsument in Belgium – Seller in HungaryComplaint with ODR platform – contact with local authorities for binding or non-binding mediation

ADR and ODR


Obligation of information on ADR and ODR in

General Terms with link to relevant websites:

“Bij buitengerechtelijke regeling van het geschil is de Consumentenombudsdienst van de FOD Economie bevoegd om elke aanvraag tot buitengerechtelijke regeling van consumentengeschillen te ontvangen. Deze zal op haar beurt de aanvraag ofwel zelf behandelen ofwel doorsturen naar een gekwalificeerde entiteit. U kan de Consumentenombudsdienst bereiken via deze link: http://www.consumentenombudsdienst.be//nl “

“Bij geschillen met een grensoverschrijdend karakter kan u bovendien beroep doen op het Online Dispute Resolution platform van de Europese Unie via deze link: http://ec.europa.eu/odr”

ADR and ODR


EU Digital Single Market strategy

Serious concerns on power of market places, transparancy and

consumer protection

Market places



Market survey recently finished

Based on survey further initiatives in 2016 by EC

Emota/SafeShops and others: trying to limit new restraints

“Current legal framework is sufficient if correctly applied”

Market places



EP adopted on 19 Jan a Resolution on the future of the EU Digital Single Market

calls on the EC to “End unjustified geo blocking” and “price discrimination” via ambitious “complementing” measures to the existing legal framework

Geo fencing and geo blocking


What is “unjustified” geoblocking?

EP text seems to advocate a list of practices that should be banned (i.e. a negative list), which should favour the sector

Influence of competition law

How to deal with technical measures (e.g. IP tracking or other technical restrictive measures)

Element of discrimination among consumers on discounts and promotions.



Discussion is ongoing

Emota/SafeShops.be are actively following up, parting from e-commerce sector needs

Minimum of supplementary rules

Minimal restraints on cross border e-commerce

Minimal impact on competition



Cookies

EU e-privacy directive 2002/58/ECBelgium: new article 129 in Telecom law since October 2012


Cookies

Basically very simple: always opt-in

Except for purely functional cookies:Absolutely necessarry for technical reasonsAbsolutely necessarry for communication


Cookies

Opt-in should beFreeExpliciteInformedPrior to placing cookiesrevocable


Cookies

2015Netherlands soften edgesFrance holds large scale “cookie sweep”Spain inflicts finesBelgium…?


Cookies

Recommendation Privacy Commission 4 Feb 2015:

Continuing visit after warning on home page can be opt-in (banner – not pop-up)

Information and right to revoke

Advertisers: agreement needed with website owner for reuse of data

Analytics: no exemption, but minor risk


Cookies

Recommendation Privacy Commission 13 May 2015 on tracking & tracing:

Social media buttons on websites (like/share/etc): activated only after opt-in

Doubble click system


Cookies

2016-2017

EC has announced review via e-privacy directive

Cookie regulation does not work

EMOTA and other aim for revoking cookie regulation as a whole

Probably specific rules for other techniques (fingerprinting, etc…)


VAT on cross border delivery of services: changed in 2015

VAT on cross border delivery of goods: will change in 2017

Food labelling: changed in 2015

…

Maybe next time…

“And many others…”


www.siriuslegal.be www.websitecertifier.be

Bart Van den Brande [email protected] be.linkedin.com/in/bartvdb @BartVdBrande

Sirius Legal

20160317 shopping innovation expo: juridische update in e-commerce

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