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Consumer protection in online sales

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Consumer protection in online sales

E-commerce has changed commercial transactions, allowing consumers to purchase goods and services from anywhere. However, it has also raised new legal challenges, especially with regard to the protection of consumer rights. 

In Spain, this protection framework is mainly governed by Royal Legislative Decree 1/2007, of 16 November, which approves the revised text of the General Law for the Defence of Consumers and Users, and by the General Data Protection Regulation (GDPR) with regard to the processing of personal data. This article analyses how these regulations safeguard consumers in online sales and the challenges they face.

Basic consumer rights in online sales

The Law on Consumers and Users (LCU), in article 8, establishes the basic rights of consumers, such as the protection of their economic interests, access to clear information, and the right to safety. These principles are important in e-commerce, where transactions are carried out at a distance and there is a greater risk of receiving incomplete or misleading information. To address this issue, Title III of Book Two regulates distance contracts, requiring sellers to provide detailed information on products, prices, taxes, payment and delivery terms, encouraging informed decisions and avoiding unfair practices.

The right to security extends to the digital environment, protecting against defective products and ensuring the security of online transactions. The right of withdrawal is also recognised, allowing the contract to be terminated without penalty within a set period of time, increasing consumer confidence. This regulatory framework seeks to balance the relationship between consumers and entrepreneurs, ensuring that e-commerce is a fair, transparent and safe environment for users.

Right of withdrawal

The right of withdrawal is key in e-commerce transactions, as it gives consumers the possibility to reconsider their purchase decision. According to article 102 LCU, the consumer may withdraw from the contract without giving any reason within 14 calendar days of receipt of the product. This period gives the buyer a reasonable period to assess whether the purchased good meets his expectations or not. In this sense, the right of withdrawal acts as a mechanism of protection against products that do not meet consumers’ needs or expectations.

However, this right is not absolute as it has limitations in order to preserve a fair balance between the interests of consumers and entrepreneurs. Article 103 of the same legal text establishes a series of exceptions to the right of withdrawal. These include personalised products, specifically adapted to the consumer’s needs, and services whose performance has begun with the express consent of the customer and with full knowledge of the loss of this right. These restrictions are intended to prevent abuse by consumers, and to ensure that the trader does not incur unjustified losses arising from unreasonable and unlawful returns.

Unfair terms

Article 86 LCU prohibits contractual terms that create a significant imbalance to the detriment of the consumer, a common practice in e-commerce due to conditions imposed unilaterally by traders. Examples of unfair terms include restrictions on the right of withdrawal or excessive penalties for returns, violating consumer rights and discouraging their exercise.

To address this, article 54 allows consumers to take collective action to defend their rights against unfair terms. These initiatives strengthen user protection and act as a deterrent to non-compliant businesses.

Processing of personal data

The GDPR establishes a uniform EU regulatory framework to protect personal data. In the context of e-commerce, the processing of data such as names, addresses and shopping preferences is essential. Article 6 GDPR requires a legal basis for such processing, such as the data subject’s consent or the need to fulfil a contract.

Article 13 obliges data controllers to inform consumers in a clear and transparent manner about the use of their data, including purposes, retention periods and rights such as access, rectification and erasure. In addition, article 25 emphasises data protection by design, ensuring that online platforms implement adequate security measures to prevent breaches.

Dispute resolution

The LCU promotes out-of-court dispute resolution through the Consumer Arbitration System, regulated in article 57. This mechanism offers an efficient and economical alternative for resolving disputes between consumers and businesses, avoiding the costs and length of traditional court proceedings. By opting for this system, parties can reach binding solutions through a more streamlined process, without sacrificing fairness and the protection of their rights.

In the area of e-commerce, the Consumer Arbitration System is particularly relevant due to the remote nature of transactions. Often, the consumer and the trader are in different geographical locations, which can complicate the resolution of disputes through traditional judicial channels. This system offers a practical solution to overcome these barriers, facilitating the defence of consumer rights and promoting an environment of trust in digital transactions.

Conclusion

Therefore, the legal framework established by the UCL and the GDPR provides strong protection for consumers in e-commerce, adapted to the specificities of digital transactions. Basic rights, such as access to clear information, the right of withdrawal and the prohibition of unfair terms, ensure a fairer and more balanced environment. In addition, specific regulation on the processing of personal data guarantees privacy and security in transactions, while mechanisms such as the Consumer Arbitration System offer practical and effective solutions to resolve disputes.

These legal instruments protect consumers against potential abuses, and foster trust in e-commerce, essential for its continued growth. However, challenges remain, such as the need to ensure effective enforcement and to adapt to the constant technological evolution, underlining the importance of a dynamic and robust regulatory framework.

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