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The legal playing field for e-commerce is constantly shiftingBrussels Hilton, 16 February 2016
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Sirius Legal
Media & advertisement lawCopyright - trademarks - datebases - software - knowhowTravel & consumer protectionTax & tax planningIT, Internet & e-commercePrivacy & cookiesGambling & gaming
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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
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First aid in case of fire burns
Update on
CookiesPrivacyConsumer protectionMarket placesGeo blocking
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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“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
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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
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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Rights of data subjectsopposition – access – correction - information
Obligations of data processorInformation – opt-in – data security – (export)
Privacy Law
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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…
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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?)
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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…
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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Consumer protection indistance salesBook VI WER since May 2014
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Consumer protection
Information obligations“From the start of the order proces”
Vs.“Prior to order confirmation”
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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Information obligation“In language comprehensible to consumer”
“prior to order confirmation” + again at the latest upon delivery (pdf, text in mail, etc…).
Consumer protection
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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S-commerce & M-commerce?
Consumer protection
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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Legal obligationFor professionnal seller2 year minimum (1 jaar 2°hand)All consumer gooodsManufacturers’ warranty
Legal warranty
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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
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2015
Alternatice Dispute resolution in B2C
Warranty issuesDelivery issuesPayment issuesCooling of period issues…
ADR and ODR
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“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
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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ADR
Consumer files complaint with CODCOD transfers to recognized ADR institutionIn principle decision within 90 days
ADR and ODR
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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EU Digital Single Market strategy
Serious concerns on power of market places, transparancy and
consumer protection
Market places
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EU Digital Single Market strategy
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
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EU Digital Single Market strategy
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
The legal playing field for e-commerce is constantly shiftingShopping Innovation Expo 2016
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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.
Geo fencing and geo blocking
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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
Geo fencing and geo blocking
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Cookies
EU e-privacy directive 2002/58/ECBelgium: new article 129 in Telecom law since October 2012
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Cookies
Basically very simple: always opt-in
Except for purely functional cookies:Absolutely necessarry for technical reasonsAbsolutely necessarry for communication
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Cookies
Opt-in should beFreeExpliciteInformedPrior to placing cookiesrevocable
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Cookies
2015Netherlands soften edgesFrance holds large scale “cookie sweep”Spain inflicts finesBelgium…?
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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
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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
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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…)
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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…”
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www.siriuslegal.be www.websitecertifier.be
Bart Van den Brande [email protected] be.linkedin.com/in/bartvdb @BartVdBrande
Sirius Legal