Staying compliant with the Omnibus Directive: How to protect your Shopify store in Europe
Table of Contents
Introduction to the Omnibus Directive
The Omnibus Directive (Directive (EU) 2019/2161) is a piece of EU legislation that brings about numerous adjustments in consumer and competition law. The implementation deadline for this directive was May 28th.
The impact of the Omnibus Directive on price reductions for Shopify stores
One of the key aspects of this directive that affects Shopify stores in Europe is the rule regarding price reductions. According to § 11 PAngV, in case of a price reduction, the previously demanded price – meaning the lowest price that was asked for within the last 30 days before the price reduction – must be mentioned (known as the “strike price”).
This means that when offering a sale or promotion, Shopify store owners in Europe must make sure to display the lowest price that was offered for the same product in the last 30 days. Failure to do so can result in fines and penalties, as well as potential lawsuits from consumers.
Additional information requirements for operators of online marketplaces
Another important aspect of the Omnibus Directive is the general information requirement for operators of online marketplaces. Art. 246d EGBGB sets out new transparency requirements in § 1, and updates regulations regarding:
Information about rankings
Providers of search results on comparison websites
Possible connections between online marketplace operators and providers
Business characteristics of providers
The inapplicability of consumer protection regulations when providers are not considered to be business entities.
As a Shopify store owner in Europe, it is important to stay informed about the Omnibus Directive and its implications. Not adhering to the regulations can lead to legal and financial repercussions, so it is crucial to ensure that your store is compliant.
Another important aspect of the Omnibus Directive is the requirement for online marketplaces to provide consumers with clear and transparent information about their ranking and search results. This means that if your store is featured on a comparison website, you need to make sure that the information provided about your products is accurate and up-to-date. Additionally, you must disclose any possible connections or relationships between your store and the operators of the comparison website.
Another important aspect of the Omnibus Directive is the requirement for online marketplaces to provide consumers with clear and transparent information about the business characteristics of their providers. This means that if your store is featured on a comparison website, you need to make sure that the information provided about your business, such as your business name and contact details, is accurate and up-to-date.
Finally, the Omnibus Directive also states that consumer protection regulations do not apply to online marketplaces if the providers are not considered to be business entities. This means that if you are selling products or services on a marketplace as an individual, you may not be subject to the same regulations as a business entity.
The potential penalties and legal repercussions of non-compliance
As mentioned before, failure to comply with the regulations set out in the Omnibus Directive can result in fines and penalties, as well as potential lawsuits from consumers. These fines can be substantial, with penalties of at least 4% of annual sales or 2 million euros for non-compliance with Union-level regulations. These penalties can have a significant impact on your business and can be difficult to recover from.
Introducing Cronum: Price Changes – A solution for staying compliant
That’s why we developed Cronum: Price Changes. Our app makes it easy for you to stay compliant with the regulations set out in the Omnibus Directive by showing customers the price history of your products over the past 30 days. This helps to increase transparency and trust with your customers, making them more likely to purchase from your store.
Additionally, our app is quick and easy to install, meaning that you can be up and running in just minutes. This means that you can rest easy knowing that you are protected from potential legal action and fines, without having to spend hours configuring and setting up the app.
Conclusion: Protect your business and improve sales with Cronum: Price Changes
In summary, the Omnibus Directive brings about important changes to consumer and competition law that affects Shopify stores in Europe. With our app, Cronum: Price Changes, you can rest easy knowing that you are protected from potential legal action and fines, without having to spend hours configuring and setting up the app. Improve sales and protect your business with Cronum: Price Changes.
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