On 6 December 2012, the European Commission (EC) published the results of an investigation, conducted throughout the European Union (EU), which found that more than 75 percent of websites selling games, books, videos and music online are likely in breach of consumer protection rules.
The screening included participation by national authorities from 26 Member States (with the exception of Ireland, which did not participate due to lack of resources) and from Norway and Iceland.
A total of 333 websites were screened in the investigation, including 20 from Portugal and including 159 websites selling games online. Of all the websites screened, 76 percent (254 websites) were marked for further investigation - including 14 Portuguese websites. This measure is applied to websites which are found likely to be non-compliant with EU legislation in the field of consumer protection, particularly with regard to the rules governing advertising and governing provision of essential information on the costs and features of digital content required by consumers to make informed decisions. The screening included 55 websites selling games for children aged below 14; of these, 71% (39) appeared to be non-compliant with EU legislation.
The investigation highlights three main problems:
- Unfair terms
Contract terms must be clearly indicated and fair; however, a total of 230 websites (69%) contained terms considered unfair. Such terms include, for example i) excluding the trader's liability in case a download damages the consumer's equipment; ii) excluding or preventing consumers from exercising their right to seek legal or other redress or making it difficult to do so; or iii) depriving consumers of the right to receive a new product or to claim reimbursement when the downloaded product fails to work.
- Right of withdrawal
Due to the nature of downloads, the consumer loses his right of withdrawal from the contract when downloading has begun with the consumer's agreement (in other words, the downloaded product cannot be returned); however traders are required to inform consumers prior to the purchase about this fact. 141 websites (42% of websites checked) did not provide this information.
- Missing information on the trader's identity and address
Traders are obliged to indicate their identity, geographical and email address on their website to enable consumers to contact them, if necessary; however, 121 websites (36%) did not display such essential information.
In addition to this comprehensive screening, or sweep, of digital content, conducted in June 2012, the EC contracted a complementary study which revealed the following:
- No information about geographical restrictions
Consumers may not be able to use downloaded digital content in a country other than their place of residence and traders should inform them about this. 73% of all checked websites remain silent on this information. When this information is given, it is often presented only in the general terms and conditions and is therefore difficult to find
- Games advertised as "free" often involve some payment at a later stage
Nearly 9 out of 10 websites failed to inform users upfront about add-ons or in-game purchases requiring payment. Although this information is often mentioned in the contract terms, it bears no clear indication about prices
National authorities have already started to contact companies and ask them to provide clarifications or correct their websites. Companies failing to do so may face legal action leading to fines or even closing down of websites. The national enforcement authorities will report back to the Commission by autumn 2013. The EC will then report on the results.
Further information:
- E-commerce: when purchasing games, books, videos or music on-line, look out for unfair terms, warns the EU http://europa.eu/rapid/press-release_IP-12-1320_en.htm
- Digital Contents Sweep http://ec.europa.eu/consumers/enforcement/sweep/digital_content/index_en.htm
