Omnibus Directive: 5 Key Regulations and How to Comply with Them
The Omnibus Directive, a collection of regulations within the European Union, has come a long way from its initial approval on January 7, 2020. All member states of the EU were required to incorporate its provisions into their national laws by November 28, 2021, and then to complete full implementation by May 28, 2022.
The term "omnibus" indicates that this directive consolidates different legal measures into a single, comprehensive legislative package, which applies to all EU member states and impacts businesses of all sizes. Whether you own a small boutique or a massive e-commerce enterprise, you need to be aware of how this directive affects your store’s operations and how to avoid legal issues.
How to Comply with EU Omnibus Directive: Regulations and Tips
The Omnibus Directive introduces several key considerations for store owners. The tricky part is that these considerations are regularly updated, making it challenging to comply with the latest ones.
Amasty offers you an overview of the 5 most important regulations you need to be aware of as well as the hands-on ways to comply with them.
1. Regulation: Ensure Price Transparency
As per the Omnibus Directive, e-commerce businesses are required to disclose the base price (per unit) of each product and its previous prices, which include the lowest price within the last 30 days. The purpose is to prevent fraud and confusion while discouraging deceptive "promotions" that artificially inflate a product's regular price to create a false sense of discount.
How to Comply: Prioritize the clear display of base prices per unit on your e-commerce platform and ensure these prices are prominently featured in product listings, aiding consumers in making informed decisions. Moreover, disclose previous prices, including the lowest within the last 30 days, to provide context and avoid the shade of deceptive marketing practices.
The easiest way to comply with the pricing regulations is to use extensions like Price per Unit or Omnibus Price Tracker. (Also called Omnibus Insight on Shopify). Such extensions add the functionality of unit price calculators or price tracker history on your product pages and don't require any development efforts from your side.
2. Regulation: Provide Detailed Seller Information
To promote transparent business practices and better customer support, the Omnibus Directive requires e-commerce businesses in the EU to make up-to-date contact information available to consumers at all times. Moreover, the law expects e-commerce EU businesses to inform customers whether the seller is an individual or a company.
How to Comply: Regularly update and prominently display accurate contact details for your company. Give legal address, legal name, and contact information, including phone numbers that operate in the countries you state you serve.
If you're working with multiple sellers, educate them on their responsibilities and encourage them to keep their profiles updated. Try integrating multiple communication channels and messaging systems (like Live Chat) to facilitate direct interaction between buyers and sellers. Also, implement mechanisms for customer feedback and issue reporting related to seller information.
3. Regulation: Ensure Authenticity of Reviews
The Omnibus Directive prohibits fake reviews from appearing in online stores. E-commerce businesses operating in the EU are required to verify the authenticity of the customer reviews that appear in their stores to prevent fake or intentionally misleading reviews from influencing consumers.
How to Comply: Implement mechanisms to authenticate customer reviews, such as email confirmation for verified purchases or integration with trusted review platforms, like Google Customer Reviews. Regularly monitor and audit the reviews on your platform to identify and remove any fake or misleading content promptly.
Consider using third-party review verification services or tools designed to identify and filter out suspicious reviews. These services can automatically analyze patterns, language, and other factors to flag potentially fake reviews, easing the burden on your internal moderation efforts.
Wondering about the potential implications of not complying with the Omnibus Directive? Check them out in our article: https://u.amasty.com/7y3
4. Regulation: Follow the Latest Product Return and Refund Rights
The Omnibus Directive includes new rules on consumer rights, including the right to cancel a purchase within 14 days and return faulty goods. To legally sell goods or services online, you need to effectively manage returns.
How to Comply: Implement a clear and accessible return and refund policy on your website, providing detailed information on the process, timelines, and conditions. Streamline the return process for customers by offering user-friendly return request forms and consider implementing automated RMA solutions for faster processing of returns.
5. Regulation: Disclose Your Sorting Criteria
According to the Omnibus Directive, e-commerce businesses must also clearly inform customers about the sorting criteria the business uses on their pages. Doing so makes it easier for customers to understand how items are organized and promotes more efficient and equitable online shopping experiences for everyone.
How to Comply: Provide clear and accessible information to customers about the criteria you use to organize items on your platform. Make this information easily accessible within your website or app, and consider including a link in search result pages for quick reference.
Additionally, ensure intuitive filtering and menu navigation on your website. Consider using extensions similar to Mega Menu and Improved Layered Navigation as they will help you to make the factors influencing the sorting order (such as relevance, price, popularity, or other relevant parameters) easily noticeable.
Ensure Omnibus Directive Compliance of Your Store!
Adapting to the changes brought by the Omnibus Directive, especially the new pricing laws, might take some effort. However, being proactive will keep your business in good shape and support the steady growth of your online store.
Keep things clear for your customers by being honest about your prices, who your sellers are, and how your platform decides rankings. This openness will gradually build trust and translate into loyalty and revenue faster than you think!
If you're uncertain about your store's compliance with the Omnibus Directive, reach out to Amasty for a comprehensive review of your store and its extensions.