Modernisation of information requirements for consumers on online tourism services market by Tatjana Josipović

emphasis is placed on the modernisation of EU rules on the new information requirements for distance consumer contracts laid down in the Omnibus Directive43 of 2019 amending the Unfair Commercial Practice Directive (hereinafter: the UCPD)44 and the Consumer Rights Directive (hereinafter: the CRD).45 Most amendments are dealing precisely with the harmonisation of the Union consumer protection law with the continuous development of digital tools. The rules on unfair commercial practices and those on the protection of consumers entering into distance contracts have been modernised. The obligation of transparent information provided for consumers is also extended to the providers of online marketplaces through which traders and consumers are offered products on online markets.46 The Omnibus Directive defines an online marketplace as “service using software, including a website, part of a website or an application, operated by or on behalf of a trader which allows consumers to conclude distance contracts with other traders or consumers.”47 The new national measures, aligned with the Omnibus Directive, have been applied since 28 May 2022. The new rules on unfair commercial practices and additional information requirements for contracts concluded on online marketplaces have revealed many questions on consumer protection that are also crucial for the protection of consumers on the online tourism services market. The main question is whether by such general stipulation of information duties for the providers of online marketplaces, applied to all distance contracts concluded on online marketplaces, the appropriate level of information for consumers on online tourism services markets is ensured. 2. EU Enforcement Actions for more Transparency of Online Travel Intermediaries In the last few years, coordinated enforcement actions taken by the Member States' competent authorities responsible for the enforcement of EU consumer law have become an important instrument for providing more transparency on the online tourism services market. The EU enforcement actions are taken on the basis of the EU Consumer Protection Cooperation Regulation48 providing for the cooperation and coordinated actions of the national authorities in case of cross-border infringement of consumer law. National authorities have started their coordinated actions to improve the transparency of information for consumers on particular online travel intermediaries regarding the presentation of their accommodation offers in conformity with the EU consumer law. The most common problems connected with the application of EU consumer law were those involving unfair commercial practices and unfair contract terms. Within the EU enforcement actions, national authorities most frequently warned in particular about the problems regarding transparency, completeness and intelligibility of information on the total price of accommodation, identification of provider as a private or a professional person, the transparency of the ranking criterias and research results, discounts and time-limited offers, the comparison of prices, information on the number of visitors and limited availability and information on the cancellaction practices.49 In the fiInal phase, the EU enforcement actions have led to a situation where online travel intermediaries voluntarily, in a closed dialogue and in cooperation and agreement with the European Commission and the national consumer authorities, harmonised their business practices with the EU consumer law and improved the presentation and the transparency of information on the offers, discounts and prices of accommodation services.50 A coordinated cooperation between the European Commission, the national consumer authorities and the online travel intermediaries turned out to be a successful method of increasing transparency of online tourist market services. Since the taken measures were in agreement with the online travel intermediaries, there was no need for any legislative interventions at the European and/or the national level, or for imposing sanctions 43 Directive (EU) 2019/2161 as regards better enforcement and modernisation of Union consumer protection rules, (hereinafter: Omnibus Directive). 44 See Art. 3, Omnibus Directive. 45 See Art. 4, Omnibus Directive. 46 See recitals 17-28, Omnibus Directive. 47 See Art. 3/1/b, Art. 4/1/e, Omnibus Directive - the concept ‘online marketplace’ inserted in UCPD and Consumer Rights Directive/CRD. 48 Regulation (EU) 2017/2394 on cooperation between national authorities responsible for the enforcement of consumer protection laws 49 See, for example, Common position of national authorities within the CPC Network concerning the commercial practices and the terms of service of Airbnb Ireland published at https://ec.europa.eu/info/live-work-travel-eu/consumer-rights-andcomplaints/enforcement-consumer-protection/coordinated-actions/accommodation-booking_en (page visited on 7/9/2022). 50 See European Commision: Factsheet of the Commitments of Booking-com, 18 December 2020; Factsheet of the Commitments of Expendia Group, 18 December 2020; Factsheet of the Changes Implemented by Airbnb, 11 July 2019.

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