The purpose of the EU's Omnibus Directive, which clarifies the consumer protection directive, is to provide consumers with greater transparency regarding pricing, marketing, and the use of data. The Omnibus Directive applies to all businesses engaging in B2C online trading within the EU region.

The Omnibus Directive is for both consumers and online retailers. It supports the rapidly growing e-commerce sector, aiming to make online trading more transparent and clearer. 

A key change concerns the announcement of promotional and discount prices, but the directive also brings additional changes.

A legislative amendment is required in Finland for the national guidelines of the EU directive. The amendment to the Consumer Protection Act came into effect on 1 January 2023.

Here is the Omnibus Directive in a nutshell:

What is the Omnibus Directive? 

The purpose of the Omnibus Directive is to clarify the obligations of businesses engaged in consumer trading regarding the pricing of promotions and discounts. Additionally, it affects the consumer reviews presented by companies for their products. Read more about the improvements the EU's Omnibus Directive brings to consumer protection.

What does the Omnibus Directive mean?

The directive clarifies the EU's consumer protection directive. Furthermore, it elucidates the national consumer protection law and enhances the guidance on the law concerning unfair commercial practices. Read what the consumer protection authority advises about upcoming changes for entrepreneurs.

Effects of the directive on online retailers:

• The Omnibus Directive clarifies consumer pricing

  • Pricing algorithms on an individual consumer basis are no longer possible without separate notification

  • The discount price history is country-specific. According to the Omnibus Directive, the online shop must disclose the lowest price of the product over the previous 30 days.

  • In a marketing campaign lasting up to 60 days, where the price reduction increases continuously, the lowest reportable price is the one at which the goods were marketed during the 30 days preceding the first price reduction.

✏️ Ensure that the online store has a price history capability so that the lowest price over 30 days can be calculated.
The Omnibus Directive makes the use of data more transparent and extends the protection under data protection law

• More detailed disclosure on the use of tracking data

  • In the future, a data agreement is deemed established merely from the use of the service

  • A data transaction, i.e., a data agreement, will henceforth suffice by viewing advertisements, clicking links, or browsing the feed.

• Consumer reviews published by the company must be truthful

  • The new consumer protection law clarifies the information that must be provided to support the consumer's purchasing decision. These include, for example:

    • Authentic product reviews: Product reviews must come from consumers, and the store must be able to verify it.

      • No fabricated product reviews

      • No purchased reviews

      • No distortion of reviews obtained from social media or consumers

    • The basis of search result organisation must be visible

    • Consistency between product images and actual images must be maintained.

✏️ Ensure that the review system of the online store is linked to the online order or to the customer, for example, during the login process. If a review is given anonymously, ensure that the connection to the order is verifiable.

When must the changes be made?

The directive became effective in the EU countries on 28 May 2022. The changes to the Consumer Protection Act came into effect on 1 January 2023.

The article was published on 13 June 2022 and updated on 1 February 2023.