Tuesday, 26 May 2020

CJEU in EIS (C‑266/19) – Reasonable expectation prevails over proportionality concerns in duties to inform


Case C266/19 (not yet available in English; in French here) concerns EIS and TO, who are competitors in the business of online sales of erotic products. The relevant claim was that EIS did not clearly inform consumers about its phone number in the right of withdrawal model form (annexed to the Consumer Rights Directive) and about the fact that consumers can use that phone number to exercise their right of withdrawal, even though EIS had one and mentioned it in a clear and legible manner on the bottom of its website. One interesting aspect about this case is that it is originally a competition law case that, in the referring court’s perspective, depends on an answer to a consumer law problem. Providing wrong or incomplete information on the right of withdrawal in consumer contracts (and therefore breaching consumer law) is considered to be unfair competition according to German law (para 21). So, even though there are no consumers directly involved in the dispute, the CJEU was called to interpret a provision of the Consumer Rights Directive.

The Consumer Rights Directive regulates the pre-contractual disclosure of available means of communication to consumers in several provisions. Article 6(1)(c) states that the trader must inform the consumer on means of communication ‘where available’. Article 6(1)(h) states that the trader must inform the consumer on the conditions, time limit and procedures for exercising the right of withdrawal (which, according to Article 6(4), can be done through the model form annexed to the Directive). The dispute, in this case, lied here: is a phone number used by a trader for professional purposes and shown in the homepage of the trader’s website considered an 'available' means of communication? Moreover, should Article 6(1)(c) and (h) and 6(4) – together with annex I point A – be interpreted as imposing a duty on the trader to explicitly inform the consumer on a phone number that can be used to exercise his right of withdrawal?

This case builds on Amazon EU (see our report on it here), where the CJEU interpreted partly the same provisions and established that an unconditional obligation to have a phone number available to consumers is not proportional, considering the economic context of some traders’ business model. Following the guidelines set out in Amazon EU, the CJEU clarified, in the present case, that the professional party who concludes a contract with a consumer via a website and that, logically, does not use a phone number for the process of concluding that contract (even though it has one available for other professional purposes), is not obliged to communicate it to the consumer in the context of the model form in annex I part A (para 36). However, interestingly, the CJEU established an exception to this rule. According to the CJEU, if the phone number is publicly displayed on the trader’s website in such a way that it would lead the average consumer to think that the trader uses that phone number to communicate with consumers in general, then it must be considered that that phone number is available within the meaning of Article 6(1)(c) (para 37). That is the case, for example, when the phone number is available on the trader’s website under the heading ‘contact’. Therefore, it must also be considered that a phone number is ‘available’ in the meaning of annex I part A and must be consequently included in the model instructions on the right of withdrawal (para 38). In this way, and even though the CJEU does not explicitly say it, it appears to have privileged the protection of the reasonable expectations of consumers over proportionality concerns.