EU Commerce Changes In Regulations Impacting eCommerce

Last week the European Commission redrafted guidelines, many of which relate to regulations around distance selling. The revised guidelines had been adopted 10 years ago and the new ones are to be in place beginning in May for the coming 10 years.

There continue to be many restrictions allowed but the overall set of guidelines pull back on some types of restrictions suppliers can put in distribution contracts. For example, suppliers can no longer prohibit authorized sellers to sell on the Internet.

In addition, suppliers can no longer prevent online sellers from taking a sale from across borders including within a distribution system such as exclusive distribution or selective distribution. For example, a retailer in the UK can accept and ship an order to a buyer in France even if they are not authorized to sell physically in that market. The retailer cannot proactively market to that customer, but they may accept an order if it comes to them passively.  

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