“Europe already has one of the strongest consumer protection models in the world. It does not lack rules, notably on dark patterns. What it lacks is enforcement. Adding new, overlapping requirements creates legal uncertainty and compliance costs for small businesses”, reacted SMEunited President Davide Galli to the publication of the proposal on the Digital Fairness Act (DFA).
Crafts and SMEs are not the source of manipulative online practices. They are the ones who suffer from them, because non-compliant traders, in particular from outside the EU, undercut them while ignoring the rules. “Authorities will successfully stop rogue traders with a stronger focus on enforcement, not with new rules only burdening businesses that already comply”, insisted President Galli.
The Commission has committed to simplification and better regulation. Yet the DFA adds new definitions and obligations to a rulebook that is already hard to navigate for companies without a legal department. SMEunited has repeatedly asked that existing rules be properly enforced before new ones are created, and that any new rules be fully coherent with the DSA and the ongoing revision of market surveillance legislation. “The Commission claims the DFA comes with simplification measures. They seem quite insignificant among the new requirements”, stated President Galli.
“Think Small First means testing every new obligation against the reality of a small company. A craftsperson with a web shop cannot be expected to navigate several overlapping regimes. The Commission cannot claim a Simplification agenda to cut red tape while introducing unnecessary burden for SMEs”, he continued.
Looking into the Consumer Protection Cooperation revision, President Galli shared careful optimism. SMEunited supports efforts to reduce the time before coordinated actions, more harmonised penalties across Member States, and actions to tackle unfair competition from non-EU companies. A stronger Commission role in coordinating actions and sharing best practices can be a step in the right direction, providing it takes into account existing case law and private enforcement. “Stronger enforcement against non-compliant traders is the most effective protection for consumers and honest entrepreneurs”, added President Galli.
SMEunited calls on the European Parliament and the Council to remove overlaps with existing legislation to concentrate any new obligations on the platforms and business models where the risks lie. “Consumer trust is the lifeblood of every small business. That is exactly why SMEs want rules that work and are enforced against those who break them, not more rules for those who already follow them”, concluded President Galli.
