Netherlands publishes survey on compliance with “Guidelines for Online Consumer Protection”

In August 2024, the Dutch Consumer & Market Authority released a survey of webshops on adherence to the “Guidelines for Online Consumer Protection”. The study aimed to assess if webshops were complying with regulations to prevent online consumers from being misled. Key findings from the study are outlined below.

Guidelines for Online Consumer Protection

The Netherlands Authority for Consumers and Markets (ACM), responsible for consumer protection and market competition in the Netherlands, published the “Guidelines for Online Consumer Protection” in 2020. These guidelines clarify consumer law standards related to choice architectures in e-commerce.

Webshops

To investigate how the guidelines are implemented and ethically integrated into business processes, a survey was conducted among 400 members of the Dutch certification organisations “Thuiswinkel Waarborg” and “WebwinkelKeur.” These organisations ensure that webshops meet specific quality and safety standards. Most responding webshops are relatively small, with 70% having only one or a few employees. Only five out of the 400 webshops have 100 or more employees.

Webshop design

Over half of the webshops alter their user design infrequently, while about a quarter update it weekly or almost daily. Smaller and newer webshops often handle their design internally, whereas larger webshops combine internal efforts with outsourcing. Nearly 46% of webshops design their site completely in-house, 20% outsource entirely, and 34% mix internal and external resources. Among those who handle their own design, 72% leverage standard design elements from other companies. This is especially true of smaller firms. Approximately 20% of all webshops employ A/B testing.

Knowledge of regulations

A significant majority of webshops (87%) are aware that they must inform consumers fairly. Almost all (93%) consider consumer protection laws when implementing new designs. Most webshops understand whether certain practices are allowed.

Misleading consumers

Most webshops agree that consumers should not be misled. About three-quarters believe it is justified to deem subtle deceptive practices, such as late disclosure of additional costs, as violations. Nearly half find practices like 'pre-selecting options,' 'ranking positive reviews higher,' and 'hiding part of the price under an i-symbol' to be very misleading. A large majority (87%) think inflating prices before a promotion to create false discounts is highly misleading, yet only 41% realise it is illegal to claim low stock levels if the actual inventory is high.

Consequences for violation

According to the survey results, 42% correctly recognise the ACM’s role in supervising consumer information rules for online purchases. Webshops, however, estimate a low probability that the ACM would identify a violation, with 84% believing the chance is 50% or less (with the average being 27%). Nearly half of the companies (45%) consider a possible fine or sanction to be severe or very severe. When it comes to reputational damage, 59% estimate this damage to be severe or very severe.

Familiarity with the Guidelines for Online Consumer Protection

Only 29% are familiar with the Guidelines for Online Consumer Protection. However, 41% recall a recent ACM warning about misleading discounts, with 87% supporting the ACM’s communication.

Conclusions

This survey highlights the importance of webshops adhering to legal rules concerning online sales. The ACM prioritises combating online deception, as shown by its recent press release announcing actions against fake reviews, a new phase in ACM’s initiative against online deception.

For more information on this survey and consumer protection regulations in the Netherlands, contact your CMS client partner or these CMS experts.