Developer’s requirement to disclose their trader/non-trader status.
(Non)-Trader Transparency Requirement
On April 11, 2018, the European Commission adopted the New Deal for Consumers, stating that the legislation is “aimed at strengthening enforcement of EU consumer law” and “modernizing EU consumer protection rules in view of market developments.”
One of the provisions of the New Deal, which went into effect on May 28, 2022, requires online marketplaces to inform consumers about the identity of the party with whom they are concluding a contract (i.e. whether the party is a professional trader or an individual).
As a result, third party suppliers that provide services on online marketplaces may be asked to identify themselves as either traders or non-traders so that consumers can determine if they are dealing with a professional trader and would be able to benefit from consumer rights.
Defining trader vs. non-trader
The European Commission defines traders and non-traders as follows:
- Any natural person or any legal person, who is acting for purposes relating to his trade, business, craft or profession in relation to contracts on this marketplace.
- Any natural person or any legal person, who is acting for purposes which are outside of his trade, business, craft or profession in relation to contracts on this marketplace.
If you are a non-trader, the consumer will be informed that consumer rights stemming from consumer protection laws do not apply to any contracts between you and the consumer. Please note that it is the developer’s responsibility to accurately self-declare their trader/non-trader status.
For more information on the EU New Deal
If you would like more information on the EU’s New Deal for Consumers, take a look at the European Commission’s press release describing the New Deal or visit the European Commission’s repository on resources related to this legislation.