Companies that sell goods or services to consumers (B2C relationships) must comply with the complex and intricate rules of consumer law. First of all, they must comply with consumer protection legislation in their dealings with customers (consumers). If companies fail to do so, consumers or their interest organisations can bring proceedings or a collective action before the courts. They can then try to obtain damages or repayment.
In addition, various supervisory authorities supervise compliance with consumer law, including the Dutch Authority for the Financial Markets (AFM), the Dutch Central Bank (DNB) and the Netherlands Authority for Consumers and Markets (ACM). They can take enforcement measures under the Consumer Protection (Enforcement) Act (Wet handhaving consumentenbescherming) in the event of violations. Unfair terms, misleading information (unfair trading practice) or failure to provide consumers with the right prescribed information in advance are a few examples of infringements that may prompt regulatory action. Supervisory authorities have far-reaching enforcement powers in those situations: unannounced inspections (dawn raids), informal conversations, requests for information, official warnings, public administrative (punitive) penalties and licence withdrawal.
Needless to say, the impact can be immense, especially due to the potentially massive scale of consumer law disputes.
Houthoff has many years of experience advising clients that may face regulatory enforcement, private law proceedings and/or media attention in relation to consumer law. The Houthoff team is greatly skilled in providing strategic advice in these types of multidisciplinary situations, overseeing crisis management and communications, and litigating in different related proceedings simultaneously. It also boasts in-depth knowledge of administrative law, private law and consumer law.
