The Role of European Consumer Regulation in Shaping the Environmental Impact of e-Commerce

Abstract

B2C e-commerce has grown considerably since the start of the century and the COVID-19 crisis will likely intensify this trend. In Europe, it is subject to a complex framework of EU regulation, which includes consumer contract law, in particular the rules on information obligations, passing of risk and the right of withdrawal in the Consumer Rights Directive. We argue that these rules currently exacerbate the environmental externalities of B2C e-commerce of physical goods. They tend to increase the number of failed deliveries and product returns and they subsidize the most unsustainable consumer behaviour at the expense of others. While raising awareness on this impact is crucial, this paper also contemplates alternatives. Emerging technical and economic solutions can be accommodated rather than ignored by consumer contract law. And consumers can potentially receive more relevant information on the environmental impact of e-commerce, which would fit with the European Commission’s sustainable consumption agenda. However, we believe that so-called ‘green defaults’ are the most effective regulatory instruments, notwithstanding the possibility of more intrusive ‘green’ amendments to the rules on deliveries and the right of withdrawal.

Keywords: consumer protection, sustainability, e-commerce, right of withdrawal