Hamon Law for e-commerce - stay compliant with the legislation

While a large majority of French people now shop online, e-commerce first sparked distrust when it emerged. To secure transactions and provide a clearly defined legal framework, specific legislation gradually developed. The Hamon Law for e-commerce, applicable since 2014, is part of that framework. Here are its ins and outs.

The seller’s obligations under the Hamon Law for e-commerce

E-commerce in France was originally governed by law 2004-575 for confidence in the digital economy of June 21, 2004. The Hamon Law for e-commerce — dated March 17, 2014 and effective from June 13, 2014 — has since introduced new obligations for online sellers. Here are its main provisions.

• “Every professional selling goods or providing services must, before the conclusion of the contract, enable the consumer to know the essential characteristics of the good or service. In the event of a dispute, it is up to the seller to prove that they have fulfilled this obligation.”

This provision requires online sellers to be fully transparent. They must also be able to prove they acted in good faith and informed their customers at the right time and in the right place.

• The online seller must always and systematically obtain the customer’s consent before collecting payment for an order. This is ensured by adding a box that must be ticked to validate the order. This box states that the customer accepts the Terms and Conditions of Sale featured on the site.
• All payment methods accepted on the site must be explicitly listed from the shopping cart page onward.
• The customer’s consent must be given freely, through an action and never through an omission. In practice, the online seller is not allowed to pre-tick boxes on behalf of the customer, particularly the consent box for accepting the terms and conditions of sale, which must be left unticked. The box for subscribing to the newsletter cannot be pre-ticked either.
• Site visitors, whether prospects or customers, benefit from GDPR (General Data Protection Regulation) protection. Users can request the return of their personal data at any time.

The legal information obligation under the Hamon Law for e-commerce

A number of pieces of information must appear on the site.

• The seller’s name and full contact details.
• The essential characteristics of the product or service.
• The detailed price, including options.
• The existence of a right of withdrawal, including provision of the corresponding form.
• The delivery methods offered and any geographic restrictions,
• Delivery costs.

Drafting the terms and conditions of sale

The terms and conditions of sale of an online store must include several mandatory notices.

• The legal name and contact details of the seller.
• The terms of the legal warranty of conformity. These must be valid for two years from the date of delivery of the product. Before this period expires, the buyer may at any time demand repair or replacement of the product, without having to prove the lack of conformity.
• The terms of the warranty against hidden defects, offering the buyer the choice between cancelling the sale or being refunded part of the original price. In this case, it is up to the customer to prove that the defect existed at the time of purchase. This defect must also have been non-apparent and rendered the item unfit for its intended use.
• The terms of the commercial warranty.

Handling credit notes and refunds under the Hamon Law for e-commerce

Following the enactment of the Hamon Law for e-commerce, the legal withdrawal period was extended to 14 days, regardless of the product or service purchased. Before the law was passed, it was 7 days.

The refund must be made in full, meaning all amounts paid must be returned, whether a deposit or delivery costs. Furthermore, unless the customer has previously agreed otherwise, this refund must be made in cash and not in the form of a credit note or gift voucher.

The obligations for validating an order

Under the Hamon Law for e-commerce, users must validate their order in 3 steps.

• The order confirmation page must summarize all order details, specifying the final purchase price, including delivery.
• This page must be editable so the consumer can correct any errors.
• The buyer must always receive an order confirmation once payment has been made.

If even one of these conditions is not met, the order can be invalidated at any time.

The buyer’s rights under the Hamon Law for e-commerce

The Hamon Law for e-commerce aims to protect consumers, which involves obligations related to delivery, withdrawal, and refunds.

Delivery rules under the Hamon Law for e-commerce

Whether you offer products or services, delivery times must appear on the order in a transparent, readable and understandable way, before the cart is validated. If geographic or other restrictions exist, they must be specified, also before the purchase is validated.

If you do not specify delivery times, this implies an obligation to deliver the items or perform the ordered services within a maximum of 30 days.

In the event of a delivery delay, the customer must follow up with the professional by registered letter with acknowledgment of receipt or by email. The online seller must then respond by postal mail or digitally and specify the new delivery time. If this new time is not met, the customer is entitled to demand cancellation of the order along with a full refund, by email or by registered letter with acknowledgment of receipt.

Rules on the right of withdrawal

The Hamon Law for e-commerce requires that the terms and conditions of sale specify the legal duration of the right of withdrawal, which is 14 days. They must also specify the procedure users must follow to exercise this right.

Finally, the online seller must provide customers with a standard withdrawal form, directly accessible on their site.

Return costs

Return rules must be specified in the terms and conditions of sale. These specify whether the consumer is responsible for paying return costs, depending on the delivery point, the number of packages, their weight, etc.

If these terms are not specified or are not sufficiently explicit, return costs are borne by the online seller. The penalties provided for in the event of a late refund are as follows:

• a 10% increase on the amount to be refunded beyond 10 days after receipt of the product or proof of its return shipment;
• an increase of up to 50% beyond 60 days of delay.

The Hamon Law for e-commerce has strengthened the role of the DGCCRF (Directorate General for Competition, Consumer Affairs and Fraud Control). In addition to being able to refer matters to administrative or judicial courts, it is authorized to directly impose penalties in the event of non-compliance with its orders. These range from a ban on accepting payments to a fine ranging from €3,000 to €15,000.