Materially distort the economic behaviour meaning

Compass Banca SpA v Autorità Garante della Concorrenza e del Mercato, Case C-646/22, ECLI-EU-C-2024-957 What are the practical implications of this case? The Court of Justice reiterates that the average consumer is reasonably well-informed, reasonably observant and circumspect. As a result, the assessment of commercial practices must focus on a notional, typical consumer. This is an objective yardstick, uninfluenced by any specific knowledge or information held by particular individuals. Nevertheless, the Court of Justice acknowledges that such a practice may still materially distort the economic behaviour of that notional consumer where there is a lack of information on his or her part. Accordingly, traders are under a duty to ensure consumers are fully informed about the implications of their actions, enabling decisions taken with complete awareness of all pertinent facts. In practical terms, this may require the inclusion of clear and unambiguous informatory notes within advertisements, contracts, and similar documents. While this enhances the protection afforded to the targeted consumers, the Court of Justice clarifies that...

ARCHIVED: This Practice Note is archived and no longer maintained. From 6 April 2025, the Consumer Protection from Unfair Trading Regulations 2008, SI 2008/1277, are revoked and replaced by the Digital Markets, Competition and Consumers Act 2024 (DMCCA 2024). However, CPUTR 2008, SI 2008/1277 continues to govern any conduct that occurred before 6 April 2025. For guidance on contravening professional diligence under DMCCA 2024, see Practice Note: Contravening professional diligence under the Digital Markets, Competition and Consumers Act 2024... The offence of contravening professional diligence The offence of contravening professional diligence is a criminal offence within the Consumer Protection from Unfair Trading Regulations 2008, SI 2008/1277 (CPUTR 2008). See Offences under the Consumer Protection from Unfair Trading Regulations 2008 [Archived]. Regulation 3 prohibits unfair commercial practices. A commercial practice is unfair where it, among other things: fails to meet the requirements of professional diligence; and materially distorts, or is likely to materially distort, the economic behaviour of the average consumer regarding the product ...