When will EU businesses be regarded as having “directed” their business activities to consumers in another member state, ask John Doherty & Charlotte Eccles
Within the EU, jurisdiction is generally based on the defendant’s domicile. As with any good rule, however, many exceptions apply.
Art 16(1) of Council Regulation (EC) No 44/2001 of 22 December 2000 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels I) provides that in certain contractual circumstances, a consumer may elect to sue a business in either:
- the member state where that business is domiciled (as per the general rule);
- or the member state of their own domicile.
According to Art 15(1), the consumer’s right to elect arises for contracts: (a) for the sale of goods on instalment credit terms; (b) for a loan or any other form of credit to finance the sale of goods; or, in all other cases; (c) concluded with a person who pursues commercial or professional activities in the member state of the consumer’s domicile
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