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AI Summary of Article 4 Definitions

This directive establishes clear definitions relevant to consumer and trader interactions, including the terms "consumer", "trader", "sales contract", "service contract", and dispute classifications such as "domestic dispute" and "cross-border dispute". It outlines the establishment criteria for traders and ADR entities, emphasising the locations of their operations or statutory seats.

Compliance with these definitions and processes is essential for ADR entities, as they must adhere to outlined requirements to facilitate effective dispute resolution. Competent authorities play a critical role in upholding this directive at various governance levels.

Version status: Amended | Document consolidation status: Updated to reflect all known changes
Version date: 19 January 2026 - onwards
Version 3 of 3

Article 4 Definitions

1. For the purposes of this Directive:

(a) "consumer" means any natural person who is acting for purposes which are outside his trade, business, craft or profession;

(b) "trader" means any natural persons, or any legal person irrespective of whether privately or publicly owned, who is acting, including through any person acting in his name or on his behalf, for purposes relating to his trade, business, craft or profession;

(c) "sales contract" means any contract under which the trader transfers or undertakes to transfer ownership of goods to the consumer, including any contract having as its object both goods and services;

(ca) "goods" means goods as defined in Article 2, point (5), of Directive (EU) 2019/771 of the European Parliament and of the Council [Directive (EU) 2019/771 of the European Parliament and of the Council of 20 May 2019 on certain aspects concerning contracts for the sale of goods, amending Regulation (EU) 2017/2394 and Directive 2009/22/EC, and repealing Directive 1999/44/EC (OJ L 136, 22.5.2019, p. 28, ELI: http://data.europa.eu/eli/dir/2019/771/ oj).];