A more thorough explanation:

The Electronic Commerce Directive is a legal framework established by the European Union to regulate electronic commerce activities within the internal market. It sets out rules for online service providers, such as website owners and online retailers, to ensure that they operate in a fair and transparent manner.

For example, the directive requires online businesses to provide clear and accurate information about their products and services, including pricing, delivery options, and refund policies. It also establishes guidelines for electronic contracts, electronic signatures, and data protection.

One example of how the Electronic Commerce Directive works in practice is the requirement for online retailers to provide customers with a clear and easy-to-understand returns policy. This helps to ensure that customers are aware of their rights and can make informed decisions when purchasing goods online.