Sweeping changes are needed to safeguard consumer rights in the internet age, the European Commission said yesterday.

Shoppers are complaining about online problems with late or non-delivered goods, difficulties getting refunds and problems with cooling-off periods and guarantees on products, according to Europe's new Consumer Affairs Commissioner Meglena Kuneva.

Ms Kuneva, a Bulgarian, said a major new drive was needed to overhaul basic consumer rules "to adapt them to the challenges of a fast changing digital world".

The commission says consumer spending accounts for 58 per cent of the combined national wealth of the 27 member states. Six per cent of shoppers are currently buying goods online across EU borders.

Ms Kuneva was speaking at the launch of a report reviewing existing consumer rules which says: "All the evidence is that consumers are not yet comfortable enough in the digital and online world to seize its full potential."

Ms Kuneva said: "At the moment, consumers are not getting a fair deal online, and complex rules are holding back the next generation of bright business ideas. We must find new solutions to new challenges."

One problem is that the EU online market is made up of 27 "mini-online markets" across Europe, instead of a single market. That means less consumer choice and opportunity and less price competition.

"We need to inject a new sense of consumer confidence into the e-shopping world so it becomes a trusted market space," she said. "The rules of the game have changed, it's time for consumer policy to respond."

Yesterday Ms Kuneva launched a three-month consultation process during which she will take to the road to meet politicians, consumer groups, retailers and other organisations before recommending further consumer protection action.