Consumers will enjoy a 14 days withdrawal period on distance and off-premises contracts

This is the general period laid down by the draft Directive on Consumer Rights which has been agreed by the Council on 24 January 2011. With this new directive, Brussels aims to improve the functioning of the internal market, guaranteeing a higher level of protection for consumers in distance and off-premises contracts, including on-line contracts, mail orders, telephone, etc.

This new directive would replace Directive 85/577/EEC on contracts negotiated away from business premises and Directive 97/7/EC on distance contracts, which are currently in force. It will apply to distance contracts between a trader and a consumer were they be made on-line, by mail order, telephone or fax. It will apply to off-premises contracts concluded in a place which is not the business premises of the trader, such as door-to-door sales.

The draft Directive on consumer rights agreed by the Council lays down that the minimum information to be provided by the trader to the consumer is to be sufficiently clear and understandable, as well as appropriate to the means of distance communication used. Furthermore, the consumer must be dully informed about any extra charges in addition to the remuneration foreseen for the trader's main contractual obligation, and has to give his consent to them. If the trader has not obtained the consumer's express consent, then the consumer will be exempted to pay them or will be entitled to reimbursement.

14 days to withdraw from distance and off-premises contracts

The new directive establishes a general minimum period of 14 days for withdrawal. To exercise this right, the consumer has to inform the trader of his decision to withdraw from the contract, for instance by written letter, fax or email, or by means of a standard form, before the withdrawal period has expired. In this case, the trader will reimburse all payments received from the consumer no later than fourteen days from the day on which he receives the communication of withdrawal.

The directive would apply to distance and off-premises contracts, also including contracts for the supply of water, gas, electricity and district heating. However, it would not apply to contracts in various sectors such as: immovable property, construction of new buildings, financial services; passenger transport services; certain social services, healthcare and gambling.

Regarding digital contents as such the Directive does not consider them as a good within the meaning of the rule, unless they are burned on a tangible medium. However, the downloading of digital content from Internet, considered as a services contract concluded by electronic means and performed immediately, will also fall within the scope of the directive, but without a right of withdrawal.

These new rules on consumer rights for distance and off-premises contracts were proposed by the Commission in 2008, with the aim to improve the functioning of the internal market. The harmonization of the conditions under which distance contracts are concluded will also help to reduce some of the obstacles faced by cross-border trade, not only for on-line trade but also for many others types of transactions.