Businesses reject extension of withdrawal button through rushed negotiations
Digitization, E-Commerce and the new and renewed business models play a major role with regard to consumer law. Digitization offers consumers an unprecedented sovereignty and choice - especially when it comes to contracts that are concluded digitally. One important aspect strengthening the trust of consumers was the introduction of a right to withdrawal, which the business community supports! However, current policy discussion show some developments regarding withdrawal options that are deeply concerning. In our Joint Industry Statement we want to provide feedback regarding the current developments and urge all policy makers to reconsider making certain changes in the law.
The Consumer Rights Directive 2011/83/EU mandates a right of withdrawal of 14 days to be exercised by the consumer after concluding a distance contract. It leaves it to the discretion of the trader to inform the consumer of the conditions, time limit and procedures for exercising the right of withdrawal. While the CRD provides for a model withdrawal form, it also prescribes that “Member States shall not provide for any formal requirements applicable to the model […]”. The flexibility of these provisions has allowed businesses to develop and adapt their withdrawal and return policy according to their business model, providing consumers with the most convenient withdrawal/return procedure adapted to the type of product or service they offer. While the undersigned associations support the objective to raise awareness of the right of withdrawal among consumers, we believe that prescriptive provisions, such as a withdrawal button applied to all distance contracts, will not be apt to catch the reality of the entire business landscape and entail unintended implications.
Businesses reject the rash extension of the withdrawal button to all distance contracts through rushed negotiations. In our role of EU trade associations representing the interests of businesses of different sizes (including SMEs), from various sectors (retail, technology, e-commerce and omnichannel), we have been closely following the recent developments concerning the proposal to introduce a “withdrawal button” for all transactions concluded at a distance by means of an online interface. While the industry widely supports the general objective to enhance the possibilities for consumers to exercise their withdrawal right, we believe that this could be achieved through less prescriptive, more workable provisions.
Our Joint Industry Statement can be downloaded below.
