The Regulation on Distance Agreements was replaced by the
Distance Agreements Regulation (the "new
Regulation") on November 27, 2014, which will enter
into force February 27, 2015. The New Regulation will increase the
level of consumer protection and impose more obligations on sellers
and service providers that enter into distance sales agreements
with consumers through websites, email, fax, phone or similar
What the Regulation says
Under the new Regulation, sellers and service providers must
provide additional information to consumers than currently
required. Prior to concluding a distance sales agreement, a seller
or service provider must indicate: (i) the arrangement for payment,
delivery, performance, the time the seller will deliver the goods
or the service provider will perform the service, and the
seller's or service provider's complaint handling policy;
(ii) the functionality of digital content, including technical
protective measures; and (iii) any interoperability of digital
content with hardware and software of which the seller or service
provider is aware or could be reasonably expected to be aware.
Additionally, the seller or service provider must also ensure
that the consumer, when placing an order, explicitly acknowledges
that the order implies an obligation to pay. Otherwise, the
consumer will not be bound by the order.
With the new Regulation, the exercise of the cancellation right
is both detailed and simplified to increase consumer protection.
The main changes are:
To comply with Consumer Protection Law (No. 6502), the new
Regulation gives the consumer 14 days to cancel a distance sales
agreement without stating a reason or paying a penalty.
To cancel a transaction, the consumer can either use the
cancellation form in the annex of the new Regulation or make an
The seller or service provider must reimburse all payments
received from the consumer, including any of the delivery
costs, without undue delay and no later than 14 days after receipt
of notice to cancel the distance sales agreement.
Unless the seller has offered to collect the goods itself, the
consumer must return the goods or turn them over to the seller or
to the seller's authorized representative without undue delay
and no later than 10 days after giving notice of the decision to
cancel the distance sales agreement.
Consumers cannot exercise the cancellation right for: (i)
sealed goods, which are not suitable for return due to health
protection or hygiene reasons and were unsealed after delivery, or
(ii) goods that are, after delivery, according to their nature,
inseparably mixed with other items.
What companies should do
Companies that provide goods or services to consumers through
distance sales agreements should take the necessary steps to bring
their activities into compliance with the new Regulation by
Baker & McKenzie
At Baker & McKenzie, we provide sophisticated advice on
consumer law matters. In addition to advisory services, we
represent our clients before consumer arbitral tribunal and
consumer courts, and provide tailor-made consumer law trainings.
Please contact us if you would like more information on how to
comply with these requirements.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
On 28 July 2016, the Court of Justice of the European Union ruled that a standard choice of law clause in favour of the law of the EU Member State in which the seller or supplier is established, is unfair.
Two recent cases serve as useful reminders of the principles involved in relation to fitness for purpose in the context of the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.
Some comments from our readers The articles are extremely timely and highly applicable I often find critical information not available elsewhere As in-house counsel, Mondaqs service is of great value
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think youve read our Disclaimer).