Distance selling Directive 2

United Kingdom
31/07/1999
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The Commission has presented an amended proposal for a Directive on distance selling. The proposal maintains a maximum harmonisation approach and replaces a two-week warming-up period before the conclusion of the contract with an obligation on the supplier’s side to provide a comprehensive set of information elements and by introducing a general right of withdrawal. The aim is to ensure a high level of consumer protection in retail financial services marketed by mail, phone, fax or by electronic means such as the internet. The proposal includes a general right of withdrawal if the conclusion of contracts has been unfairly induced without access to the contractual terms and conditions. These rights operate without penalty and without giving any reason.

The Member States will be free to set the cooling-off period between 14 and 30 days depending on the financial service offered. However, Member States which opt for the maximum period would nonetheless be obliged to accept a supply of financial services from other Member States with shorter withdrawal periods. A certain number of financial services have been exempted from the withdrawal right (foreign exchange services, trade in securities, certain short-term non-life insurance products and certain types of property loans). The Finnish Presidency of the Council has expressed its intention to give priority to securing agreement in the EU Council on this proposal. (IP/99/559)

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