Brussels, 18 December 2023
The new EU rules on online financial services entered into force today. The Directive on financial services sold at a distance will strengthen consumer rights and foster the cross-border provision of financial services in the single market.
Consumers will now be able to withdraw from a contract with a click, thanks to a new ‘withdrawal button’ which will be introduced by service providers. In addition to an obligation to provide clearer rules on pre-contractual information, they will also be obliged to provide human customer support in cases where chatbot communication is not satisfactory.
Commissioner for Justice and Consumer Protection, Didier Reynders, said:
“Getting a financial service can be risky for many different reasons, if the consumer is not well informed about the product. That’s why we have now made sure that consumers can be aware of the risks beforehand and be sufficiently protected, all the more when such services are bought online. We know that information provided by chatbots is not always clear enough or that the information about your right to withdraw from the contract needs to be more visible. The new rules will improve the situation for consumers with a series of protective and concrete measures, such as a visible and easy accessible button to withdraw from a contract.”
These new rules stem from the revised 2002 Directive and aim to better address the digitalisation of the sector, new types of financial services and online transactions. Member States are required to transpose the Directive into their national law by 19 December 2025. More information on distance marketing of financial services is available here.
Source – EU Commission