Directive (EU) 2023/2673 (the Directive) which was adopted as part of the EU’s wider consumer protection reforms, introduces a significant practical change to how online retailers must enable consumers to exercise their right of withdrawal from online contracts. Although the directive is primarily framed around distance financial services, it amends the Consumer Rights Directive (Directive 2011/83/EU) in a way that affects all online consumer contracts within scope of that regime.
The Existing Right of Withdrawal
Under the Consumer Rights Directive, consumers entering into online contracts or other distance or off-premises contracts generally benefit from a 14-day right to withdraw from the contract without giving a reason. While online retailers have long been required to inform consumers of this right and provide a model withdrawal form, the legislation has historically focused more on disclosure than on the user experience of withdrawal.
The New Obligation
The Directive shifts the emphasis onto the user experience by requiring that from 19 June 2026 online sellers provide a mandatory withdrawal function for consumers on their e-commerce sites. The underlying principle is that consumers must be able to withdraw from a contract as easily as they were able to enter into it.
In practical terms, this means that the online interface used to conclude the contract must also allow the consumer to submit a withdrawal notice electronically.
Who Is Affected?
These requirements will apply to:
- traders established in the EU that sell goods, services or digital content online to consumers; and
- traders established outside the EU where their online activities are directed at EU consumers.
As a result, many non-EU based retailers who target EU consumers will also need to assess whether their current online contracting journeys meet the new standard.
Key Features of the Withdrawal Function
The Directive sets out clear expectations for how the withdrawal function must operate. In particular, it must:
- be clearly labelled with wording such as “withdraw from contract here” (or equivalent unambiguous language);
- be easy to find, legible and continuously available during the withdrawal period;
- allow the consumer to identify the contract they wish to withdraw from (including partial withdrawal, where relevant);
- enable the consumer to submit a clear withdrawal statement online; and
- generate an acknowledgement of receipt on a durable medium (such as email), including the date and time of submission.
When a consumer has already identified themselves (for example, by logging into an account), the retailer should not require unnecessary re-identification as part of the withdrawal process.
What Businesses Should Be Doing Now
Although the new rules do not apply until June 2026, they are likely to require technical and design changes to online sales platforms, not just legal updates. Businesses should therefore start considering:
- whether existing account pages, order histories or customer dashboards could support a complaint withdrawal function;
- how withdrawal confirmations will be generated and stored;
- look at training customer support/CRM teams on the changes so they can ensure that consumer queries are dealt with compliantly;
- consider what changes will be required to CRM processes to manage the practical aspects of the changes; and
- whether pre-contact information and T&Cs accurately reflect the new withdrawal mechanics.
Failure to implement the withdrawal function correctly may expose businesses to enforcement risk and undermine their ability to rely on protections such as deductions for use or charges during the withdrawal period.
