EU: Distance Selling Directive Agreed

On 23 January the EU Council of Ministers adopted the Directive on Distance Selling, after a process that has lasted over five years. The Directive covers most transactions between suppliers and consumers for goods and services concluded at a distance as part of a sales or service provision scheme. The Directive does not apply to transactions between businesses, or to financial services. The main provisions are as follows:

• consumers are to receive specific prior information before a distance contract is concluded (provision has been made to enable suppliers of gifts to third parties, such as flowers, food hampers etc to send confirmatory information at a later stage);
• consumers are to have a general right to a 7-day cancellation period, subject to certain exemptions;
• orders are to be carried out within 30 days unless otherwise agreed;
• consumers will have the right to cancel distance transactions made by card where the card has been used fraudulently;
• there are no restrictions on requiring payment in advance;
• the supply of unsolicited goods is prohibited, but supplying substitute goods is permissible provided that the consumer has been made aware of this possibility;
• telephone cold-callers must identify themselves and make the commercial purpose of their call clear at its beginning;
• prior consent is only required for unsolicited fax calling or calling using automatic dialling systems without human intervention;
• representative actions are only feasible in so far as Member States provide for such actions under national legislation.