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Online retailers: you have until Midsummer – these details must be disclosed to customers
An expert at SY urges companies to act now.
Online retailers must provide customers with a statutory cancellation function by 19 June at the latest. This is a feature that allows consumers to exercise their statutory cancellation right.
The Consumer Ombudsman states that, before a contract is concluded, consumers must be informed of the conditions, time limits and procedures for exercising the cancellation right. For this reason, terms and conditions and related instructions must be updated to reflect the new legislation. In future, consumers must also be informed about the cancellation function and where it can be found.
The new legislation applies to contracts for goods or services concluded on a website or in an app. The cancellation function must be available in the same place where the contract is concluded.
“Start preparing now”
The new obligation is based on amendments to the Consumer Protection Act, which transpose updated EU consumer rights rules into national law. The aim is to ensure that consumers can exercise their cancellation right effectively and that cancelling a contract is as straightforward as concluding one.
“For smaller online retailers in particular, the new requirement may mean additional costs and system updates. Companies should begin preparations now, as the user interface, terms and processes must be in place by June. The change strengthens consumers’ position but introduces new technical obligations for SMEs, which must be prepared for in good time,” says Sanna Lempiäinen, a specialist at Suomen Yrittäjät, the Finnish SME association.
Online retailers must introduce the cancellation function alongside existing cancellation methods. Introducing the function does not replace other options, as consumers may still withdraw from a distance contract using the standard cancellation form or by submitting a simple notification, such as by email.
The Consumer Ombudsman also notes that ending a long-term contract must be just as simple and effective as concluding it.
Points to consider in your online store's cancellation function
The Consumer Ombudsman advises online retailers to take the following into account, as a minimum:
- Visibility and usability. The cancellation function must be easy to find and use. Consumers must be able to use it throughout the period during which they have the right to withdraw. The label must be clear and easy to read.
- Consumer information. Consumers must be able to use the function to provide their name, details of the contract to be cancelled and information on how they wish to receive confirmation.
- Confirmation before submission. Before submitting the cancellation, the consumer must be required to confirm that they are sending the cancellation notice. This confirmation must be clearly and legibly indicated. Once the consumer has confirmed submission of their cancellation notice, a confirmation of receipt must be sent.
- Confirmation of receipt must be provided as soon as possible after receipt and in a format that the consumer can store unchanged (for example by email).
- The confirmation must include details of the cancellation, specifying what the consumer has cancelled. It must also include the date and time when the cancellation notice was submitted.
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Pauli Reinikainen
pauli.reinikainen@yrittajat.fi
