EU Mandates ‘One-Click Withdrawal’ New Regulation Effective June 19
The EU has introduced new regulations for remote sales contracts, requiring platforms and independent sites to provide a ‘one-click withdrawal’ feature. Violators may face fines of up to 4% of their global annual turnover, and the statutory cooling-off period will be extended.
What are the key facts?
- 1EU Directive (EU) 2023/2673
- 2Mandatory effective June 19
- 3Maximum fine 4% of global turnover
What happened?
The EU's new regulation mandates that remote sales contracts targeting EU consumers must feature a ‘one-click withdrawal’ function. The withdrawal button must always be visible and easy to navigate, and when clicked, the system must automatically send a confirmation receipt. Furthermore, non-compliant merchants will face fines of up to 4% of their global annual turnover to enhance consumer rights protection. It is important to note that the enforcement of this directive will increase merchants' compliance pressure regarding transparency in contract terms and consumer rights protection, requiring swift adjustments to avoid penalties.
What does this mean for cross-border sellers?
Sellers must immediately check whether their shops have the compliant withdrawal button. Independent site sellers should quickly complete the functionality integration to avoid the risk of high fines. Additionally, enhancing user experience is essential to ensure compliance with the new regulations.