Consumer protection: transparency and the right of withdrawal in distance contracts

The consumer’s right to withdraw from a distance contract is guaranteed only once in the case of a service provision agreement which stipulates an initial gratuity period for the consumer. This right will apply if, in absence of termination or withdrawal by the consumer within this period, the service automatically becomes chargeable, subject to the fulfilment of the obligation to clearly and explicitly inform the consumer that, after the initial free of charge period, the service will become chargeable.

The aim of the right of withdrawal is to compensate the consumer for the disadvantage of distance contracts by giving him an appropriate time for reflection. It is essential that, before the contract is concluded, the consumer is given clear, comprehensible and explicit information on the total price of the services.

In case of a contract which starts with a free of charge period and then moves to a chargeable period, the right of withdrawal applies only once, provided that the consumer is clearly informed at the time of conclusion of the contract that after the initial free of charge period the service will become chargeable.

The importance of transparent communication of information on the price of services is emphasized by this decision of the Court of Justice of the European Union, and the absence of such information may justify the granting of a new right of withdrawal.

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