Introduction
On 22 November 2023, the EU legislator adopted Directive 2023/2673 amending Directive 2011/83/EU as regards financial services contracts concluded at a distance.
Although the Directive was adopted in the context of financial services contracts concluded at a distance, its impact is broader. From a general consumer law perspective, the reform updates certain rules applicable to distance contracts concluded with consumers, including by introducing a new online withdrawal function. In parallel, it introduces specific dedicated rules for financial services contracts concluded at a distance.
Directive 2011/83/EU (the “Consumer Rights Directive”) already consolidated earlier rules on distance contracts and contracts concluded away from business premises.
Financial services, however, were historically dealt with separately, mainly through Directive 2002/65/EC on the distance marketing of consumer financial services. Since its adoption, however, financial services markets have evolved considerably, particularly in the digital environment, making it no longer adequate to address key issues linked to digitalisation.
Directive 2023/2673 now recodifies part of this framework by integrating the core rules on distance financial services into Directive 2011/83/EU, while also amending the general consumer rights regime applicable to distance contracts more broadly. This creates the following framework:
- Directive 2011/83/EU, as amended by Directive (EU) 2023/2673 (the “Digital Consumer Rights Directive” or “DCRD”), remains the main horizontal framework for B2C consumer rights in relation to distance contracts;
- within that framework, a new general withdrawal function applies to distance contracts concluded through online interfaces where a statutory withdrawal right exists;
- in addition, a dedicated chapter now governs financial services contracts concluded at a distance;
- Directive 2002/65/EC is repealed with effect from 19 June 2026, with its core principles being integrated into the DCRD in a modernised form.
Harmonisation and safety net role
The DCRD is based on a full harmonisation approach, meaning that Member States may not maintain or introduce diverging national provisions, unless expressly permitted.
At the same time, the DCRD preserves the “safety net” role historically played by Directive 2002/65/EC, which entails that, in practice, where sector-specific legislation governing a particular financial service already contains dedicated rules on pre-contractual information, withdrawal rights or adequate explanations, those sector-specific rules prevail over the DCRD.
This applies irrespective of whether the sector-specific rules are more or less detailed or simply different from the DCRD. In such cases, only the provisions of the applicable sector-specific legislation apply, unless that legislation expressly provides otherwise.
For example, Directive 2009/138/EC (Solvency II) lays down specific rules governing the cancellation period for individual life insurance contracts. In such cases, those sector-specific rules prevail and the corresponding DCRD withdrawal provisions do not apply. Similarly, Directive 2014/65/EU (MiFID II) contains its own pre-contractual information requirements applicable to investment services.
Scope of application
With regards to distance contracts, the DCRD contains two sets of rules:
- rules that apply to distance contracts concluded irrespective of whether the contract concerns a financial or non-financial service. This is notably the case for the new online withdrawal function.
- a dedicated regime for distance contracts concluded for the supply of financial services.
Contracts concluded “at a distance” means contracts concluded under an organised distance sales or service-provision scheme without the simultaneous physical presence of the trader and the consumer, with the exclusive use of one or more means of distance communication up to and including the time at which the contract is concluded.
Financial services are broadly understood to include banking, credit, insurance, personal pension, investment and payment services.
Main new obligations introduced by the DCRD
1. General withdrawal function: the “withdrawal button”
Consumers benefit from a 14-days withdrawal right without justification or penalty for most contracts concluded at a distance, including financial services contracts. For personal pension operations specifically, the period is extended to 30 days.
One of the innovations introduced by the DCRD is the obligation for traders concluding distance contracts by the means of an online interface to implement an easily accessible withdrawal function (referred to as a “withdrawal button”), which should be labelled with the words “withdraw from contract here” or an unambiguous corresponding formulation in an easily legible way.
The function must remain continuously available throughout the withdrawal period, be prominently displayed on the online interface and easily accessible to the consumer. The trader must provide an acknowledgement of receipt of the withdrawal request.
In practice, this requirement will have a significant operational impact: businesses will need to review their websites, apps and customer interfaces to ensure that withdrawal is as easy to exercise online as the contract was to conclude online.
2. Dedicated chapter for financial services contracts concluded at a distance
In addition to the general withdrawal function provision, the DCRD introduces a dedicated chapter specifically governing financial services contracts concluded at a distance, which introduces the following new obligations:
a. Enhanced pre-contractual information requirements
Before the consumer is bound by a financial services contract concluded at a distance, traders must provide clear and comprehensible information regarding, among others:
- the identity and contact details of the trader;
- supervisory authorities and registration details;
- a description of the characteristics and total price of the financial service;
- information on the consequences of late or missed payments;
- whether pricing is personalised based on automated decision-making;
- notice of the possibility that other taxes and/or costs might exist;
- withdrawal procedures and withdrawal button information;
- contract duration and termination rights;
- access to complaints procedures and redress mechanisms.
The DCRD also recognises “layering” techniques to display information online, allowing traders to present certain information through expandable sections. Nevertheless, specific key information must remain prominently visible.
b. Specific provisions with regards to withdrawal rights
In addition to those general rules, the DCRD introduces specific provisions governing withdrawal rights in the context of financial services contracts.
In particular, it sets the modalities for the determination of the withdrawal period, as well as certain exceptions to the withdrawal right itself, notably for financial services whose price depends on financial market fluctuations or short-term travel insurance policies.
In addition, where ancillary services are linked to the financial services contract, the consumer’s withdrawal from the main service(s) automatically terminates the ancillary without additional costs.
c. Adequate explanations and human intervention
The DCRD introduces an obligation for traders to provide consumers prior to the conclusion of the contract, with adequate explanations enabling them to assess whether the financial service is adapted to their needs and financial situation.
If traders use automated online tools such as chatbots or robo-advice, consumers must be able to request human intervention before and after the conclusion of the contract.
d. Dark patterns
Member States must ensure that traders do not design online interfaces in a manner that deceives or manipulates consumers or materially impairs their ability to make free and informed decisions, including:
- giving disproportionate prominence to certain choices;
- repeatedly prompting consumers through intrusive pop-ups;
- making cancellation procedures more difficult than subscription procedures.
Belgian transposition
Member States were required to transpose the DCRD by 19 December 2025 and apply the new rules from 19 June 2026.
In Belgium, at the time of writing, the draft implementing legislation has just been adopted in first reading by the competent parliamentary committee (on 11 June 2026). The draft provides for an entry into force on the expected date, i.e. 19 June 2026.
Based on the draft currently available, the Belgian legislator does not appear to have introduced any gold-plating.
The draft implementing legislation provides that breaches of the relevant provisions will be subject to level 2 sanctions. This means that infringements may be punishable by a criminal fine ranging from EUR 26 to EUR 10,000, or 4% of the total annual turnover of the last closed financial year preceding the imposition of the fine for which turnover data is available, whichever amount is higher.
If you have any questions or would like to discuss the impact of the DCRD on your activity, feel free to reach out to us at digitalfinance@simontbraun.eu.
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This newsletter does not constitute legal advice or a legal opinion. Please consult with a legal counsel of your choice before taking any action based on the information provided.