FEDMA position paper on the withdrawal button in financial services contract Directive

Today, the Federation of European Data and Marketing (FEDMA) published its position paper on the “withdrawal button” provision in the Directive on financial services concluded at a distance (DFSD).

Though FEDMA supports the general objective of the Directive to enhance the possibilities for consumers to exercise their withdrawal right, the proposed extension of the withdrawal button to all contracts for goods and services concluded at a distance would:

• Undermine the vertical nature and intended scope of the Directive,
• Override the European Commission’s ongoing fitness check on EU consumer law,
• Go beyond the principle of freedom of contracts,
• Raise significant technical challenges for businesses

Thus, FEDMA advocates for:

• Preserving Recital 25 and Article 11 as the Commission’s proposal, or
• Referring to a withdrawal “function” rather than a withdrawal “button”, or
• Moving this important discussion into the ongoing refit of the EU Consumer law framework