New Button for Online Withdrawal from a Contract

As early as the second half of June this year, an amendment to Act No. 89/2012 Coll., the Civil Code (the “Civil Code”), and Act No. 634/1992 Coll., on Consumer Protection (the “Consumer Protection Act”), transposing Directive (EU) 2023/2673 (the so-called DMFS Directive), is expected to enter into force. This amendment significantly modernises the rules for concluding contracts for financial services and other contracts for the sale of goods and provision of services at a distance. The objective of the proposed regulation is, in particular, to strengthen consumer protection in the digital environment and to simplify the exercise of consumer rights, especially the right to withdraw from a contract.

The most significant change is the introduction of a so-called “withdrawal button”, which must be present for all contracts concluded online. Traders will therefore be obliged to allow consumers to terminate the contract in the same manner in which it was concluded – i.e. directly through the online interface. The button must be visible, easily accessible and available throughout the entire withdrawal period.

In the area of financial services, information obligations are being tightened and expanded to include detailed information on the product, risks and conditions for withdrawal. In addition, a specific withdrawal regime is being introduced for financial services – the standard 14-day period may, in specific cases, be extended up to one year and 14 days, in particular if the trader fails to comply with its information obligations.

The key changes are introduced in the Civil Code, where a new provision, Section 1830a, is established. This explicitly enshrines the consumer’s right to withdraw from a contract via an online interface using a button or a similar function. The withdrawal process is two-step – after the first click on the withdrawal button, the consumer enters or confirms their personal data, identifies the contract from which they are withdrawing, and provides their electronic contact details; the consumer then submits this information by clicking a confirmation button for withdrawal. The trader is subsequently required to send the consumer, without undue delay, a confirmation of receipt of the withdrawal notice. The amendment further modifies pre-contractual information obligations (Section 1820 of the Civil Code) and provisions on financial services (in particular Sections 1843 and 1845 of the Civil Code).

The amendments to the Civil Code are followed by changes to the Consumer Protection Act. A new administrative offence is introduced for failing to provide the option to withdraw from a contract via a button, for which a fine of up to CZK 5 million may be imposed. The Act also clarifies the rules for supervision over compliance with these obligations and reflects the division of competences between the Czech Trade Inspection Authority and the Czech National Bank depending on the type of service provided.

We recommend verifying in a timely manner whether your website interface complies with the new requirements, in particular whether it allows consumers to withdraw from a contract through the required button or a similar function and whether it contains all legally required information. Should you have any doubts regarding the setup of your web interface or the completeness of your information obligations, we are at your disposal at any time.