The draft Directive will harmonise the national legislation on the distance marketing of financial services. Regulations are already in force throughout the EU which implement a Directive on the distance selling of other products – such as sales of books on-line or by mail order. However, recognising a need for greater consumer protection in the area of financial services, financial products were excluded with the intention that they would be the subject of a separate Directive.
The Committee concluded that the Council’s common position on Wednesday adopted 38 amendments. Among these, it broadened the scope of the Directive by widening the definition of “supplier” to include “intermediaries.” It also clarified the period within which consumers can withdraw from a contract without incurring penalties and without giving reasons – known as a “cooling off” period. This period will be 14 calendar days in principle or in some cases 30 days or, following an amendment adopted by the Committee, three months under certain circumstances.
Under the Distance Selling Regulations in force in the UK for non-financial products, consumers are given a cooling off period of only seven working days.