Court Issues Guidance on European Consumers’ Cancellation Rights Under Online Contract

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Under EU law, where a consumer purchases goods or services online or via mail order, the consumer has at least seven working days to cancel that purchase without penalty by notifying the seller. A recent judgment of the European Court of Justice confirms that, where a consumer invokes this cancellation right, the seller must reimburse all the payment made by the consumer in connection with the purchase in full, including any delivery charges. This new rule affects all online sellers, potentially including those based outside the EU.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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