Directive (EU) 2023/2673 on financial services concluded at a distance: Strengthening the right of withdrawal and new requirements for digital Contracts

The European Union has strengthened the framework governing the financial services concluded at a distance with consumers, with a focus on the contract performance phase and, in particular, on the effectiveness of the right of withdrawal in digital environments. Directive (EU) 2023/2673 responds to the growth in online contracting for financial products and the use of digital interfaces that facilitate immediate contracting but do not always allow consumers to withdraw from the contract with the same ease. Although it focuses on financial services, the introduction of a new Article 11a in Directive 2011/83/EU extends this standard to any consumer contract concluded via online interfaces that include a right of withdrawal, broadening its impact beyond the financial sector.

In this context, the regulation requires that the right of withdrawal be effective, accessible, and frictionless. To this end, it reinforces the obligation to incorporate a specific withdrawal function (“withdrawal button”) into digital interfaces—one that is clearly visible and usable—so that consumers can terminate the contract just as easily as they entered into it. This feature must be accessible throughout the entire withdrawal period, identified by an unambiguous label (for example, “withdraw from the contract here”), and allow consumers to exercise their right with minimal information, generating a confirmation of receipt on a durable medium that includes the date and time. The aim is to prevent the withdrawal option from being hidden within complex workflows, secondary menus, or general terms and conditions.

In addition, the directive strengthens pre-contractual information and transparency requirements, mandating that consumers have access to clear and understandable information before becoming bound by the contract, and focusing on eliminating deceptive design practices (“dark patterns”) that could influence their decision. In this regard, the design of consent buttons takes on particular importance; they must be unambiguous and must not mislead or hinder the consumer’s understanding of the contract’s conclusion process.

From a practical point of view, the directive requires financial institutions and digital operators to review their remote contracting processes, paying special attention to three elements: (i) the visibility and effectiveness of the right of withdrawal, (ii) the clear and non-manipulative design of acceptance and consent buttons, and (iii) the structure of digital contracting workflows. This requires not only for legal texts to be updated but also for digital “journeys” to be resigned as well as the mechanisms for tracking withdrawals. Beyond formal compliance, the regulation aims for a review of the very design of digital contracting, and it will take effect as from 19 June 2026.