New EU rules for online financial services came into force today. The Distance Financial Services Directive will strengthen consumer rights and promote the cross-border provision of financial services in the single market.

Consumers will now be able to back out of a contract with one click, thanks to the new ‘back out button’ introduced by service providers.

In addition to the obligation to provide clearer rules on pre-contractual information, they will also have the obligation to provide human customer support when communication with chat bots is unsatisfactory.

Commissioner for Justice and Consumer Protection Mr Didier Reyders said:

“Taking a financial service can be risky for many different reasons if the consumer is not well informed about the product. That is why we have now ensured that consumers can be aware of the risks in advance and be adequately protected, especially when purchasing these services online. We know that the information provided by chatbots is not always clear enough, or that information about your right to withdraw from a contract needs to be more visible. The new rules will improve the situation for consumers with a number of specific protection measures, such as having a visible and easily accessible button to withdraw from a contract.”

These new rules stem from the revised 2002 directive and aim to better address the digitization of the sector, new types of financial services and online transactions. Member States must transpose the directive into national law by 19 December 2025.

Lena Flitzani