How to handle the right of withdrawal for online purchases

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  1. Introduction
  2. What is the right to withdraw for online purchases?
  3. What is the difference between withdrawal and return?
  4. How does the right of withdrawal for online purchases work?
    1. Extension of the withdrawal period
  5. Right of withdrawal for online purchases for foreign customers
  6. When the right of withdrawal does not apply
    1. Right of withdrawal for online subscriptions
    2. Right of withdrawal for B2C and B2B e-commerce
  7. Seller’s obligations in case of online purchase withdrawals

If you run an online sales business in Italy, it’s important to understand the country’s rules regarding the right to withdraw from purchases. Understanding this legal safeguard is key to improving customer satisfaction and increasing sales conversions.

Here, we’ll examine the right of withdrawal for web-based transactions, how it works, and the rules and regulations businesses must follow in Italy.

What’s in this article?

  • What is the right to withdraw for online purchases?
  • What is the difference between withdrawal and return?
  • How does the right of withdrawal for online purchases work?
  • Right of withdrawal for online purchases for foreign customers
  • When the right of withdrawal does not apply
  • Seller’s obligations in case of online purchase withdrawals

What is the right to withdraw for online purchases?

The right of withdrawal for online purchases allows shoppers to cancel their order within a certain time frame without giving a reason. This rule is fundamental in e-commerce because, unlike physical shops, buyers cannot see or try the product before purchasing.

In Italy, the cancellation right for internet transactions is governed by the Consumer Code (Articles 52 et seq.) of Legislative Decree 206/2005, which states: “Unless exceptions under Article 59 apply, the consumer has 14 days to withdraw from a distance or off-premises contract without providing a reason and without incurring any costs, except those specified in Article 56, paragraph 2, and Article 57.”

What is the difference between withdrawal and return?

Though they might sound similar, we must distinguish between “withdrawal” and “return.” The right of withdrawal, also called the “cooling-off period,” is a buyer protection measure established by law.

On the other hand, when we talk about “returns,” we’re referring more specifically to the return policy of an individual e-commerce site. While these policies must adhere to the withdrawal regulations set by the law, they could offer more favourable conditions for the customer. For instance, the law typically grants 14 days to exercise this protection, but a business might extend this deadline to 30 days.

How does the right of withdrawal for online purchases work?

A consumer must exercise their right of withdrawal within 14 calendar days (not business days) of the date that their product was delivered or, in the case of a single transaction involving multiple items shipped separately, 14 days from the delivery date of the last item. The customer can exercise this entitlement without giving any reason or incurring costs except for returning the goods.

The seller can choose to cover the cost of sending back the items, or they might be required to do so if they have failed to inform the shopper that this cost would be their responsibility. For services, the 14-day deadline begins on the day the contract is concluded.

Extension of the withdrawal period

If the seller fails to inform the customer about the right of withdrawal, as required by Article 49(1)(h) of the Consumer Code, the period for exercising this right is extended by 12 months, in addition to the original 14 days.

For purchases made at a physical location, the window for exercising the option to cancel could be extended to 30 days if the contract is concluded during an unsolicited visit by a professional to the buyer’s home or as part of a home sales initiative organised by a professional to promote or sell products to customers.

Summary of the deadlines for exercising the right of withdrawal for online purchases

  • Standard withdrawal period: 14 days
  • Withdrawal period if the consumer is not informed of their rights: 14 days + 12 months
  • Withdrawal period for contracts made during unsolicited home visits: 30 days

Right of withdrawal for online purchases for foreign customers

Suppose your e-commerce business is based in Italy, and you sell to consumers in other countries. In that case, you must familiarise yourself with the regulatory provisions in the domestic laws of those countries as well. Foreign shoppers have the right to request that their own country’s regulations on the right of withdrawal be applied to online purchases if those regulations are more favourable than Italian law. The rules for European Union member countries are generally very similar to those of Italy, as they are derived from the relevant EU directives.

When the right of withdrawal does not apply

The regulations specify that the cancellation right for web orders does not apply in certain cases, including the following:

  • Supply of perishable goods or those likely to deteriorate rapidly

  • Supply of goods which, after delivery, are by their nature inseparably mixed with other items

  • Supply of sealed goods opened by the consumer that cannot be returned for health or hygiene reasons

  • Contracts where the customer has specifically requested a visit from the business for urgent repair or maintenance work: if, during the visit, the trader provides further services beyond those specifically requested by the client or items other than spare parts needed for the repairs or maintenance, the right of withdrawal applies to these additional goods or services

  • Sealed computer software that has been opened after delivery

  • Contracts for digital content not supplied on a tangible medium if the performance has started with the consumer’s explicit consent and their acceptance that they would lose the withdrawal entitlement in such cases

Right of withdrawal for online subscriptions

Digital content includes online subscriptions. In this respect, the European Court of Justice has ruled that a consumer retains the option to cancel from a distance contract when subscribing to a service with an initial free period. The membership is automatically renewed, usually once only, unless cancelled.

However, if the consumer was not clearly, transparently, and explicitly informed at the time of subscription that there would be a charge after the free trial, they are entitled to exercise the right of withdrawal after the initial period has expired.

Right of withdrawal for B2C and B2B e-commerce

While the right of withdrawal is mandatory for business-to-consumer (B2C) e-commerce, it is not required for business-to-business (B2B) e-commerce. That said, if they choose, B2B online business owners can still include the withdrawal entitlement in their terms and conditions.

If you have a digital shopfront or are planning to start one, there are several factors to consider beyond the right of withdrawal for web-based orders, including selecting a payment service provider. Selecting the ideal platform is important for processing payments quickly and efficiently while ensuring access to your business’s most suitable payment methods. With its Optimized Checkout Suite, solutions such as Stripe Payments enable you to accept payments online and in person globally, increase conversion rates, ensure compliance, and save thousands of hours of technical work.

Seller’s obligations in case of online purchase withdrawals

To help ensure that online purchases comply with the right of withdrawal policy and minimize potential disputes, here are some key points to consider:

  • You must supply the customer detailed information regarding the option to cancel in Italian. For this purpose, you can use the template notice provided in Annex I.A of the Consumer Code.

  • You must give the customer the withdrawal form for internet-based orders, as specified in Annex I.B.

  • Regulations typically place the burden of return costs on the customer, but ecommerce businesses can choose to cover them if they please. Nevertheless, this must be clearly stated in the general conditions of sale.

  • You must refund all payments received from the customer within 14 days from the day they notify you of their intention to exercise the right of withdrawal using the same payment method used for the original purchase.

  • You can withhold the refund until you have received the returned goods or until the customer presents proof of shipment.

The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.

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