In 2023, 25% of Spanish customers who made online purchases requested a refund – the highest percentage in the European Union. According to data from Mastercard, retail returns have increased throughout the EU since 2020. Between 2019 and 2023, e-commerce returns rose by 4.4% in Italy, 7% in France, 10.6% in Germany, and 9.8% in Spain. What accounts for this difference in return rates across European countries?

While Directive 2011/83 on consumer rights regulates them in the EU, among other things, each country implements its provisions differently. Let’s look at how the right of withdrawal applies in Spain – its specifics, the requirements it imposes, and how a solid refund policy can benefit Spanish companies.

What’s in this article?

• What is the right of withdrawal?
  
• Regulations and legal obligations about the right of withdrawal for online purchases
  
• Exceptions to the right of withdrawal
  
• Pros and cons of the right of withdrawal for online purchases
  
• FAQs on the right of withdrawal for online purchases
  

What is the right of withdrawal?

The right of withdrawal allows customers to cancel a contract or purchase within up to 14 calendar days after the transaction is confirmed. In certain exceptional situations, such as cold calling, which is heavily regulated in Spain, or product sales during company-sponsored trips or excursions, the period is extended to a minimum of 30 calendar days.

Customers can exercise this option within the set time frame without providing a reason. They only need to return the item bought, and the business must refund the amount paid without applying any penalties.

The right of withdrawal applies exclusively to contracts or purchases confirmed, such as through a completed payment. It doesn’t apply to void transactions but to agreements already finalised and from which users choose to opt out.

Regulations and legal obligations about the right of withdrawal for online purchases

The Royal Legislative Decree 1/2007 and its subsequent amendments in Law 3/2014 regulate the right of withdrawal and lay out specific requirements businesses must fulfil when a customer exercises this option. Here are the key obligations:

• Customers must be informed about their right to withdraw. If the time frame is not clearly communicated, an additional 12 months are granted after the minimum 14-day period prescribed by law.
  
• The payment received, including shipping fees, must be reimbursed within 14 calendar days from the moment the buyer exercises their right of withdrawal. The business must also cover the return costs of the cheapest shipping method. If the customer opts for a more expensive process, they must pay the difference.
  
• The business must use the payment method the buyer used for the purchase unless the buyer explicitly requests a refund through a different process.
  

Businesses must ensure that their chosen payment service provider supports their customers’ preferred transaction options and allows them to manage refunds easily. For example, Stripe Payments will enable you to accept major debit and credit cards, digital wallets, and one-click checkout methods, making it much easier to complete purchases.

Exceptions to the right of withdrawal

In some cases, businesses are not required to comply with the obligations relating to the right of withdrawal. Here are some of the exceptions:

• Sales of products in physical stores – return policies for in-person sales are more flexible, and purchases can be refunded through methods such as vouchers for future orders
  
• Sales of products by judicial authorities, for instance, when seized goods are auctioned
  
• Contractual agreements with a telephone company meeting at least one of the following requirements:
  
  • Entered into through a call to a publicly accessible phone number belonging to the telephone company
    
  • Entered into the use of a single telephone line
    
• Sales of products from vending machines
  
• Sales of tickets for transportation or booking services, such as Uber
  
• Sales of everyday consumer goods that a business delivers regularly, such as a monthly olive oil subscription
  
• Contractual agreements signed in front of a public notary and entered into with a full understanding of their terms and conditions
  
• Long-term tourism or holiday contracts, such as car rental agreements
  
• Sales of certain holiday packages
  
• Contractual agreements to build, renovate, or rent a home
  
• Real estate sales
  
• Sales of financial services, such as financing solutions for payments in instalments
  
• Gambling sales, including sports bets or lotteries
  
• Healthcare, regardless of whether it is received in a healthcare centre or not
  
• Social services, such as home support for vulnerable people and integration programmes
  

Pros and cons of the right of withdrawal for online purchases

The right of withdrawal always benefits customers – less so sellers. Although there are some advantages, this entitlement places burdens on businesses.

Pros of the right of withdrawal for businesses

• There are fewer concerns for buyers when purchasing their products. The right of withdrawal provides safety to customers, which can help boost sales.
  
• Clear and transparent communication of buyer protections can enhance brand positioning and foster trust in the business.
  
• If a specific product leads many customers to exercise this option, the business could gain more insight into buyer trends, leading to more reliable conclusions.
  

Cons of the right of withdrawal for businesses

These returns might involve direct expenses, such as the cost of defective products that cannot be resold, the issuing of refunds, and payments to the logistics companies handling send-backs. In addition, the right to withdraw has some indirect negative consequences:

• Increased challenges in inventory management
  
• Reduced productivity due to the time spent managing returns and processing refunds through retrieval requests
  
• An increase in returns can lead to instability in cash flow
  

FAQs on the right of withdrawal for online purchases

When does the right of return 14-day period start?

The start date of the right of withdrawal duration depends on whether the customer paid for goods or services. If they paid for a service, the 14-day period starts when the contract is signed. For goods, it begins when the customer acquires physical possession of the purchased items, for example, once the shipping company has delivered them.

Do businesses have to issue a refund before they receive the returned product?

No. They can withhold the refund until they receive the items or until the customer provides proof that the products have already been returned, per item three in Section 107 of the law on the right of withdrawal. Spanish businesses typically prefer the first option, as it allows them to inspect the goods upon receipt, which helps avoid specific types of refund fraud.

Can businesses deny access to a service if the customer exercises their right of withdrawal?

Yes, they can cancel a user’s subscription when the right of withdrawal is exercised. Under item eight of Section 107 of the General Law for the Protection of Consumers and Users, businesses have the authority to deactivate the user’s account and prevent using the service.

What products are most commonly sent back in Spain under the right of withdrawal?

According to data from Statista, clothing is the most-returned product category. Footwear, bags and accessories, electronic devices, and electrical appliances round out the top five.