In brief
On 19 June 2026, new legislative amendments will enter into force requiring traders who enter into distance contracts with consumers through an online interface to provide a dedicated technical function, a “cancellation button”, enabling consumers to exercise their statutory right of withdrawal with ease. The amendments transpose an EU directive amending the Consumer Rights Directive and are intended to strengthen consumer protection in the digital marketplace.
In more detail
What does the change entail?
The legislative amendment requires traders who enter into distance contracts with consumers through an online interface (website or mobile application) to provide a specific technical function enabling the consumer to exercise their right of withdrawal with ease. The function, referred to as the “cancellation button”, is designed to make it equally simple for the consumer to withdraw from a contract as to enter into one. The function serves as a complement to other means of exercising the right of withdrawal, such as the use of a standard withdrawal form, and does not restrict any other means of withdrawing from a contract. The amendment is primarily implemented through a new provision in the Swedish Distance and Off-Premises Contracts Act (sw. lag (2005:59) om distansavtal och avtal utanför affärslokaler (“Swedish Distance Contracts Act”)), Chapter 2, Section 10 a.
Who is affected?
The obligation to provide the cancellation function applies to traders who enter into distance contracts through an online interface. The provision applies to all types of distance contracts in respect of which the consumer has a statutory right of withdrawal, including contracts for financial services as well as contracts for goods and non-financial services. The obligation to provide the function does not create any new right of withdrawal; rather, a prerequisite is that a statutory right of withdrawal already exists for the contract in question.
What are the requirements for the function?
In order for the cancellation button to comply with the rules, certain requirements are prescribed regarding the design and accessibility of the function, as set out below:
- Accessibility and clear labelling – The cancellation function must be easily accessible within the online interface throughout the entire withdrawal period and must be labelled in a clear and legible manner, for example with the text “cancel the contract here” or a similarly unambiguous wording. In addition to being easy for the consumer to locate on the website or in the application, it must be simple to use.
- Identification of the consumer and the contract – The consumer must be able to enter or confirm their name and details of the contract to be cancelled within the function. If the consumer is already logged in, it may be sufficient to confirm pre-filled details.
- Express confirmation of withdrawal – The consumer must be able to submit a withdrawal notice by expressly confirming their withdrawal. If this is done by means of a button, the text on or adjacent to the button must clearly indicate that confirmation will result in a withdrawal from the contract.
- Acknowledgement of receipt without delay – The trader must, without delay, send an acknowledgement of receipt to the consumer confirming the time of receipt. The consumer must be able to specify or confirm the electronic, legible and durable form in which the acknowledgement is to be sent.
What measures need to be taken?
To ensure compliance with the new rules, the trader needs to take a number of measures. In essence, this entails developing and implementing a technical cancellation function on the websites and in the applications through which the consumer may enter into contracts for the trader’s goods or services. The function must be designed in accordance with the requirements set out above.
In addition, the pre-contractual information provided to the consumer prior to the conclusion of a contract must be supplemented with clear information regarding the existence of the cancellation function and where it is available.
When does the obligation take effect?
The legislative amendments enter into force on 19 June 2026 and apply to contracts entered into after the date of entry into force. Contracts concluded prior to the date of entry into force are governed by the previously applicable provisions.
It should be noted that a failure to provide a properly designed cancellation function may result in sanctions under the Swedish Marketing Practices Act (sw. marknadsföringslagen (2008:486)), as such conduct is to be regarded as unfair, see Chapter 2, Section 10 b of the Swedish Distance Contracts Act.
Other changes resulting from the updated consumer protection rules
In addition to the cancellation function, certain further amendments to the consumer protection rules are introduced, in particular regarding distance contracts for financial services. The third chapter of the Swedish Distance Contracts Act is replaced by a modernised chapter adapted to the digital development. The amendments include, inter alia, enhanced pre-contractual information requirements, an obligation to provide explanations upon request to assist the consumer in assessing whether a financial service is suitable for their needs and financial situation, as well as a right for the consumer to request human intervention. It is also clarified that such information and explanations shall be provided free of charge. Furthermore, a prohibition against misleading or manipulative online interfaces is introduced, along with an absolute time limit for the withdrawal period for certain financial contracts.