What is the Right of Withdrawal?

What is the Right of Withdrawal?

The right of withdrawal is the consumer’s right to cancel a contract for the purchase of goods or services without needing to justify their decision and without any penalty, within a legally established period. 

This right is regulated by Directive 2011/83/EU on consumer rights in the European Union (EU). This directive is transposed through the Royal Legislative Decree 1/2007, of November 16, which approves the revised text of the General Law for the Defense of Consumers and Users and other complementary laws, also known as the Consumer and User Law. It aims to protect consumers in situations where they cannot inspect the product or service before making the purchase, such as in distance sales (online, phone purchases, etc.) and contracts concluded outside commercial establishments.

The right of withdrawal is an essential element in consumer and user protection within the European Union. These regulations establish the rules on the purchase of goods and services carried out by consumers within the European framework, including those made digitally.

How to exercise this right?

First, it is necessary to verify that the consumer is within the legal period to exercise the right of withdrawal from the receipt of the product or from the formalization of the contract in the case of services.

Businesses must clearly establish in their terms and conditions whether the right of withdrawal exists, under what circumstances it is applicable, and how this right is exercised.

The consumer must inform the business of the decision to withdraw from the contract. This can be done through a withdrawal form that the business must provide, or through any other unequivocal statement (e.g., an email).

If it is a good, the consumer must return it to the business in the same condition in which it was received, except for normal wear and tear from inspecting the product. Return costs may be borne by the consumer unless the business has agreed to cover them.

It is important to note that there are certain goods and services that, due to their characteristics, may not be subject to withdrawal. These exceptions are listed in Article 103 of the LGDCU, and some of them include:

• Customized Goods: products made according to the consumer’s specifications or clearly personalized.
• Perishable Goods: products that can deteriorate or expire quickly.
• Sealed Products: sealed goods that are not suitable for return for health protection or hygiene reasons and have been unsealed after delivery.
• Recordings and Software: sealed audio or video recordings or software that have been unsealed by the consumer after delivery.
• Press and Magazines: supply of daily press, periodicals, or magazines, except for subscription contracts for the supply of such publications.
• Digital Content: supply of digital content not provided on a tangible medium when execution has begun with the consumer’s prior express consent, acknowledging that they lose their right of withdrawal as a result.

These exceptions are designed to protect businesses in situations where the product cannot be reused or resold, or where the service has already been consumed.

Period for the Right of Withdrawal

The right of withdrawal must have a minimum period of fourteen (14) calendar days from when the consumer receives the good. However, the business may choose to extend this period voluntarily. Once the right of withdrawal is exercised, the business is obliged to refund all payments received, including delivery costs (except for additional costs if the User chose a different delivery type than the least expensive one offered by the business). The refund must be made without undue delay and, in any case, within fourteen (14) calendar days from when the seller was informed of the withdrawal.