Online termination of contracts by consumers must be now possible!

Since June 1st, the termination of contracts, which have been concluded by consumers electronically as well as those which have been concluded by other means but which, on the day of termination, can be concluded electronically, is facilitated. Many contracts concluded between consumers and businesses are therefore concerned: telephone or television subscriptions, services, rental, drinking water supply and sanitation contracts, etc.

Note: Insurance contracts are also affected by this measure, but they are subject to their own termination rules.

Thus, businesses who offer consumers the possibility to conclude a contract electronically (via their website or mobile application) must now make available to consumers a free functionality allowing them to complete, by electronic means, the necessary steps to terminate the contract. The goal is to avoid them the completion of complex, long, and tedious procedures (sending a registered mail, etc.) which can slow down the termination process or even discourage the implementation of the operation.

A “Terminate your contract” feature

As such, a decree has just set the terms of access and use of the online termination feature. Presented under the heading “Terminate your contract” (or similar), this functionality must be directly and easily accessible at all times from the online interface from which the consumer can conclude a contract electronically. It may include information on the conditions for the termination of contracts, such as compliance with a notice period or the payment of a termination fee, as well as on the consequences of termination.

The consumer is then required to fill in or confirm the information required to identify him and designate the contract to be terminated. He is then directed to a final page that summarizes the information provided from which he can notify his termination.

Attention: The DGCCRF(1) has indicated that its services will be vigilant as to the proper application of this new obligation by businesses. The deadline is September 1st, 2023, for them to comply. And beware, a business which fails to comply with this obligation will be liable to an administrative fine of up to €15,000 if it is a natural person and up to €75,000 if it is a legal person.

(1) Direction Régionale de la Concurrence, de la Consommation et de la Répression des fraudes