Knowledge Base
Describe the rules and responsibilities related to distance selling
Which article provides that the provisions on distance selling are of public policy?
Article L. 222-2 of the Consumer Code specifies that these provisions are of public policy, meaning that any contractual clause to the contrary is deemed void.
Which article of the Consumer Code defines the mandatory pre-contractual information for the distance selling of financial services?
Article L. 222-5 of the Consumer Code exhaustively details the pre-contractual information that the supplier must communicate in good time and before the conclusion of the contract. This information includes the identity and contact details of the professional, the essential characteristics of the product or service, the total price including charges and taxes, specific risks, the existence and duration of the right of withdrawal, as well as the conditions for termination and dispute resolution procedures.
What information must the supplier communicate before the conclusion of a distance contract for financial services? (Select all correct answers)
Article L. 222-5 of the Consumer Code requires the supplier to communicate several items of pre-contractual information, including the identity and contact details of the professional, the essential characteristics of the product or service, the total price including charges and taxes, the specific risks related to the product, the existence and duration of the right of withdrawal, as well as the conditions for termination and dispute resolution procedures.
What are the characteristics of a distance contract under Article L. 221-1? (Select all correct answers)
Under Article L. 221-1 of the Consumer Code, a distance contract is characterised by several elements: it is concluded between a professional and a consumer without the simultaneous physical presence of the parties, and through the exclusive use of one or more distance communication techniques. This includes online subscriptions, telephone or mail orders.
The withdrawal period for a distance contract for financial services is seven calendar days.
Articles L. 222-7 to L. 222-14 of the Consumer Code provide for a fourteen calendar day period to exercise the right of withdrawal, without justification or penalty. The starting date is the day the contract is concluded or, if later, the day the contractual terms are received.
The commercial nature of a communication relating to a financial service must be clearly identifiable according to Article L. 222-6.
Article L. 222-6 requires that pre-contractual information be provided in a legible and comprehensible manner, and that the commercial nature of the communication be clearly identifiable.
EU directive transposed for the distance selling of financial services
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Directive 2002/65/EC on the distance marketing of consumer financial services was transposed into the French Consumer Code, primarily through Articles L. 222-1 to L. 222-18.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Contract nullity
Administrative sanctions
Sanctions for non-compliance with distance selling rules include several mechanisms. Contract nullity may be declared for failure to provide pre-contractual information (Article L. 222-5). Administrative sanctions may reach 15,000 euros for natural persons and 75,000 euros for legal entities as imposed by the DGCCRF.