EU Consumer rights directive
“Pre-contractual information in distance and off-premises contracts: the possibility of actual knowledge of Τerms & Conditions (Ts & Cs) and the informed order implying an obligation to pay”
(article by Alexandros Chatziiakovou – Associate and Andreas Papastathis – Junior Partner published on Lexology, March 17, 2025)
The article discusses the imperative of enhancing consumer protection in the digital age, particularly concerning financial transactions, through stringent pre-contractual information requirements as mandated by EU directives.
Directives 2011/83 on consumer rights and 2005/29 on unfair commercial practices emphasize the necessity for traders to provide clear and accessible pre-contractual information. This includes ensuring that general terms and conditions (T&Cs) are not only available but also comprehensible to the average consumer. The common practice of merely stating “T&Cs apply” in advertisements is criticized, as it often leaves consumers unaware of specific contractual obligations or limitations. To address this, traders are encouraged to present summaries of key contract points—such as product descriptions, pricing, exceptions, and cancellation procedures—in plain language and a conspicuous format. This approach aligns with existing EU legislation applicable to sectors like insurance and investment products.
A critical aspect highlighted is the requirement for online order buttons to clearly indicate the consumer’s payment obligation. According to the Consumer Rights Directive, if placing an order involves activating a button or similar function, it must be labeled in an easily legible manner with the words “order with obligation to pay” or a corresponding unambiguous formulation indicating that placing the order entails an obligation to pay the trader. Failure to comply with this requirement means the consumer is not bound by the contract or order.
The Court of Justice of the European Union (CJEU) has reinforced this stipulation. In a case involving an online booking platform, the CJEU ruled that labels like “complete booking” do not sufficiently inform consumers of a payment obligation. The court emphasized that the button must unequivocally convey that an obligation to pay is being undertaken by the consumer upon activation.
You can access the full article of EU Consumer rights directive here: Pre-contractual information in distance and off-premises contracts: the possibility of actual knowledge of Τerms & Conditions (Ts & Cs) and the informed order implying an obligation to pay – Lexology
You can also access the full article in this [pdf]
