{"id":1,"date":"2022-01-01T08:47:00","date_gmt":"2022-01-01T08:47:00","guid":{"rendered":"http:\/\/hyvaheimo.com\/?p=1"},"modified":"2022-07-20T15:59:32","modified_gmt":"2022-07-20T15:59:32","slug":"hello-world","status":"publish","type":"post","link":"https:\/\/hyvaheimo.com\/?p=1","title":{"rendered":"The EU Consumer Rights Directive and how it applies to Direct Selling"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Direct Selling companies operating in Europe need to update their web sites, forms and make changes to their materials and processes due to the new EU Consumer Rights Directive. The Directive was implemented in legislation from 13 June 2014.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>This report summarises all key points applicable in Direct Selling together with comments and suggestions on implementation.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hopefully this document can answer some of the questions that will come up about the changes and shed some light on why it is important to start planning updates to your web sites and materials in good time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The instruction for a harmonised model form for withdrawal is enclosed in Annex I and the full information requirement list, detailing the information that must be given to consumers before a distance selling transaction is concluded, is enclosed in Annex II.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Source materials used for this report were mainly:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>the Directive itself (2011\/83\/EU), available in its entirety here: http:\/\/eurlex.europa.eu\/LexUriServ\/LexUriServ.do?uri=OJ:L:2011:304:0064:0088:EN:PDF<\/li><li>EU and UK government official websites, particularly:<\/li><li>http:\/\/ec.europa.eu\/justice\/consumer-marketing\/rights- contracts\/directive\/index_en.htm<\/li><li>https:\/\/www.gov.uk\/government\/policies\/providing-better- information-and-protection-for-consumers\/supporting- pages\/implementing-the-consumer-rights-directive-2011-83- eu<\/li><li>the UK DSA Legal Seminar hosted by Lawrence Graham in London on 21 November 2013<\/li><li>The publication \u201dThe Consumer Rights Directive: Implications for online businesses\u201d by Osborne Clarke, at:o\u00a0http:\/\/www.osborneclarke.com\/connected- insights\/publications\/consumer-rights-directive-implications- online-businesses\/<\/li><li>e-mail correspondence with Paul Dobson, Code Administrator of the UK DSA, in January 2013<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Background<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Consumer Rights Directive aims at achieving a real business-to- consumer internal market in Europe, striking a balance between a high level of consumer protection and competitiveness via harmonisation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Directive was passed by the EU in October 2011. It&nbsp;<strong>is in force in all EU member states since 13 June 2014&nbsp;<\/strong>and aims to simplify consumer rights, mostly relating to buying and selling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As this is an EU directive, member states don\u2019t have much flexibility on how they should put it into law in their own country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Concerned areas for Direct Selling companies:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cooling off period (called \u201cthe right of withdrawal\u201d in the Directive)<\/li><li>Cancellation forms<\/li><li>Returns Policy<\/li><li>Order forms and information requirements when taking an order<\/li><li>Online ordering processes<\/li><li>Information on web sites<\/li><li>Automated emails<\/li><li>Internal trainings and distributor trainings<\/li><li>Customer Services processes and templates<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Changes to \u201ccooling off period\u201d (right of withdrawal):<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The cooling off period for distance selling is called \u201cright of withdrawal\u201d and concerns the consumer changing their mind about the purchase and is not to be confused with a \u201cmoney back guarantee\u201d.The earlier EU requirement was 7 days while the Direct Selling Association requirement for its members is 14 days. Most companies already apply the standard 14 day requirement plus often their own 30 or 90 day money back guarantee.However, there are differences that now apply and care should be taken to provide the consumer with the right information:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The new\u00a0<strong>14 day cooling off period\u00a0<\/strong>starts not from the time of placing the order, but\u00a0<strong>from the time of the consumer receiving the goods<\/strong>. Depending on delivery times, this may prolong the \u201c14 day period\u201d by up to 7 \u2013 10 days if you are shipping to remote areas or with slow couriers.<\/li><li>The right of withdrawal also applies if you sell services. Under the old legislation it was possible to exclude services, but this Directive has radically reduced the Seller\u2019s possibilities to exclude them.<\/li><li><strong>You will also (as currently) need to inform consumers of their right to withdraw.\u00a0<\/strong>Failure to do so may now result in the cooling off period automatically extending to 12 months from the end of the initial 14 day period.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you handle frequent returns, especially by new distributors who cancel their distributorship within 14 days, make sure to\u00a0<strong>train your customer services teams and inform leaders and distributors\u00a0<\/strong>about this change in advance to avoid any misunderstandings. Again, materials and trainings need to be amended to inform that the 14 day period starts with the consumers the receipt of the goods (their complete order).It is also worth checking how easily your customer services team can control the delivery date of the goods. Unless the actual delivery date is easily accessible in the distributor\u2019s or customer\u2019s order profile, they may need to spend additional manual processing time on checking delivery dates for returns orders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>How about backorders?<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If an order is not delivered in its complete form. For example, if one out of six different items in an order is missing and delivered later, the withdrawal period for the entire order will begin when the consumer receives the last item.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Does this really apply to distributor orders?<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can be debated whether distributor orders should qualify as B2B purchases rather than consumer orders. However, case law in Europe and legal advice from industry attorneys emphasize that in most cases, the initial distributor order for a starter kit is to be considered a consumer order when it comes to Consumer Rights. Also, since in many Direct Selling organisations, many of the distributor orders are partly or wholly intended for personal consumption (regardless of their purpose for qualifying for commission payments), they would also be seen as consumer orders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Paragraph 17 in the Directive strengthens this argument, as an order which is partly for personal consumption would be seen as \u201dpartly outside the person\u2019s trade\u201d:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201d&#8230; where the contract is concluded for purposes partly within and partly outside the person\u2019s trade and the trade purpose is so limited as not to be predominant in the overall context of the contract, that person should also&nbsp;<\/em><strong><em>be considered as a consumer<\/em><\/strong><em>.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Use the new standard \u201cmodel withdrawal form\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You need to&nbsp;<strong>provide consumers with a model withdrawal form&nbsp;<\/strong>to use when cancelling contracts (see Annex I). The consumer does not have to use this form, they can write an email or even cancel by phone. But you need to provide this specific form and publish it on your website.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Directive also states:&nbsp;\u201c&#8230; there should be a possibility for the trader to give the consumer the option of filling in a web-based withdrawal form.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is unclear if this is a requirement to have a web-based form. Interpretation in national legislation will determine this, but you may want to make this option available from the start.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You can refund AFTER you get the goods back<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Refunds following withdrawal will not need to be made until the goods have been returned or proof has been provided that the goods have been dispatched. Your operations\/warehouse\/customer services may need to be informed if you have not followed this procedure before. You must refund the full purchase price (except in the case of partial refund described below), including the original shipping cost.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The consumer should be required to&nbsp;<strong>send back the goods not later than 14 days&nbsp;<\/strong>after having informed the company about their decision to withdraw from the contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You can now do a partial refund<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You will now be able to make a&nbsp;<strong>partial refund&nbsp;<\/strong>if a consumer has used the goods or handled them so they are no longer in good condition. This is a new possibility according to the Directive and you may want to consider to make use of it, or only do full refunds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Basically, the consumer is liable for any diminished value of the goods. In order to establish the nature, characteristics and functioning of the goods, the consumer should only handle and inspect them in the same manner as he would be allowed to do in a shop.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Inform the consumer about cost of return<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the goods cannot be returned by normal post for any reason, you need to inform the consumer about what it will cost them to return the goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The consumer may not be aware of the weight and bulk of an order and what costs might be involved in ordering them. It is the company\u2019s duty to inform in advance of the expected, reasonable cost to return the goods by required couriers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Inform of any deposits or blocked funds<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This might affect Event ticket purchases, pre-orders or service packages:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You must inform the consumer in advance of any arrangement resulting in the consumer paying a deposit, including if an amount is blocked on the consumer\u2019s credit or debit card.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>No pre-ticked boxes<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consumers will need to actively tick a box to add services or payments rather than be forced to un-tick a box to remove them. Currently pre- ticked boxes are not strictly prohibited, but consumers will no longer be bound by any pre-ticked obligations going forward.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Payment surcharges and hotline rates<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you add credit card transaction fees to the total price, those surcharges are permissible but can not be a profit center. They can not be beyond the actual costs attributable to the use of debit or credit cards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The same applies to premium rate hotlines (where these are not a separately agreed to \u2018service\u2019). These costs must be presented up front, before concluding a sale.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How to fit required information in on small screens &#8211; mobile app orders etc<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Directive:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201cThe information requirements should be adapted to take into account the technical constraints of certain media, such as the restrictions on the number of characters on mobile phone screens. In these cases, you must comply with a minimum set of information requirements and refer the consumer to another source of information, for example by a link to a web page where the relevant information is directly available and easily accessible.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Online ordering processes<br><\/strong>Your\u00a0<strong>online ordering process needs to be updated\u00a0<\/strong>to include a host of new information, clearly visible to the consumer. The key points are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Payment methods must be listed at the beginning of the ordering process.\u00a0<\/strong>You can not wait until the consumer \u201dchecks out\u201d before displaying which payment methods he\/she can chose from.<\/li><li><strong>Delivery restrictions within the consumer\u2019s region must be specified in the beginning of the ordering process.<\/strong>o\u00a0Example: if you deliver to Spain but not Canary Islands, or if the delivery to certain regions takes a longer time, for example Svagbard in Norway, or \u201dparcels over 5 kg will not be delivered to Faroe Islands\u201d.<\/li><li>You need to\u00a0<strong>disclose the total cost\u00a0<\/strong>(including taxes) before finalising the order<\/li><li>At the point of confirming the order, the\u00a0<strong>consumer must expressly consent to pay\u00a0<\/strong>before they can be bound by the contract. This consent must be obtained via a specifically labelled \u2018<strong>order with obligation to pay<\/strong>\u2019 (or similar) button on the website. \u201dPlace order\u201d is not sufficient. \u201dBuy\u201d may prove to be a legal alternative, but it is not possible at this point to give correct advice on any other wording than \u201dorder with obligation to pay\u201d.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The following requirements apply on online orders, but&nbsp;<strong>also for offline sales<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The legal name of the\u00a0<strong>trading entity.\u00a0<\/strong>Make sure this matches the actual trading company in the case of company subsidiaries using the same domain and web shop as the mother company.<\/li><li>The geographical address where the trading company is established, phone number and e-mail address. If the order is placed via a distributor\u2019s \u201dpersonal website\u201d or replicated website, but the order is directly with the company, it is the company information that must be displayed here.<\/li><li>The geographical address where the consumer can address any complaints (if different from above)<\/li><li>Information about payment, delivery and expected delivery time.<\/li><li>Your complaint handling policy.<\/li><li>How to exercise the right of withdrawal and the model withdrawalform (see Annex I, B)<\/li><li>A reminder of the existence of a legal guarantee of conformity forgoods<\/li><li>If you are a DSA member, you need to state this, inform about theDSA Codes of Conduct and how to obtain copies of them<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>When a Direct Seller sells directly to a consumer<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is the Direct Seller\u2019s responsibility to comply with the Consumer Rights Directive when selling products directly to consumers. The information requirements are basically the same as above, except the specific web site requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To aid the Direct Seller to comply, the Company should ensure that:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">starter trainings cover the information requirements<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">information about the Direct Seller\u2019s responsibility is available in company materials, backoffice or starter kits<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">model forms and other required information is made easily availableto the DistributorWhen a transaction takes place between the Direct Seller and the consumer, information about the right of withdrawal together with a withdrawal form should be handed to the consumer before the sales contract is concluded. This is similar to previous requirements.However, the information listed under \u201calso for offline sales\u201d on the previous page should be handed to the consumer. The trading entity in this case is the Direct Seller, unless they act as an agent.The full list, from Article 6(1) of the Consumer Rights Directive, is enclosed under Annex II. The information should be handed to the consumer on paper or, if the consumer agrees, on another durable medium. It would be advisable to create a template document which the Direct Seller can complete with their own details and hand over to their customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>DSA members and their Direct Sellers<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your company is a DSA member, your Direct Sellers are hopefully already handing out official information from the DSA to their customers. However, they need to remember that it is the company that is member of the DSA, not them. One of the requirements of a DSA member is that your customer order forms MUST have the DSA logotype and you need to inform consumers about the Codes of Conduct. The Direct Sellers or independent distributors, if not employed by the Direct Selling company, are not DSA members and can not represent themselves as that. It is even a criminal offence to claim to be part of a trade association if you are not. It would be advisable to make this clear to distributors, so they are not misrepresenting themselves and thus putting themselves at risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Can I just ignore this \u2013 what if I dont comply?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can be argued that this is a lot of change and will it be worth it? The best thing to do is to do this properly, plan it carefully, and start informing key stakeholders right away.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By taking a proactive stance and informing leaders and distributors about it early on, you build trust with your field force and make them more aware of the legal environment they operate in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The implication for not complying is that your sales contracts will not be valid if you have not informed the consumers properly. This could turn out to be very costly. EU legislators and courts tend to favour the weak party, which is what this Directive is all about, which means that you might be liable for large sums of cancelled sales contracts if you are not careful. This could, for example happen if a large group changes companies and the competitor they switch to highlights the fact that they are leaving a company where all their old orders are actually illegal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What next?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As you can see, there are quite a few steps to implement. The online ordering changes may turn out to be a bigger nuisance than at first glance, so have a look at the requirements with your IT team early this year to allow ample time to plan the required work.Especially the online ordering processes need to be planned properly since many companies will have centralised systems, maybe hosted and serviced by third party companies in the US for example. To make sure you comply with the new requirements in time, schedule your project meetings now and start making progress&#8230;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you need any help, get in contact with us and we will guide your forward. Our contact details are on the last page.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>DISCLAIMER: This report is not intended to take the place of qualified legal advice. Although care has been taken to ensure that the information contained is correct, there are suggestions and opinions enclosed which are for informative purposes and do not form a legal opinion for a specific client. Hyv\u00e4heimo AB takes no liability for actions taken on behalf of this report alone. We will be happy to assist with any further questions and suggest qualified attorneys specialising in direct selling for your market(s) or region(s).<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>ANNEX I<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Information concerning the exercise of the right of withdrawal<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A. Model instructions on withdrawal<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Right of withdrawal<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You have the right to withdraw from this contract within 14 days without giving any reason.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The withdrawal period will expire after 14 days from the day 1.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To exercise the right of withdrawal, you must inform us (2) of your decision to withdraw from this contract by an unequivocal statement (e.g. a letter sent by post, fax or e-mail). You may use the attached model withdrawal form, but it is not obligatory. 3<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To meet the withdrawal deadline, it is sufficient for you to send your communication concerning your exercise of the right of withdrawal before the withdrawal period has expired.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Effects of withdrawal<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you withdraw from this contract, we shall reimburse to you all payments received from you, including the costs of delivery (with the exception of the supplementary costs resulting from your choice of a type of delivery other than the least expensive type of standard delivery offered by us), without undue delay and in any event not later than 14 days from the day on which we are informed about your decision to withdraw from this contract. We will carry out such reimbursement using the same means of payment as you used for the initial transaction, unless you have expressly agreed otherwise; in any event, you will not incur any fees as a result of such reimbursement. 4, 5, 6<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instructions for completion:<br>1. Insert one of the following texts between inverted commas:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(a) in the case of a service contract or a contract for the supply of water, gas or electricity, where they are not put up for sale in a limited volume or set quantity, of district heating or of digital content which is not supplied on a tangible medium: &#8220;of the conclusion of the contract.&#8221;;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(b) in the case of a sales contract: &#8220;on which you acquire, or a third party other than the carrier and indicated by you acquires, physical possession of the goods.&#8221;;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(c) in the case of a contract relating to multiple goods ordered by the consumer in one order and delivered separately: &#8220;on which you acquire, or a third party other than the carrier and indicated by you acquires, physical possession of the last good.&#8221;;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(d) in the case of a contract relating to delivery of a good consisting of multiple lots or pieces: &#8220;on which you acquire, or a third party other than the carrier and indicated by you acquires, physical possession of the last lot or piece.&#8221;;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(e) in the case of a contract for regular delivery of goods during a defined period of time: &#8220;on which you acquire, or a third party other than the carrier and indicated by you acquires, physical possession of the first good.&#8221;.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2. Insert your name, geographical address and, where available, your telephone number, fax number and e-mail address.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">3. If you give the option to the consumer to electronically fill in and submit information about his withdrawal from the contract on your website, insert the following: &#8220;You can also electronically fill in and submit the model withdrawal form or any other unequivocal statement on our website [insert Internet address]. If you use this option, we will communicate to you an acknowledgement of receipt of such a withdrawal on a durable medium (e.g. by e-mail) without delay.&#8221;.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4. In the case of sales contracts in which you have not offered to collect the goods in the event of withdrawal insert the following: &#8220;We may withhold reimbursement until we have received the goods back or you have supplied evidence of having sent back the goods, whichever is the earliest.&#8221;.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">5. If the consumer has received goods in connection with the contract: <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(a) insert:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; &#8220;We will collect the goods.&#8221;; or,<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; &#8220;You shall send back the goods or hand them over to us or &#8230; [insert the name and geographical address, where applicable, of the person authorised by you to receive the goods], without undue delay and in any event not later than 14 days from the day on which you communicate your withdrawal from this contract to us. The deadline is met if you send back the goods before the period of 14 days has expired.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(b) insert:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; &#8220;We will bear the cost of returning the goods.&#8221;,<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; &#8220;You will have to bear the direct cost of returning the goods.&#8221;,<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; If, in a distance contract, you do not offer to bear the cost of returning the goods and the goods, by their nature, cannot normally be returned by post: &#8220;You will have to bear the direct cost of returning the goods, &#8230; EUR [insert the amount].&#8221;; or if the cost of returning the goods cannot reasonably be calculated in advance: &#8220;You will have to bear the direct cost of returning the goods. The cost is estimated at a maximum of approximately &#8230; EUR [insert the amount].&#8221;; or<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; If, in an off-premises contract, the goods, by their nature, cannot normally be returned by post and have been delivered to the consumer\u2019s home at the time of the conclusion of the contract: &#8220;We will collect the goods at our own expense.&#8221;; and,<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(c) insert <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; &#8220;You are only liable for any diminished value of the goods resulting from the handling other than what is necessary to establish the nature, characteristics and functioning of the goods.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">6. In the case of a contract for the provision of services or the supply of water, gas or electricity, where they are not put up for sale in a limited volume or set quantity, or of district heating, insert the following: &#8220;If you requested to begin the performance of services or the supply of water\/gas\/electricity\/district heating [delete where inapplicable] during the withdrawal period, you shall pay us an amount which is in proportion to what has been provided until you have communicated us your withdrawal from this contract, in comparison with the full coverage of the contract.&#8221;.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>B. Model withdrawal form<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(complete and return this form only if you wish to withdraw from the contract)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; To [here the trader\u2019s name, geographical address and, where available, his fax number and e-mail address are to be inserted by the trader]:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; I\/We [*] hereby give notice that I\/We [*] withdraw from my\/our [*] contract of sale of the following goods [*]\/for the provision of the following service [*],<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; Ordered on [*]\/received on [*],<br>&#8211; Name of consumer(s),<br>&#8211; Address of consumer(s),<br>&#8211; Signature of consumer(s) (only if this form is notified on paper), &#8211; Date<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">[*] Delete as appropriate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Annex II \u2013 Consumer Rights Directive Article 6<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Information requirements for distance and off-premises contracts<br>1. Before the consumer is bound by a distance or off-premises contract, or any corresponding offer, the trader shall provide the consumer with the following information in a clear and comprehensible manner:<br>(a) the main characteristics of the goods or services, to the extent appropriate to the medium and to the goods or services;<br>(b) the identity of the trader, such as his trading name;<br>(c) the geographical address at which the trader is established and the trader\u2019s telephone number, fax number and e-mail address, where available, to enable the consumer to contact the trader quickly and communicate with him efficiently and, where applicable, the geographical address and identity of the trader on whose behalf he is acting;<br>(d) if different from the address provided in accordance with point (c), the geographical address of the place of business of the trader, and, where applicable, that of the trader on whose behalf he is acting, where the consumer can address any complaints;<br>(e) the total price of the goods or services inclusive of taxes, or where the nature of the goods or services is such that the price cannot reasonably be calculated in advance, the manner in which the price is to be calculated, as well as, where applicable, all additional freight, delivery or postal charges and any other costs or, where those charges cannot reasonably be calculated in advance, the fact that such additional charges may be payable. In the case of a contract of indeterminate duration or a contract containing a subscription, the total price shall include the total costs per billing period. Where such contracts are charged at a fixed rate, the total price shall also mean the total monthly costs. Where the total costs cannot be reasonably calculated in advance, the manner in which the price is to be calculated shall be provided;<br>(f) the cost of using the means of distance communication for the conclusion of the contract where that cost is calculated other than at the basic rate;<br>(g) the arrangements for payment, delivery, performance, the time by which the trader undertakes to deliver the goods or to perform the services and, where applicable, the trader\u2019s complaint handling policy;<br>(h) where a right of withdrawal exists, the conditions, time limit and procedures for exercising that right in accordance with Article 11(1), as well as the model withdrawal form set out in Annex I(B); <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(i) where applicable, that the consumer will have to bear the cost of returning the goods in case of withdrawal and, for distance contracts, if the goods, by their nature, cannot normally be returned by post, the cost of returning the goods;<br>(j) that, if the consumer exercises the right of withdrawal after having made a request in accordance with Article 7(3) or Article 8(8), the consumer shall be liable to pay the trader reasonable costs in accordance with Article 14(3);<br>(k) where a right of withdrawal is not provided for in accordance with Article 16, the information that the consumer will not benefit from a right of withdrawal or, where applicable, the circumstances under which the consumer loses his right of withdrawal;<br>(l) a reminder of the existence of a legal guarantee of conformity for goods;<br>(m) where applicable, the existence and the conditions of after sale customer assistance, after- sales services and commercial guarantees;<br>(n) the existence of relevant codes of conduct, as defined in point (f) of Article 2 of Directive 2005\/29\/EC, and how copies of them can be obtained, where applicable;<br>(o) the duration of the contract, where applicable, or, if the contract is of indeterminate duration or is to be extended automatically, the conditions for terminating the contract;<br>(p) where applicable, the minimum duration of the consumer\u2019s obligations under the contract;<br>(q) where applicable, the existence and the conditions of deposits or other financial guarantees to be paid or provided by the consumer at the request of the trader;<br>(r) where applicable, the functionality, including applicable technical protection measures, of digital content;<br>(s) where applicable, any relevant interoperability of digital content with hardware and software that the trader is aware of or can reasonably be expected to have been aware of;<br>(t) where applicable, the possibility of having recourse to an out-of-court complaint and redress mechanism, to which the trader is subject, and the methods for having access to it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>About Hyv\u00e4heimo:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Hyv\u00e4heimo AB provides Consulting, Coaching and Training for the Direct Selling Industry, specialising in Europe. \u201cHyv\u00e4\u201d is a Finnish word that means \u201cgood\u201d and \u201cheimo\u201d means \u201ctribe\u201d or \u201cclan\u201d. Thus, \u201cgood tribe\u201d refers to the founder\u2019s many years experience in building direct selling organizations.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Janne Heimonen has been involved in Direct Selling, in international roles since 1994. In his last corporate role he was responsible for international operations including markets in Asia and Africa.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Janne has represented three different companies in 7 European Direct Selling Associations. He was formerly the Chairman of the Finnish DSA and has been the corporate representative of two companies in Seldia (European Federation of DSAs).<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Hyv\u00e4heimo is linked to a network of top professionals in Operations, Events Management, Sales, Marketing, etc who can be brought in as required.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Direct Selling companies operating in Europe need to update their web sites, forms and make changes to their materials and processes due to the new EU Consumer Rights Directive. The Directive was implemented in legislation from 13 June 2014. 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