Implementing Withdrawal From Contract-EU Directive

Under EU Directive 2023/2673, a major update to consumer rights has officially come into effect. The core message of this new law is incredibly simple: if a customer can buy a product in a few clicks, they must be able to cancel or return it just as easily. For e-commerce, this means retailers selling to consumers within the EU- regardless of where the business itself is based- are now legally required to have a highly visible, two-click electronic entry point right on their website. This is often called the "Withdrawal Button".

The core requirements for online traders are structured as follows:

• Continuous Visibility and Accessibility: The withdrawal function or button must be prominently displayed, easy to find, and continuously available throughout the standard 14-day cooling-off window.
• Clear and Unambiguous Labelling: The initial button must be legibly marked with the text "withdraw from contract here" or a completely unambiguous equivalent. General phrases like "contact us" or "manage order" are not compliant.
• No Login or Registration Barriers: Consumers must be able to use the function without being forced to log in to an account, register, or download an application (unless the original contract was uniquely made via that app).
• A Simple Two-Step Confirmation Flow:
  • Step 1: The user clicks the initial withdrawal button and is guided to a page where they can provide or confirm their details (such as their name, the specific contract/order reference, and the items they wish to return).
  • Step 2: The user submits the request via a secondary confirmation button explicitly labelled "confirm withdrawal" or an equivalent unmistakable phrase.
• Minimal Data Collection: The confirmation interface must only ask for the specific information strictly necessary to identify the order and process the cancellation.
• Support for Partial Withdrawals: If a customer purchased multiple items or services within a single transaction, the interface must allow them to select and withdraw from only a portion of the contract if they choose.
• Immediate Automated Confirmation: As soon as the customer clicks the final confirmation button, the business must instantly issue an automated acknowledgement of receipt on a durable medium, such as a confirmation email. This email must include the details of the withdrawal and a timestamp.
• No "Dark Patterns" or Retention Hurdles: Businesses are strictly forbidden from placing obstacles in the user's path, such as forcing them to speak to customer service, complete surveys, or navigate through marketing retention offers before completing the withdrawal.
• Back-End Record Keeping: Merchants are required to maintain digital audit logs of all submitted requests, including timestamps and outcome details, to prove legal compliance if challenged by authorities.

To tackle these compliance headaches head-on, AB Commerce has developed an automated, fully integrated solution that embeds this required functionality directly into your existing storefront, taking the guesswork out of the legal fine print. In this article, we will break down exactly how this new process works from both sides of the screen, outlining how your customers can initiate a return with ease and how your team can process them effortlessly behind the scenes.

The Customer Return/Withdrawal Journey:

A Customer will make an order, and they will receive an Order Confirmation email with their Order Number

The 14-day cooling-off period only begins from the exact moment the customer takes physical possession of the items, rather than when the order is placed online.

To help you meet this requirement seamlessly, AB Commerce has created a "Withdrawal Request" widget. Because the EU directive states this entry point must be a permanent, highly visible fixture, we highly recommend adding it directly to your main "Returns" information page so customers can always find it instantly. To make the process as straightforward as possible, the AB Commerce team will handle the initial technical integration for you.

Simply contact our helpdesk at helpdesk@magico.com to have the widget added to your online store and returns to be activated on your website.

The Widget will display as below:

Once the customer has clicked on “Start Return/ Cancellation/Withdraw Button” they will then be directed to the following URL (https://www.yourdomainname.com/returns)  where they can input the minimal details of their order number and email address associated with the order. Both details are required to complete the return. The Order Number will be on the Order Confirmation email that they receive at the time of purchase.

Once they click “Submit theses order details”, they will then be presented with a screen where they select the items they wish to return and a choice of reasons why they are returning the items.

The default Reasons for Return are:

-Changed my mind/No longer wanted

-Item was faulty

-Incorrect item received

-Arrived too late

-Other

Note: If there are additional reasons that you would like added or changed, please let helpdesk know when you are activating the Withdrawal Widget on your site.

Once the customer has selected the item they are returning as well as the reason for return, they then click on “Return the selected items”

They will automatically receive an email outlining that the request has been received and will be verified against the site’s Return/withdrawal eligibility criteria.

An order withdrawal request can be rejected outright if it falls into any of these specific categories:

• The 14-day window has closed: The statutory cooling-off period expires exactly 14 days after the customer takes physical possession of the goods.
• Customised or bespoke items: Any products made to order, engraved, or clearly personalised to the customer's specifications cannot be returned.
• Perishable goods: Items that can deteriorate or expire rapidly, such as fresh food or flowers, are exempt from the right of withdrawal.
• Unsealed hygiene or health products: Items that have been opened or unsealed after delivery and cannot be resold for health or hygiene reasons are completely non-returnable.
• Unsealed software or media: Sealed audio or video recordings, as well as computer software, cannot be returned if the customer has broken the protective seal after delivery.

A note on used items: You cannot reject a withdrawal request simply because a customer opened the box to inspect an item. However, if they have actually used or damaged the product beyond what is necessary to check it (such as wearing a dress for an evening or using a projector), they are liable for the diminished value. In these cases, you are legally entitled to deduct a percentage from their refund to cover the loss.

Once the customer has submitted the Withdrawal Request, they will then need to review the Returns Policy page and send the items back to the store. Once the retailer receives these items back, they will then need to notify the customer to let them know that their return has been approved and refunded.

The Admin Screens

As the retailer, once you are logged in as Admin, you will then see a flag on any orders that have had a return/withdrawal request submitted. This is to ensure that any staff that are fulfilling orders, do not complete an order that is to be withdrawn.

To view the returns submitted - or to approve a return manually, log on as web admin and click on Orders - Returns and you will see this screen:

The returns that have been submitted appear under VIEW PENDING.

When a return comes in, just enter the order number and click Search. . 

Then, either Approve or Reject the return in the screen above and the customer will automatically get an email saying their item has been returned.

To refund the customers payment, login to your payment provider portal to cancel / refund the customers payment.