The Act on Distance Contracts and Off-Premises Contracts

Lagen om distansavtal och avtal utanför affärslokaler - Engelska

Have you purchased something on the Internet, or from a company but not at its brick-and-mortar premises? If so, by law you have 14 days to cancel your purchase. The right of withdrawal also applies to purchases made over the telephone.

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When is the Act on Distance Contracts and Off-Premises Contracts applicable?

  • When you as a private person purchase something from a company at a distance, that is, without meeting with anyone from the company face to face. Distance purchases include purchases made via the Internet, from door-to-door salespersons and over the telephone.

  • The statute applies to the purchase of both goods and services. It also includes digital goods and services.

When is the Act on Distance Contracts and Off-Premises Contracts not applicable?

  • When purchasing on the premises of the business, for example in a retail shop.

  • When purchasing something from another private individual.

  • When companies buy things from each other (B2B).

Provisions in applicable legislation

  • For you to have the right of withdrawal, you must have entered into the contract exclusively at a distance and the company must have an organised system.

    Distance contract

    A distance contract means that you, as a private individual, purchase something from a company remotely, that is, without meeting the company. Distance purchases include, among other things, purchases via the internet and telephone.

    For you to have the right to withdraw, it is required that you have entered into the agreement exclusively at a distance and that the company has an organized system

    What does “exclusively at a distance” mean?

    A contract entered into exclusively at a distance means prior to the contract being entered into you have not physically been to the company’s premises. An example of this is when you buy something online via the Internet. If you come in physical contact with someone from the company at any time, for example to discuss the terms of the purchase, you will not be considered as having entered into the contract via a distance sale.

    What is an “organised system” in this context?

    An organised system means that the company has made arrangements to be able to sell goods or services via a distance sale. For example, the company may have an online ordering system. It may also mean that the company invites its prospective customers to contact them by e-mail or telephone to enter into a contract.

    If the company only occasionally enters into a contract by e-mail or telephone, this may not be regarded as an organised system for selling goods or services at a distance.

    Outside of Business Premises

    You have the right of withdrawal when you purchase something outside of the company’s fixed business premises, for example, at your home. Another example is when a company temporarily sells phone subscriptions outside a grocery store or on a pedestrian street.

    If you have been contacted by a salesperson outside of a business premises, for example, on the street, and then followed them into the store and made a purchase, it is still considered an agreement outside of business premises. In this case, the purchase is covered by the right to withdraw.

    No right of withdrawal for purchases under 400 SEK

    When you buy something outside of the company’s business premises, the price you pay must exceed 400 SEK for you to have the right of withdrawal. If the amount is lower, you do not have the right of withdrawal.

  • When sales are made in open spaces and in shopping malls, markets, fairs and similar venues, your right to rescind the purchase depends upon whether or not the place of sale is considered to be the company’s place of business. If it is the company’s usual place of business, it may be regarded as a place of business, in which case the law giving you the right of withdrawal does not apply. In addition, whether it seems natural to you as a customer to buy something at the place, or whether the transaction involved an element of surprise, must be taken into account.

    If you were approached by a salesperson outside a shop, for example on the street, and then went into the shop and made a purchase, this still counts as an off-premises contract. In this situation, the purchase is covered by the statutory right of withdrawal.

  • For the contract to be valid, a company selling goods or services over the telephone must, by law, obtain your written acceptance and approval. The company must send a written confirmation of its offer, allowing you to confirm your acceptance of the offer in writing. A contract can be confirmed digitally “in writing” via SMS, e-mail, Bank ID, in addition to by the ordinary written paper contract.

    Most contracts made over the telephone are not valid without a later written confirmation. There are exceptions, however, such as the sale of lottery tickets.

    Read more about the legislation and rules relating to telemarketing

  • Right of withdrawal

    The right of withdrawal allows a consumer to change their mind about a purchase made without a need to provide a reason if the product or service was purchased online, off-premises or at a distance. This is your “cooling-off period,” which usually is for a period of 14 days. Before the purchase is made, the company must have informed you how to exercise your right of withdrawal if you change your mind.

    A precondition for the cooling-off period to start is that the company has given you sufficient information about your right of withdrawal, i.e. your right to withdraw from the contract.

    What is meant by sufficient information is information about:

    • that there is a right to reconsider and withdraw from the purchase
    • how long the cooling-off period, during which the right of withdrawal may be invoked
    • what to do to withdraw from the purchase.

    The company must also provide you with a form you can use to cancel the purchase, or alternatively inform you where you can obtain the form.

    If the company has not informed you of your right of withdrawal, you have an extended cooling-off period of one year from the day after the end what would be the ordinary 14-day normal cooling-off period. In such a scenario, the maximum period for the right of withdrawal to apply is one year and 14 days.

    Business enterprise or private person

    Before entering into a contract on an online marketplace, the company providing the marketplace must provide information about whether the seller is a commercial enterprise or a private person.

  • The 14-day cooling-off period starts the day after you receive or pick up the item(s). If you have ordered a service, the cooling-off period starts the day after you signed the contract. For distance contracts for life insurance or private individual pension savings, you have a 30-day right of withdrawal.

    Both weekdays and public holidays are included in the cooling-off period, however if the last day falls on a Saturday, Sunday or public holiday, the cooling-off period is extended so that it also applies to the following weekday.

  • You do not have a statutory right to withdraw when you shop in a physical store.

    Certain goods and services are also exempt from the right to withdraw, such as:

    • travel
    • hotel stays
    • lotteries or other gambling activities
    • products that have been specially made for you
    • goods that can deteriorate quickly, such as food.

    Further information about the right of withdrawal

  • When withdraw from the purchase, you may need to pay return shipping costs if the items need to be sent back to the merchant. In such a situation, the merchant must have informed you about this.

    You may also be obligated to pay compensation for any loss of value if the company thinks the goods have decreased in value after you received and examined them, for example if you purchased shoes that have been scuffed after you tried them on. Again, this assumes that the company has informed you in advance that you may need to compensate them for the loss in value. The company also needs to have provided you with clear and complete information about the right of withdrawal.

  • The company must refund you within 14 days from the time they have received the item back or from the time you can show that you have sent it back. If you have purchased a service, they must refund you within 14 days from the time you notified them that you have withdrawn from the purchase.

    You should receive the money back in the same way you paid. For example, if you paid by card, you should get the money back on the card. You do not have to settle for a credit note.

    When you withdraw, you should get the full amount back. The company may not deduct administrative fees or similar charges.

Further information

Lagen om distansavtal och avtal utanför affärslokaler