To Withdraw or Not to Withdraw? Evaluation of the Mandatory Right of Withdrawal in Consumer Distance Selling Contracts Taking into Account Its Behavioural Effects on Consumers

40 Pages Posted: 3 Apr 2013 Last revised: 5 Dec 2013

See all articles by Joasia Luzak

Joasia Luzak

University of Exeter - School of Law; University of Amsterdam - Centre for the Study of European Contract Law (CSECL)

Date Written: April 2, 2013

Abstract

The right of withdrawal was introduced to European consumer law as an exception to the general contractual principle of pacta sunt servanda. It has recently been upheld in the Consumer Rights Directive as a mandatory right for consumers concluding distance selling contracts. Among various assessments of this measure a comprehensive evaluation thereof from the point of view of consumers’ interests is lacking. Such an assessment is conducted in this paper with consideration of the effect that the right of withdrawal is likely to have on consumers. The yardstick for the evaluation of the current rules, as well as for suggesting a new approach is the increased consumer welfare, which takes into account consumers’ happiness and their lack of regret for entering into transactions.

Keywords: Right of withdrawal, distance selling, consumers’ regret, consumers’ happiness

JEL Classification: K12

Suggested Citation

Luzak, Joanna Aleksandra, To Withdraw or Not to Withdraw? Evaluation of the Mandatory Right of Withdrawal in Consumer Distance Selling Contracts Taking into Account Its Behavioural Effects on Consumers (April 2, 2013). Journal of Consumer Policy (Forthcoming); Centre for the Study of European Contract Law Working Paper Series No. 2013-04; Amsterdam Law School Research Paper No. 2013-21. Available at SSRN: https://ssrn.com/abstract=2243645 or http://dx.doi.org/10.2139/ssrn.2243645

Joanna Aleksandra Luzak (Contact Author)

University of Exeter - School of Law ( email )

Streatham Court
University of Exeter
Exeter, EX4 4QJ
United Kingdom

University of Amsterdam - Centre for the Study of European Contract Law (CSECL) ( email )

P.O. Box 1030
Amsterdam, 1000 BA
Netherlands

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