New rule for online sellers from tomorrow: an online contract withdrawal function becomes mandatory

New rule for online sellers from tomorrow: an online contract withdrawal function becomes mandatory

A new practical obligation for Latvian e-commerce businesses enters into force on 25 September 2026: where a consumer concludes a distance contract through an online interface and has a right of withdrawal, the seller or service provider must enable the consumer to withdraw online.

Cabinet Regulation No. 562 of 22 September 2026 requires a function labelled “Withdraw from the contract” or another equally unambiguous phrase. It must be prominently displayed, easy to access and continuously available throughout the withdrawal period applicable to the contract.

This is not merely an update to legal terms. It is an immediate compliance task for websites, apps, customer accounts and notification systems.

When does the new requirement apply?

The requirement applies when all three conditions are met:

  • the contract is between a business and a consumer, not between two businesses;
  • the contract was concluded through an online interface such as an online shop, web platform or app;
  • the consumer has a statutory right of withdrawal for that particular contract.

The function does not create a right of withdrawal where the law excludes it. Existing exceptions include certain personalised or perishable goods, accommodation, vehicle rental, catering and leisure services for a specified date or period, and certain supplies of digital content.

Important: this is a consumer, or B2C, requirement. It does not automatically apply to a distance contract concluded by a customer on behalf of a business for commercial purposes.

What must the withdrawal function do?

The regulation requires a complete online process, not merely a decorative button or a link to a document.

  1. Starting function. The consumer must see a clearly readable label such as “Withdraw from the contract” or another unambiguous phrase.
  2. Withdrawal statement. The interface must allow the consumer to provide or confirm their name, information identifying the contract and the electronic means to which acknowledgement should be sent.
  3. Final confirmation. Submission must use a function labelled “Confirm withdrawal” or another equally unambiguous phrase.
  4. Acknowledgement of receipt. Without undue delay, the business must provide confirmation on a durable medium, typically by email, stating the content of the withdrawal and its submission date and time.

The deadline is met if the consumer sends the online withdrawal statement before the withdrawal period expires. The system should therefore record the submission time and content reliably.

Is a PDF form or an email address sufficient?

Not on its own. The model withdrawal form and the possibility of sending another unambiguous statement remain relevant, but the new rule separately requires an online withdrawal function for contracts concluded through an online interface.

Hiding withdrawal instructions in general terms, offering only a downloadable PDF or making consumers search for a support email would not meet the functional requirement. The rules do not prescribe one exact location, but the function must remain prominent and easy to access throughout the withdrawal period.

What should an online business do now?

  • identify which online consumer contracts carry a right of withdrawal;
  • choose a clear and continuously accessible location for the function;
  • implement order or contract identification without collecting unnecessary data;
  • add a separate, unambiguously labelled final submission step;
  • automatically send acknowledgement containing the statement, date and time;
  • retain an auditable record of the withdrawal and the acknowledgement;
  • update withdrawal information, distance-contract terms and customer-service procedures;
  • test the flow on mobile and desktop, with and without a customer account, and on the final day of the withdrawal period.

Common mistake: withdrawal is not the same as returning the goods

The online withdrawal statement records the consumer's decision to withdraw from the contract. Physically returning goods, paying return costs, assessing the condition of the goods and refunding payment are subsequent stages. They may be combined into a convenient workflow, but the consumer's ability to submit a timely withdrawal should not depend on whether the goods have already been sent back.

What changes for financial service providers?

Separate Cabinet Regulation No. 561 governing distance contracts for financial services also enters into force on 25 September 2026. It similarly requires a continuously accessible withdrawal function, an online statement, a confirmation action and acknowledgement of receipt. Financial services have their own withdrawal periods, information duties and exceptions, so they must not be assessed solely under the general online-sales rules.

Key conclusion for businesses

From 25 September 2026, the withdrawal option can no longer remain only in contract terms, a PDF form or a customer-support email. If a consumer contract was concluded through an online interface and carries a right of withdrawal, the business must provide a usable online function and electronic evidence of its use.

Official information sources

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