Implementation of premium digital service and the right of withdrawal and settlement with a client

What was the problem?

The client is preparing to implement a digital service, under which the user in exchange for a subscription fee obtains a number of additional benefits when using the client's services. However, the client was faced with the question of whether the user after purchasing the subscription will be able to effectively withdraw from the contract (as in the case of standard online purchases) and if so, how to settle the subscription price. Services most often can not be "returned", unlike goods. At an earlier stage of the project, the client developed a concept of approach to the problem, but it was a big operational challenge (individual, manual settlement of each user).

How did we help the client?

We conducted a broader analysis of EU regulations, which are the source of provisions on the right to withdraw from online contracts concluded with consumers. We also examined the case law of the EU Courts. We have developed a set of measures to implement into the purchasing process, as well as a simple method of settling the price with users who canceled their subscription within the statutory 14-day period.

What did the client gain?

The client has avoided the risk of implementing illegal procedures for cancelling and settling subscriptions with users. One of the concepts developed earlier internally could raise doubts in terms of compliance with consumer protection regulations. The client gained a relatively simple and practicable method of settling cancelled subscriptions, in accordance with the guidelines of the EU courts.