Cancellation Button

Cancellation Button

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The Secretariat of Interior Commerce of the Productive Development issued Resolution 424/2020 (hereinafter the “Resolution”) setting forth the obligation for e‑commerce suppliers to publish a link called “Cancellation Button”, through which consumers may withdraw their purchase acceptance. The Resolution regulates the consumers’ revocation right for distance contracts, as provided by the Consumer Defense Law No. 24,240 (“CDL”), Section 34 and the Civil and Commercial Code (“CCC”), Section 1,110.

By virtue of the aforementioned regulations, the consumer is entitled to revoke its acceptance, without any liability, within ten-days period as from the date on which the good is delivered or the contract is executed. For its part, the seller is obliged to inform the consumer about said withdrawal right, which cannot be waived.

The exercise of the acceptance revocation right should not imply any expense for the consumer. In this regard, Section 34 of the CDL establishes that the consumer should make the good available to the seller who afford the return costs. In the same rational, Section 1,115 of the CCC set forth that “…consumer should not reimburse any amount for the depreciation as consequence of its use as agreed or its own nature, and is entitled to reimbursement of the necessary and useful expenses incurred in it.

However, the revocation right provided admits exceptions, such as those provided under Section 1.116 of the CCC, which states that it DOES NOT PROCEED and therefore, it will not require implementation of the Cancellation Button, when_

(i) tailormade products.

- For example: a custom-made wedding dress.

(ii) Because of the nature of the product it cannot be returned or may deteriorate rapidly.

- For example: the perishable food supply.

(iii) the supply of sound or video recordings, discs and computer programs that have been decoded by the consumer, as well as computer files, supplied electronically, which can be downloaded or reproduced immediately for permanent use.

- For example: the online purchase of a downloadable book or film

(iv) daily newspapers, periodicals and magazines.

- For example: a subscription to a digital magazine

The Resolution aims at regulating and granting the revocation right access for consumers. Therefore, the Resolution establishes that the supplier must provide the “Cancellation Button”, through a link of easy and direct access from the home page and must occupy a prominent place.

In addition is important to highlight for the implementation that within twenty-four hours of requesting the withdrawal right, the supplier shall inform the consumer of the revocation identification code number and when using it the supplier should not request any registration or other further action.

Finally, this Resolution enters into force on December 4th, 2020 and its breach will be subject to the sanctions of the Consumer Defense Law No. 24,240.

Angela

About Angela

Angela works closely with Team Lerman & Szlak, specializing in online intellectual property research and content.

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