The Council reached a political agreement on common rules on selling contracts for credit cards, investment funds, pension plans, etc. to consumers by phone, fax or internet. Only Luxemburg objected to the Council common position.
The main features of the draft directive on the distance marketing of financial services are:
- The prohibition of abusive marketing practices such as ‘inertia selling’;
- Rules to restrict other practices such as unsolicited phone calls and e-mails (i.e. ‘cold calling’ and ‘spamming’);
- An obligation to provide consumers with comprehensive information before a contract is concluded;
- A consumer right to withdraw from the contract during a cool-off period – provided this does not open a risk of speculation.