The Act on Distance Contracts and Off-Premises Contracts

You generally have the right to cancel when you enter into a contract at a distance or outside a fixed business premises.

Distance contract

A distance contract means that you, as a private individual, purchase something from a company remotely, that is, without meeting the company. Distance purchases include, among other things, purchases via the internet and telephone.

For you to have the right to withdraw, it is required that you have entered into the agreement exclusively at a distance and that the company has an organized system

What does “exclusively at a distance” mean?

A contract entered into exclusively at a distance means prior to the contract being entered into you have not physically been to the company’s premises. An example of this is when you buy something online via the Internet. If you come in physical contact with someone from the company at any time, for example to discuss the terms of the purchase, you will not be considered as having entered into the contract via a distance sale.

What is an “organised system” in this context?

An organised system means that the company has made arrangements to be able to sell goods or services via a distance sale. For example, the company may have an online ordering system. It may also mean that the company invites its prospective customers to contact them by e-mail or telephone to enter into a contract.

If the company only occasionally enters into a contract by e-mail or telephone, this may not be regarded as an organised system for selling goods or services at a distance.

Outside of Business Premises

You have the right of withdrawal when you purchase something outside of the company’s fixed business premises, for example, at your home. Another example is when a company temporarily sells phone subscriptions outside a grocery store or on a pedestrian street.

If you have been contacted by a salesperson outside of a business premises, for example, on the street, and then followed them into the store and made a purchase, it is still considered an agreement outside of business premises. In this case, the purchase is covered by the right to withdraw.

When you buy something outside of the company’s business premises, the price you pay must exceed 400 SEK for you to have the right of withdrawal. If the amount is lower, you do not have the right of withdrawal.

When sales are made in open spaces and in shopping malls, markets, fairs and similar venues, your right to rescind the purchase depends upon whether or not the place of sale is considered to be the company’s place of business. If it is the company’s usual place of business, it may be regarded as a place of business, in which case the law giving you the right of withdrawal does not apply. In addition, whether it seems natural to you as a customer to buy something at the place, or whether the transaction involved an element of surprise, must be taken into account.

If you were approached by a salesperson outside a shop, for example on the street, and then went into the shop and made a purchase, this still counts as an off-premises contract. In this situation, the purchase is covered by the statutory right of withdrawal.

For the contract to be valid, a company selling goods or services over the telephone must, by law, obtain your written acceptance and approval. The company must send a written confirmation of its offer, allowing you to confirm your acceptance of the offer in writing. A contract can be confirmed digitally “in writing” via SMS, e-mail, Bank ID, in addition to by the ordinary written paper contract.

Most contracts made over the telephone are not valid without a later written confirmation.

Read more about the legislation and rules relating to telemarketing

Right of withdrawal

The right of withdrawal allows a consumer to change their mind about a purchase made without a need to provide a reason if the product or service was purchased online, off-premises or at a distance. This is your “cooling-off period,” which usually is for a period of 14 days. Before the purchase is made, the company must have informed you how to exercise your right of withdrawal if you change your mind.

A precondition for the cooling-off period to start is that the company has given you sufficient information about your right of withdrawal, i.e. your right to withdraw from the contract.

What is meant by sufficient information is information about:

• that there is a right to reconsider and withdraw from the purchase
• how long the cooling-off period, during which the right of withdrawal may be invoked
• what to do to withdraw from the purchase.

The company must also provide you with a form you can use to cancel the purchase, or alternatively inform you where you can obtain the form.

If the business has not informed you about your right to cancel, the cancellation period is extended and applies until you receive the information. From the moment you receive the information, you have 14 days to notify the business that you wish to cancel. The cancellation period can be extended for up to one year.

Business enterprise or private person

Before entering into a contract on an online marketplace, the company providing the marketplace must provide information about whether the seller is a commercial enterprise or a private person.

The 14-day cooling-off period starts the day after you receive or pick up the item(s). If you have ordered a service, the cooling-off period starts the day after you signed the contract. For distance contracts for life insurance or private individual pension savings, you have a 30-day right of withdrawal.

Both weekdays and public holidays are included in the cooling-off period, however if the last day falls on a Saturday, Sunday or public holiday, the cooling-off period is extended so that it also applies to the following weekday.

You do not have a statutory right to withdraw when you shop in a physical store.

Certain goods and services are also exempt from the right to withdraw, such as:

• travel
• hotel stays
• lotteries or other gambling activities
• products that have been specially made for you
• services that have been fully carried out within the cancellation period if you agreed that the service could start immediately and you accepted that there is no right to cancel once it has been completed
• goods that can deteriorate quickly, such as food.

When you buy something outside the business premises, for example door‑to‑door sales, you do not have a right to cancel if the price is below SEK 400.

Further information about the right of withdrawal

When withdraw from the purchase, you may need to pay return shipping costs if the items need to be sent back to the merchant. In such a situation, the merchant must have informed you about this.

You may also be obligated to pay compensation for any loss of value if the company thinks the goods have decreased in value after you received and examined them, for example if you purchased shoes that have been scuffed after you tried them on. Again, this assumes that the company has informed you in advance that you may need to compensate them for the loss in value. The company also needs to have provided you with clear and complete information about the right of withdrawal.

The company must refund you within 14 days from the time they have received the item back or from the time you can show that you have sent it back. If you have purchased a service, they must refund you within 14 days from the time you notified them that you have withdrawn from the purchase.

You should receive the money back in the same way you paid. For example, if you paid by card, you should get the money back on the card. You do not have to settle for a credit note.

When you withdraw, you should get the full amount back. The company may not deduct administrative fees or similar charges.

The Swedish Consumer Agency’s website has a form you can use to notify the company that you are exercising your right of withdrawal. You are not required to use this form, but if you wish you can do so. Nor is there is a requirement for it to be signed, but it must state who is exercising their right of withdrawal from the contract/annul the purchase.

The right of withdrawal form on the Swedish Consumer Agency’s website (In Swedish)

If you and the company cannot reach an agreement, you can file a complaint to the public authority the National Board for Consumer Disputes (ARN).

ARN will assess your case and make a recommendation on how to resolve the dispute. Most companies follow ARN’s recommendations.

A normal processing time is approximately six months.

What does it cost to file a complaint with ARN?

It costs SEK 150 to file a complaint with ARN. When you submit your complaint, you can request that the company compensates you for the cost if ARN makes a recommendation in your favour.

Requirements for ARN to consider your case

• The company has either rejected your claims or has not responded within a reasonable time.
• The amount you and the company are in dispute about is more then ARN's value limitations (different value thresholds apply for different fields). You cannot include the application fee to ARN.
• The company has rejected your requests in whole or in part, or it has failed to respond to you.

Submit an application on ARN’s website

Would you like assistance in preparing your complaint?

The municipality’s consumer adviser may be able to assist you in submitting an application to ARN.

Your dispute with the company can also be taken to a district court by filing a lawsuit, but there will be costs involved in this. as you will need to pay a filing fee and may also have to pay legal fees and court costs.

If you think that a company is breaking the rules in the law, you can call attention to this by filing a complaint with the Swedish Consumer Agency. The Swedish Consumer Agency checks that companies comply with the rules in the law, and reports are an important input for the agency’s work. However, a report does not mean that your individual case will be assessed and decided.

File a complaint on the Konsumentverket/Swedish Consumer Agency’s website