Czech Senate approves new consumer protections for online financial contracts

The Czech Senate has approved legislation aimed at strengthening consumer protection for financial contracts concluded online or via telephone. The new law transposes the European Directive on Distance Marketing of Consumer Financial Services (DMFS) into Czech law and now awaits signature by President Petr Pavel.

A key feature of the amendment is the mandatory introduction of a withdrawal mechanism, often referred to as a ‘withdrawal button’. This element must be easily accessible, clearly visible, and labeled with clear wording such as ‘withdraw from contract here’. This mechanism is intended to make canceling a contract as simple as entering into one.

The legislation specifically targets ‘dark patterns’—manipulative or deceptive online interface designs intended to pressure users into making unintended decisions. The rules will apply to various products, including savings and deposit products, short-term non-life insurance, and pension savings. Financial service providers will also be required to ensure their websites and applications are transparent and truthful.