Effective 19 June 2026, the Second Distance Marketing Directive (Directive (EU) 2023/2673, “DMD2”) introduces new requirements for e-commerce merchants selling goods or non-financial services to consumers via a website or app. DMD2 being an EU-directive will be implemented into national legislation, for example in Sweden, DMD2 is implemented through amendments to the Distance Contracts Act (distansavtalslagen 2005:59). The following information uses the Swedish model for illustrative and teaching purposes.
These requirements apply to contracts concluded with your consumers on or after 19 June 2026. Older contracts remain subject to the previous rules. The rules apply where the national implementation of DMD2 applies, as for Sweden: the Distance Contracts Act, and no statutory exemption covers your type of product or service.
What you must do
Requirement | What it means for you |
1. Online withdrawal function | Add a clearly labelled button or link on your website or app that allows consumers to exercise their 14-day withdrawal right. It must remain accessible throughout the entire withdrawal period, include a confirmation step, and trigger an automatic acknowledgement of receipt. |
2. Update terms & conditions | State in your pre-contractual information (T&Cs / checkout page) that a withdrawal function exists and where consumers can find it. |
3. Cost-free information | All information and explanations required under DMD2 must be provided free of charge. |
The withdrawal function in more detail
The function must:
(1) be clearly labelled (e.g. “Cancel your order here”);
(2) be easily accessible throughout the entire 14-day withdrawal period;
(3) allow the consumer to enter their name and order details;
(4) include a clear confirmation step; and
(5) send an automatic acknowledgement of receipt confirming the date and time.
The withdrawal function is an additional method - consumers may still withdraw by sending a written notice or submitting the standard withdrawal form. You may delegate the technical build of the withdrawal function to a third party (e.g. your website provider), but responsibility remains entirely with you as the merchant.
Consequences of non-compliance
In Sweden, failure to provide the function is treated as unfair commercial practice under the Marketing Practices Act (marknadsföringslagen 2008:486). A court or the Swedish Consumer Agency may issue a cease-and-desist order with an automatic conditional fine (Sw: vite). Liability extends not just to the merchant but to employees, agents, and third-party contributors who materially contributed to the non-compliant setup. In other EU member states, similar consequences apply, often involving consumer protection bodies imposing administrative fines or courts issuing injunctions against non-compliant businesses.
Kustom’s role - the withdrawal function is your responsibility
Kustom provides the checkout interface and payment logic for your store. Kustom does not, nor will not, provide the withdrawal function, and is not responsible for it. That obligation rests entirely with you.
To comply with DMD2, you should:
Add a withdrawal function to your own website or app.
Update your terms and conditions to reference its existence and location.
This information is provided for general guidance only and does not constitute legal advice. You should seek independent legal advice for your specific situation