knowledge 6 November 2025 |

Bridging the Distance Marketing Directive

Key takeaways

When assessing how to meet the cooling off requirements set out in the Distance Marketing Directive and Irish domestic law, in-scope firms should consider:

• the definition of ‘consumer’ which may or may not include businesses with an annual turnover of €3 million or €5 million depending on the regime in question;
• whether the contract is concluded at a distance or involves an in-person element; and
• the difference between working days vs calendar days.

The changes introduced by the Distance Marketing Directive should be transposed into Irish law by 19 December 2025 with its measures to apply from 19 June 2026.

Are you in-scope?

The Distance Marketing Directive expands the scope of the Directive to include contracts concluded at a distance between a consumer and a trader where the service provided relates to:

• Banking;
• Credit;
• Insurance;
• Personal pensions;
• Investments; and/or
• Payments.

Pre-contractual Information

The Distance Marketing Directive sets out specific pre-contractual information requirements. However, these do not apply where EU law already has specific financial services rules designed to ensure that consumers are able to understand the essential characteristics of the proposed contract.  Recital 17 of the Distance Marketing Directive¹ notes that pre-contractual information requirements are already set out in:

• Regulation (EU) 2019/1238 on pan-European Personal Pension Products (PEPP);
• Directive 2014/92/EU regarding payment accounts;
• Directive 2014/65/EU (MiFID II); and
• Directive 2016/97 (the IDD).

Cooling off periods

The Distance Marketing Directive provides that generally a consumer has a period of 14 calendar days to withdraw from a contract without penalty and without giving any reason. This period shall be extended to 30 calendar days for distance contracts relating to personal pension operations. This period is extended if a consumer is not informed of their right to withdraw. The withdrawal period starts from the day of conclusion of the contract or from the day the consumer receives the relevant terms and information, whichever is the latter. 

However, if EU law governing specific financial services gives consumers time to consider the implications of the contracts, then that more specific requirement applies instead of the provisions of the Distance Marketing Directive requirements (unless the former states otherwise).

In addition, Ireland has indicated that it is exercising its discretion under article 16b(7) of the Distance Marketing Directive such that:  

• mortgage contracts which are currently exempt from Directive 2014/17/EU (the “Mortgage Credit Directive”) but which may now fall within the scope of the Distance Marketing Directive “should also be afforded the 30-day withdrawal period afforded under the Mortgage Credit Directive”; and
• credit agreements which are currently exempt under Directive 2023/2225 (the “Consumer Credit Directive”) but which may now fall within the scope of the Distance Marketing Directive “should also be afforded the 14-day withdrawal period afforded under the Consumer Credit Directive.“ ²

Reminder: Irish domestic law may include additional obligations

Irish domestic law may impose other cooling off periods. For example, a 14-working day cooling off period is set out in section 11 of the Consumer Insurance Contracts Act 2019 with respect to life insurance contracts.

From 24 March 2026, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Consumer Protection) Regulations 2025 (the “Revised CPC”) will apply to regulated entities providing financial services or products to consumers, including companies with a turnover of less than €5 million. Under the Revised CPC, financial entities must send reminders of cooling off periods to consumers at least 3 working days, but no more than 7 working days before the cooling off period expires.

Also contributed by Eunice Collins and Jennifer Ekomaru