B2C startups: The rules you must know on the right of withdrawal, complaints and e-commerce

Startups that sell products or services directly to consumers (B2C) are subject to specific, mandatory requirements under Swedish consumer law. It is not simply a matter of having “good terms” – you must comply with binding statutes such as the Consumer Sales Act, the Distance and Off-Premises Contracts Act and the Marketing Act. Failure to do so risks both unhappy customers and oversight by the Swedish Consumer Agency (Konsumentverket). We advise startups across Europe on these issues.

Below we outline three core areas for founders who run – or plan to run – consumer sales.

Right of withdrawal, complaints and the Consumer Sales Act in practice

Consumers benefit from stronger, mandatory rights than business customers. As a startup, you must be on top of, among other things:

• Right of withdrawal: Under the Distance and Off-Premises Contracts Act, the consumer may cancel a purchase within 14 days for distance selling (for example where the sale took place via a webshop or an app). This “cooling off period” (the 14 day right of withdrawal) applies to most goods and many services, but there are exceptions – for example, digital content once use has begun, or hygiene products where the seal has been broken. These rules also cover remote contracts.
• Complaints: Under the Consumer Sales Act, the consumer may complain about a defect in a product for up to three years after purchase. If a defect appears within six months, you as the seller bear the burden of proving that the defect was not original.
• Incorrect information or terms: Consumers are also protected against unfair terms in consumer contracts. If, for example, you attempt to exclude liability in a way that conflicts with the law, such a clause can be invalidated as an unfair terms consumer contracts issue or an unreasonable contract terms clause.

Understanding and applying these rules is critical to avoid legal exposure and to maintain market trust.

E-commerce and distance selling require clear, accurate information

Many startups use modern sales platforms – apps, SaaS solutions or webshops. Regardless of technology, the same pre- and post-contract information duties apply to distance selling and other remote contracts. Common pitfalls include:

• Unclear or missing information about the right of withdrawal (the statutory cooling off period).
• Prices shown to consumers exclusive of VAT.
• Incomplete contact details or terms that are not easily accessible.
• Hard-to-find cancellation or termination terms for subscription services.

By law, information must be clear, comprehensible and easily accessible before purchase – otherwise the right of withdrawal period may be extended. For an e-commerce startup, it is therefore essential to review the customer journey from first click through to confirmation emails and terms templates.

How to avoid scrutiny by the Swedish Consumer Agency

The Swedish Consumer Agency (Konsumentverket) reviews businesses based on both complaints and its own monitoring – particularly companies that stand out or offer products or services that may pose risks to consumers. Being subject to a review often entails short deadlines to remedy issues and may be followed by sanctions, including penalty payments or prohibitions. A proactive approach with legal advice and documented compliance substantially reduces the risk.

At Morling Consulting, our startup lawyers help you draft robust B2C terms – from right of withdrawal language and information notices to reviews of e-commerce flows. We work continuously with companies that want to scale without tripping over consumer law, and we support clients across Europe.