Enhanced consumer protection for online subscription of financial services

Article published in Option Droit & Affaires (Newsletter No. 759 of 4 March 2026)

| Consumer Law Finance Insurance |

Corinne Hovnanian Christophe Jacomin Pierre-Yves Rossignol

Adopted in the wake of European Directive (EU) 2023/2673, Ordinance No. 2026-2 of 5 January 2026, supplemented by Decree No. 2023-6, strengthens the regulation of distance marketing of financial services under consumer law, financial law and insurance law.

Pre-contractual information and misleading commercial practices

Article L. 222-5 of the Consumer Code broadens its list of pre-contractual information, and the Consumer Code is amended to require professionals to provide, free of charge, all “adequate explanations” to ensure that the service offered is understood and that it is appropriate to the consumer’s financial situation. In addition to the reaffirmed requirements of legibility, clarity and identification of the commercial nature of the information, an obligation is added to ensure that information is accessible to consumers with disabilities. For contracts concluded online, the text requires the creation of a free-of-charge withdrawal functionality, which may take the form of a “one-click” button, in accordance with the procedures laid down in Decree No. 2023-6. While it simplifies the exercise of the right for consumers, this mechanism could generate new disputes in the event of a malfunction of the functionality.

New Article L. 222-16-2 of the Consumer Code reproduces the European definition of deceptive or manipulative interfaces derived from the Digital Services Act. Henceforth, all practices relating to the design, organisation or operation of interfaces that are liable to mislead or manipulate the consumer, or to substantially impair or hinder his or her ability to make free and informed decisions, are prohibited, such as in particular: biased presentation of offers influencing his or her decision; repeated solicitations, in particular via pop-up windows, calling into question a choice already expressed; or making procedures for unsubscribing more complex than those for subscribing.

Although not so characterised, these practices are reminiscent of aggressive commercial practices as defined in Articles L. 121-6 and L. 121-7 of the Consumer Code. A convergent interpretation by the Directorate-General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) could lead to their assimilation to this category.

Regulation of telephone selling

The professional must henceforth clearly state the commercial purpose of the call, his or her identity, and any recording of the conversation. A “two-step sale” mechanism[1] becomes mandatory, even if the consumer initiates the call. First, the professional must send the consumer a confirmation of his or her offer before any commitment is made. Second, the consumer must affix his or her signature on paper or any other durable medium, in order to formalise his or her consent. This measure will enter into force on 1 January 2027, in addition to those that will enter into force on 11 August 2026 concerning the general prohibition of telephone canvassing[2].

The decriminalisation of the sanctions regime in favour of administrative sanctions considerably strengthens the supervision to be carried out by the competent administrative authorities[3].

Compliance of financial services and investor protection

From the standpoint of financial law, these pre-contractual information obligations, although they may be reminiscent of those arising from the Markets in Financial Instruments Directive II (MiFID II), fall within a distinct legal framework. Whereas MiFID II bases investor protection on the professional relationship and the suitability of the product to the client’s profile, irrespective of the distribution channel, the 2026 Ordinance introduces a specific obligation of pre-contractual information in the digital context, thereby creating additional protection focused on the moment the contract is formed. The Prudential Supervision and Resolution Authority (ACPR) may impose sanctions for breaches of pre-contractual information obligations, of withdrawal functionalities, as well as of compliance with specific provisions applicable to ancillary services. The reference to the environmental or social objectives pursued by the financial service is moreover aligned with European standards aimed at integrating ESG criteria into financial services (SFDR, CSRD).

Where an investor resorts to a third-party intermediary, neither the account-holding bank nor the investment services provider responsible for execution is liable for his or her choices. This position is reinforced by case law on authorised payment transactions, which, as regards the account-holding bank, reaffirms the principle of non-interference and its obligation to promptly execute orders duly given. In the absence of any apparent anomaly, no general duty of vigilance or assessment of the economic advisability of the transaction lies with the banking institution,[4] in particular where the investment decision has been taken by the client via a third-party channel. A distinction must, however, be drawn where the institution acts no longer as a mere executor but as the direct provider of the financial service. It must then comply with pre-contractual information obligations and, where applicable, assess the appropriateness or suitability of the transaction in light of the client’s profile. The Ordinance is in line with this approach by establishing a framework expressly dedicated to the provision of financial services at a distance, without, however, enshrining a general obligation to supervise clients’ investment choices.

For the insurance sector, this reform supplements the existing regime by strengthening in particular the pre-contractual information obligations, which must be provided “in good time and before any commitment”, the arrangements for exercising the right of cancellation/withdrawal, the “two-step” sale by telephone and the sanctions regime. Prior to Ordinance 2026-2, distance marketing of insurance contracts was already regulated by the Insurance Code (L. 112-2-1) and the Consumer Code (former L. 121-26 et seq., now L. 222-1 et seq.), but without the specific enhancements for online interfaces (e.g. one-click withdrawal button) or the “two-step” sale by telephone.

Clarity of the information journey

For insurance contracts, certain information referred to in Article L. 112-2-1 of the Insurance Code must be provided prior to the conclusion of the contract. The documents and information journeys (information sheets, IPID, general terms and conditions, web pages, application screens) must be audited and updated to incorporate all the information now required, in a clear format and on a durable medium enabling their retention and reproduction for an appropriate period (client area, downloadable PDF, email, etc.).

Facilitation of the right of cancellation and protection of the insured

In the event of cancellation, systems must enable calculation of the pro rata premium due up to the date of receipt of the cancellation and reimbursement within 30 days, failing which an increase at the legal interest rate applies. However, the case law exceptions remain: the right of cancellation does not apply to contracts fully performed by both parties, at the express request of the consumer, before the exercise of this right (Civ. 2nd, 17 Jan. 2013, No. 11-28.928 and No. 11-20.155).

The introduction of a two-step sale mechanism raises a difficulty in the insurance sector. Since 1 April 2022, the Insurance Code has provided for a two-step sale mechanism for “unsolicited calls”, guaranteeing a cooling-off period for the policyholder. Legal scholarship considers this regime incompatible with that of Ordinance 2026-2, but the latter expressly applies to “all sectors”, including insurance. The prohibition of telephone canvassing has two exceptions: where the consumer has given his or her “free, specific, informed and revocable” consent (opt-in), and where the call concerns an existing contract and related, complementary products or services, or products or services improving its performance or quality.

[1] Expression used in the Report to the President of the Republic on Ordinance No. 2026-2 of 5 January 2026 on the distance marketing of financial services to consumers.

[2] Law No. 2025-594 of 30 June 2025 on combating all fraud involving public aid.

[3] Directorate-General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) and Prudential Supervision and Resolution Authority (ACPR).

[4] Com. 14 Jan. 2026, No. 24-19.102.