The Austrian Consumer Rights Amendment Act 2026 (Verbraucherrechtsänderungsgesetz 2026 – "VerbRÄG 2026") provides for the repeal of the Austrian Distance Financial Services Act (Fern- Finanzdienstleistungsgesetz – "FernFinG") and the incorporation of some of its provisions into the Austrian Distance and Off-Premises Sales Act (Fern- und Auswärtsgeschäfte-Gesetz – "FAGG"). We provide you with an initial overview of the new provisions for financial service providers operating via distance selling.
Background
The amending Directive to the EU Distance Selling Directive (Directive (EU) 2023/2673 – "Amending Directive") entered into force on 18 December 2023 and was due to be implemented by 19 December 2025. Austria failed to meet this obligation in time and only published the ministerial draft of the VerbRÄG 2026 in February 2026 and the corresponding government bill in mid-May 2026. The VerbRÄG 2026 repeals the FernFinG and introduces amendments to the FAGG, as well as to the Austrian Insurance Contracts Act (Versicherungsvertragsgesetz) and the Austrian Payment Services Act 2018 (Zahlungsdienstegesetz 2018).
Key changes at a glance
Goal of the VerbRÄG 2026 is to harmonise the legal framework for distance contracts for financial services and to improve transparency and competition in the market for financial services concluded through distance selling. The VerbRÄG 2026, as set out in the government bill, provides in particular for the following changes:
- For the first time, financial service providers are required to provide consumers with a "cancellation button" if the distance contract was concluded via an online user interface (e.g., a website or smartphone app) (Sec 13a FAGG). This button must be clearly legible and labelled with the words "Cancel contract" or a comparable clearly understandable phrase; it must remain available throughout the entire withdrawal period and be prominently displayed on the online user interface in a manner that is easily accessible to consumers.
- In the case of pre-contractual information requirements for distance contracts of financial services, there are a number of requirements that go beyond those set out in the FernFinG, such as:
- Information on a telephone number and an email address, or details of other means of communication offered by the financial services provider, whereby all means of communication must enable quick contact with the financial services provider (Sec 18a(1)(2) FAGG
- If the financial services provider is licensed, in addition to the name and address of the competent supervisory authority already required, the provider must also provide the authority's website and any other contact details (Sec 18a(1)(5) FAGG).
- Information on the environmental or social objectives pursued through the financial service, provided that environmental or social factors (ESG) form part of the investment strategy of the financial service (Sec 18a(1)(15) FAGG).
- The financial services provider must remind the consumer of the right of withdrawal and the withdrawal procedure if the pre-contractual information is provided less than one day before the date on which the consumer becomes bound by the distance contract (Sec 18a(4) FAGG).
- The pre-contractual information requirements do not apply where EU law imposes pre-contractual information requirements on certain financial service providers (Sec 18a(8) FAGG), as is the case, for example, with investment firms and credit institutions offering portfolio management or investment advice, or with payment service providers, unless otherwise provided for in the relevant EU legislation.
- Compared with the FernFinG, the right of withdrawal for distance contracts relating to financial services is subject to the following changes, for example:
- There is no longer an "indefinite" right of withdrawal if the consumer has not received the terms of the contract and the pre-contractual information; instead, the withdrawal period expires in any event 12 months and 14 days after the conclusion of the distance contract, unless the consumer has not been informed of his right of withdrawal (Sec 18b(2) FAGG).
- The consumer is deemed to have exercised his right of withdrawal in good time even if he sent the notice of withdrawal before the expiry of the withdrawal period, but the notice was not received by the financial services provider until after the withdrawal period had ended (Sec 18b(3) FAGG).
- The right of withdrawal under Sec 18b FAGG does not apply where EU law provides for rights of withdrawal in connection with certain financial services (Sec 18b(7) FAGG), as is the case, for example, with consumer and residential property loan agreements, unless otherwise provided for in the relevant EU legislation.
- Unlike under the FernFinG, financial service providers must provide adequate explanations regarding the financial service contracts they offer:
- The consumer must be provided with the necessary information (e.g., regarding the main features of the contract) so that he can assess whether the contract offered and the ancillary services meet his needs and are appropriate to his financial situation; this information must be provided free of charge (Sec 18d(1) FAGG).
- The obligation to provide explanations under Sec 18d FAGG does not apply where EU law provides for explanations in connection with certain financial services (Sec 18d(4) FAGG), as is the case, for example, with residential property loan agreements or for investment firms when providing investment advice, unless otherwise provided for in the relevant EU legislation.
When do the changes come into place?
In line with the Amending Directive, the government bill provides that the FernFinG is to cease to have effect on 18 June 2026. However, the FernFinG is to remain applicable to contracts concluded before 19 June 2026. The changed and newly introduced provisions of the FAGG are to come into force on 19 June 2026 and are to apply to contracts concluded after 18 June 2026. However, the parliamentary process has stalled, and it is not clear when the VerbRÄG 2026 will be passed.
Practical Implications
As a result of these changes, financial service providers are required to implement the new measures in such a way that they stand up to review by the civil courts. We are happy to support you in this process with our extensive expertise!