INFORMATION SOCIETY: COUNCIL AGREEMENT ON DISTANCE SELLING OF FINANCIAL SERVICES.

The main points of this agreement can be summarised as follows:- the prohibition of abusive marketing practices ("inertia selling") seeking to oblige consumers to buy a service they have not solicited (this provision also bans unsolicited faxes)- rules to restrict other practices such as unsolicited phone calls and e-mails. The agreed text sets out two options for rules Member States are to apply with respect to the use of "cold calling", the same practice by telephone, and "spamming", unsolicited communication by e-mail. Under the first option ("opt-in") cold calling and spamming are prohibited unless the consumer has expressly consented; under the second option ("opt-out") this is prohibited only if the consumer has signalled his/her objection, e.g. by entering his/her name in a registry set up for this purpose.- an obligation to provide consumers with comprehensive information before a contract is concluded. This package should include the identity, contact details etc. of the supplier, the price and payment arrangements, contractual rights and obligations as well as information about the performance of the service offered.- a consumer right to withdraw from the contract during a cool-off period - except in cases where there is a risk of speculation. The text will also give consumers the right to cancel a contract within 14 days after signing up, extended in the case of life insurance and pension plans to 30 days.Regarding applicable law and the relevant jurisdiction in cases of litigation, the agreement refers to Regulation 44/2001 concerning relevant jurisdiction, the recognition and execution of civil and commercial decisions (the so-called Brussels Regulation) and the Rome Convention. Under the terms of these two texts, the law applicable and relevant jurisdiction can be those of the consumer's country of residence (i.e. the destination country), provided a certain number of conditions are met. This approach is consistent with that followed in the Directive on electronic commerce (of June 8, 2000)Finally, the compromise provides that during the two-year transposition period...