On March 6, 2025, the Montpellier Court of Appeal issued a significant ruling (No. 23/01999) confirming that sales conducted via social media platforms, such as Instagram, are subject to the same consumer protection rules as traditional distance sales. This decision reaffirms the legal obligation for sellers to inform consumers of their right of withdrawal, a fundamental consumer right under European Union law.
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Background of the case
The Montpellier Court of Appeal ruled in a case involving a dispute between a consumer and a micro-entrepreneur operating via Instagram. The seller had failed to inform the buyer of their withdrawal rights. The buyer subsequently requested the cancellation of the sale and a refund. The court confirmed that the transaction qualified as a distance contract, as it had been concluded without the simultaneous physical presence of both parties.
Understanding the right of withdrawal
What is the right of withdrawal ?
The right of withdrawal entitles consumers to cancel a purchase within 14 days without having to provide any justification and without incurring additional charges, apart from potential return shipping costs. This right applies to contracts concluded at a distance or outside the seller’s business premises, including online, by telephone, and increasingly, through social media.
The legal framework
In France, the right of withdrawal is governed by Articles L.221-18 to L.221-28 of the French Consumer Code. Article L.221-18 grants consumers 14 days from delivery or contract signature to exercise this right. Importantly, if the seller fails to inform the consumer of this right, the withdrawal period is extended by 12 months, pursuant to Article L.221-20.
Social media sales as distance contracts
Are social media sales considered distance sales ?
In ruling No. 23/01999, the Montpellier Court of Appeal held that Instagram-based sales do indeed qualify as distance sales. While social media platforms are not designed solely for commercial transactions, the court emphasized that the absence of simultaneous physical presence between seller and buyer meets the criteria set out in Article L.221-1 of the French Consumer Code.
The seller’s duty to inform
Sellers operating via social media are legally obliged to inform consumers of their right of withdrawal before the contract is concluded. This includes providing clear and accessible information about the existence of the right, how it may be exercised, and the applicable timeframe. Failure to comply with this obligation not only extends the withdrawal period but may also expose sellers to legal consequences.
Can social media platforms be held liable ?
The obligation to inform consumers rests primarily with the seller. Social media platforms, as intermediaries, are not generally held responsible unless they are directly involved in the transaction, for instance, by facilitating payment or processing orders. Nevertheless, platforms can support compliance by offering features such as customizable terms and conditions fields or links to consumer rights information.
EU regulations on online intermediaries
What does EU law say ?
Directive 2011/83/EU on Consumer Rights harmonizes distance and off-premises contract rules across the EU, mandating that consumers be informed of their right of withdrawal before contract formation. Additionally, Regulation (EU) 2019/1150 on promoting fairness and transparency for business users of online intermediation services reinforces the importance of transparency in digital transactions, thereby indirectly supporting the enforcement of consumer rights, including the right of withdrawal.
Conclusion
The Montpellier Court of Appeal’s decision of 6 March 2025 underscores a key principle : sales conducted via social media platforms are subject to the same consumer protection rules as traditional distance sales. Sellers must ensure compliance with their obligation to inform consumers about the right of withdrawal, in accordance with both national and EU legislation. Failing to do so not only erodes consumer trust but also exposes sellers to legal risks and potential sanctions.
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FAQ
1. What is the right of withdrawal ?
It allows consumers to cancel a purchase within 14 days without justification.
2. Do sales via social media fall under the right of withdrawal ?
Yes. These are classified as distance sales and are subject to the same rules as standard online sales.
3. Who is responsible for informing the consumer ?
This obligation lies with the seller, not the social media platform.