What you need to know
- The European Union (Distance Contracts for Financial Services) Regulations 2026 were signed into national law on 3 July 2026.
- The new rules have been introduced in response to the growing number of consumers opting to purchase financial services and products through digital channels.
- The Regulations introduce the right to speak to a human instead of an AI chatbot. They also require online financial services traders to:
- Provide clearer pre-contractual information
- Operate transparent marketing practices, and
- Ensure contract withdrawal is accessible to the consumer.
Background
Tánaiste and Minister for Finance, Simon Harris TD recently signed new regulations into law governing financial services contracts that are concluded at a distance. The rules transpose Directive (EU) 2023/2673, also known as DMD II, into Irish law. The new regulations will strengthen protections for Irish consumers when purchasing financial products or services online or over the phone. These rules follow the publication of the Central Bank of Ireland's revised Consumer Protection Code earlier in 2026, which placed a heightened regulatory focus on protecting consumer rights online.
Summary of the new rules
The transposing measures are given effect in the Regulations by inserting a new Part 5A into the Consumer Rights Act 2022. The key features of the new rules include:
- Right to speak to a human: Consumers can request to speak to a person instead of an AI chatbot when purchasing financial products and services online or over the phone. This right also applies in certain cases after the conclusion of the distance contract.
- Pre-contractual information: Before entering a contract for financial services online, a trader is required to provide clearer information to the consumer. This information includes:
- The relevant contact details of the trader
- A description of the main characteristics of the financial service
- The total amount of fees to be paid by the consumer, and
- The existence or absence of a right to cancel the contract.
- Transparency: A trader is prohibited from organising or operating their online interface in a deceptive or manipulative manner. This rule intends to protect the ability of a consumer to make free and informed decisions when entering into a distance contract. A trader who violates these rules commits an offence under the Regulations and is liable to a fine or imprisonment on summary conviction. Offences are prosecuted by the Competition and Consumer Protection Commission, or the Central Bank of Ireland where relevant.
- Right to withdraw: The new rules require traders to facilitate the cancellation of eligible online financial contracts in a way that is easily accessible to the consumer. A cancellation function must be prominently displayed on the online interface in a clear and easily legible manner.
Describing the Regulations as making a ‘real difference for consumers’, Tánaiste and Minister for Finance, Simon Harris TD commented:
Digitalisation has significantly changed the financial services market in Ireland. While the existing financial consumer protection framework is robust, the rules I have signed into law today will ensure that the framework continues to keep pace with the increasingly digitalised financial services landscape and maintains the high level of protections for consumers.
Next steps
To ensure compliance with these new consumer protection regulations, businesses should take practical steps such as:
- Enhance customer support: Offer clear pathways for chatbot users to connect with a live representative. Provide adequate training to customer support agents to assist customers requesting human intervention.
- Review digital interfaces: Businesses should review their websites and remove any deceptive design patterns which could be considered as manipulative to users.
- Simplify contract cancellation: Websites should display a highly visible and easy-to-use cancellation feature for eligible contracts.
For more information regarding compliance with distance marketing and contract obligations for financial services firms, please contact a member of our Financial Regulation team.
The content of this article is provided for information purposes only and does not constitute legal or other advice.
