06/07/2026
Insights Blog

Background

Directive (EU) 2023/2673 (DMD II) entered into force in December 2023. It repealed Directive 2002/65/EC (the original Distance Marketing Directive) with effect from 19 June 2026 and integrated updated rules for financial services contracts concluded at a distance into Directive 2011/83/EU (the Consumer Rights Directive). For further background and detail on the key changes introduced, see our previous briefing here: Distance Marketing Reforms: Key changes and Irish state of play | Arthur Cox LLP.

DMD II, as a European level directive, requires transposing measures to bring the changes into force at national level. Ireland’s transposing measures, the European Union (Distance Contracts for Financial Services) Regulations 2026 (the DMD Regulations), have now been published.

The DMD Regulations revoke the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 (the Distance Marketing Regulations) and amend the existing Consumer Rights Act 2022 (the Consumer Rights Act) by inserting a new Part 5A which specifically addresses distance contracts for financial services, and an additional Section 115A which deals with the exercise of the right to cancel a distance contract (the withdrawal right) through an online cancellation function.

National Discretions

Under DMD II, Member States were given the option to exercise national discretions across the following provisions; the option to:

  • introduce national law language requirements for pre-contractual information
  • introduce more stringent provisions on requirements for pre-contractual information than those required by DMD II
  • adopt more stringent provisions regarding the requirements for traders operating online interfaces to prevent dark pattern behaviour
  • extend the right of withdrawal for certain credit agreements that fall outside the scope of Directve (EU) 2014/17 (the Mortgage Credit Directive) and Directive (EU) 2023/2225 (the Second Consumer Credit Directive)
  • provide that consumers should not be required to pay any amount for withdrawing from an insurance contract specifically
  • specify the manner and extent to which adequate explanations regarding proposed financial service contracts should be given

In the Department of Finance’s October 2025 Outcome Statement published following its public consultation on the proposed implementation of DMD II, the Department confirmed that national discretions would not be exercised in relation to the first three options, and that Ireland would exercise its national discretion under the fourth option such that mortgage contracts and credit agreements which are currently exempt from the withdrawal rules set out in the Mortgage Credit Directive and the Second Consumer Credit Directive respectively, but which may now fall within the scope of DMD II, will be afforded the withdrawal periods provided for under those Directives. The DMD Regulations make amendments to the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 in order to operationalise this change for mortgage contracts and the Mortgage Credit Directive. No express provision extending the Second Consumer Credit Directive withdrawal rights has been included, presumably on the basis that the Irish transposing measures for this remain outstanding. Once available, these transposing measures will need to be reviewed carefully for this proposed extension and from when it applies.

The final two national discretions were not addressed in the Department’s public consultation, its Outcome Statement or the DMD Regulations.

Irish Implementation re: dark practices

DMD II introduced provisions to prevent the use of ‘dark patterns’ (practices materially distorting or impairing consumers’ ability to make free and informed decisions) and imposed a minimum obligation on Member States to address at least one of three specified dark pattern practices in their transposing measures.

The DMD Regulations address this requirement by requiring traders to provide consumers with information on the main parameters which determine the ranking of offers presented to them, and the importance of those parameters. Such information must be presented in plain and intelligible language.

The Central Bank of Ireland’s (CBI) Guidance on Securing Customers’ Interests explicitly states that the use of dark patterns is not in line with the obligation to secure customers’ interests as set out in the Consumer Protection Code. As such, the CBI did not feel it was necessary to go any further than the minimum requirements set out in DMD II in this area.

Enforcement

The DMD Regulations introduce a dual-enforcement framework under which both the Competition and Consumer Protection Commission or, in certain cases, the CBI, may take enforcement action for breaches of Part 5A.

Notably, the Irish transposing measures go beyond the minimum requirements of DMD II by making breaches of key consumer protection obligations criminal offences, including information, cancellation, payment, transparency and online interface requirements.

Saver provision

The DMD Regulations include a saver provision for pre-revocation matters. Existing directions, investigations, disciplinary or enforcement actions remain unaffected, and legal proceedings or enforcement action may still be taken in respect of breaches committed before the revocation.

If you require further information, please contact a member of the Financial Regulation Group or your usual Arthur Cox contact.