EU rules that can tank a COD operation: right of withdrawal, Omnibus, labeling

Marcos Rodrigues · 2026-10-07

Cash on Delivery (COD) operations in Europe face significant challenges due to new regulations. Here are the points you need to understand:

14 days

In the European Union, consumers have the right to withdraw from a purchase within 14 days. This means that even after receiving the product, they can return it without giving a reason. For e-commerce, this means you need to be ready to manage returns and refunds, which can impact your cash flow. It’s essential to make sure your returns logistics are well set up.

Real previous price

Under the new regulation, you’re required to state a product’s actual previous price, especially when running promotions. This is meant to prevent misleading practices. If the price was within a specific range for a period of time, you need to be transparent about it. Noncompliance can result in fines and loss of credibility.

Fake countdown timer

Using fake countdown timers to create a false sense of urgency, like “only 5 units left,” is a practice that can lead to severe penalties in the EU. The regulation requires all information about availability and pricing to be truthful. This affects consumer trust and, in the long run, can impact your conversion rates.

Supplement labeling by country

Food supplement labeling must follow the specific rules of each EU country. A generic label isn’t enough; you need to adapt your labeling to local requirements. This includes information about ingredients, nutritional values, and health claims. Failure to comply can lead to a ban on sales in certain markets.

Oss/vat

The One Stop Shop (OSS) scheme makes it easier to declare and pay VAT on sales across the EU. If you sell to consumers in different countries, you should register for OSS to simplify the tax process. You also need to be aware of VAT rates, which vary from country to country, since they directly impact your final prices and profit margins.

These rules aren’t just red tape; they have a real impact on how you operate in e-commerce in Europe. Adapting to these requirements is crucial to staying competitive and avoiding penalties.

What’s your return rate due to the right of withdrawal? Share your numbers!