Joint Industry Statement

A coalition of cross-industry associations is lobbying against a proposed EU regulation that would grant an unconditional eight-week refund right for all merchant-initiated transactions (MITs).

The coalition argues that extending this refund right—currently limited to SEPA Direct Debits—would create significant fraud risks and threaten the financial sustainability of subscription-based, digital content, and hospitality business models.

Data from a 2024 consumer fraud survey indicates that 40% of adults experienced online fraud in the past year, while 45% of consumers believe exploiting policy loopholes is acceptable.

The survey further reveals that 26% of consumers regularly use multiple accounts to obtain free digital content, suggesting that unconditional refunds would likely incentivize systematic abuse.

Industry stakeholders contend that existing consumer protections under PSD2, which provide conditional dispute rights for MITs, are already sufficient to protect users.

The coalition recommends that legislators maintain the current refund framework and defer further consumer-protection measures until the introduction of the forthcoming Digital Fairness Act.