Why PORSCHE NFT Policy is the talk of Twitter

Porsche released the NFT series PORSCHΞ 911 on January 23, with a total of 7,500.
Porsche NFT mint page provides with the following notices:

• I have read and agree to the road2dreams terms & conditions and I have taken note of the privacy policy.
• I agree to the immediate provision of the contractual service (i.e., receiving the NFT) and I have been informed that I hereby lose the right of withdrawal.

Things to be considered

• For minting the Porsche NFT the consumer will have to lose the right of withdrawal.
  What is the right of Withdrawal?
• Consumers typically have a 14-day period (Varying under different jurisdiction) in which they may change their mind or cancel the sale contract for any reason.

Right of Withdrawal/ Cancellation under different jurisdictions.

• UK – The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

Right to Cancel

1. 1. The consumer may cancel a distance or off-premises contract at any time in the cancellation period without giving any reason, and without incurring any liability except under these provisions:

a. regulation 34(3) (where enhanced delivery chosen by consumer);
b. regulation 34(9) (where value of goods diminished by consumer handling);
c. regulation 35(5) (where goods returned by consumer);
d. regulation 36(4) (where consumer requests early supply of service).

1. The cancellation period begins when the contract is entered into and ends in accordance with regulation 30 or 31.
2. Paragraph (1) does not affect the consumer’s right to withdraw an offer made by the consumer to enter into a distance or off-premises contract, at any time before the contract is entered into, without giving any reason and without incurring any liability.

EU – Consumer Rights Directives

Article 9 – Right of withdrawal

1. 1. Save where the exceptions provided for in Article 16 apply, the consumer shall have a period of 14 days to withdraw from a distance or off-premises contract, without giving any reason, and without incurring any costs other than those provided for in Article 13(2) and Article 14.
   2. Without prejudice to Article 10, the withdrawal period referred to in paragraph 1 of this Article shall expire after 14 days from:

a. in the case of service contracts, the day of the conclusion of the contract;
b. in the case of sales contracts, the day on which the consumer or a third party other than the carrier and indicated by the consumer acquires physical possession of the goods or:

1. 1. 1. in the case of multiple goods ordered by the consumer in one order and delivered separately, the day on which the consumer or a third party other than the carrier and indicated by the consumer acquires physical possession of the last good;
      2. in the case of delivery of a good consisting of multiple lots or pieces, the day on which the consumer or a third party other than the carrier and indicated by the consumer acquires physical possession of the last lot or piece;
      3. in the case of contracts for regular delivery of goods during defined period of time, the day on which the consumer or a third party other than the carrier and indicated by the consumer acquires physical possession of the first good;

c. in the case of contracts for the supply of water, gas or electricity, where they are not put up for sale in a limited volume or set quantity, of district heating or of digital content which is not supplied on a tangible medium, the day of the conclusion of the contract.

1. The Member States shall not prohibit the contracting parties from performing their contractual obligations during the withdrawal period. Nevertheless, in the case of off-premises contracts, Member States may maintain existing national legislation prohibiting the trader from collecting the payment from the consumer during the given period after the conclusion of the contract.

Italy – Legislative Decree No. 206 of 6 September 2005 implementing EC Directive No. 29/2005.

SECTION IV Right of withdrawal Article 64

1. For distance contracts and contract proposals, or those negotiated away from business premises, consumers shall be entitled to a period of ten business days to withdraw from a contract without being liable to any penalty and without giving any reason, save for the provisions of Article 65, Paragraphs 3, 4, and 5
2. Right of withdrawal may be exercised by making written notification, by no later than the term provided for at Paragraph 1, to the premises of the professional, by recorded delivery (with notification of receipt). Notification may also be sent, by the same term, by telegram, telex, e-mail or facsimile machine, provided that confirmation is also given by recorded delivery (with notification of receipt) by no later than 48 hours thereafter; a by recorded delivery letter shall be understood to have been sent in good time if delivered to a post office accepting the delivery by no later than the term provided for by the Code (or by the contract, if different). Notification of receipt, however, shall not be considered sufficient for the exercise of any right of withdrawal.
3. If expressly provided for in the offer or information regarding the right of withdrawal, goods received may be returned by no later than the term specified above at Paragraph 1, instead of specific notification having to be made.

Applicability of these rules on NFT Consumers

When buying an NFT consumers acquire various rights. These apply whether or not the trader is based in the that County, so long as they are marketing the NFT to that country’s consumers.

Consumers typically have a 14-day period in which they may change their mind or cancel the sale contract for any reason. This should apply to the NFT sale unless certain information is provided to the consumer in advance of the purchase, which includes confirmation from the consumer that they wish to receive the NFT immediately / prior to the end of the cancellation period, and a clear acknowledgement that in doing so they will be waiving any cancellation right.

This is not something new done by PORSCHE, brands like Diesel and DOLCE & GABBANA already have similar terms in their Terms and Conditions for their respective marketplace:

Diesel – General Conditions of Online Sale of Physical & Non-Fungible Token Products

10. Right of withdrawal and exclusion

10.1 Exclusion of the right of withdrawal for NFT. The right of withdrawal from the purchase of NFT is excluded in the assumptions referred to in art. 59, letter a), i), m) and o) of Legislative Decree no. 206/2005 (Consumer Code). In this regard, it is recalled that the right of withdrawal is excluded (art. 59, lett. a) in contracts for services after the full performance of the service if the execution has begun with the express agreement of the consumer and with the acceptance of the loss of the right of withdrawal following the full performance of the contract by the professional. Moreover, the right of withdrawal is excluded (art. 59, lett. i) with reference to the supply of sealed audio or video recordings or sealed computer software which have been opened after delivery. It is also excluded (Art. 59 lit. m) with regard to contracts concluded at public auctions (see Art. 5.14 above). And finally, the right of withdrawal is excluded (Art. 59 lit. o) with regard to the supply of digital content (such as NFT) by means of a non-material medium (such as e.g. a private key for an NFT or other NFT redemption code) if performance has begun with the express agreement of the consumer and with his acceptance that he would then lose his right of withdrawal.

10.2 Exclusion of the right of withdrawal for Physical Products

General conditions of Bundled Sale Products + NFT – Dolce & Gabbana

5. Right of withdrawal and exclusion

5.1 No right of withdrawal for NFTs. The right of withdrawal from the purchase of NFT is excluded in the cases referred to in art. 59, letter a), i) and o) of Legislative Decree no. 206/2005 (Consumer Code). In this regard, it is recalled that the right of withdrawal is excluded (art. 59, lett. a) in service contracts after the full performance of the service if the performance has begun with the express agreement of the consumer and the acceptance of the loss of the right of withdrawal following the full performance of the contract by the professional. In addition, the right of withdrawal is excluded (Art. 59(i)) with regard to the delivery of sealed audio or video recordings or sealed computer software that has been opened after delivery. And finally, the right of withdrawal is excluded (Art. 59(o)) with respect to the supply of digital content (such as NFT) by means of a non-material medium (such as a private key for an NFT or other NFT redemption code) if performance has begun with the consumer’s express agreement and his acceptance that he would then lose his right of withdrawal.