New withdrawal button for e-commerce services

Content:

Who needs to comply?
When does the new regulation apply?
How should the withdrawal button be implemented?
Which legal consequences apply in the event of infringements?
Which recommended actions are to be taken?

Due to an EU Directive, the German legislator has implemented new regulations with respect to the withdrawal from online contracts. The aim is to simplify the process for customers to withdraw from the contract and make it as easy as entering into the contract. Therefore, e-commerce platforms will have to provide an electronic withdrawal function in the future, the so-called "withdrawal button".

Who needs to comply?

The provision applies to all businesses who conclude distance contracts with consumers via an online user interface. This includes but is not limited to online shops for goods, services and digital content. 

It applies to websites (shops and market-place platforms) and apps, but does not cover contracts concluded by email or telephone. The obligation applies to enterprises of all sizes and legal forms whose online offerings focus on the European market.

When does the new regulation apply?

The duty to provide a withdrawal button will apply from June 19, 2026. To comply with the current regulations, an implementation before the specified date should be avoided.

How should the withdrawal button be implemented?

Implementation should take place in two steps: 

1. Technical integration of the withdrawal button

The online shop must be equipped with a button that allows consumers to carry out their right of withdrawal.

Throughout the withdrawal period, this must be clearly legible, easily accessible and clearly highlighted. The withdrawal button should be labelled "Withdraw from con-tract" or with another similar unambiguous term. The button shall not be concealed, for example within a link list or only accessible within the customer account.

In practice, enterprises will only be able to comply with the new legal duty by providing a consistently available withdrawal but-ton. This entails the risk of granting a withdrawal beyond the statutory period.

It is therefore advisable to include a clarifying notice when the withdrawal button is invoked. Such notice should inform that the withdrawal can be declared by utilising the button and that any withdrawal will be subject to review that all legal requirements are met.

2. Withdrawal Form

After clicking on the withdrawal button, a form should open through which the withdrawal can be declared.

The withdrawal form may only request required information, hence: 

  • Name of the customer
  • Information identifying the contract (e.g. order number)
  • details of the electronic means of communication (e.g. email) to which a confirmation that the withdrawal has been received must be sent. 

Information regarding the reason for the withdrawal is admissible, for instance to improve the customer service, but it shall not be mandatory.

After completing the form, the customer must be able to submit his/her withdrawal via the "Confirm withdrawal" function. Up-on submission, the customer shall immediately receive an acknowledgement of receipt on a durable medium. 

This confirmation should not imply that the withdrawal has already been reviewed or is valid.

Which legal consequences apply in the event of infringements?

Infringements of the provision to provide an legally compliant withdrawal function entails significant economic risks. 

An infringement constitutes an offence. Fines of up to EUR 50.000 may be levied. For enterprises with an annual turnover ex-ceeding EUR 1.25 million, fines may reach up to four percent of the annual turnover. In addition, cease and desist letters can be is-sued due to a breach of law against unfair competition.

Which recommended actions are to be taken?

1. Technical Implementation and Integration

Operators of e-commerce platforms including apps should now check whether they are required to provide an electronic withdrawal function. The technical implementation should be conducted as outlined above.

2. Adjustment of the withdrawal policy

In addition, the withdrawal policy must be adjusted. In particular, consumers shall be informed that they can declare their withdrawal by using the withdrawal button.

3. Adjustment of the data privacy policy

The privacy policy must likewise be reviewed and adjusted. Within the scope of the electronic withdrawal function, personal data is processed, including the name, contract data and contact details of the customer. Consequently, consumers will need to be informed on such data processing. 

If you have any further questions, our colleagues from our e-commerce department will be glad to support you.



Author: Dr. Karolin Nelles