Effective June 19, 2026, the legislature is introducing a mandatory electronic cancellation function for certain distance contracts. Section 356a of the German Civil Code (BGB) will require businesses to enable consumers to cancel a contract concluded online via a clearly designed “cancellation button” that is accessible at all times. The aim of the new regulation is to make exercising the right of withdrawal just as easy as concluding the contract itself and to further reduce existing practical hurdles.
The provision applies to distance contracts concluded via an online user interface. This specifically covers traditional websites, customer portals, and apps through which consumers can conclude contracts. What matters is not the type of contract, but the digital conclusion via a user interface. Businesses must therefore adapt their systems in a timely manner, both technically and legally.
Design of the Cancellation Function
The centerpiece of the new regulation is the mandatory cancellation function on the online user interface. This must be clearly labeled with “Cancel Contract” or another equivalent, unambiguous wording. Unclear or euphemistic terms are insufficient. The wording itself makes it clear that the legislature sets high standards for transparency and comprehensibility here.
The cancellation button must be available at all times throughout the entire cancellation period. Temporarily hiding it—for example, behind menus or in hard-to-find areas accessible only after logging in—is not permitted. Additionally, the law requires a prominent placement and easy accessibility for consumers. The perspective of an average, reasonably informed, and discerning consumer is decisive in this regard.
Comparison with the existing cancellation button
For practical implementation, it is worth looking at the existing regulations regarding the cancellation button for continuing obligations. There, too, the law requires a clearly visible, easily accessible, and unambiguously labeled button, typically with the text “Cancel contracts here.” Case law and administrative practice have already developed clear guidelines on this matter.
These standards can be applied to the new cancellation button. Businesses should therefore assume that placing it on general subpages or requiring multiple clicks to access it will not be sufficient. Rather, there is strong evidence that the cancellation button must be placed in a similarly prominent location as the termination button: clearly recognizable, accessible without a lengthy search, and not obscured by design tricks.
Two-step process: Cancellation and confirmation
The cancellation function must enable the consumer to provide or confirm certain minimum information. This includes the consumer’s name, details identifying the relevant contract, and an electronic means of communication through which a confirmation of receipt can be transmitted. The legislature aims to ensure that the cancellation can be clearly attributed and documented.
Following this, a separate confirmation function must be provided. This must be clearly labeled with “Confirm Withdrawal” or an equivalent unambiguous phrase. Only upon activation of this confirmation function is the notice of withdrawal effectively transmitted to the business. The process is thus intentionally modeled after the structure of the cancellation button.
Obligation to Confirm Receipt Immediately
Upon receipt of the withdrawal, the business is obligated to immediately send the consumer a confirmation of receipt on a durable medium. This confirmation must include at least the content of the withdrawal notice as well as the date and time of receipt. In practice, this will typically be done via email.
It is also legally significant to clarify that the withdrawal is deemed to have been received in a timely manner if the consumer submits the notice of withdrawal via the withdrawal function before the expiration of the withdrawal period. Technical delays within the entrepreneur’s sphere of responsibility are thus not borne by the consumer.
New Duty to Inform Upon Conclusion of the Contract
In addition to the technical implementation, the legislature is introducing a new duty to inform. Consumers must be informed of the existence and functionality of the electronic withdrawal function at the time the contract is concluded. This information supplements the existing withdrawal policy but does not replace it.
The wording of the statutory model cancellation policy has therefore been amended. Anyone wishing to benefit from the legal presumption of correct notification by using the statutory model cancellation policy must therefore also adapt their cancellation policy to the new law.
At the same time, the provisions regarding the statutory model withdrawal form remain unchanged. Businesses must therefore continue to provide both the model form and the withdrawal button, and inform consumers about both options.
Practical Consequences for Businesses
The introduction of the cancellation button requires an early technical, design, and legal review of existing online offerings. In particular, the placement and labeling of the button carry risks of warnings and liability if the legal requirements are not consistently implemented. Experience with the cancellation button shows that courts and authorities strictly interpret the requirements for clarity and findability.
In addition, changes to the cancellation policy must be prepared in a timely manner. This often involves amending the Terms and Conditions, any separate cancellation policies, email texts, and, in some cases, printed cancellation policies as well.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.