Mandatory cancellation button for online shops - effective June 2026

Starting on June 19, 2026, retailers will be legally required to provide a cancellation button for all contracts concluded via the Internet. This means online shops will have to provide their customers with the technical means to cancel a contract with just a few clicks. Section 356a, a new law within the German Civil Code (BGB), introduces the electronic contract cancellation function. It follows EU Directive 2023/2673 and is a core component of the draft law ‘Amending consumer contract and insurance contract law and amending treatment contract law’, which was debated and passed by the German parliament in December 2025. The new law is very similar to Section 312k BGB, which requires a termination button for continuous e-commerce contractual relationships (such as gym memberships, streaming services or mobile phone contracts) and has been in effect since July 2022.

How the cancellation button must be implemented: Section 356a BGB specifies a two-stage design of the digital cancellation process.

1. The cancellation button must be labelled ‘Vertrag widerrufen’ (‘cancel contract’ or similar wording). It must be easy to locate on the online user interface and available throughout the entire cancellation period. 
2. After clicking this button, the consumer must be redirected to a confirmation page where they can enter their contact information and contract details. The cancellation declaration should then be submitted by clicking a second button, which must also be clearly visible and labelled ‘Widerruf bestätigen’ (as in ‘confirm cancellation’).

Cancelling should be as easy as purchasing 

With the introduction of a cancellation button, European legislators are pursuing the goal of simplifying the reversal of online contracts in the context of consumer protection. A consumer should be able to declare their intention to exercise their right of cancellation (Widerrufsrecht) just as easily as they could declare their intention to commit themselves to the contract in the first place without being hindered by complicated menus or confusing website designs from doing so. The obligation to provide a button for contract cancellation applies to all distance contracts concluded via an online user interface. ‘Online user interface’ is understood to mean all software, i.e. websites, programmes and mobile apps. Regarding the contract’s content, the law applies to all consumer contracts for goods, services and financial services.

E-commerce retailers that do not yet have such a button must make significant technical and organisational adjustments in order to comply with the new regulation. Violations can result in fines of up to €50,000; for large companies, up to four per cent of annual turnover. Consequently, it is crucial for online retailers to prepare for this regulation and implement the digital cancellation function correctly.