According to the German government, cancelling an online purchase should be as easy as placing an order. The Ministry of Justice has announced a cancellation button for online purchases of goods, services, and financial products. The perpetual right of withdrawal is being abolished.
The German parliament is reviewing the proposal from the Ministry, as reported by news agency DPA. “The cancellation function must be clearly marked with ‘Cancel Contract’ or another equivalent, unambiguous phrase”, the draft law states. “The function must be continuously available throughout the withdrawal period, prominently displayed, and easily accessible to the consumer on the online user interface.”
‘Cancel with one click’
“Canceling must be as simple as ordering online: with just one click”, said Stefanie Hubig, Federal Minister of Justice from the SPD. She announced the cancellation button this week in the German capital, Berlin. “With the withdrawal button, we strengthen protection against contracts that people actually do not want”, Hubig added.
The government aims to enhance consumer protection
In this context, the cabinet also announced additional measures in the interest of German consumers. For example, they should be able to request direct personal contact with providers of financial services via online tools, and these providers will be subject to stricter information obligations.
Relaxations for businesses
In return, several relaxations for businesses are upcoming: according to the proposal, which is a translation of European regulations, customers will no longer be able to drag out the process indefinitely if a provider has not fulfilled its legally required information obligations. In the future, this will be possible only for up to twelve months and fourteen days after concluding an agreement, provided the customer has been informed about the right of withdrawal. Unlike now, consumers will no longer be able to demand that companies provide contract terms on paper; this obligation has been removed from the draft law.
‘Non-existent problem’
From 19 June 2026, traders in the EU will be required to provide an online withdrawal function for distance contracts concluded by means of an online interface, despite the objections of European advocacy groups representing retail and ecommerce businesses. They stated in a letter at the beginning of 2023: “There is no evidence of a problem for consumers to exercise the right of withdrawal in online commerce that would justify the introduction of a mandatory withdrawal button.”
European entrepreneurs are not happy
When the European Parliament approved the right of withdrawal, bevh, the advocate for entrepreneurs in German ecommerce, and Initiative Online Print stated there are “only losers”.
