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Home Online retail

Cancellation buttons in focus: a recent ruling and its impact on online retail

8. February 2025
in Online retail
Reading Time: 4 mins read
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Key Facts
  • The ruling of the Cologne Higher Regional Court sheds light on the design of termination processes on the Internet for SaaS providers.
  • The cancel button must immediately lead to a confirmation page in accordance with Section 312k BGB.
  • Several intermediate steps in the termination process restrict consumers' freedom of choice.
  • Companies should regularly check their websites for transparency and user-friendliness in order to minimize legal risks.
  • The permanent visibility of the cancel button is crucial to avoid the risk of warnings.
  • Startups need comprehensive legal advice to minimize legal risks in websites and user interactions.
  • A legally compliant termination process is crucial for success in online retail.

I have already reported several times on the requirements for unsubscribe buttons. This topic is particularly important for SaaS providers and other online service providers. In this context, a recent ruling by the Higher Regional Court of Cologne is of particular interest, which takes a closer look at the design of termination processes on the internet. The ruling from January 10, 2025 concerns a legal dispute between a consumer association and a telecommunications company. The plaintiff had challenged the design of the termination process on the company’s website and claimed a violation of consumer protection regulations. In particular, it was objected that the termination button did not lead directly to a confirmation page, but only became accessible after several intermediate steps. This ruling underlines the importance of designing termination processes in such a way that warnings are avoided.

Content Hide
1. The legal requirements for cancelation buttons
2. Implications for online service providers: practical recommendations
3. Further information and resources
4. Conclusion: Dismissal-proof design of termination processes

The legal requirements for cancelation buttons

The ruling is based on the application of Section 312k (2) BGB, which states that a trader must ensure that consumers can submit a declaration to terminate a contract on the website via a clearly legible termination button. This button must be directly and easily accessible. The court argued that the step-by-step approach to the confirmation button, as practiced in this case, violates these regulations. The decision underlines the importance of designing termination processes that comply with legal requirements.

In accordance with Section 312k (2) sentence 3 BGB, the termination button must take the consumer directly to a confirmation page on which the consumer can provide the necessary information for termination and submit the termination using a confirmation button. Both buttons and the confirmation page must be permanently available and directly and easily accessible (Section 312k (2) sentence 4 BGB). According to the legal concept, the termination process is a two-stage process: First, the declaration of termination is submitted, and then the confirmation takes place via a corresponding button.

The judges emphasized that the requirements for the design of termination processes in online commerce are strict in order to protect consumers from unfair business practices. It was also noted that the use of intermediate steps can restrict consumers in their freedom of choice, as they do not know how many more requests will follow. This can lead to consumers being deterred from exercising their right to cancel. The legal concept stipulates that the request for the data required for identification must appear at the same time as the confirmation button. The confirmation page must be a uniform website on which the required information and the confirmation button are immediately visible.

The use of several intermediate steps, as practiced in this case, violates these requirements, as the confirmation button only appears after several queries have been run.

Implications for online service providers: practical recommendations

For SaaS providers and other online service providers, the ruling means that they must design their termination processes in such a way that consumers can go directly to the confirmation button without any unnecessary intermediate steps. This is not only a legal requirement, but also an important aspect of user-friendliness and building trust. Companies should regularly review their websites to ensure that they comply with legal requirements. A transparent and user-friendly design of the termination processes can help to strengthen user trust and minimize legal risks. It is also important that companies take consumer protection requirements into account in order to be successful in online commerce in the long term. By adapting their termination processes, companies can also increase their competitiveness. The permanent visibility of the termination button is crucial in order to avoid the risk of warnings.

Further information and resources

If you would like to delve deeper into the topic of termination buttons and the legal requirements, you can refer to the following articles:

– Cancellation button must be possible without logging in
– Cancellation assistants and consumer protection: Compliance with Section 312k BGB
– New ruling by Munich Regional Court: The case of the Sky cancel button and its significance

These articles offer you a comprehensive insight into the legal framework and practical tips for designing termination processes on the internet. They will help you to make your websites legally compliant and improve user-friendliness at the same time. With this knowledge, you can ensure that your online presence is not only legally compliant but also user-friendly – a decisive competitive advantage.

Conclusion: Dismissal-proof design of termination processes

The recent ruling by the Cologne Higher Regional Court underlines the importance of designing termination processes that comply with legal requirements and avoid warnings. Start-ups and established companies should adapt their websites accordingly in order to minimize legal risks and strengthen the trust of their users. A design that complies with legal requirements is crucial for success in online commerce and helps to avoid the risk of warnings. By adapting their notice processes, companies can also increase their competitiveness and be successful in online retail in the long term.

However, it is not only important for start-ups to have good contracts, but also to take advantage of comprehensive legal advice. This includes not only the design of termination processes, but also compliance with other legal regulations, such as data protection and consumer protection. Professional legal advice can help startups identify and minimize potential legal risks early on, which ultimately contributes to long-term success in the digital market. It is also crucial that startups design their entire digital presence, including websites and user interactions, to be legally compliant. Knowledge of the legal requirements is therefore essential in order to minimize legal risks and strengthen user trust.

 

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