Key Facts

Cancellation button has been mandatory for companies in Germany since July 1, 2022.
The button is intended to reduce the effort involved in online cancellations and minimize deterrents.
Implementation rate is only 25-30%, many providers are not yet compliant.
Consumer advocates warn of lack of implementation in over 150 cases.
Cancellation button applies to almost all continuing obligations, e.g. subscription or mobile phone contracts.
requirements require a clearly designed button for termination.
Restrictions do not apply to rental and employment contracts or financial services.

Since July 1, 2022, companies operating in Germany (not only resident!!) must offer the so-called cancellation button on their websites. This is intended to reduce the effort and disincentive to terminate contracts online.

Many providers who offer contracts via the Internet are unlikely to have heard of this new obligation and have therefore not implemented it. In the meantime, however, consumer advocates are issuing warnings about the lack of implementation. In total, this has probably already been done in over 150 cases, and this is probably just the beginning. According to reports, the implementation rate is just 25-30%. Even hidden cancellation buttons or those with impermissible labeling are not sufficient to meet the legal requirements.

This is probably only the beginning, because in the meantime violations can be easily reported to the federal association.

The termination button, which came into force on July 01, 2022, is mandatory for almost all continuing obligations. These include, for example, subscription, leasing or mobile communications contracts. Companies that offer contracts online must offer the option of being able to terminate contracts online as well. The cancellation button also applies to contracts concluded before July 1, 2022. It is also mandatory for contracts concluded in stores if they can also be concluded online.

Only in the case of contracts to which stricter requirements for termination apply by law, such as rental and employment contracts or contracts for financial services, do the amendments to the law not apply.

The legal requirements specify that this must be a clearly designed button. The IHK has created a good overview on this page.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

Tags: Button Button Consumer internet Kündigung Laws service Verträge