In a recent ruling (I ZR 161/24, 22 May 2025), the German Federal Court of Justice (BGH) clarified the scope of § 312k German Civil Code (BGB) regarding the obligation to provide a 'cancellation button' on websites if traders enable consumers to conclude continuing performance contracts (Dauerschuldverhältnis) via their website.
The case involved a loyalty program offering consumers benefits in exchange for a one-time payment and ending automatically after twelve months. The online-shop operator did not provide such a cancellation button arguing that these agreements cannot be considered a contract of continuing performance.
However, the BGH found that the contractual relationship constitutes a contract of continuing performance due to the ongoing performance obligations of the trader throughout the loyalty program term (awarding bonus points, free shipping). The form of the consumers' payment–whether lump sum or recuring–was on the other hand considered not relevant for this assessment. Therefore, traders enabling consumers to conclude contracts of continuing performance have to provide a cancellation button, even in case of fixed term contracts and one-time payments.
This ruling clarifies the scope of § 312k BGB and establishes more stringent compliance obligations for online traders offering consumers to conclude contracts of continuing performance, including those of fixed term and payable by a one-time payment.
Apart from the obligation to provide a cancellation button, from 19 June 2026, traders will be obliged to ensure that also a withdrawal button is permanently available during the statutory withdrawal period for distance consumer contracts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
