- within Consumer Protection topic(s)
- in European Union
The European Directive 2023/2673 introduces new framework requirements for online merchants which EU member states must implement into national law by June 19, 2026. To comply with this requirement, Germany has adopted the Act Amending Consumer Contract Law and Insurance Contract Law which will enter into force on the same day.
Key Element: Electronic Withdrawal Function
The act introduces an electronic withdrawal function (withdrawal button) for contracts concluded via an online interface for which a right of withdrawal is granted under Sections 355 et seq. BGB. This aims to ensure that consumers can opt out of an online contract as easily as they can opt into it. Contracts for which no statutory right of withdrawal exists (e.g., contracts for bespoke goods, perishable goods, or sealed hygiene products) are not subject to this requirement.
Legal Design and Scope of Application
The new legislation aims to provide consumers with a simple, standardized way to withdraw from contracts in electronic commerce. The electronic withdrawal function must be set up as follows:
- Design of the Withdrawal Button: There needs to be an electronic button for the customer to withdraw from the contract, and this button must be labelled legibly with the words “withdraw from contract here” or an unambiguous equivalent. It must be continuously available throughout the withdrawal period, prominently displayed, and easily accessible to the consumer. This can be achieved through a permanent button on the website or through a log-in or customer area. If integrated into the customer area, consumers should be able to access the button without unnecessary hurdles and during a current withdrawal period.
- Entry or Confirmation of Relevant Data: The electronic withdrawal function must allow the customer to provide or confirm his or her name, contract details, and preferred means of communication. Where multiple contracts exist simultaneously, the consumer must be able to clearly distinguish which contract (or which parts of the contract) the withdrawal relates to — for example, through a selection option in an order overview.
- Confirmation and Submission of the Notice of Withdrawal: After the opportunity to change or confirm relevant data, a clearly labelled confirmation function must be provided, bearing the words “confirm withdrawal” or an unambiguous equivalent. A withdrawal is considered timely if the statement is submitted via the withdrawal function before the expiration of the withdrawal period.
- Confirmation of Receipt: Once the consumer activates the confirmation function, the merchant must send the consumer a confirmation of receipt on a durable medium (e.g., by email) without undue delay. This confirmation must include the content of the withdrawal statement and the date and time of its receipt.
Challenges in Implementation
The introduction of the withdrawal button entails technical and data protection requirements. Attributing a contract to a specific customer requires processing certain contract and customer data in a manner compliant with the EU General Data Protection Regulation (GDPR). This raises considerations regarding data accuracy and compatibility with applicable data protection laws.
Businesses will need to address not only the technical prerequisites for implementing the withdrawal button but also appropriate measures for data security and error prevention.
June 19, 2026, Effective Date
Businesses that offer online contracts with EU consumers should assess whether the withdrawal button requirement applies to them and, if so, initiate implementation and adapt their systems accordingly.
Failure to comply with the new requirements by June 19, 2026, may result in cease-and-desist actions under the Unfair Trades Act (UWG) and/or fines of up to two million Euros or 4% of annual turnover.
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.
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