Anyone who signs a contract online usually does so with a single click. However, solving it again in everyday life is often like a digital scavenger hunt for email addresses or hidden forms. This will end tomorrow, because from June 19th the “cancellation button” will be mandatory on websites and apps. The legislator’s stated goal: In the future, online cancellation must be just as quick and easy as the purchase itself.
The new regulation affects almost all online trade in the B2C sector, i.e. transactions between companies and private individuals. Whether it’s a large shipping giant, a small specialist shop, a streaming provider or an online course platform – anyone who offers contracts online must provide the function from tomorrow. In marketplaces such as Amazon and Ebay, responsibility for the technical implementation lies with the respective platform operator.
The button is mandatory wherever consumers have a legal right of withdrawal anyway. It therefore applies to classic online purchases of goods, services and digital goods such as streaming subscriptions, as well as financial services purchased online such as loans or insurance.
Revocation in two stages
To avoid accidental cancellations in passing, the law requires a two-step process. Starting tomorrow, the website must have a clearly visible button with a clear message such as “Cancel contract”. One click leads to an overview page where consumers only have to enter the most necessary data for assignment such as name, order number and email address. The retailer may not request a reason for cancellation. A final click on a confirmation button completes the process, after which the retailer must immediately and automatically confirm receipt by email.
The Federal Association of Consumer Organizations emphasizes that the new regulation will bring more convenience, security and transparency for consumers. However, this does not change the actual right of withdrawal. Revocation is still only possible within the statutory period. This is usually 14 days after the contract has been concluded or the ordered goods have been received.
According to a representative YouGov survey, 79 percent think that a mandatory cancellation button makes it easier to cancel online purchases. Only 8 percent do not see it that way, 13 percent did not provide any information. One in three people say that an easily accessible cancellation button increases their willingness to shop online. YouGov surveyed 2,071 people aged 18 and over in Germany from June 8th to 10th.
Criticism from the associations
Industry associations, however, criticize the mandatory introduction. “Cancellation and returns in online trading are already possible without any problems and extremely easily with the providers based here,” says the general manager of the German trade association, Stefan Genth. The right of withdrawal has long been known. Genth criticizes that the new requirements are associated with considerable bureaucratic burdens, especially for smaller companies.
The Federal Association of E-Commerce and Mail Order also voices criticism. Many retailers are already allowing longer return periods than required, says managing director Alien Mulyk. The new button will cause confusion and confusion among consumers. “This significantly increases the risk of warnings.” This would result in further risks. Theoretically, a bot could place orders en masse and then revoke them. Operators would now have to take precautions against this.
The Federal Association of Online Trade considers a simplification of the right of withdrawal to be unnecessary. This is already being exploited frequently, says Managing Director Heidi Kneller-Gronen. “New shoes are ordered and the old, worn-out ones are sent back as a cancellation. Expensive fully automatic coffee machines are used excessively for the big party and are canceled after the party.” The damage to retailers is high. The association calls for clear limits on abuse.