Digital contracts – Consumer protection – Designing web processes with legal certainty
What many online shops (still) do wrong
Digital benefits, free deliveries, bonus points: More and more shops are offering additional packages that customers can book for a one-off fee. These models often run for twelve months, end automatically – and are popular with consumers.
However, there is always one problem: there is no cancellation option. The assumption behind this: “The contract ends anyway.” But this can be legally problematic and can quickly become a risk in practice.
Background
Since 1 July 2022, companies that conclude online contracts with consumers are obliged to provide a so-called cancellation button on their website. This requirement is based on Section 312k of the German Civil Code (BGB) and applies to e-commerce contracts that establish a continuing obligation.
The aim of the legislator is to protect consumers: While the conclusion of digital contracts is often possible with just a few clicks, the cancellation of such contracts has often been made more difficult in the past by cumbersome or non-transparent processes – such as hidden links, compulsory registration or cumbersome contact forms.
This should change with the introduction of the cancellation button. The legal requirement is clear: cancelling the contract must be just as easy as concluding it.
A two-stage procedure is therefore envisaged – via two clearly labelled buttons: “Cancel contracts here” and “Cancel now”.
For a long time, however, it was disputed whether fixed-term contracts with a one-off payment were also covered by this obligation. The typical case: a benefits programme that offers discounts for twelve months and ends automatically. In this case, it was often assumed that the lack of a continuous payment obligation on the part of the consumer meant that there was no continuing obligation – and therefore no obligation to use the cancellation button.
What the BGH has now clarified
The Federal Court of Justice (judgement of 22 May 2025, I ZR 161/24) has now recently ruled: Even in the case of automatically ending benefit programmes with a one-off payment, there must be a cancellation button on the website if the company provides permanent benefits during the term.
Specifically, it concerned the advantage programme. For €9.90, customers receive benefits such as free shipping, double points credits and special discounts for twelve months. The programme ends automatically and there was no option to cancel. The Federation of German Consumer Organisations sued – with success.
What does this mean for online shops?
Many online shops now offer additional packages or memberships with a fixed end date – often for a one-off fee. This applies, for example:
- Benefit programmes (e.g. free shipping models, discount clubs, loyalty point systems)
- Premium memberships with additional digital services
- Express access, sustainability options or logistics upgrades
If the cancellation button is missing from such offers, this is a violation of Section 312k BGB. This may not only result in warnings from consumer associations, but may also give rise to an immediate right of cancellation for customers.
What companies should check now
Companies should critically scrutinise their digital contract models in light of the BGH’s new case law:
- Is a recurring performance obligation of the company provided over several months – for example through benefits, points or shipping privileges?
- Is the order placed online via the website?
- Is there no two-stage cancellation option that meets the requirements of Section 312k BGB?
Then there is an urgent need for action.
Design obligations at a glance
In order for the cancellation button to meet the requirements of Section 312k BGB, it is not enough to place a link with the word “Cancellation” somewhere. The law and case law place clear requirements on positioning, labelling and procedure.
The most important points at a glance:
- The first button (“Cancel contracts here”) must be easy to find and clearly labelled.
- The second button (“Cancel now”) must allow cancellation without further hurdles or mandatory information.
- Mandatory logins, hidden menus, distracting pop-ups or requests for reasons are not permitted.
- Cancellation must also be possible if the contract ends automatically – there must be an option to cancel at any time.
Conclusion
The BGH has significantly extended the scope of application of the cancellation button. In future, it is clear that fixed-term contract models with a one-off payment can also constitute a continuing obligation – with all the legal consequences.
Companies that offer additional digital services should urgently review existing models and processes on their website. There is a fine line between a convenient benefits package and legal risk – and it is now clearly defined.
We support you in the legally compliant design of online contracts and assist you in the implementation of the button obligation in accordance with Section 312k BGB.