December 22, 2025, 11:34 am | Read time: 4 minutes
Online retailers must prepare for an important change next year. Starting June 19, 2026, the so-called cancellation button will become mandatory. This aims to make canceling contracts online as easy as entering into them.
Many things are easier and faster when done online. This includes shopping—just a few clicks to fill the cart, proceed to the virtual checkout, and then wait for delivery. However, in the rush, you might make the wrong decision. You might accidentally select the wrong item or simply regret the impulse purchase. A simple cancellation button for online shopping would be a practical way to reverse the order. Fortunately, such a button is now planned.
Cancellation Button for Online Shopping Aims to Protect Customers
With the implementation of EU Directive 2023/2673, all online shops and platforms that enter into contracts with consumers for goods, services, or financial products must provide a clearly visible cancellation button starting June 19, 2026. The goal is to make contract cancellation as straightforward as contract formation—with just a few clicks.
The button must be available on websites or apps throughout the statutory cancellation period of 14 days. After clicking, a two-step process should begin: first, selecting and identifying the contract to be canceled, then final confirmation. An automatic confirmation email is mandatory.
The regulation applies exclusively to B2C transactions and not to purely business transactions. Exceptions include contracts for custom-made products, perishable goods, or sealed items that cannot be returned for hygiene reasons.
New Button Was Long Planned
The introduction of the cancellation button had been planned for some time. Initial drafts were discussed in the summer of 2025, and the legislation was passed in September. Federal Minister of Justice and Consumer Protection Stefanie Hubig (SPD) is a key supporter of the new initiative to significantly simplify online cancellations.
The new button is intended to complement the existing cancellation button for services and is seen as a response to the simplified process of entering into contracts of any kind online. “Contract formation with a click is already standard in many cases today. The same must apply to cancellations,” Hubig is quoted as saying. The initiative aims to better protect consumers from contracts they do not actually want. The draft follows new EU guidelines on consumer and insurance contracts.
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Technical and Legal Challenges
Implementation is particularly challenging because shop systems must differentiate between various cancellation periods—depending on the product, contract date, or customer identity. Although the legislator states that a general provision of the button is sufficient, some legal experts see a risk that this could be interpreted as a voluntary extension of the cancellation right.
Additionally, retailers may only request necessary data, such as name, contract ID, and communication method. The General Data Protection Regulation mandates data minimization. A reason for cancellation must not be requested—at least not mandatorily.
The technical integration must be barrier-free, visible, and functional. Placement in the footer is permissible, provided the button is clearly highlighted. Hidden links or restricting access to logged-in users are insufficient and pose risks of warnings. In general, the cancellation button must be “easily readable.” It must either state “Cancel Contract” or another equivalent phrase. Additionally, the feature must be “constantly available, prominently placed, and easily accessible to the consumer during the cancellation period on the online user interface.”
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Eternal Cancellation Right with Restrictions
The cancellation button for online shopping is not the only innovation in the draft law. The obligation to provide contract documents in paper form will also be eliminated in the future. Financial services must be explained in clear language, and providers must offer personal contact options such as chat or phone for online transactions.
The so-called eternal cancellation right will also be restricted. The current statutory cancellation period is 14 days, which companies must inform consumers about. However, in certain cases, it is currently possible to cancel a contract years later, even if the company has informed the consumer about the period.
This can happen, for example, with minor violations of the prescribed information obligation. In such cases, the 14-day cancellation period does not even begin. The new law aims to close this loophole. For contracts for financial services, consumers will in the future have a maximum of twelve months and 14 days to cancel, provided they have been informed about it. For life insurance, the new period will be 24 months and 30 days.