One click to withdraw? Why the new withdrawal button changes online contracts

The year 2026 introduces the withdrawal button as a mandatory standard in online commerce from June onward. What may initially appear to be a minor technical adjustment will in fact have far-reaching legal and commercial consequences for busines compliant processes, its technical implementation, and the day-to-day handling of consumer withdrawals. Companies that take early action can not only reduce legal risks but also establish transparent, customer-friendly processes. 

Background and legislative process

The new bill implements the requirements of EU Directive (EU) 2023/2673. At the heart of the reform is the introduction of an electronic withdrawal function (the “withdrawal button”) for distance contracts concluded online. The German Bundestag adopted the draft implementation act on 19 December 2025. The obligation to provide a withdrawal button will apply from 19 June 2026.

Scope of application

The new obligation set out in section 356a of the German Civil Code (BGB) applies to all distance contracts concluded via an online user interface, including websites and apps. The requirements cover contracts for goods and services as well as financial services. However, a statutory right of withdrawalses that conclude contracts digitally. The new button impacts core elements of legally does not apply in all cases. Companies should therefore carefully assess, on a case-by-case basis, whether any statutory exceptions apply.

Design and placement requirements

The withdrawal button must be 

• easily accessible,
• prominently placed,
• continuously available throughout the entire withdrawal period, and
• labelled 'Withdraw from contract' or with equivalent wording.

Consumers must not be required to register, authenticate, or complete any other preliminary steps in order to access the withdrawal function. Where a contract was not concluded via a specific application, downloading that application must not be a prerequisite for accessing the withdrawal function.

In addition, the withdrawal function must allow consumers to submit their withdrawal declarations electronically. It must enable consumers to provide or confirm their name, sufficient information to identify the contract (or the relevant part of the contract), and an electronic means of communication for receiving an acknowledgement of receipt.

Distinction from the cancellation button

The withdrawal button must be clearly distinguishable from the existing cancellation button pursuant to section 312k of the German Civil Code (BGB). While withdrawal leads to the reversal of the contract, termination leaves the consumer bound by the contract until the termination takes effect.

Information obligations

Prior to concluding a contract, companies must inform consumers about the existence and placement of the withdrawal button.

Need for adjustments to the withdrawal notice and privacy policy

Withdrawal instructions must be updated to reference the new online withdrawal function. The privacy policy must also be revised, particularly regarding the data collected and how it is processed.

Legal consequences of non-compliance

Failure to implement the withdrawal button correctly can result in multiple significant risks:

• Warning and enforcement actions: Qualified consumer protection associations and competitors may issue warnings and claims for injunctive relief, potentially causing reputational damage and increasing the risk of class actions.
• Extended withdrawal periods: If consumers are not properly informed about the withdrawal function and where it is located, the statutory withdrawal period is extended from 14 days to 12 months and 14 days. Consumers can therefore exercise their withdrawal rights for a much longer period.
• Regulatory fines: Failure to implement the withdrawal button can be sanctioned with fines of up to EUR 50,000, or with up to 4% of the annual turnover.

Recommended actions:

E-commerce companies should begin the technical and legal implementation process early to comply with the new requirements by June 2026 and minimize legal risks. Implementation requires IT-related adjustments as well as a comprehensive review of all legal texts and information obligations.

Conclusion:

The introduction of a withdrawal button significantly simplifies the exercise of withdrawal rights for consumers in online contracts. However, it also entails substantial implementation efforts and new compliance risks for online retailers. Early preparation is crucial.