The electronic withdrawal button is coming – what traders need to know

What will apply from June 2026?

The new Section 356a of the German Civil Code (BGB) requires companies to provide a two-step electronic withdrawal function from June 19, 2026, if they enable consumers to conclude online contracts. In future, consumers will be able to quickly and easily withdraw from contracts concluded on the internet.  This new regulation stems from EU Directive 2023/2673 amending the Consumer Rights Directive 2011/83/EU and repealing Directive 2002/65/EC on distance marketing of financial services. The aim of the EU legislator is to establish a "functioning and easily accessible" electronic withdrawal function throughout Europe so that contracts can be withdrawn from just as easily as they are concluded. The regulation applies not only to distance contracts for financial services, but also to online contracts for all goods and services for which a right of withdrawal is provided.

Similar to the termination button, which is already mandatory, online withdrawal must also be designed in several steps:

1. Traders must provide a prominent button on their website labeled " withdraw from contract here" or a similarly unambiguous phrase. This withdrawal button must be easily accessible at all times during the statutory withdrawal period.

2. When the consumer clicks on the withdrawal button, they must be redirected to a page where they can enter their name, the contract they wish to withdraw from, and their contact details in a structured form. This page must end with another button that is clearly labeled with the words "confirm withdrawal" or a similarly unambiguous phrase. By clicking on this button, the consumer submits their withdrawal declaration.

3. After the declaration of withdrawal has been submitted via the button, the trader must send the consumer an automated confirmation of receipt on a durable medium (e.g., email or PDF). The confirmation must contain information on the content, date, and time of receipt of the declaration of withdrawal.

As a necessary consequence, the information in the withdrawal policy must also be adapted. Appendix 1 to the German Introductory Code to the Civil Code (EGBGB) contains new instruction guidelines for this purpose.

A withdrawal declared using this procedure is legally considered to have been made within the withdrawal period as soon as it is sent within the withdrawal period, regardless of when it is read by the trader.
 

Technical and practical challenges in implementation

However, the implementation of these requirements poses a number of challenges for companies.

It is advisable to comply with the transparency requirements of the new regulations and not to hide the withdrawal button, but to place it in a clearly visible location, e.g., in the footer of the main website.

The draft bill requires that the withdrawal button be made available at all times and is easily accessible. It is not recommended that consumers first have to log in or authenticate themselves before the withdrawal button is displayed. Only if the original contract could only be concluded via an app or a customer account would it be permissible to link the withdrawal button to downloading the app or logging into the customer account. However, especially for orders placed as a guest, withdrawal must be guaranteed without prior login. This forces companies to make the function permanently visible to all website visitors, which can encourage abuse and be legally problematic.

It should also be noted that the right of withdrawal does not apply in all cases. Companies should therefore carefully check the legal exceptions to the right of withdrawal (Section 312g (2) BGB).

Furthermore, it remains unclear how contracts concluded via third-party platforms are to be handled - in this case, the trader is dependent on the technical cooperation of the platform operators. The is regulated possibility of partial withdrawal, meaning that traders must create their own solutions for this. Finally, there is no clear guideline on what data may be collected for contract identification, which requires a balance to be struck between legal certainty and data protection law.
 

What are the consequences of violating the new obligation?

If a company does not provide the withdrawal button or does not do so by 19 June 2026, it faces not only warnings based on unfair competition from associations or competitors, but also severe penalties: According to Art. 246e EGBGB, failure to provide the withdrawal button constitutes a violation of consumer interests (provided that it  a widespread or widespread violation with an EU dimension) and can be punished with a fine of up to €50,000 or 4% of annual turnover. However, the administrative offense can only be punished within the framework of a coordinated enforcement measure provided that authorities from different Member States cooperate. In addition, a consumer who has not been properly informed can invoke a continuing right of withdrawal - with potentially far-reaching consequences for contractual obligations and rescission.
 

Not to be confused: withdrawal button and termination button

The parallels between the withdrawal button and the termination button are obvious: both provisions require a highlighted button, an input mask, and digital confirmation. Both aim to lower digital barriers to exit. Therefore, it cannot be ruled out that the strict case law that exists on the cancellation button will also be applied to the withdrawal button.

However, the cancellation button only applies to continuing obligations (e.g., streaming services, subscriptions) that are terminated for the future (and not retroactively) by cancellation. The withdrawal button, on the other hand, applies to all types of distance contracts for which a right of withdrawal applies. withdrawal leads to the complete reversal of the contract. The two provisions therefore differ significantly in their scope of application and legal effect, even if they appear functionally similar.
 

What companies should do now

The new obligation applies to all traders that conclude consumer contracts via online user interfaces, such as web shops, customer portals, or comparison platforms. These companies should take the following steps as soon as possible, in any case before June 2026:

1. Review their contract processes: Which transactions are affected?
2. Adapt their online structure: Integrate buttons, forms, and confirmation functions.
3. Design automated confirmation of receipt in a legally compliant manner.
4. Revise information requirements (especially withdrawal instructions) and data protection notices.

The new Section 356a BGB marks a further step toward harmonized digital consumer protection across Europe. Those who delay implementation, risk not only warnings and high fines, but also ongoing withdrawal rights for their customers. We therefore advise you to start working on legally compliant implementation in good time.

About the authors

Christina Kufer is a Counsel in Fieldfisher's Berlin office and advises on Intellectual Property. Her expertise in the field of Intellectual Property includes Trademark, Competition, Copyright and Design Law as well as issues related to E-Commerce and Consumer Protection.

Sara Bandehzadeh is a Partner in Fieldfisher's Hamburg office and advises on all aspects of Corporate and Commercial Law, with a focus on Commercial and Distribution Law in recent years.

Silke Goschler is a Partner in Fieldfisher´s Munich office and advises on all legal issues for national and international companies in the areas of Commercial/Commercial Contract law.

Contributor to this insight: Jan Delius (Trainee)