Cancel button in online retail:
New requirement for companies starting in 2026
Starting June 19, 2026, many companies will be required to provide a digital cancellation feature. The so-called "cancel button" is intended to allow consumers to cancel online contracts quickly and easily. For e-commerce businesses and digital service providers, this means that existing processes and technical solutions should be reviewed in a timely manner and adjusted as necessary.
What is a "Cancel" button?
The cancellation button is an electronic feature on a website or platform that allows consumers to submit their cancellation notice online. The statutory right of cancellation, which is typically 14 days, remains unchanged. The button simply provides an additional way to submit a cancellation notice. The aim of this provision is to make canceling a contract just as easy as entering into one and to avoid unnecessary obstacles.
What is a "Cancel" button?
The cancellation button is an electronic feature on a website or platform that allows consumers to submit their cancellation notice online. The statutory right of cancellation, which is typically 14 days, remains unchanged. The button simply provides an additional way to submit a cancellation notice. The aim of this provision is to make canceling a contract just as easy as entering into one and to avoid unnecessary obstacles.
Who is required to set up a "Cancel" button?
This generally applies to companies that:
- sell goods or services online to consumers,
- offer digital products or subscriptions, or
- enter into contracts via websites, online stores, or platforms.
A cancellation button is generally not required for:
- Offers directed exclusively at businesses (B2B offers) or
- Contracts for which there is no statutory right of withdrawal.
This generally applies to companies that:
- sell goods or services online to consumers,
- offer digital products or subscriptions, or
- enter into contracts via websites, online stores, or platforms.
A cancellation button is generally not required for:
- Offers directed exclusively at businesses (B2B offers) or
- Contracts for which there is no statutory right of withdrawal.
In practice, the button usually leads to a form that asks only for necessary information, such as your name or order number. Once the cancellation notice is received, the business must confirm it immediately.
Requirements for the cancellation button
The cancellation button must be designed so that consumers can easily find and use it.
Key requirements are:
- clear and understandable labeling (e.g., “Cancel contract”)
- easy to find on the website
- Availability throughout the entire cancellation period
- no unnecessary hurdles or complicated procedures
In practice, the button usually leads to a form that asks only for necessary information, such as your name or order number. Once the cancellation is received, the business must confirm it immediately.
Cancellation button for sales made via social media
This obligation may also apply to contracts that are initiated or concluded via social media channels. The decisive factor is not the sales channel, but whether a distance contract with consumers is involved.
This can be relevant, for example, in the case of digital products, online courses, coaching services, or sales through so-called “link-in-bio” shops. Companies should therefore also include their social media sales channels in their legal review.
Risks associated with a missing or malfunctioning "Cancel" button
Failure to comply or incorrect implementation may result in legal consequences. These include, in particular, warnings under competition law, potential regulatory actions, and uncertainties regarding contract execution.
Experience shows that violations are frequently prosecuted, particularly in the e-commerce sector, so timely implementation is recommended.
How the Cancelationl Button 2026 Works
Click on
"Cancel the contract"
The button is always visible and clearly labeled.
Entering order details
e.g., email address or order number
Submission & Review
The cancellation will be sent automatically
Confirmation
via email
Legally valid access to the business
Risks associated with a missing or malfunctioning "Cancel" button
Failure to comply or incorrect implementation may result in legal consequences. These include, in particular, warnings under competition law, potential regulatory actions, and uncertainties regarding contract execution.
Experience shows that violations are frequently prosecuted, particularly in the e-commerce sector, so timely implementation is recommended.
What Companies Should Do Now
In light of the upcoming legal requirements, it is advisable to review your own offerings and processes at an early stage. This includes, in particular, determining whether the services offered are subject to the right of withdrawal, whether existing online store or website systems need to be adapted, and whether internal procedures for handling withdrawals are adequately established.
In many cases, a legal review is advisable to avoid risks and ensure that implementation is legally compliant.
Wording of the new Section 356a of the German Civil Code (BGB)
§ 356a
Electronic Cancellation Function for Distance Contracts
(1) In the case of distance contracts concluded via an online user interface, the business must ensure that the consumer can submit a notice of cancellation on the online user interface by using a cancellation function. The cancellation function must be clearly labeled with “Cancel Contract” or another equally unambiguous phrase. It must be continuously available on the online user interface throughout the cancellation period, prominently displayed, and easily accessible to the consumer.
(2) The cancellation function must enable the consumer to submit a notice of cancellation to the business operator and to readily provide or confirm the following information to the business operator in or with the notice of cancellation:
1. the consumer’s name,
2. details identifying the contract or the part of the contract that the consumer wishes to withdraw from,
3. details of the electronic means of communication through which a confirmation of receipt of the withdrawal is to be sent to the consumer.
(3) As soon as the consumer has provided or confirmed the information referred to in paragraph 2, the business must enable the consumer to transmit their notice of withdrawal and the information to the business via a confirmation function. This confirmation function must be clearly legible and labeled “Confirm Withdrawal” or another equally unambiguous phrase.
(4) Once the consumer has activated the confirmation function, the business must immediately send the consumer a confirmation of receipt on a durable medium that contains at least the content of the notice of withdrawal pursuant to paragraph 2, as well as the date and time of its receipt.
(5) The consumer’s notice of withdrawal shall be deemed to have been received by the business within the withdrawal period if the consumer has sent the notice of withdrawal in accordance with paragraph 3 via the withdrawal function before the expiration of that period
Conclusion
The cancellation button is becoming mandatory for many e-commerce businesses. Reviewing your processes early on helps you avoid risks and ensure that implementation is legally compliant.
We assist companies with questions regarding the cancellation button as well as legal requirements in e-commerce and social media law.