German Federal Court of Justice strengthens online cancellation rights

A recent ruling by the German Federal Court of Justice (BGH) has strengthened consumer rights regarding the cancellation of online contracts. The court determined that the confirmation page used during an online cancellation process must serve the sole purpose of processing the cancellation.

In a specific case involving a gym contract, the court found it unlawful for companies to use the cancellation confirmation page to present alternative offers, such as suggesting that a customer pause their membership instead of canceling. According to the ruling, this page should only be used to collect necessary information and submit the declaration.

Under Section 312k of the German Civil Code, companies that allow the conclusion of paid contracts online must also provide a simple online cancellation option. This requires an easily accessible and clearly labeled cancellation button, such as ‘Cancel contracts here’. Following the submission, providers are required to electronically confirm the details, including the date, time, and the specific point at which the contract ends.