Internet contracts: online terminations still difficult | tagesschau.de

Status: 01/16/2023 4:40 p.m

Contracts that can be concluded online have actually had to be able to be terminated online since July. But there are still providers who do not meet this obligation, according to consumer advocates.

Since last July, companies that offer online contracts have had to offer a so-called termination button on their websites, with which the contract can be terminated with a click of the mouse. This applies, for example, to subscriptions to newspapers or streaming services, but also to leasing, mobile phone and electricity supply contracts.

However, in practice, online cancellations continue to cause problems, according to the Federation of Consumer Organizations (vzbv). Consumers could encounter significant obstacles when they want to terminate a fixed-term contract online. According to a current study by the vzbv, 72 percent of the almost 3,000 websites examined are not implemented in accordance with the law.

Absent or well hidden

With some providers, the cancellation buttons are missing or are difficult to find, according to the association. In other cases, it is not possible to terminate the contractual relationship using the designated termination button. “It is unacceptable that not all companies have implemented the termination button on time,” said vzbv board member Ramona Pop. “Companies had enough time to deal with the new legal situation and its effects on practice.” According to the vzbv, the consumer associations have so far sent warnings to 152 companies due to clear violations of the law regarding the cancellation button.

The cancellation button, which came into force on July 1, 2022, is mandatory for almost all continuing obligations that can be concluded online. It also applies to contracts concluded before this date. The cancellation button is also mandatory for contracts concluded in shops if these contracts can also be concluded online. The Cancellation button for contracts for which the legislator has stricter requirements for cancellation, such as employment and rental contracts or contracts for financial services.

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