Authored by: Dr. Axel Spies
A new EU requirement will soon require many businesses to provide an electronic withdrawal function for online consumer contracts. Online businesses selling to consumers in the European Union should review their websites and customer journeys now.
The requirement stems from Directive (EU) 2023/2673 (especially a new Art. 11a), which amended the Consumer Rights Directive. If a consumer can enter into a contract (“online distance contract concluded by the means of an online interface”), the consumer should be able to withdraw from that contract online as well. All EU Member States were required to adopt implementing legislation by December 19, 2025. The new rules generally apply from June 19, 2026 (Art. 2(1)).
The text of the Directive is available here: https://eur-lex.europa.eu/eli/dir/2023/2673/oj
The obligation applies EU-wide. The details are implemented through national laws. Germany's implementation law (new § 356a Civil Code – BGB) provides a useful example of what businesses should expect. Other Member States have also started implementing the Directive, although the legislative process is still ongoing in some jurisdictions.
Why U.S. Companies Are Affected
Many U.S. companies assume that EU consumer laws apply only to businesses located in Europe. That is often not the case. EU consumer protection rules can apply when a business targets EU consumers. Common indicators include shipping to EU countries, offering local-language websites, accepting orders from EU consumers, displaying prices in local currencies, or conducting country-specific marketing. As a result, U.S.-based e-commerce companies, SaaS providers, subscription businesses, online marketplaces, fintech companies, and digital service providers may be subject to the new requirements even without a physical presence in Europe.
What Will Be Required?
The Directive does not create a new right of withdrawal. It changes how existing withdrawal rights can be exercised online. For contracts concluded through a website, app, or other online interface, businesses may be required to provide an electronic withdrawal mechanism that is continuously available and easy to find.
The mechanism must generally include:
- A prominent and clearly labeled withdrawal button, such as "Withdraw from Contract" or equivalent wording.
- Continuous availability.
- A two-step withdrawal process.
- No unnecessary questions.
- No requirement to state reasons for the withdrawal.
- An automated confirmation of receipt on a durable medium, typically by email.
- Accessibility for users with disabilities.
- Technical accessibility across devices and platforms.
Consumers must be able to identify the contract, submit the withdrawal request electronically, and receive confirmation that the request has been received.
More Than a Website Change
Many businesses will need more than a new button. Customer account functions, order management systems, customer service workflows, and recordkeeping processes may need to be updated. Any incoming withdrawal requests must be transmitted correctly. Internal systems must record them. Confirmation emails must be generated automatically. The process must work on websites and mobile applications. Businesses should also review withdrawal notices, website designs, consumer disclosures, and terms of service.
Questions for Businesses
The new rules raise various practical and legal questions:
- Does the business need a withdrawal button at all?
- Which products and services are covered?
- Where should the button be placed?
- What wording should be used?
- How should the two-step process be designed?
- What information can be requested from consumers?
- How should confirmation emails be generated and stored?
- How should the process be integrated into existing systems?
- How can accessibility requirements be met?
- What happens if a withdrawal request is not received, recorded, or processed?
The last point deserves particular attention. The legal obligation does not end with adding a button to a website. The withdrawal mechanism must work in practice. Consumers must be able to submit a withdrawal request without technical barriers. Businesses must be able to receive, process, and document that request. Problems can arise if a request is not transmitted, is not linked to the correct account, is not recorded in internal systems, or if the confirmation email is not sent. Such failures may lead to disputes over whether a consumer effectively exercised the right of withdrawal. They may also affect refund obligations, evidentiary issues, and the calculation of withdrawal periods.
Companies should therefore review both the legal requirements and the technical implementation. Questions such as whether a withdrawal button is required, where it must be placed, how the process should operate, and how its functionality can be documented often require a detailed review of the applicable national implementation laws.
