Developments in the Online Termination Process of Consumer Contracts – Requirements for Companies and Design Options
Since the introduction of new consumer protection regulations, companies have an increased obligation to present digital termination options to customers in a user-friendly and accessible manner. The recent decision of the Higher Regional Court (OLG) Düsseldorf dated May 16, 2024 (Case No. 20 U 323/22, as of 28.05.2024, not yet legally binding; Source: https://urteile.news/OLG-Duesseldorf_20-UKI-323_Online-Kuendigungsprozess-von-Verbrauchervertraegen-soll-moeglichst-einfach-sein~N34012) provides important guidelines for companies, investors, and other market participants with digital-based consumer contract models.
Legal Foundations and Intentions of the Online Termination Button
With the “Law for Fair Consumer Contracts” already passed in 2022, the legislator paved the way for accessible and transparent contract termination. According to § 312k of the German Civil Code (BGB), companies offering consumer contracts in electronic commerce are required to provide a termination option via a so-called termination button. The aim is to ensure a balanced contractual relationship by removing barriers to terminating ongoing obligations in the digital environment.
Requirements for the Design of Digital Termination Processes
Usability, Findability, and Accessibility
According to the OLG Düsseldorf’s requirements, the termination button must be easily findable by consumers with minimal effort and usable without special knowledge or detours. The functionality must be directly connected to the termination process, so that no distracting or delaying steps may be interposed. This explicitly includes refraining from advertising inserts, surveys, or “retention offers” before the actual termination step.
Transparency and Step-by-Step Procedure
Companies must ensure that every step in the digital termination process is designed with sufficient transparency. Clarification questions regarding identification or the termination request are permitted but must not complicate the termination or unnecessarily prolong the procedure. From the OLG’s perspective, the focus is on a streamlined, intuitively operable process containing all information required for an effective receipt of the termination.
Disputed Issues and Entrepreneurial Design Options
Problematic Nature of Confirmations and Multi-Factor Processes
The decision of the OLG Düsseldorf also addresses practical questions of doubt, such as the staged requirement for termination confirmations or the admissibility of additional verification steps. An over-obligatory customer authentication—such as additional invoice numbers or personal identification—was critically evaluated if it exceeds user-friendliness. Such additional steps are only acceptable insofar as they are strictly necessary for security or abuse prevention and do not contradict the regulation’s objective.
Consequences of Violations and Competition Law Implications
Violations of the obligations under § 312k BGB can lead among other things to warnings issued by competitors, associations, or consumer protection organizations. The OLG Düsseldorf confirms in its decision that significant obstacles in the digital termination process are not merely technical-organizational deficiencies but constitute an interference with the market behavior protected by regulations. Avoiding such risks is of considerable economic importance for companies.
Outlook: Need for Design and Review for Companies
The judicial statements concretize the requirements for digital termination processes significantly. Especially for providers operating nationally and internationally, there is an ongoing necessity for review. The legal classification remains preliminary given the possible review of the decision by the Federal Court of Justice (BGH). The presumption of innocence and the principle of procedural openness must be observed.
Companies, investors, and those responsible thus face the demanding task of continuously adapting their digital contract models to the evolving legal situation. Should specific consulting needs arise, interested parties can find individual access to support in the context of digital contract processes and their legally compliant design under the offering for Legal Advice in Competition Law.
