Sky Germany: Termination button does not comply with legal requirements

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New requirements for digital cancellation buttons: Judgment against Sky Germany

Context of the legal amendments to cancellations in electronic commerce

Since July 2022, § 312k BGB has required companies to provide a function in the case of long-term obligations with consumers in electronic commerce that enables a simple and unambiguous cancellation. The legislator’s goal was and is to protect consumers from hurdles or lack of transparency when terminating long-term contractual relationships and at the same time to encourage companies to design their online customer areas transparently.

Decision of the Munich I Regional Court: Design of the Sky cancellation button inadmissible

The Munich I Regional Court dealt with the cancellation function of Sky Deutschland Fernsehen GmbH & Co. KG (Judgment of November 16, 2023, Ref. 12 O 4127/23, Source: urteile.news). According to the judges, the design of the cancellation button provided by Sky on its customer portal did not meet the legal requirements. The company was specifically prohibited from continuing to offer a cancellation process in which essential information only became visible after the consumer confirmed additional pages or options.

Requirements for the cancellation button and the subsequent confirmation page

Of particular importance is that the cancellation button – the so-called “Cancel” button – must be easily accessible and clearly labeled as such in the logged-in customer area. The court found that separating the actual button and the complete information about the termination of the contract over several consecutive pages does not meet the requirements of § 312k para. 2 BGB. In particular, no further steps should be interposed that delay the customer’s intention to cancel or make exercising the right of cancellation more difficult.

Naming and visibility requirement

The law requires that the button be labeled literally or clearly with “Cancel contract here” or an equivalent phrase. A reference to subpages (“Cancellation options”) is not sufficient according to the Munich judges. The consumer must be able to recognize immediately how and where they can terminate their contract without additional obstacles arising. The functionality and visibility of the button are as crucial as its clear labeling.

Impacts on companies and the design of digital cancellation processes

The decision of the Munich I Regional Court intensifies the requirements for digital customer interfaces for companies across industries. Contract providers are required to review their existing online portal structures and ensure that consumers can cancel without hindrance, quickly, and without interaction cascades that exceed reasonable thresholds. The judgment is in the context of increasing regulatory expectations for fairness and transparency in e-commerce, particularly in consumer law.

Legal consequences of violations: Inadmissibility and liability risks

The court emphasized that violations of § 312k BGB are not only anti-competitive but can also result in claims for injunctions, removal, and possibly damages. Companies that do not adapt their digital cancellation process or do not comply with the requirements are subject to significant risks of warnings and legal claims. The increased liability applies regardless of whether an actual intention to cancel was thwarted. The mere difficulty or lack of transparency in cancellation is legally significant.

Significance of the judgment for the economic and IT sector

The Munich I Regional Court’s decision clarifies the previously partly contentious requirements of § 312k BGB and provides important guidelines for the design of online customer areas. Companies in the telecommunications, media, entertainment, and other service sectors should carefully analyze this judgment to avoid process risks and follow-up costs. It should also be observed how jurisdiction on digital cancellation options develops further. An appeal against the judgment was allowed; a supreme court clarification is still pending (as of November 21, 2023, see urteile.news).

Against the backdrop of constantly changing technical and legal requirements in sales and IT law, it is advisable to regularly review existing contracts and digital processes for compliance and to keep track of current developments. Companies, investors, and wealthy private individuals who have questions about practical implementation, innovation opportunities, or industry-specific features find in-depth support inlegal consulting in IT lawfrom MTR Legal.