Consumer Law for E-Commerce in Germany

Consumer law for e commerce in Germany: the overview

Consumer law for e commerce in Germany rests on the German Civil Code (Bürgerliches Gesetzbuch, BGB), which transposes the EU Consumer Rights Directive, the E-Commerce Directive and related rules in §§ 312 to 312m and §§ 355 to 361 BGB, together with detailed information requirements in the Introductory Act to the Civil Code (EGBGB). Anyone selling goods, digital content or services online to consumers in Germany must provide extensive pre-contractual information, design the order process in a prescribed way, respect a 14-day right of withdrawal and, for subscriptions, offer a cancellation button. Since 19 June 2026, online traders must also provide an electronic withdrawal function.

Breaches can extend withdrawal periods, make contract terms ineffective and lead to warning letters from competitors and consumer associations.

These rules apply to traders established in Germany and, as a rule, to foreign traders who direct their activities to German consumers, because Article 6 of the Rome I Regulation protects consumers' home-country mandatory law in such cases. A shop in German, delivery to German addresses and prices in euros are strong indications of targeting. Unfair competition law (UWG) and the Price Indication Ordinance (PAngV) add further layers, and platform rules under the Digital Services Act apply to marketplaces. This briefing focuses on the contractual consumer law for e commerce that every online seller must get right.

Pre-contractual information duties

Before a consumer places an order, the trader must provide the information listed in Article 246a § 1 EGBGB in a clear and comprehensible manner (§ 312d BGB). This includes the essential characteristics of the goods or services, the trader's identity and contact details, the total price including taxes and delivery costs, payment, delivery and performance arrangements, the existence of a statutory warranty, the conditions of any guarantee and after-sales service, the duration of the contract and termination conditions, functionality and interoperability of digital content, and the conditions, time limit and procedure for exercising the right of withdrawal, together with the model withdrawal form.

In electronic commerce, § 312i BGB adds technical duties: the trader must provide means to identify and correct input errors before the order, inform about the technical steps to conclude the contract, confirm receipt of the order without delay and make the contract terms, including standard terms, available for storage. For online sales, the essential characteristics, total price, contract duration and minimum term must be displayed clearly and prominently immediately before the consumer places the order (§ 312j(2) BGB). Delivery restrictions and accepted means of payment must be stated at the latest at the start of the ordering process.

The button solution and the order process

A core element of consumer law for e commerce in Germany is the "button solution". Under § 312j(3) BGB, the trader must design the order process so that the consumer expressly confirms that the order involves an obligation to pay. If the order is placed by clicking a button, the button must be labelled clearly and legibly with nothing other than the words "zahlungspflichtig bestellen" ("order with obligation to pay") or an equally unambiguous wording.

A button that only says "order", "continue" or "buy now" without making the payment obligation clear carries a significant risk. The sanction is severe: if the trader does not comply, no contract is concluded (§ 312j(4) BGB), and the trader cannot claim payment.

The Court of Justice of the EU has emphasised that the decisive question is whether the wording, read on its own, makes the payment obligation clear to the consumer, without reference to the surrounding circumstances. Wordings such as "buy" have been accepted in German practice where the meaning is unambiguous, but traders who deviate from the statutory example accept a litigation risk. The same strict approach applies to apps, voice commerce and in-game purchases where a contract is concluded.

The right of withdrawal

Consumers who conclude a distance contract have a right of withdrawal under § 312g BGB, which they can exercise within 14 days without giving reasons (§ 355 BGB). For sales of goods, the period generally starts when the consumer receives the goods; for services and digital content, on conclusion of the contract. The period does not begin until the trader has properly informed the consumer about the right of withdrawal, and if the information is missing or wrong, the right expires at the latest twelve months and 14 days after the normal start (§ 356(3) BGB).

The statutory model withdrawal notice in Annex 1 to Article 246a EGBGB offers protection if used correctly.

Exceptions under § 312g(2) BGB include goods made to the consumer's specifications, perishable goods, sealed goods unsuitable for return for health or hygiene reasons once unsealed, and sealed audio, video or software once unsealed. For services and digital content, the right can expire early if performance begins with the consumer's express consent and acknowledgement. After withdrawal, the trader must refund all payments, including standard delivery costs, within 14 days, but may withhold the refund until the goods are returned or proof of dispatch is provided. The consumer bears the direct costs of return only if informed of this in advance.

From 19 June 2026, online traders must additionally offer an electronic withdrawal function. Under § 356a BGB, distance contracts concluded through an online interface require a clearly labelled function, for example "Vertrag widerrufen" ("withdraw from contract"), which must be permanently available during the withdrawal period, followed by a confirmation step and an acknowledgement of receipt on a durable medium. Our briefing on the withdrawal button explains the details.

Subscriptions, renewals and the cancellation button

Subscription models are a particular focus of German online consumer protection. Since 1 March 2022, standard terms in consumer contracts for the regular supply of goods or services may only provide for tacit renewal if the contract is extended for an indefinite period and the consumer can terminate it at any time with a notice period of no more than one month (§ 309 no. 9 BGB). Initial terms of more than two years are not permitted in standard terms, and notice periods for the initial term may not exceed one month.

Since 1 July 2022, traders who enable consumers to conclude continuing obligations on a website must also provide a cancellation button under § 312k BGB. The button must be labelled "Verträge hier kündigen" ("cancel contracts here") or with similarly clear wording and must lead to a confirmation page where the consumer can enter the necessary details and submit the notice with a second button labelled "jetzt kündigen" ("cancel now").

The trader must confirm receipt immediately on a durable medium. If the trader fails to provide the button, consumers can terminate at any time without notice. Courts have taken a strict view of designs that hide the button behind log-ins or extra steps.

Enforcement, warning letters and cross-border sales

These rules are enforced mainly privately in Germany, not by a regulator. Competitors, qualified business associations and consumer associations can send warning letters (Abmahnungen) and seek injunctions under the UWG and the Injunctions Act (UKlaG). The 2020 Act to Strengthen Fair Competition restricted abusive warning letters, for example by limiting cost reimbursement for certain online information breaches by competitors, but associations remain active. Consumer associations can also bring redress actions on behalf of many consumers under the Consumer Rights Enforcement Act (VDuG).

Public enforcement exists as well: the CPC Regulation allows coordinated actions by consumer protection authorities across the EU, and Article 246e EGBGB and the UWG provide for fines in widespread infringements. Foreign sellers should not assume that compliance with their home law is sufficient. Where they target German consumers, German mandatory consumer protection applies, and German courts will accept jurisdiction for consumer claims under the Brussels Ia Regulation. Standard terms should be prepared in German, adapted to German law on standard business terms, and reviewed whenever legislation changes, as it has repeatedly in recent years.

A consumer law for e commerce checklist

• Legal notice (Impressum) and contact details under the Digital Services Act and national law.
• Pre-contractual information under Article 246a EGBGB, including warranty and guarantee information.
• Summary page before ordering and a compliant order button.
• Withdrawal notice, model form and the new withdrawal function under § 356a BGB.
• Cancellation button and compliant renewal terms for subscriptions.
• Price indications including total prices and unit prices under the PAngV, and rules on price reductions.
• Standard terms reviewed for German law on unfair terms, including liability limits.
• Data protection, cookie consent and newsletter consent processes.

Illustration: a Dutch fashion retailer launches a German-language web shop with a subscription service for curated boxes. It must comply with German consumer law for e commerce: the order button must state the payment obligation, the subscription may renew only indefinitely with monthly termination, the site needs the cancellation button and, since June 2026, the withdrawal function, and its terms must work under German law even if Dutch law is chosen.

How TRW & Co helps

We advise online retailers, platforms, brands and subscription businesses on consumer law for e commerce in Germany. We audit checkout and cancellation flows, draft German-law standard terms, withdrawal notices and customer communications, and advise on pricing, marketplace and payment issues. When warning letters or injunction applications arrive, we assess them quickly and defend our clients in court.

Our work links with our advice on digital platforms, commercial contracts and standard terms and the retail and consumer goods sector. See also our note on unfair competition law. Please contact us for a review of your shop or an assessment of a warning letter you have received. Early analysis often makes it possible to limit costs by responding with a carefully worded cease-and-desist undertaking rather than litigating. This note is general information, not legal advice.