Withdrawal and cancellation for digital subscriptions

In short: Whoever offers or books digital subscriptions should know the difference between withdrawal and cancellation. Withdrawal undoes the contract, cancellation ends it for the future.

Withdrawal

For contracts on the internet consumers usually have 14 days to withdraw without giving a reason. The period begins with the conclusion of the contract, but only if the provider has informed properly (otherwise up to 12 months and 14 days longer).

Special rule for digital content and services: the right of withdrawal can lapse if

1. the consumer has expressly agreed that the provider starts the service immediately,
2. they have confirmed that they thereby lose their right of withdrawal or, for services, that it lapses after full performance,
3. and the provider has confirmed this.

That is why shops show a box with this notice before payment. For a subscription this applies to the period begun. See Right of withdrawal for digital content.

Cancellation

• Term and notice are in the contract. Consumer contracts that renew tacitly can, after the initial term, only be cancelled with at most one month’s notice (§ 309 BGB), valid for contracts since March 2022.
• Cancellation button: whoever offers consumer contracts that can be concluded online must also offer an easy-to-find cancellation with two clicks and a confirmation page (§ 312k BGB). The button is called “Cancel contracts here”.
• A cancellation needs no reason; the provider must send a dated confirmation immediately.

Practical tips for providers

1. Maintain withdrawal information and consent box.
2. Keep the cancellation button clearly visible and test it.
3. Remind before renewal; this saves disputes and chargebacks.

Practical tips for customers

Note trial and free subscriptions in the calendar and cancel in time. In a dispute settle payments with the provider first, then bank/consumer centre. Not legal advice.

See also: Contracts and terms for small founders