EU consumer protection law update: New mandatory withdrawal button – what online traders need to know

The EU continues to operationalise consumer rights in the digital environment. Directive (European Union) 2023/2673 introduces a new requirement into the Consumer Rights Directive 2011/83/EU (“Consumer Rights Directive (CRD)”), requiring traders to provide an electronic withdrawal function for distance contracts concluded via online interfaces. Commonly referred to as the “withdrawal button”, this new mechanism is intended to ensure that consumers can withdraw from an online contract just as easily as they can conclude it. The withdrawal button was introduced at the initiative of Germany, drawing on prior national experience with mandatory interface‑based consumer protection mechanisms (the so‑called “Kündigungsbutton”). The new obligations will apply from 19 June 2026 and will have material consequences for the design of online customer journeys, websites and apps targeting EU consumers.