What Is the Two-Click Cancellation Law and Its Impact on Subscriptions

The new two-click cancellation law gives a new meaning to subscription contracts. Vendors can no longer bind customers to yearly renewals.

What Is the Two-Click Cancellation Law and Its Impact on Subscriptions

In October 2021, a new law was introduced in Germany about the termination of subscription contracts.

Here a recap

  • All consumer-facing businesses can no longer bind consumers for yearly renewals.
  • Businesses must provide a VISIBLE cancellation button on the website so consumers can easily cancel their subscription contracts.
  • The cancellation button must be permanently accessible on all pages and clearly labelled.
  • The cancellation button must lead the consumer to a confirmation page where they can provide information on the type of termination, the reason for termination, clear means of identification, the time at which the termination shall take effect and contact data to confirm the termination easily by electronic means.
  • Customers should also be able to save and be provided with the termination notice.  The notice should clearly indicate that the termination was submitted by pressing the confirmation button.
The two click cancellation law is effective as on 1st July 2022.

What needs to be done?

Button on the website: as part of the "two-click cancellation" process you must add a button on your website that indicated that it's a cancellation button.

Confirmation page: The button should then lead to another page where the customer can provide information on the type of termination, the reason for termination, clear means of identification, the time at which the termination shall take effect and contact data to confirm the termination easily by electronic means.

Solution for subscription eCommerce

Implementation of a page where the button leads to can be done in a customer self service portal. A customer self service portal typically contains all order and subscription related information. This is also the information the customer needs as per the two-click cancellation law, to complete the termination/cancellation process.

Being able to differentiate between different products and subscriptions is important especially when acustomer has more than one active subscription with a vendor/seller.

The circuly customer self service portal also covers the cancellation process and provides an easy solution to implement the new law. To know more about the circuly customer self service portal, read this article.

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