New EU Regulation to Strengthen Consumer Rights with 'Revocation Button' from June 2026 Amid Continued Retailer Non-Compliance

Amid growing consumer confusion and misinformation regarding their rights, German consumers have faced challenges in exercising their right of withdrawal for online purchases. Over the past 18 months, the Verbraucherzentrale Brandenburg received more than 1,000 inquiries about contract cancellations, underscoring widespread issues with retailers providing incorrect or incomplete information about consumers' right to revoke purchases.

Typically, consumers have 14 days from receipt of goods to revoke an online purchase, followed by another 14 days to return the items after notifying the seller. However, many online shops unlawfully exclude or attempt to shorten this revocation period and complicate the process. According to Stefanie Kahnert, a lawyer at the Verbraucherzentrale, revocation can be submitted via letter, email, fax, or phone, but consumers are advised to keep proof of their revocation. Notably, simply returning goods does not count as revocation; a clear notice must be given.

To simplify this process and enhance compliance, a new EU regulation will come into effect on June 19, 2026, mandating the introduction of a 'Widerrufsbutton' (revocation button) on online retail websites. This button aims to make it easier for consumers to revoke contracts and assert their rights clearly.

In a related regulatory development, starting in 2027, Germany and the broader EU will implement a cash transaction limit of 10,000 euros to combat money laundering and terrorism financing. While this rule mainly affects commercial transactions and requires identity verification for payments over 3,000 euros, private transactions remain exempt. This financial regulation highlights the EU’s ongoing efforts to enhance consumer protection and transaction transparency.