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| 2 minute read

Tech Litigation Lunchbreak - Liability for missing cancellation button on third party website

An e-commerce platform offering online subscriptions exclusively via the website of a partner company (“partner website”) must ensure that subscriptions can be canceled via a cancellation button on the partner’s website. This was recently confirmed by the Higher Regional Court (“OLG”) of Celle (File number 13 U 7/24).

Court rulings regarding cancellation buttons have traditionally focused on whether such buttons are "immediately and easily accessible." However, the OLG Celle has now extended this principle by clarifying that the obligation to provide a cancellation button may not only apply to the platform's own website but also to third-party websites under certain circumstances.

Key-facts of the case

In the case at hand, subscriptions for guitar lessons were being offered on a partner website). Consumers initiated the subscription process by selecting a subscription plan on the partner website. However, no cancellation button was available on the partner website at this stage. The consumers were redirected to the e-commerce platform's product page to complete the final contract. The contract was therefore only concluded on the platform's website.

Court's reasoning

The OLG Celle held that the e-commerce platform was responsible for ensuring a cancellation button was available on the partner website even though the contract was not concluded on the partner website at all. The court referred to Section 312k of the German Civil Code (BGB), noting that the provision's purpose is to make it easier for consumers to locate the cancellation option for contracts entered into via electronic commerce. Therefore, the cancellation button must be available at the point where the subscription process begins and where the offer is made to the consumer. The fact that the consumer is later redirected to another page before completing the order does not absolve the platform from this responsibility.

Impact on e-commerce 

Why is the e-commerce platform liable for the absence of a cancellation button on a partner website? According to the court, the platform had effectively outsourced part of its business operations and the accessibility of its subscription services to the partner website as the e-commerce platform page could only be accessed via the partner website. Furthermore, the platform had sufficient control over the third party to require compliance with legal obligations, including the provision of a cancellation button. The court also emphasized that the e-commerce platform, as the provider of this business model, had a duty to ensure it retained sufficient influence over its partners to enforce compliance with these obligations.

Key takeaway

"Out of sight, out of mind" is not an excuse when it comes to cancellation buttons. E-commerce platforms should carefully evaluate whether their partner websites comply with the requirements of Section 312k of the German Civil Code (BGB). If these partner websites do not meet the necessary standards, the platforms could potentially be held liable for the absence of cancellation buttons on their partners' sites. This must be taken into account in particular in the contractual agreements with business partners.

Tags

tech litigation lunchbreak, gdpr, mass litigation, privacy, privacy litigation, e-commerce, cancellation button, bgb, germany, german civil law, zivilrecht, emerging technologies, emtech