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ARTICLE · 30 JUNE 2025

Termination Button–Also Required For Agreements With Automatic Expiry And One-Time Payment

K&L Gates
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The case involved a loyalty program offering consumers benefits in exchange for a one-time payment and ending automatically after twelve months.

GermanyConsumer Protection

In a recent ruling (I ZR 161/24, 22 May 2025), the German Federal Court of Justice (BGH) clarified the scope of § 312k German Civil Code (BGB) regarding the obligation to provide a 'cancellation button' on websites if traders enable consumers to conclude continuing performance contracts (Dauerschuldverhältnis) via their website.

The case involved a loyalty program offering consumers benefits in exchange for a one-time payment and ending automatically after twelve months. The online-shop operator did not provide such a cancellation button arguing that these agreements cannot be considered a contract of continuing performance.

However, the BGH found that the contractual relationship constitutes a contract of continuing performance due to the ongoing performance obligations of the trader throughout the loyalty program term (awarding bonus points, free shipping). The form of the consumers' payment–whether lump sum or recuring–was on the other hand considered not

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