A new EU consumer protection requirement comes into force this month, and if you sell to customers in Europe, it affects your store directly.
From 19 June 2026, EU law requires online traders to provide an electronic withdrawal function for distance contracts concluded via online interfaces. In simple terms: if a customer can buy from you in a few clicks, they must be able to cancel or return with the same ease.
What the law actually requires
The requirement works in two steps. First, a clearly labelled button must allow the customer to indicate their intention to withdraw. Second, a confirmation step allows them to submit their withdrawal declaration, providing their name, contract details, and preferred contact method.
The button must be prominently displayed, easily accessible throughout the entire withdrawal period, and labelled with wording such as "withdraw from contract here". Vague labels like "cancel" or "check" are likely to be considered non-compliant.
Once a customer submits their withdrawal, you must confirm receipt on a durable medium, typically email, without delay. That confirmation must include the content of the withdrawal declaration and the date and time of submission.
What happens if you don't comply
The consequences are significant. Fines in Germany alone are currently set at up to €50,000, or 4% of annual turnover for larger businesses. Consumer protection associations and competitors can also pursue legal action. Perhaps most commercially damaging, non-compliant stores risk an extended withdrawal period, allowing customers to withdraw from a contract at any time until compliant procedures are in place.
Germany is likely to be the strictest enforcer, but similar action is expected across other member states as the rules bed in.
How this applies to UK brands
If you are a UK-based business selling into Europe, this applies to you. Any non-EU business targeting or serving EU consumers must comply, regardless of where the business is established.
What to do now
If you have not already made changes to your storefront, these are the immediate priorities:
- Audit your current returns and cancellation flow.
- Check whether it meets the two-step requirement and whether the button labelling is unambiguous.
- Confirm the function is accessible without requiring a login where the original purchase was made as a guest.
- Make sure your confirmation email is sent automatically on submission.
Work with Velstar
If you need to get your store compliant quickly, get in touch with Velstar. Our team of specialist developers can audit your current customer journey, implement the required withdrawal function, and make sure your store meets the new requirements before enforcement activity begins.