The right of termination is one of the fundamental rights of consumers of digital content and digital services in cases of providers’ breach of contractual obligations. Nevertheless, the expansion of digital products and their distinctive characteristics—such as the intangible nature of the subject matter, the possibility for consumers to provide personal data as contractual consideration, and the absence of a tangible product that can be returned—have created numerous challenges regarding the termination of digital contracts in many legal systems. Consequently, for the first time, the European Union adopted specific rules governing the right of termination of such contracts in Directive (EU) 2019/770, taking into account the various issues arising in this field. Moreover, Iranian contract law extensively recognizes the consumer’s right of termination under general contract rules. However, applying these rules to digital products is challenging due to their unique nature. Therefore, this study examines the grounds and effects of terminating digital contracts in EU law, considering its innovation and relevance for Iranian law. The findings show that, as in the EU, the emergence of new legal issues in digital contract termination highlights the need for specific regulations in Iran to align existing rules with the realities of the digital economy and to clarify the rights and obligations of contracting parties.